RV Loans – The INSIDE Story, what YOU need to know before…

RV Loans – Securing the BEST deal… (Part 5 of a “How to” buy a RV Series”)

It’s fun to dream isn’t it? Many folks shop for RV’s, sometimes for years dreaming of the times they’ll have the lifestyle they’ll live. For many, turning that dream into reality requires a loan as RV’s (especially new RV’s) are a big ticket item.

Note: Following the suggestions in the following video and the information written here can help to save you THOUSANDS over the life of your RV loan.

RV loans are categorized as recreational loans. The significance of this designation is addressed in my video below… (after the video join me below the video as I share a few summary thoughts – and as always, feel free to add yours below using the reply feature on this page.)

Summary thoughts:

  • Lenders are looking to issue loans to people whom they believe will pay them back! 
  • The better your credit score and debt:income ratio, the less you’ll pay for your loan
  • Credit unions and banks each have advantages to borrow from
  • Recreational loans incur a higher rate than auto loans, but typically run for a longer term
  • Loan interest on RV’s is potentially tax deductible – know your situation and relevant tax laws before doing so!

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Missed any of the “How to buy an RV” posts? Click HERE to get to the first post and review the entire series!

Already own an RV? Limit your exposure (yep, they do break!) with an extended service contract – here is MY STORY

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RV Loan Update (Dec 2017)

The FED has raised rates at least twice since I made this post. What this means to you is rates have gone up AND due to the number of folks who have extended their credit to the breaking point, lenders are being even more careful about giving out long term loans for RV purchases.

If you want an RV LOAN with the LONGEST term and LOWEST rate – be sure to have the best debt:income ratio you can present (that means PAY DOWN LOANS) and IF you have any “strikes” (collections, etc.) – be sure to get them resolved AND then check with each of the 3 credit reporting agencies (Experian, Trans Union, Equifax) BEFORE applying for your RV loan.

Lastly – if you’re looking for an RV and would like an expert guide by your side – our Concierge Buying Service may be for you.

RV Loan Update (Nov 2020) – Creditors LOVE to loan MORE. That may get you a better RATE and longer TERM. ASK the lender what the cutoff figures are for rate reductions. I recently had a client borrow on a 5 yr. old motorhome and get 5.49%, 20 year terms – it PAYS to have great credit AND be in a position to take out a big loan. Remember – you can always pay it down right after the paperwork is finalized. Just KEEP THE LOAN OPEN for at least 6 months after originating it – otherwise it could hurt your credit score!

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37 thoughts on “RV Loans – The INSIDE Story, what YOU need to know before…”

  1. Mr. Sills,

    You mentioned in you video titled “RV Loans – The Inside Story YOU Need to Know…” that you have credit card that pays 6% on groceries and 3% on fuel, and that you are willing to share the name of that card. I would greatly appreciate that information. Thanks in advance.

  2. Only thing about Rv Loads, it will drop your credit score.even after you find out you don’t get the loan.make sure you don’t check your credit. Get your own credit report.then have want you need.Then you will on getting the Rv you want.

    • John,

      Your advice is marginal (as frankly is your command of spelling and grammar!) – you refer to RV LoaNs – YES, when you apply for a loan, your credit score takes a SLIGHT hit (upon the 1st hard inquiry), subsequent inquires do not impact if done within a small period of time (45 days?). Checking your credit through credit karma (and similar) services does NOT impact your score – however – its also not a highly accurate number (I’ve seen these numbers off by 50 points.)

      I’m honestly not sure what the remainder of your statement is communicating. As I always counsel folks – in an ideal world, because RV’s are a DEPRECIATING asset, its best to NOT take a loan and wait until you can buy with cash (except for the fact that a loan can be used to negotiate a better price). That said, I’ve encountered MANY young families who WANT a camper NOW as their kids are the “prime age” NOW and waiting 10 years to get a camper will defeat the goal – spending quality time with their kids when they’re old enough to appreciate the lifestyle and experiences – and yet young enough to enjoy being part of their family. I find this is roughly when the kids are between ages 5 and 14.

    • Hi Linda,

      Its an Amex card, please click on this link – http://rvAcrossAmerica.net/amex – it will take you to an American Express page for that card. There IS an annual fee, BUT, I’ve found I get back 7-8x the cost of the card in rebates – which can be directly applied to your monthly statement. Al


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