When you’re ready to buy your recreational vehicle
Sales of recreational vehicles (RVs), campers, and trailers are growing every year as more and more people find adventure in camping and road trips. If you’re ready to find your new path, or looking to upgrade to something a little more comfortable, you’ll most likely need financing. Here are some simple steps for how to finance an RV, camper, or trailer without breaking your budget.
Buying one of these large vehicles for temporary living isn’t just about the purchase price. You’ll need to plan ahead for monthly payments with interest, fees and warranties, monthly and yearly maintenance costs, insurance, storage in the off season, and all the expenses that come with traveling, including fuel, campground fees, and perhaps a new vehicle for towing!
1. Figure Out How Much You Can Afford
This first step seems obvious, but you don’t want to start by shopping for and choosing your dream vehicle until you’ve checked your budget. Start with your income and future financial plans and expectations, and see how much you can handle monthly or yearly for this purchase. Remember to include your plan for retirement (whether it’s your present or in your near future), and the financial changes that brings.
2. Shop in Your Price Range
Many RV prices are inflated on the lot, so people often don’t pay sticker price. Dealers will negotiate the price with you, and there are many online resources to help in your search, and pricing strategy. So even though you can start with asking prices a little above your range, we like to recommend looking in your established range. That way, if you negotiate a lower price, consider the difference a savings, or even a bonus to add to your maintenance budget. Another great strategy is to start smaller, and if you like it—or if your family grows—plan to upgrade later.
3. Check Your Credit Rating
As with any significant loan, your credit will affect whether you are approved for a loan, as well as the rate you secure. A lower score, among other factors, can result in a higher interest rate. If your rating is low, ask how we can help you improve it before you apply for a loan. You can check your own credit score ahead of time, and we’ll also check it during the loan approval or pre-approval process. A small difference in your interest rate can make a big difference in what you pay over the life of the loan.
4. Save for a Down Payment
Saving cash to put down can help in a number of ways. You’re in a stronger negotiating position on the purchase price, you reduce your loan amount, and you’ll owe less on your vehicle over time, a big help when you’re looking to trade up or sell. Not sure how you can manage your budget to save? Ask us for advice!
5. Apply for a Recreational Loan
Among your many financing options, a Recreational Loan could be your smartest choice, depending on your wants and needs. Make an appointment to talk with us, and bring your questions. We’ll talk about your financial standing, budget, expectations, and plans, and cover the loan options and terms available to you. There are different rates for different length payoff terms (1-7 years), and your credit standing can make a difference. We can help with budget suggestions as well, and make sure you’re planning for all the expenses involved.
Start your next adventure with an Recreation Loan for an RV or Camper. Get started with the application process below.
If you’re not ready to apply for an RV Loan, and have questions, we are here to help. Call 315-735-8571 to talk about your options or make an appointment with one of our friendly and knowledgeable representatives today.