Financing A Used Pop-Up Camper: What Are Your Options?

There are a few options for financing a used pop-up camper. You could take out a loan from a bank, credit union, online lender, or dealership. Dealerships often have relationships with credit unions, which can make it easier to secure a loan. If you're buying from a private seller, a loan from a bank, credit union, or online lender may be a better option. You could also consider using a credit card to pay for your purchase, especially if you can take advantage of a promotional offer. It's worth shopping around to find the best interest rates and terms for your loan.

Loans from banks or credit unions

Assess Your Creditworthiness

Before approaching a bank or credit union for a loan, it's important to assess your creditworthiness. Lenders will evaluate your credit score, income, credit history, and debt-to-income ratio. A higher credit score, stable income, clean credit history, and low debt-to-income ratio will improve your chances of loan approval and securing favourable terms. If you have a lower credit score or limited credit history, consider applying with a co-borrower to strengthen your application.

Compare Interest Rates and Terms

It's essential to shop around and compare interest rates and loan terms offered by different banks and credit unions. Interest rates for RV loans can vary significantly, ranging from around 7% to nearly 36%. The rate you qualify for will depend on factors such as your credit score, loan amount, loan term, and whether the loan is secured or unsecured. Prequalification can help you get an idea of the rates and terms you may qualify for without impacting your credit score.

Understand Secured vs. Unsecured Loans

There are two main types of RV loans: secured and unsecured. Secured loans use the RV as collateral, meaning the lender can repossess the vehicle if you default on the loan. These loans often have lower interest rates but may take longer to approve since the lender will need to evaluate the RV. Unsecured loans, on the other hand, are based solely on your creditworthiness and don't require collateral. They may have higher interest rates, but the approval process is typically faster.

Evaluate Loan Amounts and Repayment Options

RV loan amounts can vary depending on the vehicle's cost and your financial situation. Calculate how much you need to borrow by considering the purchase price, sales tax, insurance, and any necessary maintenance or repairs. When it comes to repayment, longer loan terms will result in lower monthly payments but will cost you more in interest over time. Consider your financial goals and budget to determine the best repayment option for you.

Prepare the Required Documentation

Once you've selected a lender and are ready to apply for the loan, gather the necessary documentation. This typically includes proof of identity, such as a Social Security card or driver's license, income verification, such as pay stubs, and bank statements or asset information. If you're applying for a secured loan, you'll also need detailed information about the RV, such as its make, model, and condition.

Understand the Loan Process

The loan process for a secured RV loan is similar to taking out an auto loan. After checking your credit score, deciding between a secured or unsecured loan, and comparing lenders, you'll submit a loan application. This will result in a hard credit check, which may temporarily lower your credit score. If approved, the lender will provide the funds, which are typically paid directly to the RV dealer for a secured loan or to your bank account for an unsecured loan.

Consider Additional Costs and Insurance

Keep in mind that there may be additional costs associated with the loan, such as closing costs, down payment requirements, and various fees. Additionally, most lenders will require you to have insurance for the RV, which can add to your overall expenses. Be sure to factor these costs into your budget and loan calculations.

Using a credit card

One advantage of using a credit card is taking advantage of promotional offers, such as a new card with a 0% APR. If you can pay off the balance before the promotional period ends, you can effectively avoid paying any interest on your camper purchase. However, it's crucial to be cautious and ensure you can make the payments, as missing an instalment can lead to a significant drop in your credit score.

Another factor to consider is your credit limit. A large purchase can get you closer to your credit limit and negatively impact your credit score. It's recommended to call your credit card company ahead of time to inform them of an upcoming high-dollar charge and confirm your spending limit.

Additionally, using a credit card for a camper purchase may result in higher interest rates compared to other financing options. Credit cards tend to have higher interest rates than loans, and the difference can be substantial. For example, the average APR for credit card accounts that charged interest was 22.76% in the spring of 2024, while the average interest rate for 60-month new auto loans was 8.2%.

When deciding whether to use a credit card to finance a used pop-up camper, it's essential to weigh the pros and cons. While it can be a convenient option, the high-interest rates and potential fees associated with credit card purchases can make it a costly choice. Be sure to explore other financing options, such as auto loans or personal loans, to find the most cost-effective solution for your situation.

