If you buy an RV and don’t have any money left in your budget to use and enjoy the RV it will be nothing more than a large lawn ornament sitting beside your house. So, the big question is how can you buy an RV on a budget that works for you?
In a nutshell the price you pay for the RV along with the interest rate and term of the loan will determine what your monthly payment is.
I would like to offer you my top 5 RV buying on a budget tips
1) The first step is to look over your monthly budget and determine how much you can afford to pay each month for an RV, without getting in a bind. Earlier I mentioned that the term of the loan was one factor that determines your monthly payment. The longer the term of the loan is the lower the payment is, but you need to be comfortable with making this payment over the entire life of the RV loan.
2) How much are you comfortable putting down on the RV? Of course the more you pay in the form of a down payment the lower your monthly payment will be. Most lenders require a 10 to 20% down payment in either cash or trade-in. Some lenders do offer zero down programs, but these programs have certain guidelines to qualify. The type of RV, dollar amount, term of the loan and your credit rating can all factor into these types of loan programs. Keep in mind with zero down the interest rate and monthly payment will be higher.
3) Get the best interest rate possible. Interest rates affect what your monthly payment will be, and the total amount you will pay for the RV if you keep it for the full term of the loan. Keep in mind that buying an RV is considered a luxury item and you must have good credit to secure a loan, especially from the RV specialty lending banks. A bank will consider an applicant with an average credit history, but if you are approved it will be at a higher interest rate because the bank is taking a higher risk. The good news is that a good credit rating equates to lower interest rates. Find out what the current interest rates are and if you have above average credit don’t settle for a higher than average interest rate on your RV loan. Interest rates can really impact your monthly payment so it will pay dividends to do your home work on interest rates before signing on the dotted line.
4) Consider additional expenses that come with RV ownership. If the RV is financed you need insurance coverage on the RV. It’s a good idea to have insurance coverage even if the RV isn’t financed. Consider routine maintenance and upkeep expenses like storage and tires.
5) The bottom line to buying an RV on a budget is to shop wisely, negotiate the price, put some money down, get the best interest rate possible and figure out what loan term works best for you. Once you know what the monthly payment is factor all other costs we discussed into your payment and make sure there is some money left over to use and enjoy your new RV.
If you are in the market to buy an RV check out our How to Buy the Right RV & Save Thousands Video Training Program. It can literally save you thousands of dollars on your purchase.
Happy RV Learning,
Mark Polk
RV 101® - RV Education 101® 
