Thoughts on getting your RV Loan

    Is the dealer the best place to get an RV loan? That's what I should have been thinking.  I've been through a couple different RV loans and will share the good and bad of what I've learned here.

    First off, it's good to realize that the RV dealer may not have your best interest in mind. Sure he wants to make a sale, he knows what you can afford, and he can get you a payment that you can live with. But! I smell something amiss here.

    That great payment came at the expense of a higher interest rate, a longer loan term, and often a higher down payment. Granted this may be your only avenue to finance an RV if your credit is poor. If you have good credit there are other options. While financing your RV through a source other than the dealer may require a little extra work, you’ll be rewarded with a loan package that lets you sleep well.


    What are the options for an RV loan?

• Credit Unions
• Bank
• Home Equity
• Online RV Loan Specialists

    My first RV loan was through my Credit Union. Generally this is a very friendly way to go. You usually know to your loan officer and they know your circumstances. This loan is often of shorter term than the dealer will offer, and carry lower interest rate if your credit is good. If you belong to a credit union−I'd start there.

    Banks on the other hand are not quite as friendly and tend to play the numbers game a little tighter. Good deals can be had at a bank, but they tend to make buying your RV Toy Hauler a less than exciting experience. Be sure to check with your own bank and maybe couple of others. Competition is a good thing.

    Home Equity loans may get the best interest rates available. Get cash out when you refinance your home mortgage. The price you pay is putting your home at risk by over financing and having a loan that may very well out live your RV. Though the interest may be tax deductible (check with your tax consultant), I think I would save this option for home improvements or the kids college education.

    Online RV Loan Specialists may be a little impersonal but they are simple and convenient.  What more can I ask for than to sit in my underwear (pardon the visuals), while in my favorite chair, fill out an online application, and hit the "submit" button.  Interest rates appear to be as good as any and loans are available up to 3 million dollars (that's an RV I'd like to see).

    The online route intrigues me enough that I think I will refinance my RV Toy Hauler through one of them. Look for a report on my experience soon.

    The best advice I can give is to remember "you are the customer." Don't accept any loan you feel uncomfortable with. Do your home work and take your time. There is always another great deal just around the corner. You will be living with the loan and your new Toy Hauler for quite some time.

 

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