5 Tips for Financing Your Dream Camper
Are your family's travel dreams more significant than your budget? Have you ever dreamed of purchasing a camper or RV? With proper planning and research, owning an RV can be affordable. Here are five tips to consider when financing your dream camper. There's more to the process than finding the best loan terms on an RV for you, and we'll work with you to get through the process.
Research the Costs of Different Types of RVs and Campers
RVing comes in all shapes and sizes, from pop-up campers to Class A motorhomes. Start by researching the costs of different trailers, campers, and motorhomes before deciding which suits your family's needs. Remember to look into the RV styles you'd be most comfortable towing or driving safely.
You'll also want to consider the cost of RV maintenance, insurance, and storage for each type of vehicle. Knowing these upfront costs will help you determine how much you'll need to finance and help you form a plan that can work for your budget. If the numbers are tight in your budget after you add these extra costs, you can look at the rest of your household budget and consider other places you can save funds.
For example, most insurance companies offer a discount on your policy if you insure multiple things in the same account, such as your car, home, and RV. Another option is to rent your RV as an AirBnB or Short Term stay when you're not using it. Many people look for a low-key place to rest while in town for work and pleasure.
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Assess Your Current Credit Status
Knowledge is power, and knowing where your credit score sits and what to expect moving forward will help reduce the stress of the financing process. It will also allow you to work on some of your creditors and debts before you request a loan.
An app like Credit Karma or Experian Boost can help you track your credit and make significant leaps and bounds toward better financial health. These options also promote partnering companies and opportunities. Before you ask for a loan for an RV, consider discussing your current credit situation with your bank or financial advisor. Contacting your creditors and asking for postponement, a payment plan, or a settlement can help boost your score and reduce your debt-to-income ratio.
Compare Rates from Multiple Lenders
Once you know the total cost of purchasing a camper or RV, it's time to shop for financing options. Start by gathering multiple loan offers from banks and credit unions so that you can compare rates and terms. Be sure to check out online lenders as well; many offer competitive terms and interest rates that may be better than what is offered through traditional banks.
Many lenders will avoid giving loans on RVs because they are considered high-risk investments, so you may find the best rates through specialty lenders. Don't let high rates or requests for more significant collateral deposits discourage you from your plans. If the RV life is something you want for your family, make it happen. Traveling in an RV is often much more enjoyable and economically sound than road-tripping and staying in hotels every night.
Look Into Private Sellers
When shopping for an RV, remember private sellers! Many experienced RVers will eventually sell their vehicles when they upgrade — meaning there are often great deals on used RVs on websites such as Craigslist or eBay Motors. Some banks will still finance a purchase from a private seller, but you'll need to jump through a few extra hoops before you get there.
There are more than a few scams online regarding RV sales and private sellers. Be careful with the sources you find your RVs at, and avoid sales options like Craigslist. Some great opportunities to start your search are Used RVs By Owner andRV USA; these resources vet their sellers and require extra security measures to ensure buyer and seller safety. You can also check with local RV repair shops to see if they have a community board where people might list their RVs.
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Seek Out Special Offers & Discounts
Many dealerships offer special discounts throughout the year on new RVs, so be sure to keep an eye out for any promotions or deals that could help reduce the overall cost of your purchase price.
Frequently, you'll find that RVs are less expensive if purchased during a special sales event or trade show. Keep an eye on your local events calendar for RV shows, Outdoors shows, Gun shows, and other similar events in your area.
Some lenders may offer lower interest rates if you have an excellent credit score or a high down payment. Don't hesitate to ask about any potential discounts when negotiating with lenders or dealerships!
Consider Financing Options Beyond Traditional Loans
Traditional lending is only an option for some due to a low credit score or lack of collateral. Other financing options are available, such as personal loans from family members/friends or rent-to-own programs through specific dealerships.
Some people prefer traditional loans because they provide a clear timeline for repayment. However, rent-to-own programs can help make RV ownership more accessible to buyers with less-than-perfect credit. This is possible because this loan style allows buyers to pay over time at fixed monthly payments without accruing interest charges (you pay off the total amount).
Not A Dream if You Have a Plan
Owning a camper or RV doesn't have to be a dream! Doing your research ahead of time and comparing different financing options makes it possible to find an affordable plan that works best for your family's needs and budget. We hope these tips make it easier for families looking into financing their dream camper! Good luck!