The Motorhome Consumer Review

Tips On Getting A Motorhome Loan

Paying cash for a motorhome or rv is getting more and more difficult as prices continue to rise, and many new motorhome sale prices are in the high five and six figure category. So for many rv owners, getting a motorhome loan is a necessary part of the process. But if you choose to finance your motorhome, here are a few tips to keep in mind while doing so to help you save money and protect your investment:

• Whether you are buying a new or used motorhome, always shop for financing and secure your loan before actually looking for the RV itself. This gives you much better negotiating power as you make your deal. Beware of dealer financing as they only offer the service to make money on the sale of that contract. So you are essentially giving money away to the dealer that you could have saved by arranging for an RV loan on your own. There are plenty of good online RV loan companies that can help you save lots of money over the life of the loan, so take advantage of the savings by dealing directly with the lender.



• Try your best to get a simple interest loan that will allow you to start paying down a substantial part of the original loan amount from the first payment made. Sometimes loan companies will try to arrange the contract so that you are mainly paying off the interest up front for quite a while before your payment ever starts being applied to the principal itself. Avoid those kind of loans if at all possible. You want to be able to pay down what you actually owe on the motorhome with eevery payment made so that when it comes time to sell, you have some solid equity in the cost of the coach.



• Try to use a lender that especially caters to the RV and motorhome industry. Many banks and auto lending institutions simply don't understand the ins and outs of motorhome lending and as a result they hit you with higher rates and added clauses that make no sense for a motorhome owner.



• Be on the watch for any listed prepayment penalty. Sometimes loan companies will sneak in a clause that says you have to pay an extra lump sum if you decide to pay off the motorhome early. It's their way of getting even more money on the back end of the contract. This will severely limit you when you decide to sell or trade your motorhome though, so make sure that exhorbitant prepayment fees are not included in any RV loan that you get.

Bear in mind that the more cash that you have to actually put into the loan deal, usually the better rates that you will be able to get because you are assuming more of the financial responsibility of the purchase and lenders like to see that. Be sure to shop around and don't take the first loan approval offered to you. By doing some patient research beforehand you can save many thousands of dollars later on.