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RV Loan Pre-Approval: Why It’s Your Secret Weapon for a Smooth RV Purchase

Mar 20, 2024 | RV Loans

Get the lowdown on flexible RV loan financing by calling Canada Powersports Financing today!

Are you planning to purchase a recreational vehicle? Maybe you’re wondering whether you qualify for RV financing. An RV loan pre-approval process can help determine your eligibility. 

Like other personal loans, your lender will comprehensively review your financial situation. They’ll want to ensure you meet at least some of their requirements to qualify for your loan. What else can you expect for a smooth RV purchase?

Canada Powersports Financing has provided these kinds of RV loans since 2012, so the team understands what RV financing pre-approval is all about. Below are a few things to know about improving your chances with the  RV loan pre-approval process.

Determine Your RV Budget

What do you imagine when you think about the kind of recreational vehicle you want? Before you get too far, take some time to pin down how much you can spend on an RV without denting your bank account. Also, consider the following when creating a budget:

  • Down payment. Your typical RV budget should include a 10% down payment. 
  • Repayment terms. Ensure you can afford the monthly payments before signing up for anything. 
  • Time commitment. RV loan lengths range from 1 to 15 years. A ten-year loan’s monthly payments will be higher, but you’ll pay off the loan sooner. While the monthly payments for a 15-year loan are lower, you’ll likely pay a greater interest portion over the long term.

Check Your Credit Score

With the RV loan pre-approval process, it pays to know your credit score before you apply for RV financing. With a credit score above the mid-700s, you can qualify for generous loan amounts at exceptionally low interest rates. Most lenders like a credit score to be above 600.

Is your score below that? Don’t panic; your dream of RVing in Canada may still be possible. You could even get financing if you’re ready to commit to a slightly higher interest rate.

Find a Suitable Lender First

Shopping for an RV before you find a lender isn’t a great idea. Why? Firstly, it can easily box you into shopping beyond your means.

The best approach is to first shop for a lender that’ll offer you a desirable RV loan rate. Once you know your budget, shopping for a recreational vehicle should be much easier, too.

Negotiate the RV Price

Before you purchase an RV, know what price is competitive. Some dealerships mark up RV prices by up to 50% because they know customers will often haggle over the price. In fact, if you’re ready to bargain, you can save a good chunk on the asking price. 

Also, look for any offers that save you money, such as upgrade options or free maintenance. 

Partner With a Reputable RV Financing Company

Since the RV loan pre-approval process is so simple, why not contact Canada Powersports Financing to learn more? Whether you have good, bad, or no credit, we may have an RV loan for you!

Call Canada Powersports Financing at (343) 307-4958 today or apply for an RV loan online!

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