An RV loan is a specialized type of vehicle financing for recreational vehicles including motorhomes, travel trailers, fifth wheels, and camper vans. Unlike standard auto loans, RV loans typically offer longer terms (up to 20 years) and different interest rate structures due to the higher purchase prices and specialized nature of these vehicles.

Types of RV Loans

• Secured RV Loans: The RV serves as collateral, typically offering lower rates (7.5-10% APR)
• Unsecured Personal Loans: Higher rates (10-18% APR) but no collateral risk
• Dealer Financing: Convenient but may have higher rates; always compare with banks/credit unions
• Home Equity Loans: Potentially lowest rates but uses your home as collateral

Our RV loan calculator uses the standard amortization formula to calculate your monthly payments. The calculation considers your RV purchase price, down payment, interest rate, loan term, sales tax, and registration fees to give you a complete picture of your financing costs.

What's Included in Total Costs

• Down Payment: Reduces your loan amount and monthly payments
• Sales Tax: Typically 4-8% of purchase price, varies by state
• Registration Fees: One-time costs to register your RV
• Interest: Total interest paid over the life of the loan

RV loan interest rates have increased from their 2021 lows but remain competitive compared to other consumer loans. Rates vary based on credit score, loan amount, term length, and whether you buy new or used.

1. Check and Improve Your Credit Score

Your credit score is the single most important factor in determining your interest rate. Before applying, check your credit report for errors and pay down existing debt to improve your score. Even a 50-point increase can save thousands in interest over the life of your loan.

2. Save for a Larger Down Payment

A 20% down payment is standard for RV loans, but putting down 25-30% can help you secure better rates and lower monthly payments. It also means you'll have equity in your RV from day one, protecting you from depreciation.

3. Get Pre-Approved Before Shopping

Pre-approval gives you a clear budget and strengthens your negotiating position. It also locks in your rate for 30-90 days, protecting you from rate increases while you shop. Apply to multiple lenders within a 14-day window to minimize credit score impact.

4. Compare Multiple Lenders

Don't just accept the dealer's financing offer. Check rates from:

• Your personal bank or credit union
• Online RV lenders specializing in recreational vehicle financing
• Rv-specific lenders like Good Sam Finance Center, Southeast Financial, or Alliant Credit Union
• National banks with RV loan programs

1. Focusing Only on Monthly Payments

While monthly payments matter for your budget, don't ignore the total cost of the loan. A $75,000 RV at 8.5% interest for 20 years costs $133,000 total interest paid over the life of the loan. Consider shorter terms to save thousands in interest, even if monthly payments are higher.

2. Not Considering Depreciation

RVs depreciate quickly, especially in the first 3-5 years. A new RV can lose 20-30% of its value in the first year alone. This means you may owe more than the RV is worth if you finance with a small down payment or long term. Consider gap insurance to protect against this scenario.

3. Overlooking Total Cost of Ownership

Your loan payment is just one cost of RV ownership. Budget for:

• Insurance: $500-2,000+ per year depending on RV type and usage
• Maintenance and repairs: $1,000-3,000 annually
• Storage: $50-400 per month if you can't store at home
• Fuel: RVs get 6-10 MPG, significantly impacting travel costs
• Campground fees: $25-100+ per night

4. Taking the First Offer

Dealers often mark up financing rates as a profit center. Their 8.5% rate might be 7.5% from the actual lender. Always get quotes from at least 3 lenders and use them as leverage in negotiations.

Class A Motorhomes ($100,000 - $500,000+)

The largest and most expensive RVs, Class A motorhomes qualify for the best financing terms (up to 20 years) due to their high value. However, they also have the highest depreciation rates. Lenders typically require excellent credit and substantial down payments for these luxury vehicles. Expect rates around 7.5-8.5% for qualified buyers.

Class C Motorhomes ($60,000 - $150,000)

Mid-sized motorhomes offering a balance of space and maneuverability. These RVs typically qualify for 10-15 year terms with rates similar to Class A models. They hold their value better than Class A motorhomes and are popular for families and full-time RVers looking for more affordable options.

Travel Trailers ($15,000 - $50,000)

The most popular RV type, travel trailers offer excellent value and flexibility. Since they're towed vehicles, they often qualify for shorter loan terms (5-10 years) and may have slightly higher rates (8-9.5%). Their lower price point makes them accessible to more buyers, and they depreciate more slowly than motorhomes.

Fifth Wheels ($40,000 - $125,000)

Larger trailers requiring a special hitch in pickup truck beds. Fifth wheels offer motorhome-like space at a lower cost and typically qualify for 10-15 year financing terms. They're popular for seasonal camping and offer better depreciation curves than motorhomes since the towing vehicle can be used separately.