RV Loan Calculator

RV loan interest rates are influenced by multiple factors: CREDIT SCORE (Biggest Factor): • 750+: Excellent rates (4.0-6.0%) • 700-749: Good rates (5.5-7.5%) • 650-699: Higher rates (7.0-10.0%) • Below 650: Subprime rates (10%+) LOAN TERM: • Shorter terms (5-7 years): Lower rates • Longer terms (15-20 years): Higher rates • Sweet spot often 10-12 years RV AGE AND TYPE: • New RVs: Best rates available • Used (1-5 years): Slightly higher rates • Older used (5-10 years): Higher rates, shorter terms • Vintage (10+ years): Limited financing options OTHER FACTORS: • Down payment size (20%+ gets best rates) • Debt-to-income ratio • RV value (luxury RVs may get portfolio loans) • Lender specialization

Down payment requirements vary by lender and RV type: TYPICAL REQUIREMENTS: • Minimum: 10% of purchase price • Standard: 15-20% • Optimal: 20%+ for best rates BENEFITS OF LARGER DOWN PAYMENT: • Lower monthly payments • Reduced total interest paid • Better interest rate offers • Avoid being "underwater" on loan • More lender options DOWN PAYMENT EXAMPLE ($75,000 RV): • 10% down: $7,500 → Higher rate, higher payment • 20% down: $15,000 → Better rate, manageable payment • 30% down: $22,500 → Best rate, lowest payment TIPS: • Save additional cash for insurance, storage, maintenance • Trade-in value counts toward down payment • Some lenders allow lower down payments with excellent credit • Consider waiting to save more for better terms

RV loan terms are generally longer than auto loans due to higher prices: COMMON TERM OPTIONS: • 5-7 years: Higher payments, less total interest • 10-12 years: Balance of payment and interest • 15-20 years: Lower payments, significantly more interest TERM LIMITS BY RV VALUE: • Under $50,000: Usually max 12-15 years • $50,000-$100,000: Up to 15-20 years • Over $100,000: Up to 20 years possible INTEREST COST COMPARISON ($60,000 loan at 6.5%): • 10 years: $681/month, $21,720 total interest • 15 years: $522/month, $33,960 total interest • 20 years: $448/month, $47,520 total interest RECOMMENDATION: • Choose the shortest term you can afford • Consider 10-12 years as sweet spot • Avoid 20-year terms unless necessary • Extra payments can shorten any term

Yes, trade-in value is an important factor in your RV financing: HOW TRADE-IN WORKS: • Dealer appraises your current RV • Trade-in value is deducted from purchase price • Reduces amount you need to finance • Can be combined with cash down payment TRADE-IN BENEFITS: • Simpler transaction (one dealer handles both) • May reduce sales tax (in some states) • No hassle of private sale • Immediate credit toward purchase MAXIMIZING TRADE-IN VALUE: • Get multiple dealer appraisals • Research private sale values online • Clean and repair RV before appraisal • Provide maintenance records • Consider timing (spring/summer = higher values) PRIVATE SALE VS TRADE-IN: • Private sale: Often 10-20% more money • Trade-in: Convenience, tax savings potential • Calculate net benefit before deciding

RV ownership costs extend well beyond the loan payment: ANNUAL RECURRING COSTS: • Insurance: $1,000-3,500/year (full-timer coverage higher) • Registration: $100-500/year (varies by state) • Storage: $600-3,000/year (indoor vs outdoor) • Maintenance: $1,000-3,000/year (more for older RVs) USAGE COSTS: • Fuel: $0.30-0.70/mile (6-12 MPG typical) • Campgrounds: $30-100/night ($500-2,000/month full-timing) • Propane: $200-500/year • Dump fees: $10-25/dump (if not at campground) PERIODIC COSTS: • Tires: $1,000-3,000 every 3-5 years • Roof maintenance: $200-500/year • Batteries: $300-800 every 3-5 years • Appliance repairs: Variable EMERGENCY FUND: • Recommended: $3,000-5,000 minimum • Major repairs can exceed $5,000 • Generator, AC, refrigerator most expensive TOTAL ANNUAL BUDGET (beyond payment): • Light use: $5,000-8,000/year • Regular use: $8,000-15,000/year • Full-time living: $15,000-30,000/year

Both options have distinct financing implications: NEW RV ADVANTAGES: • Lowest interest rates available • Longer loan terms (up to 20 years) • Full manufacturer warranty • Latest features and technology • No hidden damage or wear NEW RV DISADVANTAGES: • Higher purchase price • Rapid depreciation (20-30% in first year) • Higher insurance costs • More total interest over time USED RV ADVANTAGES: • Significantly lower purchase price • Slower depreciation curve • Lower insurance costs • Previous owner absorbed depreciation • Can find well-maintained units USED RV DISADVANTAGES: • Higher interest rates (typically 1-3% more) • Shorter maximum loan terms • Age restrictions (usually 10-15 year limit) • Potential hidden issues • Less warranty coverage FINANCING COMPARISON ($75K new vs $45K 3-year-old): New: $75K at 5.5% for 15 years = $613/month Used: $45K at 7.0% for 12 years = $437/month RECOMMENDATION: Used RVs 2-5 years old often provide best value if thoroughly inspected.

