Recreation Vehicle (RV) Loans

Do you want to hit the road in an RV but don’t have the necessary cash? Then you are likely to get an RV loan. ProFed Credit Union provides RV loans with low rates and flexible terms.

A recreation vehicle is a unique hybrid between a home and a car. It is a towable or motorized vehicle you can use for transportation and temporary living quarters.

Depending on the brand, an RV can cost $10,000 to $1,000,000. Since RVs can be expensive, people look for ways to finance them. RV loans are a long-term financing option you can use to buy a recreation vehicle.

How to Start the Process of Purchasing an RV

When making a large purchase like an RV, it’s important to take note of your goals and budget limitations. Understanding what items are a must-have and which are more flexible will ensure you stay within your budget. 

• Saving and budgeting for the purchase
• Looking at new and used RVs
• Limiting unnecessary add-ons
• Considering your financing options

Saving and Budgeting for the Purchase

When establishing a budget for your RV purchase, it’s important to have all the necessary information. Start by gathering up your financial paperwork and calculating your monthly income. Once you realistically organize your monthly expenses and review variable vs. fixed costs, you can set aside an affordable amount for your upcoming purchase.

If you plan to use a lender to finance your RV purchase, you can apply and get pre-approved before shopping for your new or used RV.

Looking at New and Used RVs

Your budget will then help you narrow down which RVs you can afford. New RVs are more expensive than used ones but may offer warranties and more modern floor plans. Properly evaluate your needs along with your budget. 

Limiting Unnecessary Add-Ons 

It’s easy to fall into the add-ons and upsells many dealerships can offer when searching for the perfect RV. Be sure to stick to your must-have items and any others that fall within your budget.

Considering your financing options 

For an RV, borrowers submit an RV loan application that the lender reviews and evaluates. As you establish your financing needs, credit score, loan size, and down payment amount are all important factors. 

Your lender will likely offer you a few different term options, and you then decide on the structure in which you’ll repay the loan (this would impact your interest rate and monthly payments). For smaller RV loans, the term may be two or three years, while larger RV loans can have terms of up to 10 years.

RV loans may also require a down payment, commonly between 10% and 20%. RV inspections can also be a common request from lenders, costing between $150 and $200. 

Loan Types to Purchase an RV

RV loans can be secured or unsecured. A secured loan is when a lender allows your car or purchase to be used as collateral. Unsecured loans are loans where no collateral is required, and you’re approved based solely on your creditworthiness. 

Are you ready to finance an RV?

Recreation vehicles offer a safe and comfortable traveling environment but have a high price tag. You can choose to finance an RV with a loan to make purchasing an RV possible.

ProFed Credit Union offers RV loans to members at competitive rates and loan protection that doesn't break the bank. Lack of financing will no longer stop you from buying your dream RV.

In need of other lending services such as auto or mortgage loans? ProFed Credit Union is your solution! Contact us today!