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Campers are all the rage this year and with good reason. The global pandemic that continues to rage across the globe has travelers looking to social distance instead of gathering in one place. Camping is a great way to spread out, and an RV or travel trailer is one of the best ways to do it. 

However, some RVs can run well past $100,000, depending on the model, making financing necessary for many RVs sold today. Let’s take a look at financing RVs and some of the best options for financing.

What to expect for a monthly RV payment

A trade fair of caravans, motorhomes, and RVs at the 60th Caravan Salon
A trade fair of caravans, motorhomes, and RVs | Rolf Vennenbernd/picture alliance via Getty Images

As with new or used vehicles, you can take out a loan to pay for an RV. Most RV loans are long-term, which can help keep your monthly payments low. Terms will vary depending on several factors, including the RV’s age, credit history, et cetera. 

As for monthly payments, the average monthly payment for an RV will be anywhere from $225 to $650 monthly. This average is based on a $35,000 vehicle with $0 down and varying interest rates. Most lenders who offer RV loans will require a minimum down payment of 10%, while others require 20%. However, the more down payment you have, the lower your monthly payment will be.

What kind of loan terms to expect when buying an RV

Typically, the loan term for a motor vehicle purchase is going to max out at seven years. However, RV loans can be stretched out a bit longer. For example, some loans can be stretched out to 15 years in some cases. Again, these terms can vary drastically depending on the lender and the loans they offer. 

Interest rates can also vary based on an individual’s credit history, affecting the monthly payment. For example, a 12-year loan on a vehicle selling price of $25,000 will be $212 a month at 5% interest. That is figured with $0 down, so putting more money down will drop the amount financed and lessen the monthly payment. However, someone with shaky credit might pay a higher interest rate, and the bank may require a bigger down payment. 

Which banks offer financing for RVs

RV lenders, like most lenders, cater to a wide variety of customers. For example, if you have shaky credit, perhaps Southeast Financial would be a good fit for you. Southeast Financial has a minimum credit score of 550. The company also has a 4.4 out of 5-star rating through TrustPilot, with more than 2,600 consumer reviews. 

If you are looking to take out a large loan, SunTrust offers longer finance terms to make the monthly payment more manageable. SunTrust offers fixed interest rates between 4.74% APR and 5.74% APR, with loan repayment terms of up to 240 months, and offers RV loans of up to $1.5 million. 

According to Investopedia, the best company to finance with is Alliant. They offer low rates, high maximum loan amounts, and flexible terms. They also provide options for travelers who intend on using their RV full-time. 

When it comes to choosing to finance your RV, it pays to do your homework. RV loans are as unique as the kinds of RVs that you can purchase. Finding a reputable bank and a reputable dealer to buy from is as important as having the funds to make the down payment and the monthly payments. It pays to shop around and find the loan terms that fit your particular budget and needs. 

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Staff Writer

Peter Corn

Peter Corn joined MotorBiscuit as an Autos Writer in 2020 and brings his quippiest Southern drawl to our table. Having, in his words, “helped” rebuild his dad’s 1959 MGA as a small child, Peter grew up loving vintage cars and trucks, adding motorcycles and all things 4×4 as he went.

Peter earned a Bachelor of Archeology and Creative Writing from the University of Alabama and has since melded his love of driving with storytelling. His voice, full of pleasantries and witticisms, can be enjoyed in The Gentleman Racer, The Vintagent, Gear Patrol, Iron & Air Magazine, and Classic Car Club Magazine.

Peter is a co-founder of both The Colloquial Magazine and The Fire Escape, the official podcast of The Colloquial. In an effort to increase his abilities in “ramping anything with wheels,” Peter has taken track training from Classic Car Club Manhattan and attended Rally School at Monticello Motor Club, where he was coached by eight-time Performance Rally motorsport champion Chris Duplessis.

On a lucky day, we get to hear Peter tell the story of his first car, a jewel of a 1958 Ford Fairlane, into which he dumped more time and money than made sense, but he has no regrets.