Rv Financing

Cash is king, and so, especially in these times, conserving cash for emergencies and other unanticipated expenses makes sense. Paying cash for the purchase of an RV depletes cash that may well be needed later on. That is why financing the purchase of an RV is the way to go, especially in these days of competitive interest rates. Using cash to purchase an RV turns that cash into an “illiquid investment,” not readily available if and when the cash is needed.

There are several ways to finance the RV purchase. One way is to finance it through the RV dealer from which it is purchased. This kind of loan is called an “indirect loan.” The dealer will quote an interest rate for the financing, runs the credit check and completes all the paper work, which is normally done at the time of the purchase. Some time after the sale, the dealer then will sell the purchase contract to a bank. The payments due on the RV are then made to the bank, as the dealer no longer has any interest in the purchase contract.

Another way to finance an RV purchase is by a “direct loan.” The RV buyer goes directly to a bank or credit union or other lender, such as an automobile finance company, and finances the purchase “directly.”

Shopping around for the best rates to finance an RV purchase is critical. Compare rates among banks, credit unions, and other lenders. “Direct” loans can take longer for approval, because the borrower has to provide whatever documentation the bank may need in order to determine whether to make the loan directly. Documentation usually includes pay stubs, a financial statement, a credit check, and if self-employed, several years of tax returns. How long it takes for loan approval is strictly a function of the particular lender. Where comparing rates, ask how long it takes for loan approval and whether it is possible to get pre-approved for the purchase of an RV. Loan approvals usually are for up to a specified amount and good for a certain period of time. Being pre-approved makes the purchase of an RV that much easier and quicker.

In deciding whether to finance the RV purchase, there may be a potential tax advantage in doing so. Depending on whether the purchase is financed by use of a home equity line of credit or a home equity loan, interest may be deductible. So, in addition to comparing loan interest rates, consult a tax advisor for the best way to structure the purchase of the RV. Other potential tax advantages may apply in a particular situation.

Unless absolutely flush with cash, using that cash to purchase an RV does not make sense. Interest rates for financing an RV are not much higher right now than the interest rates paid on money markets, certificates of deposit, and other places where cash is stashed. Given the upturn in the stock market, available cash may be better put to use there than to deplete cash reserves to purchase that RV. Rv Financing just may be the better option for you. The most important factor of all is to enjoy your RV!

Rv Financing will be needed unless you have a lot of money saved up, you will most likely need to arrange some form of financing when you buy an RV or motorhome. And of course, financing often seems like a black hole where you know what goes in and what comes out at the end, but the whole process in the middle seems a bit confusing. So here are a few things to consider as you finance your new purchase:

First keep in mind that this is where you can lose more money than anywhere else in the negotiating process if you aren’t careful. Over the life of a loan the interest that you pay can add up to an incredible sum and sometimes even rival the cost of the entire motorhome itself. So smart shopping is essential here.

It’s usually best to avoid dealer financing if at all possible for a few reasons. One is that they are not in the loan business for free. They expect to make money on the sale of a motorhome loan to you. That means that they have worked out a deal with the finance companies that they use to get paid a portion of every loan they write. So you are dealing with a middleman. It may be convenient, but you pay something for that convenience. It is often better to arrange your own financing instead where you deal directly with the lender and avoid any dealer markup on the loan.

By shopping online you can usually come up with a very good financing arrangement on your own. Most often dealing with a loan company that specializes in RV loans will be a good bet as they are familiar with the industry and the needs of the motorhome buyer. A very popular financing option is to use the loan company featured by bestrvfinancing.com. When you finance with them they have a very unique system that gives you a “Thank You” in the form a gift card back to you! They also offer some great financing terms and options that are usually very attractive to most RVers.

Of course, how good the financing arrangement you get is will be determined often by how good your own credit history has been. But unless you have a horrible credit past you should be able to get a motorhome loan in the vicinity of 10 percent or even less. This is especially true if you are putting 20 percent or so of the purchase into the deal as a down payment. And keep in mind that the more of your own money that you use to pay down the cost of the RV, usually the better the financing arrangements you can get. This is because you are assuming more of the financial risk of the purchase and lending institutions like to see that.

So think ahead before arranging your own motorhome or rvfinancing and it can save you lots of money.

Nevada is home to the Pony Express, cowboys, pioneers, and, of course, Las Vegas. Perhaps the easiest way to see all of Nevada that interests you is to rent an RV and tour the state how, when, and wherever you like.

