How to Save Money on RV Financing
As with houses and cars, which are major life purchases, financing an RV (recreational vehicle) can often be expensive. Fortunately, there are several other ways to finance an RV without having to pay the whole cost upfront.
One way is to request a loan from a bank, credit union or an RV dealership. If you decide to finance your purchase, you’ll want to save as much money as you can on your RV financing.
Here are four tips to help you save money when choosing RV financing.
- Buy a used RV
When it comes to RVs, buying an older model or a used RV comes with several benefits. Naturally, dealers always want to make room for new models, so they usually reduce the price of older models and make the financing process more flexible for the consumer.
Many consumers believe that buying a new RV will present fewer problems and save them the cost of maintenance. But this isn’t always the case. By spending less to finance an older RV, you’ll have some money left to invest in upgrades and customization.
You’ll also avoid the costs of maintenance and depreciation that you would have had to cover if you were buying a new RV.
- Get pre-approved
Before you go to a dealer or start shopping for an RV, try to pre-approve your RV financing. Pre-approval lets you estimate how much you can borrow for your vehicle financing, and this can help you avoid more expensive options that exceed your budget.
By getting pre-approved, you’ll avoid the pressure of accepting a financing option that costs more than you can afford. Also, if you get preapproved by multiple lenders, you can compare their offers to choose the one that’s best for you.
- Improve your credit score
Before you go loan shopping, always check your credit report for issues that could lead to a loan denial. Issues like a loan default statement or a low credit score can greatly affect your chances of qualifying for a loan.
Lenders will normally ask to see your credit report before deciding whether or not you qualify for a loan. And if you do qualify for a loan, they will always give you the loan that best suits your credit status.
When it comes to RV financing, a good credit score can make all the difference. Having a credit score between 700 and 800 can get you an interest rate as low as 4%. Conversely, a poor credit score will either disqualify you for a loan or get you a loan with very high-interest rates.
- Choose the best interest rate
Financing an RV is a large investment, which explains why RV loans and interest rates are usually just as large. Thankfully, there are several organizations including My Financing USA to get an RV loan from, and their interest rates are still low.
Shopping around for the best interest rates on your RV loan is an effective way to save yourself a substantial amount of money every year. So, compare the interest rates of each of these organizations and pick the one that offers the best option.
