Love to go out and engage in camping or any vacation ideas? Do you travel (both long and short distances) a lot because of various reasons such as personal and business purposes? While doing those things, do you miss the comfort and convenience that your home provides? This what recreational vehicles (RVs) and trailer provide – to give you the comfort, convenience and atmosphere of home while you are away from your home! Having an RV or trailer is like having a second and mobile home.
RVs and trailer are designed with bedroom, bathroom, kitchen and living space as well as other amenities that you can find in your home. Some RVs have their own internet connection and entertainment system. The bigger the RV or trailer, the more features it has and the higher its price.
Do you want to own one? You may consider financing to buy your own RV or trailer. Financing an RV/trailer purchase is simple and similar to car, motorcycle or other vehicle financing. If you have experienced other vehicle financing before, then you will have easy time availing the RV/trailer financing.
Where to look for RV/trailer financing and what will be the possible timeline for RV/trailer financing?
- Similar with car and other vehicle financing, you get the RV/trailer financing through dealership/seller. The dealer/seller always has financing solution. The timeline of this financing can go from same day to few weeks. If you have the requirements, then it is possible that you can drive home the RV you want on that same day. Dealers will basically run over your credit score, get the down payment from you, sign the application form as well as the loan contract and there you have it, you get your own RV/trailer. If you give more days before you apply, you can look for dealers having promotions and avail it. You can also add more money to be use as down payment. The more down payments you pay, the better and the lower the amount to be financed. If you have bad credit or no credit at all, the dealer will still approve your application but get ready to pay high interest rate. Why it will take few weeks? You have to do shopping of the best and affordable sellers/dealers. There are so many dealers/sellers of RV/trailer in the country. You can use the internet to find one or ask for referrals and recommendations. Do not be limited to one or two dealers/sellers.
- You can also ask your commercial bank or the credit union you belong about the possibility of financing your RV/trailer purchase. Inquire if they have loan products that cater your needs. In this case, you will have to spend and allot more days or weeks compare to the dealership financing. Banks or credit unions do not approve loans on the spot, even if you have the perfect credit score. It may take a day or a week before you know the result of you loan application. If approved, the loan proceeds will be then use to buy the RV/trailer that you want. If you have no or bad credit, there is a high possibility that your loan/financing application gets rejected. Before you apply, inquire the loan first by visiting their website, sending email or going to the nearest branch in your area.
- Lending companies and private money lenders. There are so many lenders who specialize in RV/trailer purchase. You can find them online or through referrals and recommendations. Reading RV/trailer magazines can also help in searching for the right lender. The timeline for the RV/trailer financing in these financial service institutions varies also. It may take few days to one week to know the result. Most lenders nowadays have online application and some have instant results within the same day.
As a conclusion, at most one month is the time you need to secure affordable financing option to RV/trailer purchase. Being patient is necessary so that you get the best loan deal that is suitable to your current financial standing.
It is important also to put some time in searching for the right lender. When you find the right one, the process of financing the RV/trailer purchase will be done in a day. Hence, do loan shopping and look for the best lender that will suffice your financing needs and will have the best offer in your financial standing. This searching may take time.
Application for the financing can take one day to one to two weeks. If you are lucky and get approval for your first application, you can get your RV/trailer as soon as possible. If your application gets rejected, then you have to apply to other lenders and wait for the result.
So for faster transaction and good result, be prepared for your application. You can follow these ideas to achieve that:
- Always bring the copy of your credit score (from the three credit bureaus namely Experian, Equifax and TransUnion). Make sure that your credit information are accurate and correct. However, do not let them run over your credit score, especially to the dealers/sellers and if you are not yet decided where to get the financing option. Running over your credit can lower your score especially if you will no avail their financing solution. In other words, let them run over your credit score if you are decided to be financed by them.
- Bringing other documents such as the financial and employment information when you apply is also a nice idea. This will make your application assessment faster.
- Dealers/sellers will love to sell their RV/trailer and they will try everything to convince you. Of course, they will love to get higher commission by offering you several add-ons to your RV/trailers such as extended warranties and other additional features such as rust proofing. You can say “no” to these add-ons or choose only what you deem necessary. The need for extended warranties is not that much. Rust proofing can be acquired from other sources at lower price.
- Before you sign the financing contract, read every details or what are written on it. Make sure that your financing application is fully approved because there are some dealers who put “subject for approval” remarks on their agreement.
- Make comparison of the financing option that various lenders will provide. Most of the time, the dealer has the highest interest rates, but they are the fastest and more convenient financing solution in which you walk in to their store and you can drive home the RV/trailer that you want.
- In order to speed up the transaction, plan everything. Have a budget or price range of RV/trailer. Know the amount you are capable to pay on a monthly basis. Of course, when you do the shopping, you have to be strict on following your plan and avoid overpaying.
- If possible, negotiate the loan. If you prefer the financing solution of the dealer, talk to them and negotiate the price. Lenders have one thing in mind, to sell and earn. Hence, if you can make sound haggling or negotiating about the financing, do it.