How to Finance an RV — What to Know About RV Loans

Owning an RV is a dream for many people.

Maybe you want to travel the country without having to worry about booking lodging. Or go camping without giving up all of the creature comforts of home.

Perhaps you’re itching to downsize and adopt a more mobile lifestyle — one where you’re not tied down to a mortgage or lease.

A recreational vehicle provides you with freedom to explore. But this dream also comes at a cost.

Buying an RV can set you back anywhere from $35,000 to $300,000, according to Cruise America. That’s why many buyers choose to finance their purchase with an RV loan.

What Is an RV Loan?

An RV loan finances the cost of buying a recreational vehicle. When you sign an RV loan, you’re agreeing to pay back the lender over time and with interest. The terms are typically longer than car loans and they carry higher interest rates.

Because RVs can cost hundreds of thousands of dollars, many prospective owners use RV loans to make their purchase.

RV loans aren’t the same as a typical auto loan you might apply for if you were buying a new car. A recreational vehicle is often seen as a luxury purchase. According to Camper Reportinterest rates for RV loans tend to fall between 4% and 6%, but factors such as purchase price, the age of the vehicle, your credit score and the length of your loan can cause you to have a higher or lower interest rate.

The length of your RV loan term will probably be longer than your average car purchase, so you have more time to pay off the loan. While you can get a two- to five-year loan, you might qualify for a 20-year loan for an RV with a six-figure purchase price. In that case, your loan will be more similar to a mortgage than an average car loan.

An RV loan with longer loan terms means you’ll have lower monthly payments. However, you’ll end up paying more interest over time. If you can manage the higher monthly payments, you’ll save money with a shorter loan.

Options for RV Financing


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