The economy has had a negative effect on many things, including the process of acquiring an RV loan. It can be a challenge if you are not familiar with the loan process. What should one take into consideration when searching for the best RV loan possible?
First, think about RV insurance, roadside assistance coverage, license and registration, maintenance fees, and even RV storage if you are not going to be driving it often. These additional costs need to be considered when looking at a loan.
While there are several places to apply for a loan, more often than not, the best route to take is your Credit Union. Credit Unions offer favorable terms to their members at reasonable prices. If desired, an RV loan calculator can be beneficial in determining the price range.
Having a loan secured prior to purchasing can help in the negotiation process. As you begin looking at RV’s, make sure you price shop, ask several dealers about the loan options, and compare.
When looking at RV loans, try to find a competitive rate with flexible terms, preferably a fixed rate and no prepayment penalty. Simple interest loans are the best as you will pay interest only on the principal.
Read and understand the small print. Believe it or not, there are some clauses that will restrict RV’s from moving around. Make sure there is no such clause if you intend on traveling quite a bit.
One final consideration regarding RV loans is the term length. Some loans last as long as 20 years. Numerous interest changes can drastically exceed the value of the RV. If need be, it may be wise to go for a more affordable RV if the length of the loan is amortized to go past 10 years.