Want to wander the country and drive from one place to another without worrying about the expenses? Want to camp at the most scenic places in the country?
Buying an RV (Recreational Vehicle) will fulfill your wishes of traveling the country at less than half of the cost. An RV is a kind of a motorhome with all the basic amenities of sleeping, cooking, and bathroom.
An RV cuts the traveling cost to half, as you save all the money on accommodation and you can cook your own food conveniently. And when it comes to buying an RV, you can always choose to finance it with personal RV loans.
Check out how a travel lover can finance an RV and save money with My Financing USA.
Select an older model
Selecting an older model or a second-hand RV has a couple of benefits associated with it. First of all, dealers want to make room for the new models, so they are usually flexible regarding price and terms of older models.
Second, a brand new RV will start depreciating as soon as you turn on the engine and it may depreciate up to 35% within the first 3 years. So, for once, let someone else deal with the charges of initial maintenance and depreciation damage and buy a used one yourself.
Consider the whole cost
Before going to a lender to finance your RV, think about the whole cost of owning an RV. While you will save considerable money on your overall adventures, you will still have to pay for a lot of things.
First things first do put at least 10% of down payment of the price of total purchase. It will help you with the rates and easy repayments in the future.
Then apart from the repayment of the loan, you will have to pay for fuel, cooking gas, and some furnishings. You will also have to pay for the insurance, registration of your vehicle and maintenance.
Having said that, some of these charges are only a one-time thing and you will be set to save yourself some money after the initial period.
Pre-approval is beneficial
If you pre-approve your RV financing before going to dealers and RV showrooms, you will have an upper hand which will unknowingly save you some money.
First of all, with the pre-approval, you will stay well within your budget and you will be less likely to be tempted by more expensive RVs.
Second, if you go to a dealer first, you will more likely accept the RV financing deal provided by the dealer to get an RV of your choice, even if it is outside your budget.
Improve your credit score
Check your credit score before going to any lender to finance your RV. If your credit score is less than 700, then wait for some time and improve your credit score.
All the lenders will check your credit score before giving you a loan and provide you with a deal according to that. So, if you want a lower rate of 4%-6% on your RV loan, then try to keep your credit score in the range of 700s to 800s.
Otherwise, you can invite the higher rates of up to 10% and more on your RV financing and you will end up paying more in repayments then you will actually save in your adventures.
Unlike your home, your motorhome is going to depreciate in value the moment you drive it off. So, if you’re taking a loan for something that is going to depreciate in value, then have a solid plan to repay the loan.
This investment will not give you anything in return, except for cutting down your traveling cost. So, finance it with a plan to pay the amount back. Happy traveling!
Leo Ambrose Goodwin C.E.O at SEO And Wen Design an online media publishing company SEO consultant Link Builder.