Recreational vehicle, RV, motorhome — no matter what you call it, these vehicles offer a fun and exciting way to move around. Whether you’re a retiree hoping to hit the road for an extended vacation or you want a vehicle that will allow your growing family to explore, motorhomes can fit into your lifestyle.
But before you start planning your first getaway, you need to address some practicalities. The first is financing your motorhome purchase.
Here’s a step-by-step guide to figuring out how much motorhome you can afford, how interest rates are determined, and where to look for a loan.
Maybe you have a vision of driving the open road in a mansion on wheels. Before you dream too big, though, you’ll need to determine how much of a loan you can afford and what the payments will be. Your monthly loan payments depend on several things:
The longer the term, the lower your monthly payments will be. However, it’ll also take you longer to pay off the motorhome, and you may pay more in interest over time. You should look for a low interest rate, but keep in mind that it may not be the only deciding factor. You also want some flexibility, such as no penalties for early payoff. Plus, you should check with potential lenders about fees that apply to your loan, such as penalties for late or missed payments.
Two main factors go into determining the terms of your financing on a new or used motorhome.
You have two main choices for financing your motorhome. You can do it through a financial institution, such as a credit union like PSECU, or you can do it through a dealership.
There are many reasons why you may want to consider financing your motorhome through a credit union. Here are just a few of them.
At PSECU, we offer loans specifically geared toward purchasing a recreational vehicle. We can finance new or used motorhomes with low interest rates, often lower than you’ll find at a dealership.
We work with some dealerships to offer loans. If a dealer presents you with a PSECU loan option, you can rest easy knowing that we don’t allow dealerships to mark up our interest rates.
We also offer flexibility in motorhome financing options, letting you pick the term that’s right for you. Our motorhome financing options extend up to 10 years. We can work with you to find a plan that fits your financial needs.
Traveling across the country in a motorhome can make for amazing memories. Grab ahold of this opportunity by financing your motorhome through PSECU. Contact us today to learn more about our rates and speak to a representative about how we can assist you. Saving you money is always our goal.
You can find additional tips for saving money on our WalletWorks page.