Full-time RVing is now a growing trend among millennials. It’s not surprising that the latest RVs feature various facilities like traditional homes.
Financing solutions keep springing up from different corners to make the process of becoming a proud RV owner easier. Oftentimes, the requirements for getting RV loans are stringent because this type of loan is regarded as specialty loans.
Without much ado, here are the surefire ways to be eligible for the best RV financing rates.
1. Maintain a decent credit score
Maintaining a high credit score can help you attract an RV loan with a low-interest rate. However, you don’t have to despair if you have a low credit score. This is because it’s no longer difficult to get financing with low credit.
Be deliberate about improving your credit score to save costs and reduce the interest rate. It’s possible to achieve this within a few months. Some of the steps you can take include finding legitimate ways to pay outstanding debt.
It’s ideal to check your credit score and report any error before applying for an RV loan.
2. Be clear about the type of RV you want
Recreational vehicles are of four types which include:
· Class A
Class A RVs are the most expensive type of RVs, and they evoke luxury. They are designed for long-term traveling.
· Class B
This class of RVs is also known as camper vans. They feature sleeping and cooking facilities, but the bathroom is slightly smaller than Class A RVs.
· Class C
Class C vehicles are a hybrid of Class A and Class B RVs. They tend to be smaller and have basic facilities.
· Travel trailers
Travel trailers are the smallest types of RVs. They are also cheaper and, you will only need to attach them to the back of your vehicle.
Now that you’re armed with this information, the next thing is to design your budget. Remember to include additional expenses early on. It’s better to always choose functionality over aesthetics to avoid any regret.
3. Offer a large down payment
Another way to qualify for the best RV financing rates is to make a large down payment. This can increase your chances of finding loans with lower monthly payments and interest rates. In case this seems impossible right now, review your monthly expenses to see if you can make some adjustments.
4. Consider buying your RV offseason
It’s important to buy your RV at the right time. Summer is unarguably the peak season for purchasing RVs. Given this, you can buy your RV in winter or fall instead. This is a smart way to get the best deals and better loan rates.
Many people are not interested in outdoor adventure during this season, but will rather enjoy the comfort their homes provide.
5. Avoid common RV financing mistakes
Even though you can’t wait to sign the paperwork and hit the road, make sure you do your due diligence. Here are the steps you must take to make your trip more exciting:
- Get the right RV size.
- Check if your preferred RV has the features you need.
- Carry a generator along or install solar panels to serve as an energy source.