RV Loans: 2023 RV Financing Options - NerdWallet (2024)

FAQs

Who offers the best RV financing? ›

The RV financing industry-standard ranges from about 660 to 700 FICO score, but there is a possibility your search for “RV financing with 650 credit score” can be fruitful because there is financing available for credit scores in the 500 to 600 range.

RV loan rates range from 5.24%-9.74% for new campers and 6.49%-10.24% for used RVs. RV loan terms typically range from 3-12 years but can stretch as long as 20 years.

The RV loan application process is similar to applying for an auto loan, but getting approved is often harder. That's because lenders tend to have stricter requirements for these types of loans, given their large amounts.

Just don't let your nice things own you. Boats, campers and RVs go down in value even faster than cars.

The length of your RV loan will depend on many factors, such as the cost, your credit score, the loan payment where you get your loan from, and how long you want your loan term to be. On average, you can find RV loans available for terms of ten to fifteen years.

If you want to roughly estimate what your RV payment will be, calculate 1 to 1.5% of the value of the RV. For example, if you buy an RV worth $100,000, expect to pay between $1,000 and $1,500 per month.

Some RV lenders require a minimum down payment of 10%, but others recommend putting 20% or more down. Some lenders don't require a down payment at all, but if you finance 100% of the price of the RV, you may end up owing more than what your RV is worth as it depreciates.

These secured loans use the RV as collateral to guarantee the loan. This means that if a borrower fails to meet the monthly payments, the lender could repossess the vehicle. With unsecured loans, the borrower does not need to offer up the RV or any other assets as collateral.

Is mortgage interest on a motorhome or RV tax deductible? Yes, you can deduct any interest on an RV or travel-trailer if it is a primary or secondary home. To meet the requirements for being a “home” that can have deductible interest, the RV, houseboat or motorhome must have cooking, sleeping and toilet facilities.

What are typical RV loan terms? ›

Typical RV loan terms

RV loans typically come with terms of two to seven years. That said, you can still find RV loan terms as long as 20 years.

RV loans also are separate from auto loans because they're typically larger, more complicated purchases. Depending on the lender, you can find RV loans for around $25,000 that are repaid over a few years, but you also can find loans as hefty as $300,000 that are repaid over 20 years.

Best for Large Used/Refinance Loans Southeast Financial

Compared with most other RV lender networks, Southeast Financial offers the potential for the largest loans for used and refinanced RVs.

Because RVs are often considered luxury items, a credit score of at least 660 to 700 is typically required, though a credit score of at least 700 is strongly preferred. It is possible to get an RV loan with bad credit, but you'll pay much higher interest rates.

You can still apply for an RV loan without a credit history. Lenders may consider other factors, such as your income, employment history, and down payment amount, to determine your eligibility for a loan.

Typical RV loans range from five years to seven, but this timeline may be shorter or longer, depending on the lender. Secured loan terms may exceed 12 years.

Is an RV a Financial Investment? The short answer is no. With the exception of some in-demand vintage models, the value of an RV depreciates over time. An RV is an investment in a lifestyle, but you can mitigate the expense by renting it out when not in use through a third-party rental site like Outdoorsy or RVshare.

If you're buying a low-cost RV for occasional vacation use, a personal loan may be a better option. It may be easier to finance a smaller loan amount for a shorter term so you can pay your trailer off earlier and enjoy payment-free camping sooner rather than later.

If your credit score improved over time, refinancing your RV loan terms would allow you to pay a lower interest rate, so you spend less in the long run. If you're in good financial standing and your motorhome is in good condition, refinancing might be the right choice.