Buying an RV and hitting the open road is the ultimate life goal for many people that long for adventure away from the hustle and bustle of the city.
However, RVs are large vehicles that can equate to the expenses of purchasing a new home (in some cases). For most people, outright buying an RV isn’t an option, and financing is essential.
Here’s a closer look at the benefits of financing an RV purchase and how Rec Loans 360 can make the process stress-free.
Why Should You Finance an RV?
Even if you can afford to pay for your new RV in cash upfront, the option of financing it should still be one you explore. By having the cash on hand and still financing your purchase, you’re able to handle any issue that could potentially pop up later since your cash remains liquid.
Let’s explore some of the key reasons why you should consider financing your next RV purchase.
RV Loans Are Simple Interest
This type of loan is typically simple interest, meaning that the interest is not added to the RV loan amount, and you only pay interest on the RV loan amount borrowed.
Another benefit of RV financing is that it typically comes with lower interest rates than other types of loans, such as personal loans or credit cards.
That means you can save money on interest charges and use more of your budget for other things, like gas, maintenance or campground fees.
When considering an RV loan, be sure to compare offers from multiple lenders to find the best rate and terms for your needs.
Working with a team like Rec Loans 360 guarantees you’ll be able to compare multiple loan options and get connected with the right lender for your budget.
Financing Allows for Guaranteed Asset Protection (GAP)
If you get Guaranteed Asset Protection (GAP) insurance with your RV, you’re covered for any deprecation if your RV is totaled. If you pay cash, you can’t get a GAP policy, and would only receive the actual value of your RV at the time of the incident. (Check out our tips for getting the best RV insurance and why you should always choose RV-specific insurance.)
Financing Can Improve Your Credit Score
Financing a purchase of this size keeps your credit current, which is useful if you’ve paid off other major purchases like your home or automobiles.
RV financing can be a great way to inject some positive energy into your credit portfolio. By taking out an RV loan and making your payments on time, you can build up your credit history and improve your credit score for any future financial ventures.
Where Can You Get an RV Loan?
When you want to obtain an RV loan there are usually two main options, the dealership and a traditional lender. However, both come with their fair share of complications that Rec Loans 360 can help you avoid.
Downsides of a Dealership
When you finance an RV through a dealership, the interest rates on RV loans are often higher because dealerships typically work with a limited number of lenders, and those lenders tend to charge higher rates.
Dealerships may also add on extra fees, such as an origination fee or a processing fee. These fees can add up and put a strain on your planned RV budget.
Bank Financing Issues
RV financing through a bank comes with a few downsides. Banks consider RVs a luxury item and want to make sure they profit from RV buyers. Thus, RV loans from a bank often come with a higher interest rate.
Another downside of RV financing through a bank is that the loan process can be lengthy and complicated. Banks typically require a lot of documentation, and they can take weeks or even months to approve a loan. This can be frustrating for RV buyers who are eager to get on the road.
Finally, banks typically require RV buyers to make a large down payment – often 20% or more of the RV’s total cost. This can be a challenge for RV buyers who don’t have a lot of cash on hand.
How Can Rec Loans 360 Help?
Rec Loans 360 is your ultimate advocate when you’re looking for the best rates on an RV loan. Our loan application process is 100% online and allows you to review loan offers on your own time, not ours.
Unlike standard financial institutions, we don’t take our time getting you behind the wheel of your next RV. While approval times vary, most occur within same day or even minutes after an application submission.
When you work with Rec Loans 360, we use your financial background to connect you with a lender that can offer you a loan with competitive rates that reflect your credit portfolio.
Whether you have excellent credit or credit that needs improving, we can help you find a lender that will work within your means.
Find a Lender with Rec Loans 360 Today!
Rec Loans 360 takes pride in simplifying RV lending and knows that the perfect process starts with finding the right lender. Don’t spend your time shopping for a lender over shopping for your dream RV.
Contact us today to learn more about our easy online process and how we can help you start a loan application today.
