All You Need to Know About Financing Your RV
If the high sticker price of your preferred RV model is holding you back from purchasing it, you have arrived at the right place. As your local camper dealer, we at Cedar City RV know a thing or two about the various financing solutions available on the market. That’s why our experts have created this guide to highlight a few tips for financing your RV purchase.
Read on to learn more, and then visit us at our dealership to connect with our finance experts. We are in Lebanon, TN, and we happily welcome our patrons from Smithville and Murfreesboro.
Set a Realistic Budget
Before you start exploring RVs for sale, you’ll want to plan a realistic budget. This will help you narrow down your options to models you can afford.
While crunching your numbers, don’t forget that you’ll need to pay 10-20% of your given model’s sticker price upfront and shell out monthly installments with interest. So, think about what you’ll be comfortable setting aside each month for the entire tenure of your loan.
Save for Down Payment
As stated before, the down payment is a one-time payment you’ll need to make at the time of purchasing your camper. Though you won’t need to plan too far ahead for this, you’ll want to save up the maximum amount you can. As you may know, the more you pay upfront, the lower your interest rates will be, meaning you will have less to worry about and more savings in the long run.
Your Credit
One of the significant aspects influencing your loan is your credit score—the better your scores, the more favorable your terms can be.
Most lenders will want to check your credit score and history when approving your loan. That’s why you’ll want to ensure that your credit scores are high and your credit history is free of any blemishes, which can affect your chances of getting a profitable finance solution.
Loan Types
Typically, there are two main types of loans—secured and unsecured.
If you have a lower credit score, you’ll want to apply for a secured loan. Usually, these have a higher interest rate and will need to use your RV as collateral. This means that the lender can repossess your RV if you default on payments.
On the other hand, you’ll need a higher credit score to apply for an unsecured loan. This type of financing option comes with better terms and doesn’t need you to use your camper as collateral.
We hope you find this guide helpful when opting for a financing solution to buy an RV. If you have more questions or need help selecting a loan type that matches your credit score and history, visit Cedar City RV. Our finance experts can set up a plan and help you get your preferred camper sooner than you think. We offer customized solutions to our customers and can’t wait to assist you. Visit our dealership in Lebanon, TN, for a friendly chat with our team. We proudly serve Smithville and Murfreesboro, so reach out today.