Is It Possible To Find Zero Down RV Financing?
RV camping is in the midst of an unprecedented surge in popularity. The appeal of hitting the open road or camping in a self-contained RV has more people than ever thinking about buying an RV.
There are now a multitude of financing options available from many different lenders. Because of the amount of money that is borrowed, an RV loan is often structured more like a mortgage than a vehicle loan. While it is possible to get zero down RV financing, lenders often require a 10-20% down payment on an RV loan.
Is working with an RV dealer the best option?
If you need to finance an RV, it’s usually best to work with an RV dealer to get the best financing terms. RV dealers can often get the best rates on RV loans because they have a number of different lenders they work with to secure the best rates. The interest rate (cost of borrowing) will depend on your credit rating and your downpayment on the RV.
Advantages of zero down RV financing
- Allows you to keep your assets
- May be easier than saving money for a downpayment
- The RV can be financed between 4 and 20 years.
Disadvantages of zero down RV financing
- Amount of interest paid will be higher than if a downpayment was made
- The interest rate on a zero down RV loan is often higher than if a downpayment was made on the RV
- A zero down RV loan will usually be secured with your RV – if you miss a payment, they can take your RV
- RVs depreciate by as much as 20% as soon as you buy them
- You may end up paying more in interest than the RV is worth
RVers looking for valuable how-to information have learned to go to the experts. Forums such as iRV2.com and blog sites like RV LIFE, Do It Yourself RV, and Camper Report provide all the information you need to enjoy your RV. You’ll also find brand-specific information on additional forums like Air Forums, Forest River Forums, and Jayco Owners Forum.
Lynne Fedorick is a freelance writer with 35 years of RVing experience. She specializes in topics such as fulltime RV life, great destinations for RVers, RV organization, RV News, RV tech, and dog behavior/training.