Thinking of buying a new or pre-owned RV? Preparing prior to even beginning to shop is key. Armed with a solid understanding of the financing process, you will be better positioned to drive away with your dream RV while working within your budget.
Pay Cash or Finance?
If you have the means, it may be tempting to avoid monthly payments and purchase your RV with cash. However, that’s not necessarily the most beneficial option.
Cash buyers sometimes mistakenly believe they’re saving money by avoiding interest payments. However, consider the loss of earning power from the money you put into an RV. For example, any income derived from liquidating an asset may incur a capital-gains tax. Or, if your money is in a bank certificate of deposit (CD) that has not yet matured, you may incur a penalty for early withdrawal.
With affordable interest rates and flexible payment options, taking out an RV loan may be a more prudent option depending on your particular situation and goals. Financing your RV frees up cash that might otherwise be spent on a cash purchase. Financing might even allow you to purchase a larger RV than if you paid with cash.
Determine Your Price Range
The easiest way to help determine how much you can spend on an RV is to subtract all monthly expenses from your monthly income. Doing this will help you estimate what you can afford to spend each month.
There are many websites that offer online tools to help you calculate the loan amount and monthly payments, including the Good Sam Finance Center. Visit the Good Sam Finance Center and click on the “Loan Calculator” link. You can find the Good Sam Finance Center’s current interest rates and request a custom rate quote.
Loan Options
Financing an RV is easier than ever with flexible payment plans and loan terms up to 20 years when financing over $50,000. For those who consider their RV as their full-time residence, there are loan options for Full Time RVers that meet the stricter federal guidelines, but not all lenders offer Full Timer RV loans, so be sure to ask.
Be Prepared and Get Pre-Approved
Having a loan approval in hand before you start RV shopping helps make the process more efficient. Many finance companies offer free quotes and no application fees, so it’s a safe start to your purchasing process. Once pre-approved, you’ll know exactly how much you can afford to spend at the dealership or with a private party seller.
Whether you purchase from a dealership or a private party or are looking to refinance, now is a good time to check out how Good Sam can help you. For the Good Sam Finance Center’s current interest rates and to apply for pre-approval, click here or call toll-free 1-800-444-1476 and mention priority code 881 and a loan specialist will be happy to assist you.
