Can you finance a used RV ?

Can you finance a used RV ?

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Vacations, road trips, camping are all things that can be done with RV’s, which is why so many people choose to buy one. However, RVs come at a considerably high price. For those who cannot afford to buy a new RV, buying a used one might be the best alternative. But, can you get a loan for a used RV?

This is one question that many first time Rvers want to know. In this article lets explore all details to fully understand all the benefits, advantages and advantages of requesting a loan on a used RV.

Knowing Whether You Can Get a Loan or Not

If you have decided that you want to buy an used RV or motorhome, then the first thing you need to check is whether you can or cannot in fact get a loan on a used RV. ]

Well, the answer is yes, you can finance a used RV or camper. At this point, you will be left with two choices: asking your bank for a loan or asking the dealer for financing.

Bank Financing or Dealer Financing

The best option when in need of a loan is to get informed on all options and only then decide which one benefits you the most.

A banker will guide you through the entire loan process, but if you’re researching online, then you will need to use a loan payment calculator, which will help you know the interest rates and montly payment details. All you have to do is set the RV finance amount, interest rate and deadline to make your final payment of your loan.

There are many factors which can make the annual percentage rate vary, such as the size and even the duration of the loan. Bank loans do, however, possess a big downside. Bank loan deals are mostly static and cannot be negotiated. You either accept their offer or you won’t get a loan.

If, on the other hand, you choose to get financing directly from the seller of the RV, some different options are added to the table. On this option, it is vital for you research to for other client reviews and determine whether the dealer’s financing interest rate is an affordable one.

Requesting a loan directly from the dealer has a great advantage. It can be much faster and convenient. You will also be able to negotiate the terms of the loan and monthly payments. But like all things, there is also a downside. Interest rates are not very competitive and so, your monthly payment might be higher than the bank’s.

But, before making your final decision, you need to consider current rates and annual percentage rates.

How to get RV loan – the process and steps

So, how do you start the process? What will determine whether i can get the loan or not. One thing that is obvious is your credit score. If you have maintained a healthy credit score then you are in good position to secure the loan. And if you haven’t done that then you may have a hard time getting the loan specially for a costly RV which can cost about $40,000 and above.

1. Credit score is more important in case of used RV’s. Financial instituion will check on the RV value, its ager before giving the RV finance. In-fact many companies would not go ahead if the RV is very old. It all depends on the bank and thier policies. And if the points aren’t in your favour then you may have to accept higher interest rates.

Used RVs will come at a considerably lower price than its original price. But, still remeber they do cost a lot unless you are opting for a smaller travel trailer or pop up camper.

2. Second thing that money lender or banks would want to check is the debt to income ration. You may have high income but may also be paying most part of it towards other monthly installment or credit card payments. So, basically banks want to check whether you are really capable of paying the monthly payments towards your RV loan or not.

3. Banks or credit unions will also check on how much you will pay as down payment. This will help them gauge your financial capability. The banks or dealer financing union will have their own procedure to approve or reject the loan. What’s there in your hand is to maintain a good credit score !

RV loan Interest rates

Much like when requesting for a loan on a car or house, RV or camper trailer loan interest rates can change. If the market is on high demand, then it is going to be high loan rates. So the ideal thing to do is wait for the right season or times when the market trends change, and then get an RV loan. Summer or spring is when the RV’s are in high demand. Winter on the other hand can be a good season to get good deals.

RV finacing can come at interest rates as low as 5% or lesser than that as well. It obiviously depends on from whome you are buying the RV finance. The interest rate will also depend on the RV value or how much finance you are getting. Higher the amount lesser will be the interest rate. Similary, lesser the months of repayment lesser is the interest rate.

Assess Your Financial Situation

Now that you have finally established that you can indeed get a loan on a used camper or RV and know the monthly pay you will have to make, it is time to assess your current financial situation, in order to determine whether you will be able to afford paying the loan.

Another question than many new want-to-be RVers have is whether they can buy with zero down RV financing. This again will depend on the credit score and the value of RV. A bad credit score will definately make it hard to get zero down payment loan for used RV.

RV financing length and Other benefits

Financing cars and homes is a very common thing and so it is highly likely that you’ve done one so far. However, when it comes to RV’s, there are some different benefits that might influence your opinion on the matter.

Certain RVs might actually benefit from tax breaks, depending on the loan interest you will be paying. That means you might be able to avoid paying a very high amount of money. Also, as RV loans can go up to 20 years, the monthly payment will become much more affordable.

Typically RV loan durationscan be 10 years to 15 years long. But, higher loan amount can give you 20 years or higher period.


Before requesting a loan it is important that you give yourself the best set of options. So, research all you can and make an educated decision. The key to financing a RV or motorhome truly is making sure that your final decision fits your budget and lifestyle. This includes your choice of RV or motorhome, duration of loan and interest rate.

If you have a low budget for a loan, then it might not be a good idea to choose a bigger RV like Class C or Class A motorhome, as they will be considerably more expensive. Other than that, you are set to go.

G. Yoganand

A RV enthusiast who spends countless hours researching and learning various things related to RV camping. He believes in spending time doing Outdoor activities.
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