Financing An RV
An RV is the perfect way to elevate your next road trip or camping experience, but it’s also a hefty investment. If you’re struggling to stretch your dollar, there are financing solutions that can help! We here at Casa Grande want to help you balance your budget with your right to make the most of your vacations, so we’ve put together some tips for financing your RV purchase. To learn more, or to see the RVs we have for sale, contact our store in Casa Grande, Arizona, today!
1: Budget
Like with any large purchase, you’ll want to have a firm budget in place before you start shopping. That way you don’t fall in love with a model you can’t currently afford. While you’re crunching your numbers, keep in mind that you’ll need to pay 10-20% of the RV’s sticker price up front and will have to afford monthly installments with interest.
2: Save Up A Down Payment
Like we said, you’ll need to pay 10-20% of the RV’s full price up front to get your purchase started. Since this is a one-time payment, you don’t need to plan too far ahead for this part. Simply save up the amount over time. Keep in mind that a larger down payment means long-term savings thanks to lower interest rates!
3: Your Credit
Most lenders will need to know your credit score and history before approving your loan. Make sure you know your score and, if you can, work on improving it before you apply. Credit scores above 700 will get loans with more favorable terms.
4: Loan Types
The two main types of loans you’ll encounter here at secured and unsecured loans. A secured loan is easier to obtain with a lower credit score, but they tend to have a higher interest rate and your RV is collateral. That means that if you default on payments, the lender can repossess your RV. An unsecured loan requires a higher credit score, but they have better terms and your RV won’t be repossessed if you default.
5: Consider Your RV’s Long-Term Value
Be careful to avoid paying more than your RV is worth. The wrong loan for the wrong RV can have an interest rate that sees you eventually paying significantly more than you should for the purchase. RVs depreciate quickly, so buying something used or an older model can help you avoid that predicament. When you’re exploring your RV options, stick to what you can afford long-term and make the biggest down payment you can afford.
Ready to see your options? Contact us at Casa Grande RV to talk to our finance experts, either with questions or to apply for a loan. We proudly serve the people of Chandler and Gilbert, Arizona—let us serve you today!