How To Finance An RV 101: This Is How RV Financing Works… Explained!
Got questions about RV Financing and wondering what you need to know about How To Finance An RV? How long can you finance an RV? How hard is it to get approved for an RV loan? RV Interest Rates, Loan Terms and more…
Financing an RV can feel overwhelming when you are trying to secure an RV loan. In this blog post, we will discuss the different RV loan terms and how you can get the best RV Interest Rates. I’ll teach you the best way to finance an RV!
Plus ICYMI… you’re in luck because I do have a Finance Degree! And I’ve bought 6 RVs! So I’m qualified to answer questions about HOW TO BUY AN RV: How to finance an RV purchase? How hard is it to finance an RV? How many years to finance an RV? etc…
PS I also made you a video to go along with this blog post!
How to Finance and Purchase an RV (From Someone Who Just Did It… 6 times!)
Hey there! I’m Blogging Brandi—and today I’m diving into a topic I get asked about all the time: how to finance and purchase an RV.
I just went through the RV buying process myself, and let me tell you, it was an adventure! So, I figured, why not share my experience with you? I even created a bubble chart filled with everything you might need to know when it comes to buying an RV (you’ll find it in my downloadable RV Buying Checklist below!).
Should You Pay Cash or Finance an RV?
One of the biggest questions I get is whether to buy an RV with cash or finance it. Why would you want to buy an RV with Cash versus finance an RV? The truth is—there are pros and cons to both.
While buying an RV with cash might seem like the simplest option, consider this:
- When you purchase an RV, there are extra expenses like dealer fees, warranties, and taxes.
- If you pay all of that upfront in cash, you’re left with less money to actually use your RV and cover ongoing costs like fuel, propane, RV park stays, and maintenance.
- By financing, you may be able to roll those costs into the loan and free up your cash for adventures.
How RV Financing Works
RVs are typically financed more like a house than a car. You can stretch the payments out over 10, 15, even 20 years. For example, I financed my latest RV over 20 years—not because I plan to take that long to pay it off, but because it gave me more flexibility on my monthly budget — aka it made my RV monthly payments lower!
Bonus Tip: You might be able to write off your RV as a second home on your taxes if it meets certain requirements. I’m not giving tax advice here (always check with a CPA), but it’s something to look into—especially if you’re financing and paying interest.
Last year I had a house and I had an RV, so I had two places to live. Not Really, but technically I was in the process of selling my home. That was something to keep in mind is that I can write off the interest from that potentially. So that’s another reason that you want to finance it because you’d be writing off the interest instead of a huge payment at one time.
I used to do taxes, so do not take this as tax advice, but if you make a really large purchase, a lot of times what happens is they’ll make you amortize it out anyway over so many years for tax purposes. Especially if you’re buying an RV and using it for business!
Where to Get an RV Loan
You’ve got options when it comes to financing:
- RV dealerships can shop around with multiple lenders on your behalf.
- If you have a strong relationship with your bank or credit union, that’s also a great place to start.
- Don’t rush into pre-approval until you know what kind of RV you want and what you can realistically afford monthly. — Also be sure to check your credit score!
>> Here’s a list of the Top RV Financing Companies: Best Loan Terms & Interest Rates
Credit Score & Down Payment Requirements
A lot of times, what happens is they may want you to put down a down payment that could be anywhere from 10 to 20% and if you go over 100,000 in your purchase, most likely you will have to put down a down payment for your RV unless you’re trading something in. Some places like Camping World, I traded in a car on an RV I bought, and wrapped that into my RV financing deal. That’s something that you might be able to do.
Here’s the truth: RVs are luxury purchases, and banks treat them that way. You’ll typically need good credit (maybe not excellent, but not bad) to qualify for an RV loan.
- For RVs under $50,000, you might still get approved even if your credit isn’t perfect. Again, the RV dealers can shop around for you.
- Be prepared to put down 10% to 20%, especially for RVs over $100,000.
Got BAD Credit, No Credit or Low Credit — YES, you can still get APPROVED for an RV Loan!
Proof Of Income
Keep in mind: if you’re financing over or under $100,000, depending on the lender and your financial situation, you might have to have some type of proof of income.
I’ve had to have my pay stubs. I’ve had to have like W2s. If you own your own business, you might have to have more documents along with a couple of years of tax returns. It just depends on your bank, your situation, and you really won’t know until you apply, but you should be prepared knowing you’re most likely going to need to have these things on hand.
- Some lenders may require proof of income, such as:
- Recent pay stubs
- W2s
- Tax returns (especially if you’re self-employed)
- For example, I’ve had to provide two years of tax returns for my RV loans, depending on the bank and how much I was borrowing.
📌 TIP: Don’t go worry about getting pre-approved for an RV loan before you pull your credit report and do some research + leg work of your own! Plus, once you do they only give you so many days to find and RV and finalize your loan. Also and RV Loan pre-approval is NOT a guarantee! The RV Financing company still might not agree to finance the type and size of RV you decide to purchase!
Can You Trade Something In?
Yes, trade-ins are an option! I’ve even traded in a car when buying an RV. Some dealers—like Camping World (not my favorite, but more on that later)—may allow you to roll that trade-in value into your financing deal.
