A Beginner’s Guide to Travel Trailer Financing
Looking to purchase a new travel trailer or RV, but worried about how you’ll pay for it? Luckily, if you can’t buy a camper by paying upfront, you can finance it and pay it off in easy installments. We know how important it is to have the right travel trailer, so we’ve put together some financing tips to help you get what you need. If you want to know more, or if you’d like to browse through our selection of RVs for sale, get in touch with us at our dealership today!
Budgeting
Like with all big purchases, you’ll want to start off by analyzing some numbers to come up with a realistic, affordable budget. First, try to find the average price of the travel trailer you’re looking for, then look at rates and terms of various loans that might be available. Remember to account for a significant down payment, monthly installments, and future costs like maintenance, repairs, and gear and accessories. Keep in mind that you don’t want anything that will too heavily impact your other spending habits.
Finding the Right Loan
After the down payment is out of the way, you’ll be sending monthly payments to your lender for the next few years. The interest rates, loan term, and other factors will vary by the lender, loan amount, type of loan, plus your income and credit score.
Secured loans are the easiest to get if your credit score isn’t perfect. These tend to have longer repayment terms and lower rates, but they require the travel trailer you’re paying for as collateral. That means that if you default on your loan, they can repossess your RV.
Unsecured loans require higher credit scores to obtain, have shorter repayment periods, and tend to have higher rates. However, these loans don’t use the trailer as collateral, so you won’t have to give the lender the rig if you default.
From Where to Get Financing?
You don’t need to be a member of a bank or a credit union in order to get a loan from them, so you’ve got a lot of options for lenders. However, any financial institution you’re already a member of will probably give you better deals on loans, so credit unions or banks you already use are a good place to start. At the very least, they can help you learn more about the types of loans and what the various options are. Credit unions are especially good lenders since they’re nonprofit lenders. That tends to mean lower rates, higher total loan amounts, and an easier time obtaining the loan you want.
We hope that this financing guide helps you get the trailer you need when you need it! If you have any questions, or if you’re ready to shop, contact us at Sterling Trailer Sales in Dunmore, AB. We proudly serve all those in Medicine Hat, Lethbridge, and Brooks.