An RV gives you a chance to get out of town without having to shell out cash for a hotel room. The number of Americans thinking about buying one of the top RVs and Campers for 2017 realize just how nice it is not to have to pack and unpack on a massive road trip across multiple states. These savings look rather attractive until you realize just how much that freedom will cost you. Even a beat-up RV can be a significant expense, and unfortunately, there’s a lot of ways to make a mistake when it comes to financing. Avoid a fate worse than paying for your own travel lodgings when you come to the financing table armed with all the facts.
It’s a Lifestyle Change
With the new life that comes courtesy of your new RV, you’re likely going to need to make a few adjustments to your normal financial habits too. Between the payments and the maintenance costs, you’re opening yourself up to a lot of new expenses. Those who are experts in RV financing stress that it’s necessary for new owners to really understand what they want from their RV before they even think of seeing how much RV they can afford. New retirees may buy an RV thinking that they’ll use it all the time, only to find out that maybe they don’t want to be on the road that often.
The Haggling Is Happening
An RV’s price can be inflated by up to 35%. Sellers do this so you’ll think you got a great deal when they come down in price by thousands of dollars. So now that you’ve had your hopes dashed with the harsh and bitter truth of reality, it doesn’t mean you must despair. You can still get a good deal if you practice your negotiating skills. It can be as simple as asking the salesperson just how low they can go, and letting them pick up the slack. However, to net the best savings, you may want to be prepared to come into the dealership more than once armed with your resolve and your iron willpower. The less you must pay upfront, the easier your financing will go. For those looking for used car or RV, there are top searched items that can help you find what you want online.
Your Rates Depend
This is a common piece of advice when it comes to all financing, but consumers sometimes need to be reminded of their credit past to be able to better prepare for their credit future. You can use Credit Karma to check your score anytime, for free. The lower your score is, the more interest you’ll pay (up to 24%.) If your score is somewhere above 650, you should be in great shape. Lower, and you won’t get the same advantages. Also, you need to be careful about estimating just how much you can afford in terms of repairs. RVs may not have the same needs as a brick-and-mortar home, but they’re certainly going to be more upkeep than a regular vehicle.
You don’t want to take the first financing offer. Look for different interest rates, and remember that your loan is going to include everything from the taxes to the warranty costs. Even a tiny discrepancy in your interest rate can really make a difference over the long run, so take the time to shop around. Also, consider putting down a massive down payment — as high as you can possibly go. It’s normal for RVs to start depreciating quickly, and even new ones can drop by more than 25% the moment you drive it off the lot.