How does RV financing work?

[matt167]

My fiancé and i are getting married in July. Considering parking a camper somewhere for a while rather than renting or buying a place until we find the right one and the markets settle. How does financing a camper actually work. I have pretty good credit and when I checked rates through lending tree the interest rates are in the stupid category. I can afford it but it didn’t make sense. I have not even stepped on a dealer lot yet. With our wedding expenses I can’t afford much more than cousin Eddie’s camper outright and she wants to get a nice one anyway. Well I’d probably put $5k down anyway. Where should I be looking?

 

[Scott Danforth]

RV loans are 15 - 30 year however they have to be 10 years old or newer

go thru the RV dealer. you will get better rates than your bank / CU even if you have perfect credit. I think Im just over 4% where my CU was 6%

my $30k loan amount costs $153 a month (of course we are making double and triple payments)

talk to your insurance company first, before you set foot on the RV lot. reason is most insurance policies cover roof damage to $5k or rodent damage to $5k (think a racoon eats its way thru the floor to get to your box of trailmix). the RV company will try to bundle a package that covers roof and rodent for an extra $7k

also, they will try to sell you an all-inclusive warranty. which actually costs more than the parts would cost if you do the work yourself.

a few things to understand about RV's

• if you think boats are made cheap....... RV's are made cheaper
• interior walls are vinyl covered 3mm plywood stapled to the headers/footers and seam taped
• plastic bits used nearly everywhere
• there are 2 major players of RV components and a few minor ones. parts are common.
• Azdel is the new panel material. its actually quite good
• roofs are still wood bits covered in EPDM rubber and the seams are caulked in butyl
• most RV's are made by the amish........ so think amish plumber and amish electrician. plan on fixing the wiring and the plumbing even on a new one
• buy a pex crimper, the cheap plastic plumbing fittings will leak 2 days after the warranty goes out.
• plan on 3 warranty trips back to the service department. so buy local.

 

[matt167]

We would be looking at something 2015 or newer and in the $15-20k range but it looks like new might even fit into the price range with all the discounts if I keep my expectations low and don’t go to fancy. I was scanning camping world and the other local places. I have a pex crimper and I’m also versed in Polybutylene tubing

 

[aspeck]

Just don't go too small ... newlyweds in a confined space is fun, but it can wreak havoc on the nerves as well. But that said, your idea is not a bad one ... and if you have good credit, financing of an RV is pretty easy, especially with money down. RV financing isn't much different than mobile home financing ... what you are buying depreciates so it is more important that you have good credit than what you are actually buying.

 

[matt167]

My credit is between 770 and 805 across all bureaus but experian suggested I have a thin credit profile since I only have 2 credit cards with no or low balance. I had no problem finding a loan through lending tree but it was a secured personal loan and it was a 4 year loan. I’ll have to talk to a person at a dealership once I get info on insurance from my company like Scott suggested.

I think we’re looking at 20-25’ with a slide out at the very least. Her father can tow a 5th wheel for us if we find something at a good deal

 

[ThomW]

At least one slide out is a must! The additional room you get from slide outs is vital. 20' may be smaller than you will be happy with if you are staying in it for extended periods. I would say aim closer to the 26' side. Still small enough to pull around and move easily...but gives you some extra room too.
Like Scott said...we financed ours--which was about 26K and our payment is $160/month...Similarly, we always try to pay twice the monthly payment though so it will be paid off sooner than later.

 

[Scott Danforth]

We would be looking at something 2015 or newer and in the $15-20k range but it looks like new might even fit into the price range with all the discounts if I keep my expectations low and don’t go to fancy. I was scanning camping world and the other local places. I have a pex crimper and I’m also versed in Polybutylene tubing

with the lots filling up, dont be afraid to dicker.

when we were looking 13 months ago, we came across a 1 year old 19' RV with almost everything we wanted. new they were stickered for $42k, this one was 1 year old, used twice, however we could have gotten it for $20k

However the manager got back to us about 30 minutes after we got a brand new one for $10k off sticker

 

[matt167]

with the lots filling up, dont be afraid to dicker.

when we were looking 13 months ago, we came across a 1 year old 19' RV with almost everything we wanted. new they were stickered for $42k, this one was 1 year old, used twice, however we could have gotten it for $20k

However the manager got back to us about 30 minutes after we got a brand new one for $10k off sticker

Is Right Now the time we should be buying?. I don’t want to wait too long if there is potential to save a lot of money

 

[Scott Danforth]

Is Right Now the time we should be buying?. I don’t want to wait too long if there is potential to save a lot of money

Best time was December 26th thru 30th as they were trying to push product off the lots before year end.