Multiple lender types offer RV financing with different advantages: BANKS: • Traditional option with competitive rates • Relationship discounts for existing customers • May have less RV-specific expertise • Good for excellent credit applicants CREDIT UNIONS: • Often lowest rates available • Member-focused service • May require membership • Excellent for good credit borrowers RV DEALERSHIP FINANCING: • Convenient one-stop shopping • May offer manufacturer promotions • Often competitive with banks • Can mark up rates (negotiate!) SPECIALTY RV LENDERS: • Bank of the West, Good Sam, Alliant • RV-specific expertise • Flexible terms for RV situations • May finance older units ONLINE LENDERS: • LightStream, SoFi, Marcus • Quick approval process • Competitive rates • No collateral requirements sometimes SHOPPING TIPS: • Get quotes from at least 3-4 lenders • Compare APR, not just interest rate • Watch for hidden fees • Pre-approval helps negotiation • Apply within 14-day window (single credit inquiry)

Both options can fund an RV purchase with different trade-offs: RV LOAN ADVANTAGES: • Secured by RV only • Doesn't affect home equity • Specialized for RV purchases • Potentially tax-deductible interest (consult tax advisor) RV LOAN DISADVANTAGES: • Higher interest rates than home equity • Depreciating collateral • Shorter terms available HOME EQUITY LOAN/HELOC ADVANTAGES: • Lower interest rates (typically 2-4% less) • Tax-deductible interest (if itemizing) • Longer terms available • No vehicle age restrictions HOME EQUITY DISADVANTAGES: • Home is collateral (foreclosure risk) • Reduces home equity • Closing costs and fees • Longer application process RATE COMPARISON EXAMPLE: • RV Loan: 6.5% for 10 years • HELOC: 4.5% for 10 years • On $60K: Saves ~$7,000 in interest with HELOC WHEN TO USE EACH: • RV Loan: Smaller amounts, don't want to risk home • Home Equity: Large purchases, need lowest rate • Consider: What if you can't make payments?

RV classes have significant differences affecting financing: CLASS A MOTORHOMES: • Largest motorhomes (25-45 feet) • Built on commercial bus/truck chassis • Price: $80,000-$500,000+ • Best financing rates available • Longest terms (up to 20 years) • Lowest fuel economy (6-10 MPG) CLASS B MOTORHOMES (Camper Vans): • Smallest motorhomes (17-23 feet) • Built on van chassis • Price: $60,000-$200,000 • Good financing options • Easy to drive and park • Best fuel economy (15-25 MPG) CLASS C MOTORHOMES: • Mid-size (20-33 feet) • Cab-over sleeping area • Price: $50,000-$150,000 • Moderate financing rates • Balance of space and drivability • Moderate fuel economy (10-15 MPG) TOWABLES (Not motorized): • Travel Trailers: $15K-$100K • Fifth Wheels: $30K-$150K • Higher rates, shorter terms than motorhomes • Require tow vehicle FINANCING TIP: Lenders often prefer motorhomes over towables due to better resale value.

RV financing is possible with bad credit, but with significant trade-offs: CREDIT SCORE IMPACT: • 580-619: Subprime rates (12-18%) • 520-579: Very limited options (18%+) • Below 520: Cash or rent-to-own only SUBPRIME RV FINANCING OPTIONS: • Specialty subprime lenders • Buy-here-pay-here RV dealers • Secured personal loans • Credit union flexibility TYPICAL SUBPRIME TERMS: • Higher down payment (20-30% required) • Shorter loan terms (5-7 years max) • Higher interest rates (12-20%+) • Newer RVs only • Lower loan amounts COST OF BAD CREDIT ($50,000 RV): • Good credit (6.5%, 10 years): $568/month, $18,160 interest • Bad credit (15%, 7 years): $914/month, $26,776 interest • Difference: $346/month more, $8,600 more interest IMPROVING YOUR SITUATION: • Wait and improve credit score • Save larger down payment • Add creditworthy co-signer • Consider certified pre-owned • Start with smaller, older RV

RV purchases involve multiple fees beyond the sticker price: FINANCING FEES: • Documentation fee: $100-500 • Loan origination: 0-2% of loan • Title fee: $50-200 • Lien recording: $25-100 DEALER FEES: • Dealer prep/PDI: $500-2,000 • Freight/delivery: $500-3,000 • Dealer markup: Negotiable • Extended warranty: $1,000-5,000 GOVERNMENT FEES: • Sales tax: 0-10%+ (varies by state) • Registration: $100-500 • License plates: $25-100 • Inspection: $20-100 OPTIONAL ADD-ONS (Often Overpriced): • Paint/fabric protection: Skip it • Extended warranties: Research carefully • GAP insurance: Consider if underwater • Credit life insurance: Usually not worth it NEGOTIATION TIPS: • Focus on "out-the-door" price • Many fees are negotiable • Compare total costs, not monthly payment • Get itemized quote in writing • Walk away from excessive fees TYPICAL TOTAL FEES: $1,500-5,000 depending on RV price and state.

Extra payments can save significant money on long-term RV loans: BENEFITS OF EXTRA PAYMENTS: • Reduce total interest paid • Shorten loan term • Build equity faster • Finish payments sooner EXAMPLE: $60,000 loan at 6.5% for 15 years: Standard: $522/month for 180 months = $33,960 interest +$100/month extra: 143 months, $27,700 interest Savings: 37 months, $6,260 interest EXTRA PAYMENT STRATEGIES: • Round up payment (e.g., $522 → $600) • Make bi-weekly half-payments (26 vs 12) • Apply annual bonus or tax refund • Add $100-200 monthly if budget allows WHEN EXTRA PAYMENTS MAKE SENSE: • Interest rate is high (6%+) • No prepayment penalty • Emergency fund is established • No higher-interest debt • Investment returns would be lower WHEN TO SKIP EXTRA PAYMENTS: • Prepayment penalty exists • Money needed for emergencies • Higher-interest debt exists • Could invest at higher return • Job security is uncertain CHECK YOUR LOAN: Ensure extra payments go to principal, not future payments.