Purchasing an RV is similar to buying a car, in that there are many options available to finance your vehicle. If you have good credit and knowledge of where to apply for a loan, financing an RV should be a simple task. Keep in mind that RV loan rates mimic the rates of car loans, so when auto loan rates are low, RV loan rates should be as well.
RV Financing Companies
Some finance companies work specifically with RV loans. As an RV is not considered a necessity item, financing one typically requires higher credit scores than those needed to qualify for a car loan. In many cases, the RV dealership can finance you on the spot. In other situations, you will have to apply for a loan in advance, obtain prequalification paperwork and take the documents to a dealer to prove that you have the financing available. The Recreation Vehicle Industry Association offers lists of dealerships and RV financing companies.
Older RVs
For those with less than stellar credit, older RVs provide an option. Financing for older RVs is easier to obtain. They also typically require less of a down payment. Banks and credit unions are options when you're seeking to finance an older RV, and they'll finance it as they would a car. Be wary of RVs more than 7 years old, because many banks will not finance an RV older than that.
Cash Recapture
In cases where an RV is being sold at an auction or distress sale at a price below its actual value, you may be able to pay for the RV with cash on hand and then get the cash back through a special type of loan. Through a cash recapture, many banks will give you the money for a loan after you have already purchased the RV, especially if you bought the RV for far below its actual value.
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