4 Things You Should Keep in Mind When Financing an RV
4 Things You Should Keep in Mind When Financing an RV
There’s nothing quite like finding your dream RV, Camper, or Tent Trailer, but having cost-related factors affect this exciting moment can give you doubts about owning one. Here at NLP, we help inform our customers so that their financing process is catered to them. We also believe that there are a few things everyone should know before financing an RV – that’s why we’ve put together 4 tips to help make your financing process an easy and enjoyable one.
Tip 1 – Check Your Credit Score
Your credit score has a big impact on the financing options that you may receive. It can affect your interest rate, the loan amount and how long you’ll be paying it off. It can even determine if you qualify to finance your RV at all. A credit score of at least 700 is recommended so that you can take advantage of the best options available when owning your dream RV.
Tip 2 – Identify the Loan Length Right for You
Deciding on the length of your loan is one of the biggest decisions you make in your financing process. It’s something that once identified, will determine the money that you’ll be investing on your new purchase over time. The shorter the loan, the less money you will pay in interest over time, however, your monthly payments will need to suit your budget so that you can be comfortable with making payments on your RV.
Tip 3 – Save for a Down Payment
A great way to ensure that you are financing your RV securely is to have a down payment saved before the purchase. The larger your down payment is, the lower your monthly payments will be. It’s also good to know that making a larger down payment can help you qualify for a better interest rate. Making a down payment somewhere around 10% – 20% of the purchase price of the RV is generally recommended.
Tip 4 – Be Aware of Interest Rates
Many buyers might expect to see lower interest rates than those that actually come along with financing their RV. Especially if this is your first time financing an RV, you may be surprised by interest rates when discussing rates with friends or family members who have financed RVs in the past. It’d be a good idea to have done some research before starting the financing process to find what rates appeal the most to you.
Our team of finance experts have experience working with buyers with all types of financial and credit situations. They can help you determine that sweet spot where your loan length is fair, the monthly payments are reasonable and you’re paying as little interest as possible. So let us help you finance your dream RV, today!
