As experts in RV financing, we often get questions about the length of financing. One of the most common questions we get as spring rolls around is, “How long can you finance a camper, really?”
The answer is never clear-cut. Five years, ten years… twenty? The truth is, camper loans can stretch up to 20 years in some cases.
We’ve been in the RV financing world for decades and have seen everything from quick 5-year payoffs to loans that last nearly as long as a mortgage. Let’s break down what those loan terms mean for you in plain English.
Typical Camper Loan Terms
When we talk about financing a camper, we mean towable campers and travel trailers (not the drivable motorhomes or giant fifth wheels). For these campers, loan terms generally range from 5 years on the short end to 15 years and sometimes up to 20 years.
Not every camper loan is a 20-year saga. The length often depends on the price of the camper and the lender. Smaller loan amounts (for a modest used camper) usually come with shorter terms, around 5 to 7 years.
But if you’re eyeing a pricier rig – maybe a $50,000 luxury trailer – lenders might stretch the loan to keep your monthly payments reasonable. Many banks and credit unions will extend RV loans to 15 or 20 years for higher loan amounts. In those cases, a longer term can make an expensive camper much more affordable.
At Rec Loans 360, we examine your financial situation and match you with a lender that can offer you the longest term you qualify for (up to 20 years) because it gives you flexibility. And if you’re wondering why flexibility matters, read on as we compare short-term vs. long-term financing.
Short-Term Camper Loans (5–7 Years)
Choosing a short loan term is like a sprint – quick and intense. Opting for a 5-year camper loan means your monthly payments will be higher, but you’ll knock out the debt fast. I had a customer who financed his travel trailer over 5 years. He joked that his camper payment felt like a second mortgage, but in five summers, he owned the camper free and clear. No more payments, no more interest – just him and his paid-off RV on the road.
The big pro of a short term? You save money on interest. Because you’re paying the loan off sooner, the bank has less time to charge interest on your balance. You could end up saving thousands of dollars compared to a long-term loan. Plus, you get the peace of mind of owning your camper outright sooner.
There’s real satisfaction in finishing payments early. If you can handle the bigger monthly bite, the reward is that you’ll be debt-free years sooner (maybe before retirement). And if the amount you’re financing isn’t huge, the payments on a shorter term stay pretty reasonable.
The downside? That monthly payment will be much higher. A $300/month payment could jump to $600 or more if you shorten the term. You have to budget carefully and make sure a big payment won’t take the fun out of owning the camper. I always say: don’t choose a 5-year plan if it means you can’t afford to fuel up and travel! Balance is key.
Long-Term Financing (15–20 Years)
On the flip side, a long loan term is like a leisurely cross-country drive. Long-term camper financing (15 or 20 years) is common for those buying more expensive campers or anyone who wants to keep the monthly payment as low as possible. Many people, especially retirees on fixed incomes, choose a longer term so they can enjoy their RV without stressing over a big payment each month.
The major benefit is a lower monthly payment. Spread the loan over 15 years instead of 5, and you’ll be amazed how much the payment shrinks. That $30,000 loan that might cost ~$600 a month for 5 years could be around $250-$300 a month over 15 years. That difference often makes the dream of owning a camper doable without pinching pennies.
Of course, the longer you finance, the more interest you pay overall. It’s like taking the scenic route – you’ll buy more gas along the way.
Over 15 or 20 years, you could pay thousands more in interest than with a short loan. Also, remember that RVs depreciate over time – often pretty quickly in the first few years. With a very long loan, there might be a period where you owe more than the camper is worth (being “upside-down” on the loan).
Finding Your Ideal Road
How do you decide which road to take? It comes down to your budget, your plans, and your comfort level.
Think about what monthly payment you can handle comfortably and how long you expect to keep this camper. If a high payment would strain your budget or keep you from enjoying your travels, a longer term (with a lower payment) might serve you better. If you plan to upgrade to a different camper in a few years, you probably don’t want a loan that lingers for a decade beyond that. And consider your attitude toward debt: some folks want to be debt-free ASAP, while others are okay with a longer loan as long as it’s manageable. There’s no right or wrong answer – it’s about what feels right for you.
Also, keep in mind practical factors. Lenders consider things like your credit score and the camper’s age when offering terms. Great credit or a newer camper might get you a longer term, whereas a lower credit score or older rig could mean a shorter term.
Making a down payment reduces how much you need to borrow (and maybe lets you choose a shorter term), but it’s often not required.
And remember, you can always refinance later if circumstances change – say interest rates drop or your financial situation improves.
Get Your Adventures Hitched to a Camper with Rec Loans 360
After decades in RV financing, we can tell you there’s no one-size-fits-all answer to how long you should finance a camper. The right term is the one that lets you enjoy your camper and your life at the same time. You got a camper to relax and have fun – you don’t want money worries tagging along on your adventures.
In the end, choosing how long to finance your camper is a personal decision. At Rec Loans 360, we’re here to guide you through your options with empathy and expertise, like a trusted co-pilot on your financing journey.
Whether you opt for a short sprint or a long cruise with your loan, we’ll help you find a route that works for you. Our online application is secure and simple. We can have you approved in no time and connected to our network of lenders who can help you hit the open road with confidence.
