With current interest rates at all time lows, many are looking to take advantage by purchasing a new RV. There are some unique requirements for RV users, particularly for those who live in their rig full time.
Most banks include RV loans as part of their normal lending programs. In many instances the rates offered on RVs are the same, whether the vehicle is new or used. Qualifying for a loan follows the typical criteria. Borrowers must have a good credit rating, proof of income and an adequate down payment in order to secure a loan.
Because vehicles, both RVs and cars, begin to depreciate from the first minute they are purchased. It is recommended that buyers put up enough of a down payment so that they have some equity in the vehicle. This prevents a buyer from owing more than the rig’s wholesale value. Because RVs do depreciate quickly, it is also recommended that buyers take out enough insurance to protect their investment in the event that they have an accident and the unit is totaled.
Those who already own an RV may also want to look into refinancing. There are deals to be had and many owners are able to lower their monthly payments. Those who are in an ‘upside down’ loan will find it more difficult to refinance as they’ll be required to pay the difference up front before refinancing the remainder.
RVers who live in their rig fulltime are always considered a higher risk. Their vehicle is both their residence and their collateral for the loan. Fulltime RVers generally have more qualifying paperwork in order to secure their loan. There are various lenders however, who are more likely to provide these loans. Many in the RV industry recommend the Good Sam Finance Center and Alliant Credit Union as two lenders who are willing to work with fulltime RVers.
Those with good credit are apt to find great options for their new or refinanced RV in today’s market. Interest rates do change daily, so those looking for prospective loans should do some research and lock in a good rate before the rates begin to climb again.
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