The 8 Best Rv Loans Of 2022
- Best for a Used RV: Southeast Financial Credit Union
- Best for an RV as Primary Residence: Good Sam
- Best for Quick Funding: LightStream
- Best for a Large Motorhome Loan: SunTrust
GreatRVLoan, a SeaDream, Inc., company, is a national RV lender headquartered in Costa Mesa, California. The company has been in business since 2002.
We chose GreatRVLoan as the best overall RV loan because not only can you get financing for RVs up to $2,000,000, but GreatRVLoans also offers up to $10,000,000 in motorhome financing . Plus, it has financing options for new and used RVs as well as loans for people with good and bad credit, all with competitive rates.
You can expect an RV loan with GreatRVLoan to meet these basic requirements:
|Expect to need good credit||550|
Calculate Your Estimated Rv Financing Payment
Our fast, easy and free RV loan calculator allows you to get an approximate idea of what the rates and terms would look like if you financed the purchase of a recreational vehicle or camper. This online RV payment calculator will provide an estimate of your monthly payments based on the loan amount, length of repayment period and interest rates that you enter. Now you can plan ahead to see if the purchase of a new or used RV or camper of any class will fit into your budget over the coming years. Then, as soon as youre ready to apply, well be here with an online application system and same-day credit approval decision.
There will be much less guesswork during the application process if you have an estimate of your future monthly payments, assuming you borrow the full amount for the purchase with our competitive RV loan rates on your desired terms. Our RV financing calculator should only be considered a tool for comparison purposes, though. The resulting estimate is an approximate prediction of the payments you would owe on the vehicle based on the information you enter, including the interest rate, loan amount and number of years in which you plan to repay it. After you have completed our worry-free online application, we can provide more accurate information about the interest rates and terms you qualify for.
What Is The Interest Rate On An Rv Loan
According to Business Insider, the average RV loans interest rate is 6.17% for a new RV purchase and a 36-month loan term and 6.15% for a 60-month loan on a new RV purchase. Bank of the West offers the lowest interest rate for full-time users, starting at 3.59%. Lightstream is another good option and offers loans for any RV regardless of age.
Interest rates will vary based on your credit score and income. Your neighbor may get a loan with a 4.12% interest rate. When you apply with that same lender, your rate might be 4.85% because your credit score isnt quite as high.
Also Check: Student Loans Fixed Or Variable
Financing An Rv Purchase
There are several ways to finance the purchase of a new or used motorhome or RV. You may seek financing directly through the RV dealership.
Dealers work as intermediaries between you and the lenders. This means that the interest rate you receive from an RV dealer may be higher than the one you get from a bank: dealers often mark up interest rates to make a profit from the loan.
However, this rate can be negotiated down. Motorhome dealerships frequently have promotions as well, which feature interest rates that could beat your banks rate. And a dealer may be more willing to give financing to someone with bad credit, though at a higher interest rate.
You may also consider a bank or a credit union. These financial institutions provide interest rates for RV loans that are generally lower than a dealerships because banks dont mark-up rates.
On the other hand, this means that the rate they offer you is usually a final offer that cant be negotiated. Another benefit to financing a motorhome purchase through a bank is that, if you have an existing relationship with a bank or credit union, they are more likely to work with you should you fall behind on your loan payments.
In addition, banks and credit unions may pre-approve you for a loan, allowing you to go to the dealership with a pre-approval letter that can help you negotiate a lower interest rate with the dealer.
For this reason, many lenders simply don’t even offer RV loans for full-timers.
Thinking You Can Only Pay Your Monthly Bill Amount
Even if you get an excellent deal on your RV loan, it’s still possible to save some extra money if you make smart payments. Paying more than your monthly bill amount can help you pay off your RV faster, which can open up more money to enjoy time on the open road and in campgrounds. If you can afford to put a little extra money on your RV loan, it can be worth it in the end.
You May Like: Is The Student Loan Forgiveness Program Legit
A Consumers Guide To Rv Living
The call of adventure is hard to resist, and for many men and women nothing beats that sense of freedom and excitement that comes from exploring the country in fully tricked-out RV. More than simply recreational vehicles these moveable homes allow you to travel the highways and byways of America in comfort and style, letting the road and your sense of adventure take you where they may. But theres a lot to consider before you strike out on your latest cross country adventure, and you need to carefully consider what it takes to join the ranks of the RV enthusiast.
