Frequently Asked Questions (Finance)
I read that interest rates are low now. Is that true for RV loans?
Yes, interest rates for RV loans are the lowest they have been for many years. At some point they are bound to go back up, but right now they are really low.
I still owe a big balance on my trade-in. Is that a problem.
Not at all. In fact it is probably an opportunity to get rid of a loan at a high interest rate and replace it with a loan at a much lower rate. That will save you money in the long run. Interest rates are lower right now than they have been in many years. If the loan on your trade-in was for a long term, you may not have as much equity as you expect. You might need some cash down payment in order to make the trade.
Exactly how does the financing work, when I trade my old RV in on a new one.
Basically, you get a new loan for the amount you still owed on the old unit plus the difference price for the new one. Behind the scenes, what happens is that the dealer sends a check to your bank to pay off the remaining balance on the trade-in, as of the trade date. The amount of the payoff will be less than the sum of the remaining payments because you stop paying interest on the old loan after the payoff date. (You can find out the amount of the current payoff by contacting your bank directly... it changes daily because there is one more day's interest.)
Do I have to have a high credit score to qualify for an RV loan?
A high credit score will certainly help you obtain the best interest rate. However, many of our sources are glad to make RV loans, even if your score is less than ideal.
I am retired. Can I finance my new RV?
You surely can if you have the means to repay it. With interest rates so low, many retirees finance so they don't need to disturb investments or savings accounts.