7 Essential Tips on Financing Your First RV

When you’re about to make a costly purchase, like a car or a home, you definitely want to get the very best deal that you can. And the same goes for an RV, which is something of a combination of the two. Plus, an RV could potentially cost you quite a lot even before you’ve signed any kind of dotted line. So, if you want to finance your first RV properly, you will need to learn about the best buying and negotiating strategies.

Don’t worry, though - we’re here with some financial tips for the purchase of an entry-level RV!

Shopping Around

Once you’ve decided to buy an RV, there are plenty of considerations and preparations to make; especially if you’ve got bad credit. Even if you know a motorhome dealership near you, know that this doesn’t necessarily mean that they’ll give you the best possible price. After all, it’s a business we’re talking about.

And in the world of business, loyalty and personal friendships will only get you so far. So, if you want to snatch the best price you can, you will need to keep all of your options open. There might be a competing dealership somewhere nearby where you can get something better for your money’s worth, or a cheaper price on a particular model.

Make sure you’ve looked at all the possible options out there before settling on a deal; all of the online dealers, your own preferred dealer, and their local competition. Don’t settle for the absolute first deal that’s in the range of your budget; you can probably do better than that!

New Isn’t Always Better

If you’ve been looking around for auto loans and decided on getting one; you may be able to afford a brand new RV. However, in the long term, this may not be the best way to go, financially speaking. Sure, there’s a case to be made for newer vehicles; less maintenance, fewer issues, etc.

But if we’re talking about RVs, buying a used one has its advantages as well. You can control customizations, improvements, and your own spending on the motorhome much more. If you invest less money upfront, you can allow yourself to invest more into the rig later on. That way, you’ll be able to afford more functionality and features than you would’ve with a new RV

Customize Later, Buy Now

In lieu of the above, we have another simple tip for you - customize later, and purchase now. One of the greatest pitfalls of purchasing an RV is the moment when you realize something - the amount of money you would need to get all of the features you’d like right away. Regardless of whether we’re talking about a better entertainment center or a comfier mattress; the price tag that a higher-quality RV has is pretty much enough to turn away even the most enthusiastic first-time buyers.

But when you’re making your RV budget, you need to have the big picture in mind. If you’re not financially comfortable enough to purchase a high-end RV right away, it doesn’t mean you won’t be able to have everything you want in due time. So, get yourself a basic RV model, and you’ll be able to upgrade it down the line. After all, this is a motorhome - so treat it like one. In your home, you buy the things you like to have over time, as your budget allows it.

Financing Rates

When it comes to an RV purchase, financing will make or break your ability to make a great deal. And the financing rates available to you will depend on the market trends at any given moment. As a rule of thumb, though, the loan rates for RVs generally mirror the loan rates for cars. But don’t go with financing provided by your RV dealer if you think a credit union or bank could get you a better rate - and of course, vice versa.

Pooling Resources

Naturally, even with the financing options available out there, you may not be able to afford an RV all by yourself. But did you know that timeshare is a viable and tempting option when it comes to RVs? Many millennials are actually pooling their financing and buying an RV together. That way, you split the maintenance and purchase costs, and get a better RV. The only downside is the fact that you’re sharing it with someone. But after all, let’s be honest - you probably won’t be living in your RV all-year-long anyway.

If you schedule this efficiently enough, everyone who has given money for the RV will be able to use it for plentiful days and months on the road. Of course, even if you are splitting the costs with close friends and family, drafting a contract and outlining the basic terms isn’t a bad idea.

Find a Good Salesperson

Sure, a salesperson is supposed to do everything they can so that you buy their product - and the same goes for RVs. But this is something of a two-way street; the salesperson also wants you to become friends with them because you’re more likely to make a return purchase down the line.

So, be polite and friendly with your salesperson, and try to develop a decent rapport. In the end, they might pull a couple of strings and net you a more affordable deal; particularly if you’re buying near the month’s end, and they’re looking to fill their quota.

Get Incentives

While the salesperson sweet-talks you into buying the RV you’re looking at, they might throw more than a few incentives your way to sweeten the pot. While some of these may turn out to be unimportant, try to see what you can get; you could end up with some amenities that truly increase the inherent value of your RV. On the other hand, you should obviously not consider spending more money because of some seat warmers or a complimentary pair of sunglasses.