RV Loan | RV Financing (2024)

FAQs

What credit score do you need for RV financing? ›

You will typically need a credit score of at least 680 to get approved for an RV loan. The higher your credit score, the lower your interest rate will be, which will save you money over the term of the loan.

The RV loan application process is similar to applying for an auto loan, but getting approved is often harder. That's because lenders tend to have stricter requirements for these types of loans, given their large amounts.

Submit a loan application online or at the RV dealership. You will need the usual information, including Social Security number, residence and employment history, proof of income and the amount you want to borrow.

The answer is, it varies greatly. The RV financing industry-standard ranges from about 660 to 700 FICO score, but there is a possibility your search for “RV financing with 650 credit score” can be fruitful because there is financing available for credit scores in the 500 to 600 range.

A score of 670 or better is typically required to qualify for an RV loan. A better score increases your chances of being approved for a loan. However, some lenders will approve you for a loan with just a 550 score.

The interest rate is generally higher than a car loan rate though, and it also has a longer length. The average RV loan rate is 9.5%-13.5%, and 120-180 month loans are the most common.

Is an RV a Financial Investment? The short answer is no. With the exception of some in-demand vintage models, the value of an RV depreciates over time. An RV is an investment in a lifestyle, but you can mitigate the expense by renting it out when not in use through a third-party rental site like Outdoorsy or RVshare.

RV loan terms often range from 10 to 15 years, though they may be shorter or longer depending on your needs and the RV's cost. Compared to car loans, RV loans can differ with regard to the range of interest rates offered and the fees you'll pay.

RV loan rates range from 5.24%-9.74% for new campers and 6.49%-10.24% for used RVs. RV loan terms typically range from 3-12 years but can stretch as long as 20 years.

Why do RV dealers want you to finance? ›

Financing an RV Gives You Negotiating Power

Since dealerships anticipate making money from the financing deal, they may be more willing to negotiate a lower price for the RV itself. Dealers understand that by reducing the price, you will be more likely to buy the camper.

How long is an RV loan term? The loan term and details for financing a new or used RV or camper are very similar. On average, RV loans range from 10–15 years, but many banks, credit unions and other lenders will extend the term up to 20 years for loans of $50,000 or more on qualified collateral.

Securing financing for an RV could be more difficult than getting approved for a car loan. In fact, depending on the length of your loan term and the amount you're borrowing, qualifying for an RV loan could be similar to qualifying for a home mortgage.

Most lenders won't give you a loan for RVs in the 12 to 15-year-old range, so you must strategize by taking out a personal loan or seeking help from credit unions. Here's how our professionals do it.

Most lenders that offer recreational financing will require that your debt to income ratio be less than 40%. You can calculate your DTI ratio by totaling up your monthly recurring debts (total of all of your monthly payments for installment loans and revolving loans), then divide that number by your monthly income.

What credit score do you need to buy an RV? Because RVs are often considered luxury items, a credit score of at least 660 to 700 is typically required, though a credit score of at least 700 is strongly preferred. It is possible to get an RV loan with bad credit, but you'll pay much higher interest rates.

Interest rates are usually fixed, meaning your payments will remain the same for the duration of the loan, regardless of whether the loan is to be repaid in two or 20 years. RV loans do require a down payment. The rate usually falls between 10% and 20%.