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How to finance rv purchase?

Elvis Elvis

If the thought of financing RV purchases has put you off the idea of ever owning your own RV, then help may be at hand.

Whether you purchase a brand new model or a used model, it’s more than likely that you will need to take out some kind of finance.

RV finance is available through banks, finance companies, credit union or RV dealers. One major factor making it easier to purchase an RV is the attitude amongst lenders that RVers are reliable buyers, a fact backed up by the statistic that less than 1.5 per cent of all RV loans are delinquent. This has encouraged most lenders to extend loan terms and make monthly payments more manageable.

How to finance rv purchase?

Loans for financing RV purchases of new, large RVs typically range from 10 to 15 years, and the majority of lenders require less than a 20 per cent down payment. In fact almost 30 per cent of lenders require a down payment of just 10 per cent.

Down payments on used RVs, due to their lower price, are usually around 10 to 20 per cent, which makes them an easier choice for those on a budget. The majority of financing packages for used RVs generally extend from 8 to 15 years.

For the vast majority of RV owners the interest on their loan is deductible as second home mortgage interest. Your RV must have basic cooking and sleeping facilities along with a toilet in order to qualify for this. In addition, the RV must be used as security for the loan.

Details of tax deductibility on RV loan interest is covered in two booklets produced by the Internal Revenue Service (IRS). These publications are ‘Publication 936 – Home Interest Deduction’ and ‘Publication 523 – Selling Your Home’ and are available by calling the IRS on 1-800-829-3676 or visiting their website at www.irs.gov/publications/index.