An RV’s steep price tag means owners rely heavily on financing. Lenders include online and traditional banks, credit unions and RV dealerships. Here’s what you should keep in mind about RV loans.
Loan terms are longer. Some RV loans rival home mortgages, with repayment periods ranging from 10 to 20 years for amounts that can sometimes top $500,000. Aim for a loan with the shortest possible term that you can manage.
Lenders are more stringent. The more you need to borrow, the more a lender will require of you, says Gary Ocallaghan, finance director at Gerzeny’s RV World, a dealership with four locations in Florida. “Once you go over the $150,000 mark, you will need to provide additional documentation,” he says, including credit information, tax returns and personal financial statements. The buyer’s debt-to-income ratio, including the projected RV loan payment, must be under 50%, he adds.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Down payments are bigger. Most lenders require a minimum down payment of 10% of the sales price, says Ocallaghan.
Credit scores are higher. A good credit score for a car loan is typically 660 or better, but the bar is higher for RVs. You’ll need a credit score of at least 700, Ocallaghan says. “If your score is under 700, it is difficult to obtain approval.” Although his company works with many lenders, Ocallaghan knows of only two that would approve RV financing for borrowers with credit scores below 700.
The RV often serves as collateral. Most RV lenders will only consider a secured loan that uses the RV as collateral. Secured loans are easier to obtain, charge lower interest rates and have higher borrowing amounts than unsecured loans, which lenders consider riskier. Interest rates for secured loans recently ranged from 4.2% to nearly 8% at various banks and credit unions, depending on borrowing amounts and the loan term.
Older RVs are harder to finance. Generally, lenders won’t finance RVs that are more than 15 years old. If you are buying an older RV, you may want to consider a personal unsecured loan. Lenders may also require an RV inspection, which ranges from $150 to $1,200 depending on the vehicle.
-
AI Goes To SchoolThe Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.
-
Where to Invest in an Uncertain MarketIn an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
Struggling with How to Plan a Trip? These Companies Will HelpTravel Plans Sit back, relax and let the professionals handle the logistics.
-
457 Plan Contribution Limits for 2025Retirement plans There are higher 457 plan contribution limits for state and local government workers in 2025. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2025SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, up from $69,000 in 2024.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
SIMPLE IRA Contribution Limits for 2025simple IRA The SIMPLE IRA contribution limit increased by $500 for 2025. Workers at small businesses can contribute up to $16,500 or $20,000 if 50 or over and $21,750 if 60-63.
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