Now is better than next month when most of the RV shows happen

 

[WIMUSKY]

Yup, now's the time to buy. Fall is better before owners winterize them if they live in an area where they need to, like WI. However, your options could be limited this time of year. They'll come out of the woodwork this spring, but they'll also want top dollar. Camping World? I would steer clear, jmo. It is my understanding they're over priced and their service is less than stellar.

I agree about a slideout. I wouldnt buy a rig w/o at least 1. I would also buy as big as you can afford even if it means going a little older. These things shrink in a hurry. Think 2 footitis. Also, alot out there are hardly used. A little older one may look brand new with a decent price.

Like with any rv it doesn't hurt to get it inspected, in fact it's encouraged. Water is their enemy. Look in every nook and cranny for water damage. Make sure you check the roof too.
Here a link to inspectors. Good luck, do your homework....

Home - NRVIA

Get your RV Inspected by a trained, certified RV Inspector through the NRVIA. Use our RV Inspector Locator to search for an RV Inspector in your area.

nrvia.org

 

[matt167]

Sadly camping world absorbed 3 dealers that are closest to me. There are still 2 independents close enough though

 

[redneck joe]

buy used 100% over new and you hopefully you should be able to double up on payments so whatever rate you get doesn't matter much or if planning to sell before paid off again the percentage rate for that small of a loan is pennies.

 

[dingbat]

The housing market is never settled…interest rates go up, home prices go down. Interest rates go down, home prices go up.

Take your $5k and good credit and buy something that appreciates…bought my first townhome at age 25 with a borrowed down payment and interest rates at 12.5%. Best thing I ever did.

Daughter and her fiancé bought a home in all the craziness last October. Current home value estimates put appreciation at 4.3% since purchase.

This is in a highly desirable and competitive housing market in the DC/Northern Virginia area. Your mileage may vary in other locals

 

[redneck joe]

I missed the $5k down. Buy used for $10-15 for the couple years you may be in it. Will get you something nice. If roof leaks, couple hundred bucks of roof goo will fix.

 

[matt167]

The housing market is never settled…interest rates go up, home prices go down. Interest rates go down, home prices go up.

Take your $5k and good credit and buy something that appreciates…bought my first townhome at age 25 with a borrowed down payment and interest rates at 12.5%. Best thing I ever did.

Daughter and her fiancé bought a home in all the craziness last October. Current home value estimates put appreciation at 4.3% since purchase.

This is in a highly desirable and competitive housing market in the DC/Northern Virginia area. Your mileage may vary in other locals

I want to just buy something and we can actually probably get a 0 down USDA loan since those programs are available here. But my fiancé doesn’t want to buy anything until we have a substantial down payment. I may or may not convince her. We are looking through. Even land to put a camper on for now

 

[64osby]

Around my area unimproved land will be 50% down payment.

If you are saving to buy a house don't go into debt. Buy what you can afford in cash.

 

[matt167]

We have found a couple places with run down structures being sold as land. This is mostly farmland area. But they have well and septic and electric. Should qualify for a construction to permanent loan. But we need to figure it out. Now she dislikes the camper idea

 

[aspeck]

Ditch the camper and live on a boat!

 

[redneck joe]

We have found a couple places with run down structures being sold as land. This is mostly farmland area. But they have well and septic and electric. Should qualify for a construction to permanent loan. But we need to figure it out. Now she dislikes the camper idea

buy camper and live in while you build / GC a new small house or fix up the ones on the land. i see lots of retired folks do that.

 

[roscoe]

We have found a couple places with run down structures being sold as land. This is mostly farmland area. But they have well and septic and electric. Should qualify for a construction to permanent loan. But we need to figure it out. Now she dislikes the camper idea

Be careful with a “construction to permanent “ type loan. Many have restrictions as to how you can use the property. Specifically the use of a camper.