RV financing companies

Camping World

Camping World provides access to a network of over 300 trusted lenders to help you finance your new or used RV. They work with both national and local lenders and can facilitate loans through credit unions. Camping World offers competitive loan options and helps match you with the ideal lender and rate based on your needs. They also provide pre-qualification options to increase your chances of securing a competitive rate.

Good Sam Finance Center

Good Sam Finance Center has over 25 years of experience in RV financing. They offer loans for both new and used RV purchases, as well as refinancing options. Good Sam caters to a wide range of credit scores, starting at 600, and provides financing for various RV types, including motorhomes, RV conversions, and towables. They also offer a zero-down program for loans up to $70,000.

LightStream

LightStream is known for its competitive rates and flexible loan terms. They offer unsecured RV loans with no fees and the potential for same-day funding upon approval. LightStream's minimum and maximum APRs are among the lowest in the industry. However, their loan amounts are capped at $100,000, which may be a limiting factor for high-end RV purchases.

INet

INet is a great option if you're looking for a small loan amount to finance your used pop-up camper. They offer loans starting at $5,000 and cater to a minimum credit score of 550. iNet finances RVs up to 15 years old and does not require a down payment for some loan types under $50,000.

Southeast Financial

If you're in the market for a luxury RV, Southeast Financial offers large loan amounts of up to $4,000,000. They provide loan repayment terms of up to 240 months, giving you extended flexibility. However, they only finance RVs up to 12 years old, and their high loan amounts are reserved for borrowers with excellent credit.

These companies provide a range of financing options to help make your dream of owning a used pop-up camper a reality. Be sure to compare their rates, terms, and eligibility requirements to find the best fit for your financial situation.

Auto loans

Step 1: Check Your Credit Score

Lenders usually require a good credit score to qualify for an auto loan. Typically, a FICO score of 670 or above is considered favourable. If your score is lower, you may still be able to qualify, but the interest rate and fees will likely be higher. Checking your credit score beforehand will give you an idea of the loan terms you can expect.

Step 2: Decide Between a Secured or Unsecured Loan

Secured auto loans use the camper as collateral, while unsecured loans do not. Secured loans may have lower interest rates, but you risk losing your camper if you default on the loan. Unsecured loans, on the other hand, may have higher interest rates, but you won't risk losing your camper. Consider your financial situation and the level of risk you're comfortable with before deciding.

Step 3: Gather Income Documents

Lenders will want to see proof of your income to ensure you can repay the loan. Have documents such as pay stubs, tax returns, or bank statements ready to show that you have a steady income and can afford the loan payments.

Step 4: Compare Loan Options

Shop around and compare auto loan options from multiple lenders. Consider the interest rates, loan terms, and any associated fees. You can use online tools and calculators to get pre-qualified for loans and see what rates you may qualify for without hurting your credit score. Compare apples-to-apples by only comparing secured loan rates with other secured loan rates, and the same for unsecured loans.

Step 5: Choose a Lender and Apply

Once you've found a lender that offers favourable terms, it's time to apply for the auto loan. This step will usually involve a hard credit check, which can temporarily lower your credit score. Follow the lender's instructions and provide any additional information or documentation they may require.

Step 6: Gather Additional Documents

After your loan application is approved, the lender will likely request additional documents to finalise the process. These may include proof of identity, such as a driver's license or Social Security card, proof of address, and detailed information about the camper you're purchasing.

Step 7: Receive the Funds

If you take out a secured auto loan, the funds will typically be paid directly to the camper dealer. With an unsecured loan, the funds may be deposited into your bank account, and you can then use them to purchase the camper.

Remember to also consider the insurance costs for your camper, as most lenders will require proof of insurance. By following these steps, you'll be well on your way to financing your used pop-up camper through an auto loan.

Personal loans

When considering a personal loan, it is important to shop around and compare rates, fees, loan amounts, and terms from several different lenders. You will also need to provide identification information, residential information, and employment information when applying.

Some specific lenders to consider for personal loans for an RV include LightStream, Upstart, Upgrade, Best Egg, and Prosper. LightStream offers low minimum and maximum APRs and a rate beat program. Upstart is a good option for those with bad credit, as they consider your income and job stability rather than just your credit history. Upgrade offers loans to borrowers with scores as low as 600. Best Egg offers both secured and unsecured loan options and is a good choice for those with fair credit. Prosper is a peer-to-peer lending option, putting your application in front of several investors at once.

Frequently asked questions