⚠️ Important Note: Always do your research before buying from big RV chains. Some of them push you into RVs that might not be the best fit. You want the right RV for you—not just the one they want to sell.
RV Pricing & Negotiating Tips
Just like with cars, the MSRP on an RV isn’t what you should pay. I’ve heard that you can aim for up to 30% off MSRP, but don’t expect every dealer to haggle that much. It also depends on what they paid for the RV as well. Either way, you need to know your numbers and do your research before you go. It’s best to know more about the RV than the RV salesperson does (in most cases, you will)
Negotiating depends on:
- The dealer’s markup
- The popularity and availability of that model
- How long it’s been sitting on the lot
Think Long-Term: RV Depreciation & Resale
Keep in mind that when you’re buying an RV — you’re buying a home. The resale value of a house is similar to an RV (except that houses are typically appreciating assets).FYI You’re going to take a loss in most cases, and when you get ready to sell your RV, it may not be super easy to sell overnight unless you trade it in for another RV.
When you’re buying an RV you want to consider what the resale value is on it, what you’re paying for it now, and kind of what you should expect to get out of it later.
Remember:
- Let’s be real. Buying an RV is a lot like buying a house… but also nothing like it.
- Unlike real estate, RV values drop fast. As in, $10,000 off the minute you drive it off the lot.
- If you ever want to sell or trade it later, you’re probably going to take a loss. I’ve tried to sell mine before—it’s not easy.
Don’t Forget the Hidden Costs
Other expenses, like I mentioned, you are going to have to pay for propane, your gas and/or diesel to get around, or provide electricity, plus getting water, sewer dumping. Some of these things come into account when you’re financing as well because you’re going to have to pay for something else on top of the monthly RV payment that you’re already financing.
Beyond your monthly loan payment, there are RV ownership costs you need to plan for:
- Gas or diesel (especially if you’re towing!)
- Propane
- Campground or RV park fees
- Electric, water, and sewer hookups
- Maintenance and repairs
- RV insurance
When I got my first RV travel trailer, I quickly learned towing it was a nightmare. Not only did I have to buy a tow vehicle, after I bought the RV, but then every move cost me over $100 in gas alone. Ouch! I’d have to stop three or four times to get gas, and after half a tank, it would just drop, and it was horrible.
The bigger the RV, the more expensive the RV, the more it costs to operate, the more it costs to buy, and the more it costs to insure. So keep all of the things in mind if you aren’t calculating them in the RV cost. Because even if you can afford the big RV, there are these other RV living expenses and costs that are associated with not just buying an RV but using it!
New vs. Used RVs: Which Should You Buy?
My advice? If you’re going to buy, consider buying used—just a couple of years old. That way, someone else already took the depreciation hit, and you still get a fairly new rig for a better deal. As soon as you take it off the lot, it’s going to drop $10,000 immediately if not more! That’s why I say it’s better to buy used since someone else has already taken the depreciation hit buying their RV new!
Where to Start Your RV Search
There are tons of RV finance companies. You have to do your research. That’s why I mentioned that if you go to the RV dealership, they can shop around for you. Not that you have to buy an RV from them, but you can get a lot of information and see different RV models in person.
And then online: RV trader is one of my favorite places to look for information when it comes to buying and financing an RV. I’d go in there and look around.
Here are a few places I recommend:
- RVTrader.com – One of my go-to websites to research and compare RVs for sale (both new and used).
- Camping World – While you might not buy from them, it’s a good place to browse and get familiar with the different RV types and floor plans.
- Facebook Marketplace – This is where I LOVE to buy RVs (especially used ones)
>> The BEST Places to Find & Buy an RV
Remember: The bigger the RV, the higher the costs—to buy, maintain, insure, and fuel. Make sure you’re budgeting for more than just the sticker price.
Wrap Up: What You Need to Know About RV Financing
So now you know:
- Why you might want to finance an RV instead of paying cash
- What’s involved in getting an RV loan
- How to plan for hidden costs
- Why resale value matters
- Where to start shopping
💡 And don’t forget to grab my free RV Buying Guide Checklist!
If you’re still deciding which type of RV is right for you, check out my other posts where I break down the different RV types and who they’re best for. I also have a post explaining boondocking if you’re looking to go off-grid!
🎬 Watch the video…
Got questions about RV Financing and wondering what you need to know about How To Finance An RV? Don’t worry I made you a video to go along with this post!
📚 Don’t forget to DOWNLOAD my RV BUYING GUIDE after you watch this video!
Want More RV Tips?
I’m Blogging Brandi, and this is my RV channel—yes, I have another successful channel all about business and digital nomad life, but this one is just for sharing my RV journey with you.
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VIDEOS MENTIONED
- What is Dry Camping aka BOONDOCKING?
- RV SIZES AND TYPES… Explained
- WATCH all of MY RV TUTORIALS
- First Time RV Buyer? Here’s my Advice for choosing an RV*
- 10 Tips for Buying An RV*
Interested in the RV life, but NOT READY TO BUY? Try Renting an RV can help you learn the RV lifestyle. WATCH HOW… 🎥
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