
Financing a camper or RV is a lot like financing a car or a home. The length of your loan will depend on a variety of factors, including the cost of the vehicle, your credit score, and the lender you work with. On average, you can find RV loans available for terms of ten to fifteen years, though some institutions will even offer loan timeframes of up to twenty years.
Characteristics | Values |
---|---|
Typical loan term | 10-15 years |
Longest loan term | 20 years |
Shortest loan term | 2 years |
Average loan term | 10-15 years |
Loan term with My Financing USA | 5-20 years |
Loan term with Southeast Financial | 20 years |
Loan term with Good Sam | 12-15 years |
What You'll Learn
Loan terms
The length of your loan term for a camper or RV will depend on a multitude of variables, including the cost, your credit score, the loan payment, and the lender. On average, you can find RV loans available for terms of ten to fifteen years. Some institutions will even offer loan timeframes of up to twenty years, though these are less common.
The size of the loan will also influence the length of the loan term. The larger the loan, the longer the term is likely to be. For example, a loan of $75,000 or more can be financed for up to 20 years, while a loan of $20,000 to $24,000 can be financed for up to 12 years.
The age and condition of the camper or RV will also be a factor, as lenders may restrict term lengths based on the model's age to mitigate risk. Generally, lenders will only finance loans for campers or RVs that are 10 to 15 years old, but some may finance campers or RVs that are up to 20 years old.
The type of lender will also impact the length of the loan term. Dealerships often offer longer repayment terms than personal loan lenders, such as banks, credit unions, and online lenders. These lenders typically offer terms ranging from two to seven years, while dealerships may offer repayment terms of up to 20 years.
Finally, your desired monthly payment will also play a role in determining the length of the loan term. A longer repayment term will result in a lower monthly payment, but you will pay more in interest over the life of the loan.
When choosing the length of your loan term, it is important to consider the total cost of the loan, including interest, as well as your monthly budget. A shorter loan term will result in higher monthly payments but will save you money in the long run. On the other hand, a longer loan term will result in lower monthly payments but will cost you more overall.
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Interest rates
Interest Rate Impact on Loan Term and Monthly Payments:
The interest rate you secure for your camper loan will significantly impact the overall cost of your loan. While a longer loan term may offer smaller monthly payments, you will end up paying more in interest over time. On the other hand, a shorter loan term will result in higher monthly payments but less interest paid overall. This means that if you can afford it, opting for a shorter loan term is usually more financially advantageous.
Factors Affecting Interest Rates:
Several factors influence the interest rates offered by lenders. These include your credit score, loan amount, RV model, and lender type. A higher credit score generally leads to more favourable interest rate options. Additionally, lenders typically offer lower interest rates for larger loan amounts. The RV model you choose can also impact the interest rate, as some lenders provide lower rates for newer models or those with specific features. The type of lender you work with, such as a dealership, bank, credit union, or online lender, can also affect the interest rate you receive.
Secured vs. Unsecured Loans:
Camper loans can be secured or unsecured. Secured loans use the camper as collateral, and they often come with lower interest rates compared to unsecured loans. Unsecured loans, on the other hand, are based solely on your credit profile and financial health, and they usually have higher interest rates. It's important to note that with a secured loan, you risk losing your camper if you default on the loan.
Interest Rate Range and Loan Amounts:
The interest rates for camper loans can vary widely, typically ranging from around 7% to nearly 36%. The specific rate you receive will depend on various factors, including your credit score and loan amount. Loan amounts for campers can also vary, with some lenders offering loans as low as $1,000 and others providing loans up to $100,000 or more. It's important to shop around and compare rates from multiple lenders to ensure you get the best deal.
Prequalification and Comparison:
When considering camper loans, it's essential to prequalify with multiple lenders to understand the rates and terms you qualify for. This process allows you to compare offers without impacting your credit score. By gathering quotes from different lenders, you can make a more informed decision about which loan option is best suited to your financial needs and goals.
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Credit score
The length of your loan will depend on a multitude of factors, such as the cost, your credit score, the loan payment, and the lender.
On average, you can find camper loans available for terms of ten to fifteen years. Some institutions will even offer loan timeframes of up to twenty years, though these are less common.
The higher your credit score, the more term length options you'll get offered. With a lower score, lenders may see you as a higher risk and offer shorter term lengths. A score in the high 700s is best, and the lower the number, the more you can expect your camper to cost you, especially if the number dips into the low 600s.
If you have a low-dollar loan and need a 20-year loan but don’t want to finance through a company like Southeast Financial, keep looking or let the people at your local dealer or National Vehicle help you find the exact type of loan you need. Every lender sets their own policies, and there is bound to be a perfect fit for you, your vehicle, and your creditworthiness.
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Loan amount
The loan amount is a key factor in determining the length of an RV loan. Lenders typically limit longer financing terms to larger loan amounts.
Some lenders will only finance loans over $50,000, but there are some like Southeast Financial that will underwrite smaller loans and still allow a maximum term of 240 months (20 years). Good Sam, another lender, restricts the term to either 12 or 15 years for loans under $50,000, and to 12 years for loans under $25,000.
The loan amount you can borrow is also influenced by the age and condition of the RV, as well as your credit score and income. Lenders often restrict term lengths based on the model's age to mitigate the risk of depreciation. A higher credit score will get you more term length options, whereas a lower score may result in shorter term lengths as lenders may see you as a higher risk.
It's important to remember that a longer loan term will usually result in smaller monthly payments but will ultimately cost you more due to interest rates. Therefore, it's recommended to choose the shortest repayment term that comfortably fits your budget to avoid overpaying in the long run.
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Lender
The loan amount is a significant factor in determining the length of the loan. Lenders typically offer longer financing terms for larger loan amounts. For example, loans above $75,000 may qualify for a 20-year term, while loans between $25,000 and $74,000 may be eligible for a 15-year term.
The condition and age of the RV also play a crucial role in the loan term. Lenders may restrict the loan term for older models due to depreciation, with some lenders only offering loans for RVs that are no more than 10 to 15 years old.
The borrower's credit score is another essential factor. A higher credit score generally leads to more favourable loan terms and interest rates. A good credit score is typically considered to be between 670 and 730, while a score above 750 is considered excellent.
It is worth noting that the type of lender can also impact the loan term. Dealerships often provide longer repayment terms than traditional lenders like banks and credit unions.
Ultimately, the length of an RV loan can vary significantly, ranging from as little as two years to as many as 20 years. The specific factors considered by the lender will determine the final loan term offered to the borrower.
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Frequently asked questions
The length of your camper loan will depend on many factors, such as the cost, your credit score, the loan payment, and how long you want your loan term to be. The average camper loan can range from 10 to 15 years, but loans can be as short as five years or as long as 20 years.
The loan amount, the age and condition of the camper, your credit score, and the type of lender will all affect the length of your loan.
A longer loan term will result in smaller monthly payments, but you will ultimately pay more in interest over time. If you can afford it, a shorter loan term will save you money.