Recreational Vehicle Loans

With a proper credit history, recreational vehicle loans are not difficult to obtain. Recreational vehicles (RVs) are popular with diverse groups of people. Retirees are not the only ones entering the RV market these days. Although at one time, a person who chose the RV lifestyle may have done so because it was the only type of housing they could afford, the level of luxury amenities available these days may send an altogether different signal. Athletes, military personnel, and even business people who desire a mobile office for their work are finding RV's a very attractive way to meet their housing and office needs. All types of RV owners find the ability to travel where and when they wish a definite plus. Some RV owners bounce between lifestyles, living a settled life in a home for part of the year and spending extended time on the road for the rest of the time.

Various types of recreational vehicles are available. Recreational vehicle loans may be obtained for these three different classes of RV's. Class A motorhomes are set upon a commercial truck chassis, a commercial bus chassis, or one that is specially designed for the vehicle. Bus conversions are usually the largest motorhomes on the market, and are often highly customized with luxury amenities. This may include entertainment systems which are state-of-the-art, hardwood cabinets and tiled or carpeted floors. Washers, dryers, and even full-sized appliances are often part of these luxury vehicles.

Class B campervans are built using a conventional van body, featuring either a raised roof or the addition of an entirely new body. These generally have a low profile. Sometimes these Class B vehicles are called 'coach-built'. Class C motorhomes are built on a truck chassis with an attached cab section which can be van-based or truck-based. These are sometimes called 'mini motorhomes'. They are recognized by the cab-over profile, which may contain a bed or holds the entertainment system. Depending upon a customer's needs, the proper vehicle can be selected and recreational vehicle loans can be established.

Because each person's financial situation is different, the buyer may have to fill out an application for a loan. This can be accomplished online or at the RV dealership. Some companies which offer recreational vehicle loans are able to give a reply almost immediately, but generally this application process may take 24-48 hours. Before entering into this process, an individual may be wise to check the condition of his or her credit report for any unforeseen problems or errors. A free credit report is available from each of the three major credit agencies once a year.

Most factors which may influence whether applications for recreational vehicle loans are accepted are similar to those of any type of loan. The person must have a stable income, and a solid credit and payment history. The length of the credit history can also be a factor. Also, the type and value of vehicle, and the debt-to-income ratio of the customer will be considered.

A person may finance a recreational vehicle loan for an RV sold by a private party or an established dealer. An Internet search will turn up companies which do not charge a fee for the loan application. Also, many organizations will impose no penalties or fees for paying off the loan earlier than required. Recreational vehicle loans can be designed with either a fixed or a variable rate. Although one offered an interest rate that was about 5%, most lenders seemed to offer a recreational vehicle loan which had about a 6-7% interest rate. Those with excellent credit may be able to get a lower down payment or interest rate. However, even if one's credit is less than perfect, it may be possible to obtain a loan with a higher down payment and interest rate. Later, when one has built up his or her credit score by faithfully making on-time payments to all creditors, a loan may be able to be refinanced to a lower rate. In some cases, interest payments on the loans may be tax deductible. Check with an accountant for current regulations. Most companies will try to work with a number of lenders in order to get the best possible rate allowed by the customer's finances and credit rating. Recreational vehicle loans may run from one to ten years, although some long term loans may extend to 20 years.

There are many positive aspects to owning a RV. Travel in an RV has its advantages -- no airfare or hotel costs, and meals can be prepared in the RV's kitchen facilities. Travelers are not bound by having to obtain reservations or abide by someone else's schedule, but can procede at their own travel pace. Today's recreational vehicles are almost like taking the best parts of home along, instead of staying in a strange hotel room. Recreational vehicle loans can help make it possible to enjoy the RV lifestyle. Be sure to have the loan agent explain all the options before deciding upon a lending contract. Also, be careful to determine the type of vehicle which best meets your travel needs. Sometimes people choose RVs which are more substantial than those required by their travel habits. As the writer of Proverbs 17:24 notes, "Wisdom is before him that hath understanding; but the eyes of a fool are in the ends of the earth." Instead, take the time to research the variety of vehicles which are available and choose the one which is most appropriate. Information can be found online, in libraries, and by talking with current owners of similar vehicles. Trade shows, magazines and websites devoted to the subject of RVs are other cources for up-to-date information.