Motorhome Financing: The Basics

2007-03-08 10:33:40

( Automobiles )



Getting your own recreational vehicle or RV can seem like you are getting a whole new lease on life. These rolling homes allow you to travel as much as you want without leaving your home. Even if gasoline prices are steadily increasing, more and more people are traveling using their recreational vehicles. Getting motorhome financing is the first step in purchasing your vehicle. An RV is considered a luxury vehicle. A good credit score is needed for you to be able to get a good financing deal.

Motorhome financing is more rigorous than getting an ordinary car loan. You will be required to fill up a personal financial statement. RV loan rates are depended on your credit profile. However, a poor credit score does not mean your application is automatically declined. There are a lot of lenders who will consider all types of credit profiles.

Motorhome financing is similar to automobile financing in a lot of ways. You want to have a financing deal in place before you visit any RV dealership. This way, you would know what rates to expect and they dealer can even try to win your business by offering a lower interest rate. Shop around so that you know what the value of the vehicle is.

Interest rates for recreational vehicles are almost the same as rates for cars. The rate on your recreational vehicle will depend on the amount to be financed, the duration of the loan and your credit profile. The duration for a RV loan is typically 10 years. It can also extend up to 20 years depending on the vehicle’s value.

Motorhome vehicle owners can also use the interest payments to their vehicle as tax deductible. The vehicle should have basic sleeping, cooking and toilet facilities to qualify. Interest payments for RVs are considered second-home mortgage interests.


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