The most frequently rented RV is the class-C motor home. It’s easy to drive and has many of the comforts of home — beds, a toilet, shower, heat and air-conditioning, a refrigerator and a microwave. Some even come with a TV and a DVD player. Other popular options include a truck trailer, folding camp trailer, or travel trailer.

Las Vegas is an easy city to start your adventure because there are many RV rental agencies. The Las Vegas RV rental off-season is between the start of November and the end of March. This is when you’ll get the cheapest rental prices, with prices starting around $65 a day for 40 days for a simple RV. The longer you rent an RV, the cheaper the price. Prices are the highest between the end of June and the start of September. The cheapest day rate available is probably $117 for 40 days.

One neat RV diversion available around Las Vegas is geocaching, a high-tech treasure hunt. To geocache you need a sense of adventure, a little luck, and a GPS to help you find the cache–hidden goodies left for explorers like you. Find a cache welcoming you to Nevada at N 35° 36.562 W 115° 23.364.

The Nevada Commission on Tourism’s Web site has a searchable map of RV parks in Nevada. It is one of the best places to start planning your trip.

Before you rent, comparison-shop. Be sure to ask about extra fees like insurance, mileage or cleaning. Planning ahead means more fun on the road.
www.BestRvFinancing.com

The key to getting a good bargin, instead of a lemon, when buying your used RV is knowing what to look for. Here is a useful checklist to help with your search.
1. Does the trailer jack work?

2. Do the propane bottles need updating and inspection? This can be costly if the bottles need to be replaced. Generally, if an RV propane tank is older than twelve years, it will have to be reinspected every five years. Also, it is mandatory that the propane tank have an OPD valve. If you don’t know what an OPD valve is, the official description is “Overfilling Protection Device”.

3. Check the hoses leading away from the propane bottle for cracks and splits. You do not want a leaking propane connection. Check the nut that screws into the propane tank. Is it worn? If so, it may need to be replaced.

4. The LP Gas regulator is usually located just a few inches away from the propane tanks. You’ll see the hoses leading from the propane tanks into a device with one pipe at the bottom of it that runs beneath the RV. Regulators begin to leak when they are approximately ten years old. For your information, leaking propane is not a good thing. Don’t hesitate to replace the regulator if it is leaking.

5. Batteries are often dead, or not too far from dead, in an older RV. Check and make sure it still works. If the bulbs inside burn bright, the battery(s) may still be in decent condition.

6. Does the converter still work? What’s a converter? Well, it is a device that recharges your battery and converts regular household electric current from AC to DC allowing your 12-Volt fixtures and appliances to operate. Test this by plugging in the electrical cord and unhooking the battery (unhook the battery before you plug in the RV power cord to prevent electrocution). If the 12-Volt lights and water pump still work, the converter is still working.

7. Do the stabilizers beneath the trailer still let up and down? You’ll be glad to have stabilizers when you park in an area with constant wind gusts like the south Texas coast.

8. Are the tires still in good condition? Check for cracks and splits and look at tread depth on all tires.

9. It is absolutely mandatory that you understand the condition of the braking system. Have the owner hook up the RV and allow you to tow for a short distance and test test the brakes. Brake repairs are expensive. Your life and the safety of your vehicle and RV depend on the RV brakes functioning properly every time.

10. Does the door step let up and down easily?

11. Can you open and close all outside compartments easily? Do the gaskets need to be replaced? Worn or missing gaskets permit air and moisture to penetrate the RV.

12. Make sure that all the windows open and close easily. latches can rust shut. Are the screens on the windows and vents rusted or torn?

13. Open and close roof vents and make sure that vent fans run properly.

14. Fire up the hot water heater and make sure it works.

15. Test the refrigerator on both the gas and electric settings. Repairs can be expensive and you are going to want to use both the gas and electric options. Watch for frost beginning to form in the freezer to confirm that it is cooling properly. Make sure the door will latch and lock securely. When you are on the road, you don’t want the fridge contents strewn through your RV.

16. Check the furnace. Does it blow hot air? Don’t wait until it’s thirty degrees outside to find out.

17. Crank up the air conditioner. Does it blow cold air? If it has a heating element does that work as well?

18. Turn on the water tap without being hooked up to city water. Does the water pump work?

19. Check out the toilet. Does it flush properly.

20. Hook up the city water. Check for leaks inside and outside the RV.

21. Inquire about the condition of the waste water valves. Better yet, if the RV is hooked up to a sewer drain, open and close the valves to make sure they work.

