Owning a recreational vehicle can be one of life’s greatest pleasures. You can drive long distances in comfort and then kick back in its cozy interior at almost any rest area, RV park or campsite. If you’re ready to look for affordable RV loans, we’d like to offer you a few tips on increasing your chances of getting in-house financing approval from your local dealership.
Have a Down Payment in Hand
Before you approach any dealerships to obtain in-house financing, you might increase your chances of approval by having a down payment in hand. Generally, the larger the down payment, the better your odds. If you cannot save up cash, consider trading in a vehicle instead. If you take this route, you might want to know the value of your trade in so you can get the best deal possible. Having a sizeable down payment can also reduce what you might pay monthly.
Pay Off Old Debt First
Even if you have a fair credit score, paying off old debt before you seek out in-house financing can increase your chances of finding affordable RV loans. The more debt you can erase, the more favorably dealerships might look upon you in terms of financial risk. Small credit card balances, medical bills and outstanding collections are all debts you can work on paying off within the space of a year or less.
Calculate More Than Just Monthly Payments
When you calculate what you can afford for an RV, it’s a good idea to include all costs within your budget. Add on taxes, fees, the cost of fuel, insurance and maintenance fees, and you might have a better idea of what this vehicle will cost you when you buy it and how much you will have to spend to maintain it later. The more knowledgeable you are about costs, the easier it will be to work with your lender.
Even if you have fair credit, RV loans still might be within your reach. Preparing to find these loans and having your finances in order can help you find one that suits your budget and your dreams of RV ownership.