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How to Finance a New RV

By Edited Nov 13, 2013 0 0

When it comes to financing a new RV, it is all a matter of determining the best option for you. One option is to go directly through the RV dealership for financing. This can be very advantageous as the RV dealer is going to do whatever they can to provide the best deal possible. The dealership knows that if the deal doesn’t go through, it can cost them a sale.

The available options for financing a new or used camper will greatly depend on your financial situation. It is in your best interest to have your credit pulled prior to shopping for a loan. This will ensure that the RV dealer you choose will be unable to take advantage of you by telling them you that you have worse credit than you actually do.

Are you eligible for a prime rate?

All consumers are divided into one of two groups when it comes to financing. Those with a credit score of 650 or higher will be able to get a prime rate. The other is a subprime lender, which lends to those people who don’t have the strong credit to get a lower interest rate.

Subprime lenders can make it possible for those with poor credit to get the necessary approval to purchase a new or used camper. There are two main differences between prime and subprime lenders. Prime lenders offer lower interest rates as well as higher loan amounts. The best option for those with low credit scores is to shop for a used travel trailer for sale, which can be just as nice as a new trailer.

The majority of RV dealers will be able to provide a consumer access to prime lenders only. The advantage to this type of rate is that it is lower than the subprime rates. This will save a consumer a considerable amount of money over the course of a year.

A financing application can be completed at RV dealership and the finance department will run the credit, providing a decision in an hour or so. During that time, you can look around at the inventory to choose a few options in terms of what you like and don’t like. Once the dealership comes back on whether or not the application has been accepted, the loan can be processed and you are one step closer to getting their RV.

Rather than waiting to get approved at the dealership, another option is to go through a pre-approval process online. More and more lenders are using websites to offer their loans. This can be beneficial to consumers as there is no need to deal with the finance department at the dealership. You will already know how much they have been approved for and at what interest rate.

When you are looking to purchase a new or used RV, consider all of your financing options. Finding the right lender for the type of credit you have will be the first step. Then you can decide whether to go directly to the dealership for assistance or to get pre-approved with an online lender. Either way, it will only be a matter of time before it’s possible to drive off the lot with an RV.

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