The REAL cost of a RV loan – an analysis…

rv loans

Yes, it really DID snow on Casper Mountain on 9/25/17. These photos were taken on the morning of 9/25 as the clouds began to break and we could see the fresh snow at about 7000 – 8000 ft. elevation. (And, yes, it did not last long as it IS still September!!) But, as I write this on the evening of 9/26, it does feel more like mid-late October. And it looks like we’re going to have a true “Indian Summer” now as our first frost in town was this morning. But… you didn’t come here to see my funky snow photos, you are hear to see an analysis of RV loans so… read on!

PS – this is actually the 2nd post of a 3 part series. The first post can be viewed HERE.

rv loansps – you can click the images to see full size photos!

RV Loans – no secrets – just a real (and kinda simple) analysis

Still working on this post, its 9/27, just got back from Alcova (Lake) where I did some morning Kayaking. Beautiful morning – mid 40’s, little wind, nice canyon at the end of the marina road.

The following chart supports the video (where I discovered you can’t really read what was on my phone!) Review this chart as you view from roughly the 1:55 mark to the 5 minute mark in my video above.

Case 1Case 2Case 3
Amount Borrowed 25000.25000.25000.
Interest Rate 6%11.5%6%
Term12 years12 years 8.25 years
Payment (monthly) 243.96 320.83 320.83
Total Interest Paid 10131. 21,199. 6755.
Principle:Interest 71:29% 54:46% 79:21%

Source: calculator.net/payment-calculator.html

Lessons learned:

  1. ALL loans cost lots of $ in interest, so if you don’t have to borrow, don’t!
  2. Having good credit (750+) compared to fair credit (around 600) will save you THOUSANDS (10’s of thousands?!) on the SAME loan
  3. Paying over the minimum monthly can reduce your interest burden by THOUSANDS

Additional things to think about when buying a RV…

  • Insurance – a few tips: if you full time, tell the insurance company that! and DO get “full cost replacement” coverage
  • Road hazard/trip interruption protection – I highly recommend CoachNet
  • Extended Service Contracts – I wrote an article on this very topic, you can access it HERE

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9 thoughts on “The REAL cost of a RV loan – an analysis…

  1. Hey Alan, love your blog. I will be buying a trailer next spring or summer when I retire. I’m doing a lot of research right now, and just curious, what’s the lowest interest rate you have seen on a rv loan?
    Thanks
    Michael Parks
    Brenham, Texas

    • Michael,

      I’ve seen as low as 3.99%, but its from a credit union, shorter term (about 5-6 years), and only with current customers of that credit union.

      Al

  2. My 2 cents is, it depends on the year of trailer, how much you borrow and length of loan. I’ll let Alan take it from there. Good luck.

  3. We have tried to purchase an extended service contract. But the age of our MH & the mileage prevents it. We have spent thousands in upgrades & repairs & would do it again. We love traveling. If you are purchasing a used vehicle check with the insurance & service contract companies concerning coverage. It could save you.

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