Buying an RV is a major life decision. For many households, a new recreational vehicle may be the second biggest purchase they make–after a house, of course. Luckily, whether you attend a local RV show or purchase from a dealership, it is often possible to finance when you purchase an RV. This makes it possible to spread the payments out over time so that you can make your dreams of RV travel become a reality.
Here are four tips for financing an RV that will help you with the process.
- Credit Matters — Much like when you purchase a vehicle or even buy a home, you will qualify for the best interest rate if you have a higher credit score. If you are able to put in a little work before you actively start shopping for an RV, work on increasing your credit score. Pay down some extra credit card debt, if possible. Request a copy of your credit report from Equifax and Transunion (the two major credit reporting agencies in Canada) and make sure there are no negatives on your report that need attention. A little work ahead of time on your credit can save you big in the future.
- Save for a Down Payment — The dealership you purchase your RV from may or may not require that you put down a significant chunk as a down payment on your RV. However, by doing so, you may be able to save money in the long run. Often you can secure a lower interest rate by putting down a larger down payment, plus your payments will be more manageable too.
- Set Your Budget — Before you set foot on the showroom floor, be sure to set a budget. It can be exciting to see all the RVs in person and the dealers are highly skilled to encourage you to buy. Know what you are prepared to spend before you start looking and do not let a salesperson sway you from your budget. Remember, even if the monthly payment seems reasonable, you will be paying on it for 10 or even 20 years! This is how many people wind up in a bad situation.
- Shop Around for Interest Rates — You might not realize it, but there are other places you can finance your RV from other than the dealership you purchase. Connect with your bank or credit union before you start shopping to find out if they offer loans on RVs, or if they have any suggestions for financing. If you go into the transaction armed with financing, not only do you have the best possible interest rate, but you are in a better position for negotiation too.
As you can see, there’s a lot to think about when it comes to financing this major purchase. Once you settle the financing and purchase the RV of your dreams, remember that another big decision is insurance. For more information on RV insurance, connect with broker today to get answers to all your insurance questions.