What is a good RV loan rate?

In this blog post, we will answer the following question: What is a good RV loan rate? We will explain how you can get an RV loan and what is the secret to successful RV financing.

What is a good RV loan rate?

A good RV load would start at 4.29% for clients with an excellent credit score and credit history. Still, the average RV loan rate in the US is 6.17% for a new RV purchase and a 36-month loan term and 6.15% for a 60-month loan on a new RV purchase.

Wondering who is offering the best RV loan rate in 2022? According to Business Insider, the following companies offer the best RV loans in January 2022:

CompanyLoan amount rangeAPRTime frame
Lightstream RV Loans$5,000 to $100,000From 4.29% 24 to 84 months
Bank of the West RV Loans$10,000 to $2 millionFrom 4.29% Up to 240 months
Suntrust RV Loans$100,000 to $1.5 million for secured loans, $5,000 to $100,000 for unsecured loansFrom 4.29% 24 to 84 months

Is an RV loan the same as a car loan?

To travel with the family in an itinerant and friendly way, an RV loan at the best rate will allow you to explore without “spending too much”. You have to turn to a car loan to finance your motorhome. The principle is the same for all vehicles, including the boat loan.

Because it represents an investment for households wishing to benefit from a new means of transport and to get away from it all. Indeed, you should know that a motorhome has a certain cost which can be reduced depending on the family budget and by a monthly payment of this expense thanks to the motorhome loan. Also with a view to lowering costs, the motorhome can be purchased second-hand. In this specific case, this has a real impact on the total amount of the motorhome loan!

Depending on the type of project desired, prices may vary from 20,000 to 60,000 dollars for the purchase of a new camper van, and sometimes much more. 

This investment is profitable by comparing the price of a night in a mobile home, in a guesthouse or even in a hotel, we see that in the long term the camper van is much cheaper and on top of that it is personal. . It can be decorated, fitted out and maintained according to one’s desires and needs of the moment.

An RV loan corresponds to a car loan because it is a motor vehicle. However, if it is a second-hand camper van, it will be necessary to turn to a personal loan or a used car loan and no longer to a car loan. The advantage in this case is that this type of loan is a credit without proof of purchase of the vehicle. While for the purchase of a new vehicle, you will need to provide an invoice or an order form to obtain motorhome credit.

With all of these questions answered and your dream model identified, let’s take a look at the different financing solutions available to you.

Principles and procedures for obtaining RV financing

RV financing, like any other type of affected credit, is granted exclusively for the purchase of a motorhome. So, to take out this type of loan, it is essential to define your project beforehand: what type of motorhome do you want to buy? 

By taking into account various criteria such as the carrying capacity of the vehicle and its level of equipment. Once the ideal trailer has been identified, you can present your project to the establishment chosen to apply for the loan. 

To do this, you can contact:

  •  A bank 
  • A credit organization 
  • A dealership.

In all cases, whether you subscribe to a bank, a loan organization or a dealership, certain conditions apply. 

Conditions for obtaining an RV loan

One of the first conditions for obtaining a motorhome loan lies in the creditworthiness of the borrower. The latter will thus have to justify his borrowing capacity through various documents (payslip, invoices, etc.). It will then be up to the lending institution, after studying your request, to determine your actual borrowing capacity. 

He alone will be able to judge whether you are able to repay or not according to your income and your expenses.

Terms and duration of the RV loan

In the majority of cases, the repayment period of a loan, whatever its nature, strongly depends on the amount of the loan. Depending on the type of vehicle, the cost of the loan can go up to $200,000. Being a flexible contract, you have the possibility of modifying the duration to regularize your monthly payments. And a change in the duration of the loan undoubtedly leads to a change in monthly payments. 

Moreover, upon subscription, you can choose the reimbursement formula suited to your situation: from 12 to 144 months. These borrowing terms may vary from one institution to another, however. This is why it is advisable to compare the different existing offers by performing a motorhome loan simulation.

Supporting documents to provide for an RV loan

When applying for an RV loan, the borrower must prepare a file including: Proof of identity Proof of address under 6 years old (water and electricity bill, telephone bill, etc.) Proof of income (payslip) Bank Identity Statement The order form signed by the seller Like other types of affected credit such as car credit or motorcycle credit, RV financing will only be granted when the contract of sale will be signed by both parties.

Before taking an RV loan

  • Consider federal and state laws: Review the federal and state laws that affect the vehicle financing and leasing process. These laws provide you with important information that can help you negotiate a better deal or better understand the process. They also give you certain rights.
  • Determine how much you can afford: Before financing or leasing a vehicle, analyze your financial situation to make sure you have enough income to cover your monthly expenses. 

Then, if you want to finance the purchase of a vehicle, know that the amount you will pay in total is going to depend on several factors, including the price you negotiate for the vehicle, the annual percentage rate or APR, which can also be negotiable, and the duration of the credit agreement.

Decide to finance or lease a vehicle when you know you are ready to take on a new obligation. Review the overall cost of the purchase or lease.

Final recommendations

For all these solutions, pay attention to the warranty extensions on the carrier, the mechanics. Think about death and disability insurance, loss of employment, etc. You can also include “financial loss” insurance on the vehicle, which covers the risk of additional costs following the total destruction or theft of the vehicle.

The ideal is to have an intake of 20-30%.

We can never tell you enough, but you can finance a large part of your rent between individuals. You will need to use one of the means listed above, but offering your vehicle for rental will provide you with additional income that will ease your monthly payments!

FAQ on What is a good RV loan rate?

Can you finance an older RV?

It is not that easy to finance an RV older than 15 years. If this is your case, you will have to either get a personal loan or a loan from a credit union. The score credit for an RV loan should be at least 700, and there are few lenders who finance an older RV or someone with a low credit score.

Can you finance an older RV?

It is not that easy to finance an RV older than 15 years. If this is your case, you will have to either get a personal loan or a loan from a credit union. The score credit for an RV loan should be at least 700, and there are few lenders who finance an older RV or someone with a low credit score.

How can interest rates vary from lender to lender?

Interest rates can vary widely. A rate of 5.99% for a specialized secured trailer loan for new utilities and those less than six years old could be increased to 12.95% by an unsecured bank loan for the same vehicle or to 17.95% by a non-bank lender for a personal loan.


Was this helpful?

Thanks for your feedback!