You May Need To Use The Rv As Collateral
Like auto loans, many RV loans are secured by the vehicle itself. That means the vehicle acts as collateral to guarantee the loan. If you cant make your monthly payments, the lender could repossess the RV.
Some lenders offer unsecured RV loans. With an unsecured loan, you dont have to offer up any asset or property as collateral. But this makes unsecured loans riskier for lenders, so they often charge higher interest rates. If you have , getting an unsecured loan can be harder because lenders may consider you a higher risk.
Read Also: Silt Loan
Join The Redstone Family Today
Are you ready to join the credit union that puts you first? Become a member of the Redstone family and youll start enjoying the great rates, personalized financial advice, and excellent customer service Redstone is known for.
You are now leaving the Redstone Federal Credit Union® site
RFCU® is not responsible for the content of the alternate website and does not represent either the third party or the member if the two enter into a transaction. Privacy and security policies may differ from those practiced by the credit union.
Please click OK to continue, or CANCEL to go back.
Other Ways To Finance Your Rv Purchase
The lenders we’ve looked at aren’t the only way you can get an RV loan. You might want to consider checking with your local credit union to see if they have RV financing available. Oftentimes, offer these types of loans. If you’re a member or are open to joining a credit union, it could be beneficial to find out if it offers RV loans.
Another popular way to finance small RV purchases is with a personal loan. However, these unsecured loans may have higher interest rates than an RV loan. If you can qualify for an RV loan, it’s probably your best bet.
Read Also: Car Loan Balance Transfer
What Is A Good Rv Loan Interest Rate
The best RV loan interest rates start at 4% but can go as high as 11%. Interest rates vary depending on your credit score, the amount youre borrowing and the total repayment term.
In general, the shorter the term, the lower your interest rate, as long as you boast good to excellent credit. For example, Compass Credit Union offers APRs as low as 4.24% for 48-month loans for new RVs while a 180-month loan for a new RV has a starting rate of 7.24%.
How Long Are Typical Rv Loan Terms
Typically, RV loans range from 10-15 years.
However, some banks, credit unions, and other finance companies will extend the loan term up to 20 years .
Keep in mind that the loan term will vary based on how new your RV is. That being said, the value of an RV depreciates over time even if you take care of it .
Typically, an RV drops 30% in value after buying it and driving it off the lot. A used RV wont lose as much value over time.
Food for Thought:If you purchase a new RV and decide to sell it down the line, you may end up owing more on your loan cost than youll earn back from the RV. To avoid this, put a higher down payment down. Youll owe in loans and have a better chance at getting your moneys worth!
You May Like: Car Loan Amortization Formula
How Do You Apply For Rv Financing
Applying for RV financing isnt as hard as you may think. There is, however, a lot of work that goes into it. Weve got some tips for you to start as early as today!
You can also .
Tip #1 Improve your credit score
Before going out to apply for an RV loan, you want to make sure your credit is better than average. Were talking upper 600s at least .
We highly recommend waiting until your credit is mid to upper 700s. This will get you access to the best RV loan rates.
Tip #2 Start saving
Typically, you need to put at least 10% down on an RV loan.
If you can put more down, youll drop the monthly payments and could get a better interest rate. If youre unable to swing a higher down payment, thats fine! It isnt like you wont be able to get a loanthis is purely to reduce your loan amount and interest paid over time.
Tip #3 Shop around
If youre anything like me, you see something you like and you buy it immediately.
When looking for RV loans, we urge you to shop around before choosing a bank, credit union, or online lender.
There are plenty of options out there and you could find someone who exceeds all expectations when it comes to shopping for a long-term RV loan. Even if you decide to go with the first company you talked to, youll know that you checked out all avenues to figure out if there was something better.
Tip #4 Dont be afraid to negotiate
How We Make Money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Also Check: Capital One Car Loan Pre Approval Letter
Why You Can Trust Bankrate
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our loans reporters and editors focus on the points consumers care about most the different types of lending options, the best rates, the best lenders, how to pay off debt and more so you can feel confident when investing your money.
