RV Financing Strategies For The Entrepreneurially Challenged
Friday, February 7, 2020, 6:00 PM | Leave Comment
An RV is an investment that can be your second home and that can cut down your travelling cost in half.
It could be one of the largest investments that you can make in your whole life; well, maybe after your house and retirement.
Buying an RV with all its many expenses can prove to be expensive. Thankfully, easy RV financing offers are available and you can get RV loans so that you can finance your purchase over time.
And we’re here to guide you and help you to make the most out of it.
Check out these strategies that will benefit you while financing your first RV.
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Different RV financing lenders
Different types of lenders, working with different institutions are willing to finance your RV. You can either go to banks or credit unions or online lenders to finance your RV. Even your dealer with all his contacts can help you with financing but we recommend you to get a pre-approval before even going to a dealer.
And for that, compare your options thoroughly. Compare the loan amount, period and especially the rate that different lenders are providing and choose a lender that suits your requirements the best.
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Shop for the lowest rates
Shopping for the lowest rate can facilitate the loan repayment process. And for this, you have to take care of many things. First of all, go for a secured loan under which you will have to put your RV as collateral. An unsecured loan invites a higher rate. After that, make sure that your credit score is more than 700 to get the lowest interest of 4% to 6% on your RV loan. Then, opt for a shorter loan period which will help you get a lower rate.
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Increase your down payment
There are lenders that are willing to finance your RV with 0% down payment. It might sound tempting but you can do better than this in the long run. A hefty down payment means a lower rate, which means less interest to pay in the future. Financing a smaller amount works both ways and makes it less risky for both the owner and the borrower. So, increase your down payment as much as you can to help yourself in the long run.
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Set your budget beforehand
Setting your budget beforehand and getting a pre-approval is the smartest thing to do while financing your RV. If you go to a dealer before getting a pre-approval, you’re more likely to submit to your temptations and spend more than your budget limit. Moreover, you are more likely to accept less appealing finance offers made by the dealer to get an expensive RV of your choice. So, to make the best out of your RV financing, set a budget beforehand and get a pre-approval. It is better than accepting an average offer in a rush.
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Negotiate your way up
When you go to a lender for the financing of your RV, they will make their best offer to you. But never forget that it is just an offer and it can be haggled. Negotiating is the most effective way to save yourself some money by haggling interest rate and incentives. And if you have an excellent credit score, you have even more chances of negotiating an offer to your benefit. Surely, something as important as an RV is worth your time and negotiations.
An RV is one of the most important investments that you will make in your life. So, look out for the best deals and strategies while financing your RV. The open road awaits you!
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