Financing an RV is actually more straightforward than you think, but you should always be realistic about what you can afford and keep your credit score in the best possible health. Here’s a quick look at the basics of RV finance. To learn more, call or come see us at Cookeville RV and Marine in Cookeville, Tennessee. We’re your RV vacationing headquarters in Nashville, Knoxville and Murfreesboro, Tennessee.
Determine Your Budget
An opening question that RV salesmen commonly ask prospective customers is what kind of a monthly payment that they’re interested in making. That’s a different question than the price of the vehicle, and answering that question gives the salesman the upper hand right upfront. Once you have a price in mind, you’ll probably already have a rough estimate of the monthly payment. But the salesman is going to happily show you vehicles that are out of your price range and count on you falling in love. Once that happens, the salesman will then save the day by offering you a number of creative financing options. Some of those options could involve a lengthier term, a higher interest rate or possibly even a balloon payment. You have plenty of great RV options at just about every price point, so don’t feel pressured to overspend on what seems like a once-in-a-lifetime deal. There will be another one very soon.
Review Your Credit Score
You should monitor your credit score at least annually to make sure that there are no inaccuracies. Most people have some rough spots in their credit, but if you shop around you can find lenders who are experienced at helping buyers who are getting back on track. Be sure to pay all of your bills on time, and keep the amount of revolving debt that you carry under control.
Find a Lender
Getting pre-approved for a loan is a great way to get the best price on an RV because you’ll be negotiating a cash price for the camper. One of the perils that you face when you deal with an in-house financing department is working with commissioned agents who know how to upsell you additional service plans and warranties. Many of the gains you made negotiating with the salesman are lost in the financing office. If you have credit issues, you should also consider putting down a larger down payment to lower your payment and reduce the amount of interest you’ll have to service over the life of the loan.
If you have any questions about RV financing or would like to see our current inventory of RVs for sale, visit Cookeville RV and Marine in Cookeville, Tennessee serving Nashville, Knoxville and Murfreesboro, Tennessee.
