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Recreational vehicles are expensive—there’s no doubt about that. Because RVs are such a big-ticket purchase costing thousands of dollars, most people can’t afford to fork over 100% of the cost up-front.

That’s where RV financing comes into play. When combined with a smart budget, RV financing can be the answer to your problems. Over 70% of RV buyers use financing for their purchases, so you definitely won’t be alone if you choose to go this route.

Buying from a reputable dealer is another way you can ensure you’re making a smart purchase. Lone Star RV in Houston is your Texas RV dealer and we want to help you succeed in the RV shopping process however we can. Read on to learn more about the steps you can take to finance your first RV purchase.

Establish a Budget

Your first step when attempting to finance an RV is to make a firm budget so you know exactly how much you have and can afford to put up as down payment, and how long it may take you to pay off any loan you get. Even if you buy the smallest used RV possible, you’re still going to shell out a pretty penny for it.

Loan terms generally range between a few to twenty years, so you’ll want to consider how much your finances may change over time. Make sure that you also factor in those extra expenditures, like fuel costs, storage fees, maintenance and repairs, as well as aftermarket accessories. You’ll want to be certain that you can afford to own and use your RV once you get it!

Save Up Your Down Payment
Most sellers will require you to put up at least 10% of the entire purchase price of your RV upfront. This may not seem like much at first, but consider how expensive an RV is: for an $80,000 RV, you’ll need to have $8,000 to hand over immediately. You may even have to pay 20% of the cost upfront at some locations. Make sure you know what your local options are in this regard, and remember that the more you can pay upfront, the less you’ll have to pay over time because you won’t be paying interest on that down payment.
Know Your Credit Score

The amount of money you’ll get from a loan will strongly depend on your credit score. Make sure you know what yours is and, if it’s lower than 700, try your best to improve it before you apply for a loan.

Think also about whether you’d like to apply for an unsecured loan or a secured loan. If you fail to pay off an unsecured loan, the company cannot repossess your RV, but your interest rate will be higher. If you fail to pay off a secured loan, your RV may be repossessed as collateral, but your interest rate will be lower and you may be able to borrow more money upfront.

Don’t Spend Beyond Your Means

Finally, it’s smart to spend only as much as you know you can afford. This may mean forgoing that spendy model with the fun luxury features, but it’s worth it to get an RV that is good quality and suitable for you without being too exorbitant.

Remember that RVs, like any vehicle, depreciate significantly in value over the first year or so of ownership, so you won’t want to finance a very expensive model with a long-term loan that ends up costing you much more than the sticker price over time. Try to make the biggest down payment you can afford and pay off your loan as promptly as you can.

You can always come talk to the friendly staff here at Lone Star RV about your financing options and we’ll try to answer any questions you have. Looking for an RV? Stop by our Houston, Texas, dealership today to check out our full selection of new and used RVs for sale. Lone Star RV proudly serves the city of Katy, Texas.

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