Tips for Financing an RV

Individuals who wish to own an RV often find they must finance their new Winnebago or Forest River RV. They don’t have the funds to purchase a recreational vehicle outright. In fact, many people compare this purchase to buying a home. The process can be complicated and leave a person feeling overwhelmed. 

However, the end result makes the process worthwhile. A person can drive out of an RV dealer in Rocklin, CA the product owner of a new or used RV. The following tips help any individual make their way through the financing process as painlessly as possible. 

Compare Interest Rates

The Federal Reserve raised interest rates several times recently, and experts believe there will be more increases in the coming months. The interest rate plays a key role in how much a person will pay for their new recreational vehicle. However, interest rates may vary by lender or due to the borrower’s credit score. 

Research different lenders to find the best interest rate for a new RV sale. In addition, work to improve your credit score before applying for financing. Small changes in a borrower’s credit score can make a significant difference in how much they will pay over the life of the loan. 

Consider a Used RV

When a person purchases a new RV, they may find the vehicle spends a large portion of the first year in the shop. The vehicle includes thousands of parts, and anything could go wrong with those parts. While the warranty included with the RV should cover the cost of these repairs, many owners become frustrated with their new vehicle. They spend more time working out kinks with the vehicle than they do on the road. 

By purchasing used, an RV owner will encounter fewer issues with the vehicle. The previous owner more than likely had the necessary repairs made. The second and subsequent owners won’t have as many repairs to deal with. They can travel with confidence knowing they won’t experience as many breakdowns. 

Buying used means the owner won’t take a large hit for depreciation either. Experts estimate a new recreational vehicle depreciates 18 percent in the first year, an additional five percent in the second year, and another five percent in year three. It isn’t until year four that depreciation slows. Many buyers choose to invest in an RV that is three years old or older to avoid the initial depreciation. 

Prepare for a Pre-Purchase Inspection

Many lenders require a buyer to have the RV inspected before providing funds for the purchase. This is similar, in many ways, to a home inspection. The amount to be financed typically plays a role in whether this inspection is required. The lender wants to know if they can recoup their funds if the buyer doesn’t make the payments as agreed. 

Prepare to Negotiate

Many people walk into a dealership with a check already written for the full amount of the RV. Don’t make this mistake. While it never hurts to research all financing options, a person should negotiate with the dealership to get a better price. Dealers expect people to negotiate and often raise the price of an RV with this in mind. 

In some cases, a person may find they can pay tens of thousands of dollars less by negotiating. In addition, once a buyer finds a model they like, they should check nearby dealerships to see if they can get a better deal. When spending this much money, the buyer may even want to check dealerships in neighboring states to ensure they get the best deal. 

Consider Service Amenities

Regular maintenance of the RV is part of being an owner. When comparing dealers, see if they offer RV service. Some dealers may offer free service for a period when the RV is purchased through them. This is one thing to look for when buying. Learn whether each dealer offers perks such as these to draw buyers in.

Buying an RV is similar to buying a home. The purchaser must know how much they can afford, taking into account the monthly payments, insurance, maintenance, and more. Financing plays a role in how much a person can pay for an RV, so make certain this information is known before shopping for an RV.

Buyers who take this step find they know exactly what they can afford and don’t get caught up in their emotions and spend more than they planned. They use their money wisely and get an RV they love and can afford. 

Shop At the Area’s Best Dealership

Bill Eads RV operates on a no-hassle sales philosophy. Our team allows customers to browse with no pressure, and we carry a range of quality products, including new and used RVs. Our dedicated and knowledgeable staff members know what RV owners need and work to find the right products and services for each customer. 

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