How to Finance an RV
Updated
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If you dream of seeing the country from the familiar interior of your own recreational vehicle, a personal loan can help. Here, we'll discuss the average cost of an RV, how the best personal loans work, and alternative ways to pay for the vehicle.
The decision of whether to purchase an RV is a big one, and how much you spend depends on what you're looking for. The average cost of an RV ranges from $10,000 for a small travel trailer to more than $500,000 for a loaded Class-A vehicle. How much you'll spend depends on factors such as:
One option for covering the cost of a new or used RV is a personal loan. Most personal loans can be used for any purpose, including an RV purchase.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Fixed: 8.99%-29.99% APR (with all discounts)
|
$5,000 - $100,000
|
680
|
|
Apply Now for Discover Personal Loan
Powered by Credible
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
6.70% - 35.99%³
|
$1,000 - $50,000¹
|
300
|
A recreational vehicle (RV) loan is money fronted by a lender to pay for an RV. Your job is to repay that loan with interest, generally in equal monthly installments. The RV serves as collateral, and the lender can repossess the vehicle if you fail to make payments.
If you're considering a personal loan, it pays to consider the pros and cons.
Pros
Cons
As with any loan, the goal is to score the lowest possible interest rate. Getting a low rate depends on several factors.
The higher your credit score, the lower the rate you'll be offered. Typically, lenders use your credit score to determine how much risk they're taking when lending you money. If your history of paying bills is not particularly strong, your loan is considered risky and a higher credit score will reflect that fact.
Lenders ask about your employment and income because they want to feel confident you can repay the loan. If you have a steady work history and sufficient income, there's a good chance your interest rate will be lower.
With a fixed-rate loan, you know what your monthly payment will be because the interest rate never changes. Variable rates, on the other hand, can increase and decrease over time. If the rate increases, you may find yourself with a loan you can't afford.
If you take out a secured personal loan, you put an asset of value, such as your home or car, up as collateral. In the case of an RV purchase, the asset you must use as collateral is the vehicle. While many personal loans are unsecured, finding a lender that offers secured loans may be beneficial since you're likely to land a lower interest rate.
Lenders view long-term loans as riskier, and you may be stuck with a higher interest rate. Before applying, work your budget to figure out the shortest-term loan you can afford.
The amount of money you borrow, loan term, and down payment all impact how you finance your RV. Given the wide range of RV types on the market, you could need anywhere from $10,000 to $300,000 for your vehicle, with most motorhomes beginning around $100,000.
Here are the steps you'll need to take to get RV financing:
The minimum credit score for a loan varies, but higher is always better. A higher credit score means you're more likely to get approved for a loan with a low interest rate. That can save you thousands of dollars. Check your credit score online now, and if it's low, take steps to improve your credit score.
Decide how much you want to borrow before falling in love with an RV. That will help you keep your head and avoid making an emotional decision. Take a look at your monthly budget, factor in the costs of owning an RV -- such as maintenance and insurance -- and decide how much you can easily afford.
Many RV lenders will require a down payment of 10% to 20%, so if you don't yet have that money in the bank, it's time to start saving. By making a larger down payment, you may also qualify for a lower APR and lower your monthly payments.
Outside of buying a house or getting married, financing an RV is one of the biggest purchases you'll likely make. Take the time to find the right vehicle and rate shop lenders to find the best loan rates. Each lender sets its own minimum loan requirements, interest rates, and fees, so don't assume the first lender is the best you can find.
Now you've done all the legwork, you can fill in the loan application and provide your lender with the documents it needs. You'll likely get a decision in a couple of days. Read the paperwork carefully before signing to ensure you fully understand what you're committing to.
If you picture yourself living life on the road, RV loans are not the only option. Here are two others:
Have you ever dreamed of doing something -- like horseback riding around the Grand Canyon, downhill skiing in Vale, or swimming with the sharks in Fiji -- only to find out that you really disliked the activity after trying it once? RV travel can be like that.
If you cannot afford to pay for an RV right now, that's OK. Lease an RV for long enough to see what you think of the lifestyle. You may love it, or you may be eternally grateful that you did not take the big financial plunge before experiencing an RV trip for yourself.
Save your money and buy an RV outright. Paying cash means no monthly payment, no interest charges (or other fees), and more money to put away for a rainy day. If you're going to have fun in your RV, why not do so without an extra financial burden around your neck? To help yourself save more effectively, consider opening a separate savings account specifically for your RV fund.
Learning how to finance an RV is a significant first step on your path to life as a road warrior. Now, all you need to learn is how to empty the waste system and what to do if you get a flat tire. In the meantime, safe travels.
Only you know how much your household budget can handle without stretching it too thin. The critical thing to remember is this: The more you borrow, the more interest you'll pay, and the more expensive the overall loan cost will be.
Your credit score says nothing about you as a person, but it does offer lenders a snapshot of how well you've managed credit in the past. In fact, it's one of the only ways a lender can gain that insight. The higher your credit score, the more confident a lender will be in your ability to repay the loan.
The decision to purchase an RV is a big one based on the initial costs and ongoing maintenance costs. You know it's OK to move ahead with your plans if you've worked your budget and found that you can easily afford the payments, and you have a plan for how you'll keep up with payments if you become ill or lose your job.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
