Average Interest Rates for a Motorhome Loan

Purchasing a new motorhome can be extremely exciting! However, the daunting thoughts of a high-interest rate might put a damper on the excitement. Hopefully, by reading this article you can find some peace of mind and be more prepared to take the next step in purchasing your new motorhome.

On average the interest rate for a motorhome loan is around 4% – 6%. However, motorhome loans and their accompanying interest rates will vary depending on the size of the loan being given, the term length, and your current credit score. For those who have more debt, interest rates will usually be higher.

In this article, you are going to learn everything you could ever need to know about a motorhome loan and how to find the best interest rate for your motorhome loan.

Motorhome Loans Versus Home and Car Loans

When you are seeking to receive a loan for a home or a new vehicle, banks and financiers see those items as a necessary thing.

Home loans are often harder to secure due to the much larger amount being lent. Car loans, however, are the most likely to be approved.

However, motorhome loans do not fall in the “necessary loan” category. In fact, this type of loan is considered to be more of a luxury.

While you may consider a motorhome to be a vehicle with a built-in living space, motorhome loans do not tend to be held to the same terms as a vehicle loan.

In fact, motorhome loans are often held to the same standards as a home loan (after all a motorhome is as the name says… a home… with a motor).

Besides the differences in types of loans, there are other things that will affect the terms and interest rates of your motorhome loan.

Motorhome Loan Interest Rates

As I mentioned above interest rates will vary depending on several different factors: credit score, term length, and loan amount.

Let’s dive a little deeper to see how each of these factors may influence the interest rate of your motorhome loan.

Credit Score

Your credit score and credit history is going to be one of the factors that influence not only the interest rates of your motorhome loan but may impact your ability to even get a loan approved.

Many financiers will require at least a credit score of 640. However, a credit score of at least 700 is going to receive much more desirable rates.

In the event that your credit score is lower than 640, the likely hood of you not being able to get approval for your motorhome rises significantly.

If you are able to get a motorhome loan approved with a lower credit score, the accompanying interest rates for the loan are going to be much higher than the average loan interest rate.

Worried about your credit score?

Later on, we will discuss some ways to build your credit score to help you be able to obtain your motorhome loan.

Term Length

The length you choose to pay off your loan will also affect the interest rates you receive.

How does this work exactly?

Well, your bank (or whoever is financing your loan) is more likely to give you lower rates for a shorter payment term.

Why is this exactly?

The way financiers and banks see this, is that the longer the loan term length, the greater the chances are that something could happen to make it so that you are unable to pay off the remaining balance of the loan.

Also, the higher interest rates make it so that in fact, they receive the complete amount of money lent before you have even paid off the entire loan (reduces their risk).

If you have the financial capability, choosing a shorter term limit will make it so that you can save money, rather than spending all your money on interest.

Loan Amount

Depending on the cost of your motorhome, the accompanying fees, and however much money you already have set aside for the motorhome, you may want to attempt to receive a loan slightly larger than the total bill.

Why? Well, if you choose a larger loan than the interest rates will most likely be lower than a smaller loan.

For example, according to Good Sam Finance Center, a loan of $10,000 could have an Annual Percentage Rate (APR) would between 6.19% and 7.69% while a loan of $75,000 could have an APR between 4.59% and 5.35%.

So, we can easily see that larger loans will receive a significantly lower interest rate.

Of course, when choosing the amount of your motorhome loan, you should try to stay relatively close to the actual amount of the motorhome.

Do not choose an outrageously large loan for a motorhome that would only require a small portion of the loan.

Now that we have covered each of the factors that affect the interest rates of your motorhome loan, let’s look at a few examples of loans and interest rates you might be able to receive.

Loan Amount2 – 5 years5 – 7 years7 – 10 years
$10,000 – $14,9996.19%6.79%7.19%
$15,000 – $24,9995.89%6.29%6.59%
$25,000 – $49,9995.59%5.69%5.89%
$50,000 – $74,9994.59$4.79%4.99%
$75,000 – $99,9994.59%4.79%4.99%
$100,000 – $149,9994.59%4.79%4.99%
$150,000 – $249,9994.59%4.79%4.99%

Content Courtesy of Good Sam Finance Center.

Motorhome Loan Tips

When you are attempting to obtain a loan in order to purchase a new (or used) motorhome, there are a few tips and tricks you can use in order to receive the best terms.

1. “Beat a Rate”

Suppose you have always been a trusted member of a bank or have gone to the same business for your financing needs.

However, while you are looking for a motorhome loan, you find that another business or bank offers a better rate and terms for the same loan.

You do not want to betray your loyalty to the bank or business but you also do not want to pay more then you need to.


Ask your previous financier is they are willing to match or even “beat” the other business’s loan rate.

Chances are they will be willing to work with you in one way or another to keep your business with them (and you end up benefiting as well!).

2. Look into Tax Deductibility

According to the IRS’s definition of a second home, a motorhome, in fact, does qualify as a second home and is, therefore, any interest acquired can be claimed as a deductible on your taxes.

Before you take out a loan on your motorhome, ensure that the loan’s terms and the motorhome do in fact meet the IRS’s standards so that you can take advantage of the available benefits too!

3. Save Up First

Before even beginning the search for your new motorhome, you should begin saving up some money.

Adjust your budget so that you are saving at least a small amount each month.

Over time this small amount will become much larger and will not only help you to be able to obtain a loan but can help you get the best possible rates!

How does saving money help you to be able to do those things? If you are saving, shouldn’t you just wait until you can pay in full?

Both of these are great questions and each is equally valid.

While it would be wonderful to be able to pay for your new motorhome in full, often times this just is not within many people’s means.

Now onto the first question.

Saving money prior to seeking out a loan can benefit you in two different ways.

The first is that when you have more money saved, banks are more willing to give you the best rates and terms for your loan because of the larger down payment (once again it is all about the risk for them).

If you are not able to receive a loan, consider saving up more for the down payment or consider asking for a smaller amount.

The second way that saving benefits you in your search for a motorhome loan, is that when you find the loan, you have the ability to pay it off quicker and therefore accumulate less interest.

You should choose a loan that covers the cost of your motorhome and makes the down payment and potentially the first few payments all from your savings.

When choosing a loan you should always make sure to crunch a few numbers and to look at several location’s interests and terms.

Never accept the first good looking loan you see without doing a little more research!

Dory Peppermelt

Hello, fellow camping enthusiasts! My name is Dory Peppermelt and I not only love spending time in the outdoors or in my RV, but I love sharing what I have learned with you too! I hope you can learn from my experiences to make your next adventure one of a kind!

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