22. Check the cooking range and oven. Do all burners function? Does the oven burner function?

23. Do all interior cabinets and drawers open and then latch securely? If not, you may have your belongings scattered throughout your RV when you are in transit.

24. Check for soft spots on the floor, particularly in the bathroom area. The plywood may be rotted through.

25. Is the flooring in good condition? How about interior walls?

26. Make sure curtains are not dry rotted. Can they be easily cleaned? Are the blinds still in good condition?

27. External lights – Test the external running lights. If you tow at night, and it is very likely that you will, you’ll want to make sure that the rear tail lights are operable. Simply hook up to the tow vehicle and turn on the headlights. You’ll also want to make sure that the brake lights work, that the right and left turn signal lights work, and that the backup lights work. If there is a problem, it could be a faulty bulb, or the bulb fixture simply needs cleaning. Otherwise, you may be faced with an electrical problem.

28. Test exhaust vent fans to make sure they work. Typically you will find them in the living area, over the cooking range, and in the bathroom.

29. Does the TV antenna crank up and down easily? Better yet, find a hobby and skip TV.

If you need help in Financing your RV Then: Click Here for the Best Rates and Awesome service.

William Smith lived, and traveled fulltime in an RV travel trailer for over 12 years, and maintains a website dedicated to educating people about the RV lifestyle.

If you are on a tight budget and can’t afford a new model RV you might consider buying a used RV. Here are a few suggestions for finding a used, affordable RV:

1. Check newspaper listings. Look in the listings of your local or state daily paper’s classifieds. Most towns and cities have a free shoppers circular that is mostly classified listings.

2. Check for any consignment lots in your area. RV owners who aren’t interested in having strangers to their home often will park their RV at a consignment lot.

3. Run a “want to buy” listing in the classified section of your local paper.

4. Watch for campers parked curbside, in driveways, or front yards with “For Sale” signs posted on them.

5. Drive through local RV and Mobile Home Parks and watch for RV’s with for sale signs posted on them.

When you find an RV you are interested in purchasing, don’t fall in love with it and be too eager to buy. You could regret a hasty decision for a long time. If you aren’t familiar with the functioning of an RV, bring a friend along who is. The chances are excellent that there will be one or more (usually more) components not working that will have to be repaired.

Keep a notebook with you when you do an inspection and make note of every fault. You’ll find problems, but that isn’t necessarily a bad thing. RV’s can be repaired and you’ll use your inspection checklist to negotiate a price on your terms.

It is a good idea to have the owner with you while you inspect the RV so that he or she can observe your inspection notes. When you have completed your inspection you’ll likely have a lengthy list of repairs needed. This will be your leverage to make a low-ball offer on the trailer. After all, you will either have to pay for the repairs or live with them as is.

If the RV owner doesn’t accept your low offer, don’t worry too much about it and go on to the next RV. Give them your name and telephone number and tell them to call you if they change their mind.

Let two or three weeks pass and call them back to see if they have sold the RV yet. They may be very happy to hear from you and accept the offer you made. If you are really interested in the RV, offer a slightly higher price this time. If they don’t accept your offer, don’t worry about it and call them back in another three or four weeks.

Sooner or later, you’re going to pick up a genuine bargain on an RV. You’ll have possibly saved quite a bit of money and in the process learned some negotiating skills.

In part 2 of this article, we’ll explore the things you should be looking for when you inspect a used RV you’re considering buying, as well as The Best Financing for Your RV Purchase

William Smith lived, and traveled fulltime in an RV travel trailer for over 12 years, and maintains a website dedicated to educating people about the RV lifestyle.

Financing an RV is very difficult in today’s banking climate. Recreational vehicles are considered a luxury, not a necessity. Banks feel that if someone is in a bind, their RV will be the first thing people will let go back to the bank.

Most lenders offer terms up to 240 months (20 Years), making owning an RV very affordable.

When you apply for a loan, be prepared to show proof of income, as well as a personal financial statement showing all the liquid assets you have including tax returns. Remember, part of the reason we are in the dire financial situation we are today is because banks did not ask for this in the past. Banks are really concerned if you do not have the liquid assets to make payments if you lose your job, or if your income shrinks.

We are not tax consultants, however there are some great tax benefits for owning an RV. Interest is still deductible, if you qualify. A large portion of sales tax has just been added this year and provides more to write off.