Questions To Ask Before Applying for RV Loans
posted on Tuesday, August 30, 2022 in Financial Tips
If you’re planning to spend more time with your family, consider buying a recreational vehicle. Also known as RVs, they’re a hybrid of a vehicle and a home that allows you to explore the country without flying. They also allow you to have ready-to-use accommodation wherever you go. However, they often come at a hefty price.
RVs typically do not fall under the common car categories, making them more expensive than your everyday vehicles. Luckily, there are many financing options for you to choose from. But, before you go ahead and look for RV loans, consider asking the following questions:
How Is My Current Credit Score?
As with any other loan or financing, having a good credit score helps you get better offers and lower interest rates. That’s because lenders and financial institutions will perceive you as someone capable of paying off the loan on time.
Unlike auto loans, financial institutions tend to be stricter when it comes to RV loans because recreational vehicles depreciate much faster. They’re also financed for longer terms.
Should I Get a New Or Used RV?
The debate of whether you should get a new or used RV should also come to mind. Although you’ll be able to get the latest equipment if you buy a new RV, the new ones tend to depreciate faster during the first few years of ownership.
On the other hand, you’ll be able to save a lot of money on the used market since their value has already depreciated. But you may be limited with your choices if you’re looking for a specific brand or model.
Where Can I Acquire a Loan?
Most of the time, there are two options for you to choose from on where to get a loan. You can get one directly from a dealership once you’ve selected your chosen RV. They can present you with a few good financing options to choose from, either through a partnership or in-house.
You can also go to a lender or financial institution like your credit union. In this route, you can get pre-approved for a loan before you head over to your chosen dealership. This can be a good option for you if you’re not quite sure how much you can afford.
If you’re ready to get an RV loan or if you would like to learn more about financing for your RV, contact us at Community 1st Credit Union. Our C1st representatives are ready to help you out.