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RV Loans and Financing
There are many types of RV that you can buy: motorhome, pop-up camper, fifth wheel, slide-on camper and travel trailer. There are so many types that they’re classified into three categories: Class A, Class B and Class C.
Just as there are many types of RVs, there are also many loans to accommodate them. Using our SimpleScore methodology, we have invested hours of research and analysis, using expert studies and verified customer reviews to bring you the very best rates that the market has to offer you. These are our top picks for the best RV loans of 2020.
The Best RV Loans or 2021
- USAA – Best for long term loans
- Suntrust Bank / Truist – Best variable-rate option
- U.S. Bank – Best traditional lender
- Good Sam – Best for competitive rates
- Bank of the West – Best used RV option
RV loans at a glance
|Lender||APR range||Min. loan||Max. loan||Key Benefits|
|USAA||as low as 5.25%||$5,000||$35,000||Low interest rates for military households|
|SunTrust Bank/Truist||as low as 2.49%||$5,000||$100,000||Luxury secured loans also available|
|U.S. Bank||2.59%–5.49%||$25,000||$150,000||Apply in-person or online for extra convenience|
|Good Sam||4.29%–9.99%||$10,000||$2,000,000||Zero Down Program for RVs up to $50,000|
|Bank of the West/Essex Credit||Varies||$10,000||$2,000,000||Support from Essex Credit for your RV loan|
What is an RV loan?
With some RVs running up to $500,000 and more, most people don’t have the tens of thousands of dollars it takes to purchase a recreational vehicle, so they take out an RV loan instead. This is a form of long-term financing that allows you to pay off your RV over a period of time. Your RV loan can be used to buy a motorhome, travel trailer or camper.
How do RV loans work?
When you use an RV loan, you are committing to a long-term installment loan that you will pay off over a set period. Many lenders, such as Bank of the West, recommend a credit score of around 700 to qualify, but your options will vary depending on factors like your credit score, payment history and income. Lenders will also consider the year and make of the RV that you want to buy before making a final decision on loan terms and interest rates.
There are two types of RV loans that you can use: an unsecured RV loan and a secured RV loan.
An unsecured loan does not require any collateral for your RV loan. Instead, it relies upon your credit score to determine your interest rate and loan terms. In most cases, you can prequalify online by providing some basic details about the vehicle you are purchasing. You can receive funding as soon as the same day you apply, and you don’t have to worry about losing your RV to the bank if you default on your loan.
A secured loan is the exact opposite, using your new RV as collateral in case you fail to repay your loan. This can be preferable for some borrowers because secured loans usually carry lower rates and better terms. Just don’t default on the loan, or you could lose your new RV.
Alternative for RV loans
If you are not sure that an RV loan is the right fit for you, there are still plenty of alternatives.
- A personal loan is very similar to an RV loan, but instead of being a specialized loan for just one purpose, it is used for a number of purposes – including your new RV.
- A vehicle loan is another way to finance an RV if the price is comparable to that of a car.
- A home equity loan or home equity line of credit (HELOC) is a way for you to use the equity in your home to finance your new RV.
- Cash is always the preferred way to pay because there’s no interest. It’s always a good idea to save as much money as you can, so you finance the lowest possible amount of money.
How to choose the best RV loan for you
There are many lenders out there who supply RV loans, but you will quickly find that the interest rates and loan terms can vary significantly from one lender to the next. These are some things to consider when it’s time to choose the best RV loan for you.
1. Shop your RV.
Before you can take out a loan, you need to know how much money you need to borrow. Take the time to shop for your options, and when you decide on the RV that you want, you can begin searching for ways to finance it.
2. Decide what kind of loan you want.
Another major factor that will impact your loan is whether you apply for a secured or unsecured loan. If you have fair or poor credit, a secured loan could be easier for you to obtain, because it uses your RV as collateral.
3. Set a budget.
Your loan terms will greatly impact how much you end up paying for your RV loan when it is all said and done. Calculate your budget to see what you can reasonably afford each month for your loan payment. The length of your loan will also determine how much you pay each month because you will have lower payments the longer your loan lasts.
4. Choose your lender.
There are many different types of lenders, like banks, online lenders and credit unions, so we encourage you to take your time to evaluate your options. Eligibility and application requirements can also vary significantly, with some lenders unable to accommodate the higher-priced luxury models.
We welcome your feedback on this article and would love to hear about your experience with the RV loans we recommend. Contact us at email@example.com with comments or questions.