What you could do is to try visiting stores and find an RV that fits your needs and tastes. Make sure to ask for someone who can guide you with additional information you need to know about the motorhomes you have an eye on.
Another factor you need to consider is the lender that could lend you the RV you want for a reasonable price. There are places where you can finance an RV, such as banks, credit unions, and online lenders. To further make up your mind, you can visit your different options, personal or online, and inquire about their offers.
Don’t: Make a deal unprepared.
Please don’t apply for an RV loan right away, especially when you haven’t researched it before taking the loan. It’s not your local shopping routine where you see something and buy it to take it home with you.
Visit the places where you could finance an RV but do not be so easily swayed to make a deal immediately. You might end up not liking it when it’s too late, and you might miss on other better offers.
Do: Manage your Budget
Before you enter a deal, make sure you have a fixed budget needed to cover all RV expenses. It doesn’t necessarily mean that you need to have the total price of the vehicle. However, you need to prepare and set aside part of your money to cover for the vehicle’s monthly cost, which are the payment, maintenance, and fuel for when you go out with the RV.
Don’t: Take the monthly payment for granted.
Just because the RV cost is divided into monthly payments doesn’t mean you can take it for granted. RV Prices as a whole range from tens of thousands of dollars to hundreds of dollars, with some ranging at more than a million. When financed, prices will be hundreds of dollars to thousands. It is still expensive to some and should not be taken lightly.
Besides, you also have to pay for maintenance fees, especially those who will loan a used RV as it is more susceptible to damage. Budgeting your money to spend on the RV is necessary, so you won’t have to wonder how to pay them.
Do: Improve your credit score.
Your credit score helps with knowing the limits of your financing opportunities. If you have a high credit score, you have many options to choose from, and on the other hand, those with bad credit scores are limited to what they can have. A credit score relies on creditworthiness or the likeliness of a person to pay back what was borrowed.
Having a high credit score entitles you to RV financing deals unsecured, meaning you do not need collateral. This is because the lenders expect you to pay them back on time. Failure to do so will result in a penalty or the lowering of your credit score.
On the other hand, low credit scores will only give you secured loan deals. These loans require an asset to use as collateral. In this case, the asset is the RV, or perhaps also with another one of your properties.
While secured loans are alright in general, you still need to improve your credit score because some lenders might not give you a loan depending on how low it is. There are several ways to improve your credit score, which often involves paying back your other debts.
Don’t: Be complacent with a low credit score.
This is not a problem for those with high credit scores other than the fact that they have to maintain that high score. If you have a low credit score, it’s best to improve it rather than be content.
Having a higher credit score means more lenders will accept you. Borrowers with low credit scores are susceptible to rejection by some, if not most, lenders. This is because having low creditworthiness would mean that you are unable to pay back in time and that you may have had unpaid debts that have stacked over time. If you do have unpaid debts, it is best to pay them off before engaging in another loan.
Another related don’t is engaging in a loan while still having those debts. As much as possible, pay them off first. It would be best if you kept your finances to make sure you can pay them off, as well as extra money to spend on your daily and emergency needs. Otherwise, that will be another blow to your already low credit score, and the chances of you getting the RV you want will be direr than it already is.
Takeaway
In the long run, financing an RV might cost more than buying it, but it is still a good pick when you can only pay in small amounts. You need to decide whether you want to apply for a loan or not, especially when you already have loans you applied for. Also, make sure to know the specifics of what you want and budget the money that needs to be spent on it. Want to know more about RV Financing? Visit My Financing USA for more information.
About the Author
Lauren Cordell is a travel junkie who has a fondness for motorhomes. While stuck in quarantine, she currently writes and shares her experiences of traveling.