Can You Buy An Rv With An Auto Loan
Most lenders will not allow you to purchase a motorhome with a standard auto loan. Lenders typically consider RVs luxury items, like boats and motorcycles, while cars are a necessity. As a result, the lender will want you to take out a different loan to purchase an RV, likely with a higher interest rate than you could secure on an auto loan.
Read Also: Stilt Loans
Qualifying For An Rv Loan Can Be A Challenge
Securing financing for an RV could be more difficult than getting approved for a car loan. In fact, depending on the length of your loan term and the amount youre borrowing, qualifying for an RV loan could be similar to qualifying for a home mortgage.
While some lenders offer RV loan programs for borrowers with rocky credit, these lenders will likely look at a number of other factors, such as debt-to-income ratio, employment history and income. Having a lot of debt or a lack of income are among the issues that could prevent you from being approved.
If youre struggling to get approved for an RV loan, you may want to save more money to make a larger down payment. Borrowing a smaller amount reduces the risk to the lender and may increase your chances of approval and youll pay less in interest in the long run. You can also wait and work on improving your creditto better your chances of qualifying for a loan.
Other Associated Rv Costs
Your RV loan is just one cost associated with owning a rig, so its important to understand other factors when budgeting for this expense. If youre towing a trailer, youll need to think about the costs of setting up your tow vehicle. This includes towing equipment and mechanical equipment such as a brake control. Another cost to consider is insurance on the RV, which is likely a requirement when financing with a lender. Also, if you cant store your RV at home, you need to consider storage fees. Additionally, dont forget about saving for repairs and maintenancewhile new RVs typically come with a manufacturers warranty, used RVs do not.
Read Also: Does Usaa Do Student Loans
Early Auto Loan Payoff Calculator
Have an auto loan that you want to pay off sooner? Wondering how much faster you could pay it off by paying a bit more each month? And how much interest you could save in the process?
This Early Auto Loan Payoff Calculator has the answers.
Enter how much extra you want to pay each month, and the calculator will immediately tell you how many months you’ll shave off your loan and your total savings in interest. It can also show how quickly you’re paying down the loan, with the balance remaining for each month until the vehicle is paid off.
This is good information to have if you’re thinking of trading in the vehicle before it’s paid off and wondering how much to knock off the anticipated trade-in value.
Best Overall: Alliant Credit Union
Alliant Credit Union
- Minimum credit score: Not stated
- Loan terms: 120 to 240 months
With low rates, high maximum loan amounts, and flexible loan terms, Alliant is our top overall pick for RV loans.
Wide range of loan terms
Same-day funding available
Online info is limited
Our top pick for recreational vehicle loans goes to Alliant Credit Union. It offers a variety of competitive RV loan products for a borrower who plans to live in their vehicle either occasionally or full-time with fast funding.
Though membership is required in order to obtain one of these loans, becoming a member is easy: youll just need to be an employee of one of Alliants partner companies, have a family member who is already an Alliant member, live in certain communities, or be a member of certain partner organizations. If none of these apply to you, you can simply support Alliants partner charity and youll be eligible for membership.
RV loans through Alliant Credit Union are available to both part- and full-timers. While many lenders only offer loans to those who use their RV recreationally, Alliant accepts applicants who plan to live in the vehicle full-time.
Same-day funding is possible in many cases, and loan pre-approval is available if youre still shopping around.
Read Also: How Long Does The Sba Loan Process Take
How Are Rv Loans And Car Loans Different
While RV and car loans both provide financing for a wheeled purchase, there are many differences. For example, RV loans may include trailer-style vehicles that do not have their own engine, such as fifth-wheel trailers.
RV loans also allow for much larger loans this is important since RVs are often hundreds of thousands of dollars. Some RVs can cost well into the millions. You wont typically find an auto lender willing to hand over that kind of funding.
Lastly, auto lenders dont typically care how often youre using your vehicle when they approve you for a loan. RV lenders, on the other hand, will often exclude certain borrowers depending on whether they plan to use the RV part- or full-time.