Expert Tips on RV Financing in Florida
Exploring the Open Road of RV Financing
Picture the wide-open road, your family or friends enjoying the ride and camping next to breathtaking views, all with the comforts of your home. Recreational vehicles (RVs) are quite literally your home on wheels! RVs offer a great way to travel, they come with many amenities, and they’re a great investment if you are willing to consider the costs and upkeep. Whether you dream of an RV for making family memories, setting out on cross-country road trips, cruising into retirement, or enjoying weekend getaways, here is all you need to know about financing an RV in Florida.
Things to Consider with RV Loans
Similar to your auto loan, the funds for an RV loan are secured against the vehicle. The loan terms can vary because the price of an RV can range widely. Depending on whether you purchase a small RV or a luxurious motorhome with all the amenities, it’s important to factor in the type of vehicle and its alignment with your financial goals. You could have a 15-year loan or one that is just a few years, depending on how much you are looking to spend. Cruise America highlights a report by Camper Report that RVs lose 21% of their value as soon as they’re purchased and more than 35% after five years. Like any vehicle you purchase, this is a factor to take into consideration, particularly if you are concerned with the resale value.
You also need to consider maintenance costs for the motor home, fuel, and other travel expenses. It's important to look at your options before you cruise into living your best life on the open road!
Why Choose an RV Loan from a Credit Union?
1. Lower Interest Rates: Credit unions are member-focused, often providing lower interest rates on loans than a traditional bank. At Community First Credit Union, you’ll find that we offer low auto loan rates for recreational vehicle purchases and refinances. This includes recreation vehicles, boats, and more, with fast decision making.
2. Flexible Financing Terms: With options for shorter or longer repayment periods, you can find a term that fits your budget so you can live your best life and get an affordable, flexible loan option. Here at Community First Credit Union, terms are up to 180 months for RVs
3. Local Expertise: You can trust and rely on personalized customer service and financial planning with advice tailored to your needs. We can help walk you through your options online, over the phone, or in person at a branch convenient to you.
4. Affordable payments: Membership often comes with reduced fees for loan processing and account maintenance. This makes the process stress-free for you.
Preparing for an RV Loan
Before applying for an RV loan, consider the following steps:1. Determine Your Budget: Beyond the sticker price of the RV, account for additional costs like insurance, maintenance, fuel, groceries, and campground fees. Calculate how much you can comfortably afford in a monthly payment, as this payment expense also has to be budgeted into your monthly household expenses.
2. Check Your Credit Score: Your credit score plays a significant role in determining your loan terms and interest rate. A higher score typically leads to being approved for larger loans.
3. Save for a Down Payment: A higher down payment can lower your monthly payments and reduce the total interest paid over the life of the loan.
4. Shop Around: Compare offers from different lenders to find the best rates.
Important Questions to Ask Before Financing an RV
What’s the Total Loan Cost?
Understand the interest rate, loan term, and any additional fees to calculate the total cost over time.
Are There Prepayment Penalties?
Some loans may charge fees for paying off your loan early. Check the fine print to avoid surprises.
How Will Depreciation Impact Resale Value?
RVs tend to depreciate quickly. Consider how this may affect your finances if you decide to sell or trade in your RV later.
What’s Covered by Insurance?
RV insurance is essential and often required by lenders. Verify what’s included in your policy, such as roadside assistance or coverage for personal belongings.
Benefits of RV Ownership
While financing an RV is a significant financial decision, the rewards of ownership can be well worth it. Here are some benefits to consider:
1. Freedom to Travel: Explore new destinations without the need for hotels or flights.
2. Family Memories: Create lasting memories and enjoy time with loved ones during road trips and vacations.
3. Potential Cost Savings: RV ownership can be more cost-effective than frequent hotel stays and dining out while traveling.
4. Versatility: Use your RV for vacations, as a mobile office, or even as a temporary residence. (Some financial institutions, including Community First Credit Union, do not finance RVs that will be used as a primary residence, so check with your bank or credit union.)
5. Potential to Make Money: You can rent out your RV. Online platforms like Outdoorsy, RVshare, or Airbnb, so you can have people use it for trips when you aren’t using it.
How Community First Can Help
At Community First Credit Union, we’re here to make your RV financing process smooth and stress-free. Our dedicated team helps you achieve what’s important to you. With great low rates, flexible terms, personal service, and expert advice, our team can help you get the RV of your dreams. We want to work with you to make your dream a reality, while making sure you understand the full scope of RV ownership costs and credit union financing in Florida.
Ready to Hit the Road in Your Own RV?
Owning an RV can help you reach a lifestyle filled with adventure, exploration, and freedom. We’re excited to help you on your journey of buying an RV. Contact us today to learn more about our affordable, flexible loan options and take the first step toward making your travel dreams a reality.
Interested in a personal loan or a different auto loan like a boat, motorcycle, jetski, travel trailer, or motorhome? We can help you achieve your other financial goals with our variety of auto loan options and loan calculator. Give our express team a call at 904.354.8537 or apply for an RV loan online today.
