You’ve finally decided to buy your first RV. Congratulations! But deciding to buy is simply the first step. You probably have a bunch of questions about the RV finance process, like:
- How does RV financing work?
- How long should my RV loan be?
- What are the steps to financing an RV?
- Can I get an RV loan with bad credit?
This post will answer each of these questions and explain how to apply for RV financing with Go RV. By the time you finish reading, you will be well on your way to owning your dream RV!
How Does RV Financing Work?
Getting an RV loan is similar to a car loan. A lender provides the funds for you to purchase the RV and you pay the money back, plus interest, over an agreed upon period of time. What makes an RV loan slightly different from a car loan is the length of the loan.
Because an RV typically costs more than a car, the loan term (or length) is usually longer, giving you lots of time to pay it back. RV loans can range between two to 20 years, depending on the size of the loan.
Another important thing to note about RV loans is that they are usually considered secured loans. This means the RV itself is collateral. So in the unlikely scenario you default on your loan payments, the lender can seize your RV and resell it to someone else.
What Are the Steps to Financing An RV?
The ultimate goal when applying for RV financing is to secure a loan with a decent rate and a reasonable repayment term that fits squarely within your budget. Sounds easy enough, right? To get the best RV loan possible, we recommend doing a few things first – before you apply.
Set a Budget: Look at your current finances and plan for what you can afford. Consider all the costs associated with owning an RV, including insurance fees, accessories, fuel, and more.
Save For a Down Payment: The larger your down payment, the lower your monthly loan payments will be. You can sometimes even score a lower interest rate with a higher down payment.
Organize Your Paperwork: Get your paperwork and credit information in order. In order to qualify for the best RV loan rates, the more secure your financial situation is, the better. Make sure you have a stable source of income. Consider paying off any existing debts. Finally, check your credit report for any errors. These are just three of the ways you can set yourself up for success when it comes time to financing your first RV.
Can I Get an RV Loan with Bad Credit?
Absolutely. Because purchasing an RV usually costs more than buying a new car, the banks might require a higher credit score. However, the great thing about financing your recreational vehicle through Go RV is that if you have bad credit and the banks deny you, we can approve you ourselves!
We work with over a dozen lenders securing RV loans for people with all types of credit situations. Whether you are new to Canada, still establishing your credit, or have low credit (but are working towards good credit), we can help.
The Go RV Financing Process
Found your dream RV and are ready to apply for a loan? Great – we can help with that!
We’ve made the application process as easy as possible. You can get pre-approved online within seconds. Simply fill out our online credit application here and once you are approved (either by us or the bank), we can help you choose a payment structure that fits within your budget.
Your summer of adventures awaits!