How To Buy An RV With No Down Payment
The RV market has exploded. If you want to hit the road but don’t have a lot of cash right now, you may be wondering, “Can I buy an RV with no money down?”
You aren’t alone in this. Many people are wondering the same thing. Some individuals want to purchase an RV to live in, rather than pay sky-high rent prices or purchase a house in a housing market that has never been so expensive. Other people simply want a way to get away. Of course, there are also those who are taking advantage of the fact that they are now working from home to travel full-time.
Whatever your reason is for wanting to purchase an RV now—rather than waiting to save up for a down payment—we get it, and we want to help. In this article, we will talk about whether it is possible to purchase an RV with no money down as well as whether or not it is a good idea to do so.
Is it possible to find zero down RV financing?
First, let’s address that burning question: “Can I buy an RV with no money down?” The answer is yes, it is possible to find loans that do not require a down payment. That said, they aren’t necessarily easy to find, meaning you might be shopping for an RV for quite a while.
On top of that, there are some drawbacks to zero-down RV financing that you will want to keep in mind when deciding whether or not to take such a loan.
The pros of buying an RV with a zero down payment
Let’s start with the good—what are the reasons somebody might choose an RV loan that requires no money down?
Well, the most obvious reason is to acquire an RV when little cash is available. Buying with no money down means you don’t have to spend time saving up for a down payment before you can buy. This makes no-money-down loans ideal for those who need a place to stay or want to travel right away but have no cash to put toward such a thing.
Another reason to choose a loan without a down payment is that it allows you to hold onto your assets. If you don’t want to pull money out of investments or sell big-ticket items in order to have the money to put toward a down payment, this might be the right choice for you.
The cons of buying an RV with zero money down
Unfortunately, as mentioned before, there are some cons that are associated with no-money-down RV loans. These are pretty big drawbacks and might make you hesitate to jump right in, so be sure to read this section and carefully consider whether this is the right choice for you.
More difficult to find financing
As we mentioned above, finding zero-down RV financing isn’t easy. You will likely have to do a lot of loan shopping before you find somebody willing to give you the loan when no down payment is available.
Better credit score required
It should come as no surprise that anybody giving you a no-money-down loan is going to want you to have a really good credit score. Since securing financing for an RV usually requires a good credit score to begin with, finding somebody that will finance an RV with no money down is probably going to mean having an excellent score.
Higher interest rates
Interest rates are going to be higher if you choose to take a loan without making a down payment. This, coupled with the fact that you will likely be paying the loan off over a longer period of time, means you will pay a whole lot in interest when all is said and done. In fact, some people even find that they end up paying more in interest than the RV is actually worth.
Loan is secured with your RV
A loan given with no down payment will almost certainly be secured with the RV being financed. While this can be true with any RV loan, it is pretty much unavoidable with a no-money-down RV loan, meaning if you miss a payment, the bank could easily show up to take the rig from you.
Where to look for no-money-down RV loans
If you are still thinking a loan without a down payment is the best way for you to acquire an RV, the next step is finding a lender who will give you such a loan. While we usually recommend going through your own bank (or better yet, a credit union if possible), in the case of a zero-down loan, you might be better off financing through the RV dealership. Watch for sales events to find zero-down specials and jump on such a deal when you find one.
So, the answer to your question is yes, you can buy an RV with no money down. That said, it isn’t something we recommend doing unless it really is your only option.
A much better option is to save some money up so you can make a decent down payment and avoid outrageous interest rates. Better yet, save for a while and pay cash for a rig so you can avoid paying interest altogether. This will save you money in the long run and give you peace of mind.
One of the best parts about RVing is engaging with the community of traveling enthusiasts. iRV2 forums allow folks to chat with other RVers online, and get other perspectives on everything RVing, including products, destinations, RV mods, and much more.