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Jul 02

Primary Factors You Need To Consider Before Getting Your Dream RV

Reading Time: 5 mins

The trend of getting an RV has been increasing, especially for families and individuals who want to add a twist to their lifestyle by traveling on the road. For some, an RV can serve both comfort and style while traveling.

An RV allows you to visit many places and destinations without the hassle that the usual mode of transportation has. Additionally, you get to do things without having to share a space with another stranger.

However, RVs don’t come cheap. They are much more expensive compared to buying a common car. Not many people know, but RVs come in second to a home purchase. If you are still interested in joining the trend of riding in luxury and leisure of having an RV, you should consider these significant factors before purchasing one.


What is an RV loan?

Technically, an RV loan is long-term financing that you can use to purchase an RV or a motorhome in many different RV dealers. RVs are an expensive mode of transportation. It’s no surprise that they come at a higher price than an average car.

RVs can cost a lot of money, ranging from the lowest price of $10,000 to an astounding $500,000. However, it depends on what type of trailer you want to purchase. Camper trailers usually have the lowest price while a motorhome’s starting price begins at $100,000.

The good thing is, many institutions offer RV loans, both for secondhand and newly purchased RVs. Online lenders, banks, credit unions, and even an RV dealership now offer loans for motorhomes and RVs. They can assist you in sorting out your RV loan right away.

Most of these institutions allow you to have up to 20 years of repayment with ten years as the lowest and the fastest way to replenish your loan.


RV Financing 101

Purchasing an RV might bring you back to your first home purchase. It has a lot of similarities, especially when it comes to financing it. Since an RV is a significant purchase, you must carefully check these things and make sure you are ready to handle everything for a smoother financing process.



It is undeniable that money is still the fundamental factor in everything you do. Your purchasing power will tell you how much you can spend, which is why it is imperative to determine how much you have to finance your RV. You need to be honest with this one since your budget will tell you what type of RV you can afford.

If you have set aside enough money to purchase an expensive trailer, then go ahead and splurge. However, you can find small trailer RVs that can cost you around $10,000 to $50,000. Additionally, moderate motorhomes cost from $100,000-$300,000. You can also shop around for used RVs since they are relatively cheaper but still fit for the road.

Don’t forget to consider the expenses that will occur after the purchase, such as monthly repayments and other living expenses. There’s also the maintenance that the vehicle requires. Also, include your storage units and RV parks as additional expenses.

Lastly, RV gas is expensive. A full tank has an estimated value of $600, and that’s on gas alone. However, it all depends on how big your RV is, the distance you are driving, and the frequency of use. RV park fees and storage units require at least $30-$100 every month.



Homes and cars have differences when it comes to maintenance, but one thing is for sure, they need it. RVs, as a mode of transportation, requires maintenance to ensure they are in optimum working level. Basic expenses for an RV includes the gas cost and utility cost.

When estimated, RV maintenance, for a month, can cost you $100, depending on what repairs should be done. You can save a lot on the utilities if you are efficient, but minimum cost ranges from $100-$300 every month.

Furthermore, RVs need monthly, seasonal, and yearly maintenance if you want to keep your vehicle in shape. Hence, set aside money for maintenance and emergencies since roadblocks are inevitable, especially when you are constantly on the road.



Many borrowers forget the importance of saving for a downpayment, which shouldn’t happen in the first place. Saving money for a downpayment has a lot to do in handling your monthly repayments in the future. But it doesn’t also mean you need to cover too much in your downpayment.

Spend your money wisely. If you can cover up to 20% of the RV price, and have the rest of the 80% reflected in your RV loan application, go ahead with it. Do not drop a huge cash value right away without considering the other expenses that you need to cover in the future.


Available RV Loans You Can Choose From

Many institutions now offer RV loans. However, it is best to shop around and do some research first and find out which of them has an offer that works with you. Here are the few selections you can try:


Bank or Credit Union Financing

A bank or credit union financing is the most common institution where you can easily apply for an RV loan. Remember, an established relationship with these institutions will make things easier for you. If you have a good credit score and an excellent transaction history with them, you’ll have a high chance of getting your RV loan approved.

Also, they offer competitive loan terms and rates. Most banks offer up to $150,000 secured loans for used or brand new RVs. Big credit unions can offer up to $500,000, with a starting APR of 8%.


Dealer Financing

The advantage of dealer financing is you don’t have to go through the process on your own since the dealer does all the work for you. They work the same way with how a bank processes a loan, but this time, with a dealer standing on your behalf.

However, take heed as some dealers incur a higher interest rate than what the lender offered during the deal. Additionally, look out for the hidden cost such as extended warranty, loan acquisition fee, and other absurd fees like customer service or document preparation.

Read all the sell sheets carefully and be thorough with your purchase. Some dealers are savvy when it comes to selling. They can easily convince you to add unnecessary fees that seem inviting and worth the money but will cost you extra in the long run.


Personal Loan

A personal loan is the least used type of loan due to its relatively small rate offers. However, many consumers want to apply for one because it requires no collateral. This means they won’t be risking anything valuable to borrow the money.

However, take this as a warning. Since personal loans are unsecured loans, it gives the lender a chance to incur a high-interest rate in a short period.  If you found a lender that you can negotiate terms with, opt for them instead. But make sure that the monthly repayments fit right in your budget. If not, you need to reconsider your decision.



An RV can be an exciting way to add fun to your lifestyle. However, it usually comes with an expensive price tag. Still, if you have determined your budget and choose a fitting lifestyle, you can truly enjoy living in an RV. There are many options to choose from, as there are many lenders that offer RV loans. Make sure you considered all the significant factors before actually signing for one.




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