8 Useful Tips to Keep In Mind Before Financing A New RV

June 13,2024

In an ideal world, we’d win our RVs in raffles to benefit charity that help to make the world a better place. In actuality, we receive our RVs after receiving financing, which can be a difficult and time-consuming procedure if you aren’t the sort of person who can recite interest rates and credit scores in your sleep. Fortunately, there are a few simple dos and don’ts to keep in mind. The following advice comes from professionals and other campers.

1) Know the Interest Rate

What is the most common misunderstanding among clients regarding RV financing? Customers are frequently behind the curve when it comes to what the interest rate will be. I say this because interest rates are on the rise.

Unfortunately, many clients anticipate the same financing rate they received the last time they bought an RV. Depending on when you bought your last RV, it may be excellent news. Customers, on the other hand, are pleasantly pleased when interest rates fall.

2) Buying a Camper is Different from Buying a Car

Things unrelated to RVs impact our interest rate impression. For example, even if the car manufacturer offers 0% APR, you should know that it isn’t an actual interest rate.

3) Shop Around

Figure out how much you have to pay before you figure out how you’re going to pay. Shopping around is the best method to do this. In addition to supporting dealerships, which frequently offer the best variety, thinking beyond the lot might help you save money or uncover more distinctive inventory.

4) Self-Financing

According to experts, if you own your house, a home equity line of credit may be useful. Their interest rates are often lower than those of RV loans, and they are always cheaper than those of credit cards. However, keep in mind that your home serves as collateral. If you get behind on your payments, your house may be foreclosed.

5) A Dealer Can Aways Help You

There is always the possibility of obtaining a cheaper interest rate, a smaller payment, or less money down. Furthermore, if you go via the financing department of any dealership, you will most likely avoid paying loan processing costs and prepaid finance charges, which are frequent at banks.

6) Avoid Paying Cash

Basically, if the same amount of money put in something else yields a greater rate of return in comparison to the interest you will be paying on the RV loan, you should accept it. 

7) Credit Score is Important

Yes, your credit score is crucial. It will be difficult if a buyer has an excellent credit score but has an open collection on their record, though. 

8) Tax Benefits

The fact that our clients may open their coach loan in the name of a business is the single most essential advice that they have found useful. There are tax ramifications to arranging the finance in this manner. It may also be worthwhile to itemise your taxes. Make careful to inquire about the tax deductibility of interest on an RV loan. This deduction, which allows you to deduct your RV loan interest as house mortgage interest, is only available for self-contained RVs. Cooking, sleeping, and bathroom facilities are all included in self-contained flats.

If you are looking for RV dealers for financing your new RV, look no further. Connect with Vision R.V. Corporation,  you’ll be in good hands with our finance department.