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A total of 430,691 RV units were shipped in 2016. This number itself is quite impressive, but what makes it truly interesting is the fact that it marked a gain of 15.1 percent over the past year – the seventh consecutive annual increase for the RV sector. So, there’s little doubt that motor homes are increasing in popularity among US residents. And there are plenty of reasons why—from IRS tax deductions to lifestyle needs. If you are interested in becoming the proud owner of a motor home, you will find plenty of models – diesel or gas – available for sale online. If you do not have all the money as ready cash, opt for other forms of financing.
Now, the term financing makes a lot of people nervous, but the truth is, it isn’t all that complicated. It certainly isn’t the black hole people make it out to be. Sure, there are a lot of things you don’t understand about it, but that’s what we’re here for. Check out our handy guide to financing your own personal gas or diesel RV below:
Establish a Strict RV Budget
Even though a used RV model is less expensive than a factory-fresh one, it still costs a lot of money. This is why you should set a budget before you start scouring the Internet in search of usedmotor homes. There is a limit to how much you’re able to afford, and under no circumstances, no matter how good a deal it is, should you exceed that limit. Keep your expectations realistic; otherwise, you’re just setting yourself up for disappointment.
Arrange for Down Payment
Financing your RV is a great idea, but you will still have to pay a sizeable amount as down payment. For this reason, you need to save money. Down payments are generally at least 10 percent of the purchase price. The reason why you should try to pay as much down payment as possible is that the more you pay, the more your monthly payment drop. This makes it more cost-efficient.
Learn to Negotiate Properly
Negotiations are a crucial part of buying an RV. You need to proceed with caution since this is where most RV buyers end up losing money. Be tactful so that you do not end up agreeing to an interest that would add up to a whopping amount over the life of the loan, and even rival the price of the whole motor home itself. So, you need to be alert and play it smart.
Make Sure Your Credit Score is Good
The right kind of financing brings with it plenty of benefits. But to qualify for such financing arrangements, your credit score needs to be good. However, this isn’t anything to panic about, because barring a terrible credit past, you should be able to secure an RV loan in the vicinity of 10 percent or less quite easily.
The chances of good financing also increase exponentially when you pay 20 percent or so out of your own pockets as down payment. This is because you assume a greater part of the financial risk associated with the purchase, and lending institutions prefer that.
Find the Right Financing Online
If you browse for RV models on the Internet, you are likely to come across great financing arrangements. Though most of them are genuine, a few of them are scams. So, read all the information carefully before you proceed any further. If it’s too good to be true, then it probably is. Loan companies specializing in RV loans should be your first choice as they know the industry inside-out and can fit the requirements of a motor home buyer to a T.
Lots of used diesel motor homes are put up for sale on the Internet. Choose the one you like and then opt for financing to meet the expense. Enjoy RV-ing and unleash the adventurer in you.