Owning a vehicle is a luxury that many people enjoy. For this reason, many aspiring vehicle owners make use of financing options to be one step closer to their dream vehicle. Vehicle loans cover many cars, such as recreational vehicles or RVs.
RVs are van-like vehicles that have living quarters in them. People love them because it allows you to be on the road, and you simply need to pull over if you need to rest. While highly beneficial, RVs can sometimes have high-interest rates, which is why there’s a certain degree of aversion towards them.
How do you avoid bad financing options when getting an RV? We’re here to tell you about what you need to know. Read on below to learn more.
Avoiding Bad Financing: What to Avoid
1. Buying on Impulse
It goes without saying that you shouldn’t buy on impulse, but it has to be reiterated that you shouldn’t splurge your money on expensive stuff. The average price of an RV is $5,000. That amount could go higher up depending on the RV type. Like most things, you should have a budget when buying an RV.
Aside from the actual cost of the RV, there are also other things to consider when buying one. These include:
- Maintenance and repair
- RV camp reservations
2. Not Having a Down Payment
A down payment is essential to get the best financing interest rates and payment terms for your RV. Usually, a down payment for an RV is at 10 to 20% of the RV’s purchase price, but it differs from lender to lender. It can also be higher if the RV is used.
In other words, your monthly payments will be lower if you have more money for a down payment. Aside from that, it can also lower your interest rate.
3. Not Keeping an Eye on Your Credit Score
Your credit score is the basis of a lender if they’ll lend you money for a loan or not. An RV is not a necessity like a house or a car, which is why you’ll need a high credit score.
Before shopping for a new RV, make sure to check your credit score. If it’s below 700, get to work on getting it higher so that you can get the best financing options.
RV Financing Options
As stated earlier, there are many types of financing depending on the RV model. It’s essential to know more about them to understand the financing options available better. These include:
- Motorhomes: Motorhome financing has Class A, B, and C options that are available. Depending on its size, you can find a financing option that suits your needs.
- Travel Trailers: For vehicles with towing capacity, a travel trailer is perhaps the best option. A travel trailer is essentially the living space that’s attached to your vehicle.
- Campers: Similar to motorhomes, they also have different financing options that you can choose from.
- Sport Utility: Sport utility RVs are available in motorized and towed versions. This kind of RV can let you bring an ATV, dirt bike, or other powersports vehicles when you’re on the road. They have a garage which can be opened by the rear, making things easier for you.
Owning an RV gives you the luxury of comfort during road trips. They can be pretty expensive, so make sure to get one that’s within your budget so that you won’t have any difficulty paying for it. If you still have trouble, however, never hesitate to call on the experts!
Canada Powersports Financing can help you get that dream RV of yours through our RV financing programs. We also offer financing options for other vehicles, such as ATVs, dirt bikes, snowmobiles, and jet skis. Contact us today for a consultation!