Used RV Financing Tips
Buying a used recreational vehicle is very common in the RV world of financing. A used RV financing application is just as simple, easy, and straight forward as a regular recreational vehicle loan. The used RV financing process may take a tad bit longer, but the benefits to buying a used motor home outweigh the disadvantages. The following are a few tips on the process of applying for used RV financing.
- Tip #1:
Prospective used recreational vehicle owner and loan applicant, do your research. Research is a key component to having a successful buying experience, as well as a pleasurable life on the road. If you are a first time buyer, you should take a quality amount of your own time to enhance your basic knowledge on what to expect from the purchase of a new or used motor home. Research the types of recreational vehicles you are interested in. Look at different brands, types, models, and floor plans. Think about your needs – both on the road (number of people traveling with you; will you be towing a car, etc.) and off the road (budget and financial requirements). Research can be done on the internet, face to face with other current recreational vehicle owners, at a book store, or even in trade magazines.
- Tip #2:
Know your budget before applying for used RV financing. The application for used RV financing will ask you to share in depth financial history and projected information. It is extremely important for you to know your budget and personal financial needs prior to filling out the used RV financing application. The used RV financing application will ask you about finance information, such as monthly payments, down payments, type of interest rate you would like to lock in (fixed or adjustable), and credit history. If you have a poor credit score, there is still a recreational vehicle loan available to suit your budgetary needs. By purchasing a motor home, you will actually be increasing the positive marks on your credit score, along with building equity. Take the appropriate time needed to assess your budget and evaluate the costs a motor home can/will have. Costs go beyond the actual base purchase, for example, gas, travel expenses, food, accessories, utensils, etc.
- Tip #3:
Buy a used RV that is less than 5 years old. When searching for a used recreational vehicle, it is smart to look and eventually purchase one that is preferably less than 5 years old. By buying a newer-used RV, your chances of being guaranteed used RV financing is higher than if you purchased an older motor home. Each used RV financing agency or lender will vary, so double check with a variety of potential lending sources before falling in love with a used motor home that is not able to get financed.
- Tip #4:
Understand the application process. The application process for a used RV is simple and very similar to that of a brand new motor home. You can apply on line through an accredited lender or at your local bank or through the company selling the used motor home. When applying, be prepared. You will have a credit score check, a request for employer references, and be asked to turn in past tax forms. If the used motor home that you are applying to purchase is accessible to the lender, it is highly possible that the company will send out a professional inspector.
- Tip #5:
Pay attention to the lender. Make sure you are not being forced to set up your personal bank or savings account as collateral. There are lending sources in existence that do not have the buyer’s best interest at hand. Pay attention and trust your gut instinct. Do not do anything that sounds out of the ordinary, such as paying for the inspector’s trip in your closing cost, etc.
Enjoy reaping the many benefits of buying a used recreational vehicle. Your life on the road will be all that you want it to be, and your new-used motor home will be the perfect home away from home for you and your traveling partners.