Financing Your RV – With No Mistakes

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Once you’ve made the decision to purchase an RV, be sure you are careful with your financing choices. Very few consumers have the ability to pay for an RV outright, so loans are a part of the process.

When making your financing choices, you must look beyond the monthly payments when determining what you can afford. Be sure you are also looking at the number of monthly payments, or the term of your loan. Looking at the end price over the full term of the loan may be a jolting experience, but it is important that you understand the interest you’ll be paying over the course of the loan.

Try to stick with a simple interest loan. These types of loans allow you to make principal reduction payments along the life of the loan. This results in the consumer paying less interest over the loan’s term. Some financing companies will try to convince you to use a loan where the interest is ‘frontloaded’. This means that the first half of your loan or more is spent paying interest only. If you decide to sell your rig before the loan is complete, you in essence still owe the lender for virtually the full price of the loan as you’ll have only been paying off the interest. If the lender associated with the dealership suggests that you do not qualify for a simple interest loan, inquire elsewhere. Shop around, talk to other financial institutions, get additional quotes. This is the best way to secure the most reasonable loan.

An RV is a large investment. Don’t hesitate to make sure that you are receiving the best financing possible.

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