Congratulations! You’re on your way to owning your RV, giving you freedom of the open road and to see places of beauty. Odds are you are going to finance this purchase and being excited you may be tempted to go for the first offer you receive. Now there’s nothing wrong with that, except it may cost you thousands over the life of the loan.
Here are 3 tips to help you find the right RV loan, ensuring your hard-earned money is being allocated efficiently.
Know the Loan Terms
When shopping for a loan, it is important to know the loan terms. This includes length of loan, interest rate, fees and any other costs associated with your note. Before you go into the financing process, you should know exactly what you can afford and what you need to make the purchase.
It’s wise to have a little room for error because instead of a 10-year loan you might only get a 9-year. While it may seem insignificant, if you are on a tight budget it may shut down the chance of owning an RV. Have an open mind but stick to your guns.
Indirectly affecting your loan is the asking price of the RV. Simply put, the less you need to borrow the more you save. However, many simply pay the asking price and walk out the door with no questions asked.
Instead, take time to research the RV of your choice and go in with the mindset of negotiating. You can immediately know of a few thousand dollars by simply asking. This will then lead you to the right RV loan and save you money.
Play with Your Loan Terms
The final tip goes off knowing your loan terms, and that is to play with the various loan terms. To save you the most money, you want the lowest interest rate possible and the lowest note length possible. Sometimes that’s not always possible and that’s perfectly fine.
By lowering the interest rate, you simply save on interest expense of the life of the note. Shortening the lone length might generate higher monthly payments, but that typically leads to a lower rate and less interest expense. Of the two, you are likely to have more control over the length of the loan more than the rate.
These three tips will help you searching and finding the right RV loan for you. Don’t let the financing process detract from the joys of owning an RV. By having the right information prepared, you can go in and shop for exactly what you need.
Apply online now and get your RV financing as soon as tomorrow!