You’ve found the travel trailer you want on the Parris RV lot in Murray, and now you’re sitting down to talk numbers. One of the first questions buyers ask is how long you can finance an RV.
The answer matters more than most people realize, because your loan term affects not just your monthly payments but how much you’ll pay over the life of the loan. Here’s what to know before you sign.
How Long Can You Finance an RV?
Most RV loan terms run anywhere from 10 to 20 years, depending on the loan amount, your creditworthiness, and the lender you work with.
Shorter terms are more common for smaller, less expensive units. Longer terms are typically reserved for higher-value recreational vehicles like Class A motorhomes or large fifth wheels. Here’s how loan terms typically break down by RV type:
- Pop-up campers and small travel trailer: Usually qualify for terms of 5 to 10 years, since purchase prices tend to be lower.
- Mid-range travel trailers and fifth wheels: In the $30,000 to $80,000 range typically see terms of 10 to 15 years.
- Class B camper vans and Class C motorhomes: Commonly qualify for 10 to 15 years, depending on the loan amount.
- Class A motorhomes and high-end fifth wheels: Can qualify for terms up to 20 years, especially when the loan amount exceeds $100,000.
- Toy haulers: Fall in line with travel trailers and fifth wheels at roughly 10 to 15 years.
Most RV loans come with fixed rates, which means your payment stays the same every month for the entire term. That predictability is one of the main reasons buyers prefer fixed rates over variable options when financing a recreational vehicle.
What Affects Your RV Loan Terms?
Does Your Credit Score Matter?
Yes, your credit score has a direct impact on both your loan term options and your interest rates. Lenders use your FICO score to decide how much risk they’re taking on. A higher score, typically 720 or above, opens the door to longer terms and lower APR. A lower score may limit your options or come with a higher annual percentage rate.
If you have bad credit, you can still get RV financing, but expect higher interest rates and a shorter repayment window. Working on your score before you apply can save you thousands over the life of the loan.
How Do Loan Amount and Down Payment Factor In?
The purchase price of your RV, minus any down payment, determines your loan amount. Lenders generally prefer a down payment of 10 to 20 percent, though some will go lower. A bigger down payment reduces your loan amount, which can help you qualify for better RV loan terms and lower your monthly payments.
In Utah and Idaho, state sales tax applies to RV purchases, so it’s worth factoring that in when you budget. Salt Lake County buyers pay around 7.25 percent in sales tax, while rates vary by county in Idaho. Some lenders will roll closing costs and sales tax into the loan, but that increases your total balance.
Secured Loans vs. Unsecured Personal Loans
Most RV loans are secured loans, meaning the RV itself serves as collateral. This allows lenders to offer longer terms and lower rates than unsecured personal loans. Unsecured personal loans don’t require collateral, but they come with higher interest rates and shorter terms, usually maxing out around five to seven years.
The Consumer Financial Protection Bureau notes that secured loans typically carry lower rates because the lender has an asset to recover if you default. For large purchases like a motorhome or fifth wheel, secured loans are almost always the better financial option.
Where Can You Finance an RV?
Dealer Financing
Dealer financing lets you handle the purchase and the loan in the same place. Parris RV’s Finance Center works with multiple lenders, so you can compare offers without visiting a bank. The convenience is real, and dealers sometimes have access to promotional rates that aren’t available directly to the public. You can explore RV financing options at Parris RV to get a sense of what’s available.
Credit Unions and Banks
Credit unions often offer competitive RV loan rates, especially for members with strong credit histories. If you’re in the Salt Lake Valley or the Pocatello area, it’s worth checking with a local credit union before committing to any offer. Banks can also be a solid option, particularly if you already have an existing relationship with one.
Online Lenders
Online lenders have expanded RV financing options significantly over the last decade. They’re a good fit for buyers who want to compare multiple offers quickly, and some specialize specifically in recreational vehicle loans. Just verify that any online lender is legitimate before submitting financial information, and read the fine print on prepayment penalties.
What Does a Longer Loan Term Actually Cost You?
A 20-year loan on a $75,000 motorhome at 8 percent APR results in roughly $750 in monthly payments and about $105,000 in total interest over the life of the loan. A 10-year loan at the same rate brings monthly payments up to around $910, but cuts total interest to roughly $34,000. That’s a significant difference.
RV depreciation adds another layer to this. Most units lose value quickly in the first few years, similar to vehicles. If you finance a long term with a small down payment, you may end up owing more than the RV is worth partway through the loan.
Using an RV loan calculator before you commit helps you see the full picture. Plug in different loan terms, interest rates, and down payment scenarios to find the balance that fits your budget.
Can You Finance a Used RV?
Absolutely. It’s very common to finance a used RV, and the process works much the same as financing a new one. Lenders typically require the unit to be under a certain age, often 15 to 20 years old, and the loan amount may be capped based on the unit’s appraised value.
Used units often come with lower purchase prices, which means a smaller loan amount and less total interest paid. You can browse the used RV inventory at Parris RV to see what’s available across their Murray, Payson, and Pocatello locations.
How Do You Get the Best RV Financing Rate?
Get Pre-Approved Before You Shop
Getting pre-approved before you walk onto the lot gives you a real number to work with and puts you in a stronger position when it’s time to negotiate. It also tells you exactly what your budget is, which keeps the shopping process focused.
Many buyers find that being pre-approved also speeds up the paperwork considerably when it’s time to finalize the purchase.
Know Your Debt-to-Income Ratio
Lenders look at your debt-to-income ratio, which is your monthly debt payments divided by your gross monthly income. A lower ratio signals that you’re not financially over-extended. Most lenders want to see a ratio below 43 percent, though requirements vary by lender and loan type.
Consider Refinancing Down the Road
If you lock in a loan during a period of higher interest rates and rates drop, refinancing your RV loan can make sense. The same applies if your credit score improves after a year or two of on-time payments. Refinancing to a lower rate can reduce your monthly payments or shorten your repayment window without starting the clock over on your loan term.
Frequently Asked Questions
How long can you finance an RV?
Most RV loans run 10 to 20 years, depending on the loan amount and the lender. Smaller units like pop-up campers typically qualify for terms of 5 to 10 years. Larger motorhomes and high-end fifth wheels can qualify for terms up to 20 years.
What credit score do you need to finance an RV?
Most lenders prefer a FICO score of 660 or higher for RV financing, and the best rates generally go to borrowers above 720. Some lenders will approve borrowers with bad credit, but expect higher interest rates and shorter loan terms.
How much should you put down on an RV?
A down payment of 10 to 20 percent is standard for most RV loans. A larger down payment reduces your loan amount, which lowers your monthly payments and the total interest you’ll pay over the life of the loan.
Is it better to finance an RV through a dealer or a bank?
Both options can work well. Dealer financing is convenient and sometimes includes promotional rates. Banks and credit unions can be very competitive, especially for borrowers with strong credit. It’s worth comparing both before you decide.
Can you finance a used RV?
Yes. Lenders regularly finance used RVs as long as the unit meets their age and condition requirements. The process is similar to financing a new RV, and used units often have lower purchase prices that make them more accessible to finance.
Ready to Talk Numbers?
The team at Parris RV can walk you through your RV financing options and help you get pre-approved before you shop. Stop by any of the four locations in Murray North, Murray South, Payson, or Pocatello, visit the Parris RV financing page to get started, or call us to talk with someone directly.
