Are you interested in purchasing a used RV? If you’re purchasing from a dealership rather than a private party, can you finance an older RV?
Typically, lenders will not finance RVs more than 10-12 years old. However, if you’re interested in something a little older, you still have options. A personal loan or credit union can help you get financing for older rigs.
How Old of an RV Can I Finance?
New to RV financing? Are you interested in how old of a motorhome can you finance? Or how old of a camper can you finance?
Typically, most banks will finance a RV (motorhome or travel trailer) that is 10 years old or newer and in good condition. Some will extend the maximum age to 12 years for well-maintained towables, but very few banks will offer financing for RVs older than 10-12 years.
Typically, most credit unions will finance an RV (motorhome or towable) that is 10-15 years old, depending on the condition of the RV and your financial history with the credit union.
If your desired RV is 15+ years old, you may have to rely on a personal loan, home equity loan, or another source of funding.
Personal loans, on the other hand, are frequently secured, which means your RV will be used as collateral. You will default on your loan if you do not pay it on time, and the lender will regain the RV.
Does the Type of RV Matter?
The type of RV can matter. Some institutions will finance older towables than motorhomes. This is because motorhomes have engines, which tend to fail before the rest of the RV does (100,000-150,000 miles is a common maximum lifetime for a gas-powered V8 or V10 RV engine).
This leniency is HIGHLY dependent on the condition and brand name of the RV, however! A well-maintained Airstream is much more likely to be qualified for financing compared to a 1992 Dutchmen travel trailer.
Are There Other Restrictions?
There may be different restrictions for purchasing an RV through a dealership compared to a private party. Buying from a dealer generally comes with more warranties and guarantees than buying directly from a private individual, but the price will be higher.
It is always best to speak with your financial institution to get a more accurate answer for your specific situation.
Can I Negotiate With A Lending Institution?
If you increase your down payment, you may be able to convince your lender to issue a loan for an older RV! Most loans require a 10-20% down payment. If you bump that up to 40-50%, a lender may view your application more favorably.
Additionally, if you shorten the term of your loan, banks or credit unions may be more willing to finance your purchase. Most RVs have a “lifetime” of 15-20 years. It doesn’t make sense for a bank to finance a 12-year-old RV for 10 years, see? But if you can up your down payment and accept a 3-5 year loan term, the bank stands a better chance of making money.
Why Don’t Banks Finance Older RVs?
In a word: Depreciation! The main reason is that an RV will age far more quickly than a car, so it’s likely to have more wear and tear and require more expensive repairs.
Most RVs are worth half what you paid in about 5-6 years. By the time they’ve reached the ripe old age of 10 years, most RVs have depreciated 70-80%. There just isn’t much cash market value left.
Additionally, banks may be worried that the owner will default on the loan if they can’t keep up with the costly maintenance required for an older RV. RVs are luxury purchases, unlike typical passenger vehicles or houses, so rates of default are higher.
Sources for Pre-Owned RV Financing
Alliant Credit Union
Alliant Credit Union offers recreational vehicle financing for motorhomes and towable RVs that are less than 15 years old and have maximum of 75,000 miles. Preapprovals are for dealership purchases only.
Southeast Financial
As of this writing, Southeast Financial will finance RVs as old as 12 years. So they won’t finance an RV older than 2010. They require a $15,000 minimum loan amount.
Great RV Loan
GreatRVLoan will finance the purchases of RVs up to 15 years old. Will not consider full-timers.
Bank Of the West
If you have good credit and are purchasing a premium pre-owned RV, consider Bank of the West. They consider RVs up to 10 years old and issue to 20-year loan terms.
You can also consider their division Essex Credit, which specializes in boat and RV loans. They issue loans up to $2 million, but will not accept applications for RVs made before 2011.
Lightstream Bank
Unlike most other lenders on this list, Lightstream offers unsecured RV loans rather than secured financing. There is no model age restriction! However, interest rates are significantly higher than conventional secured loans.
Good Sam
Good Sam allows you to purchase a new or used RV from a dealer, broker, or private seller, refinance your current RV loan, or obtain full-time financing. They do not accepts units made prior to 2011. For gas engines, the maximum mileage is 60,000; for diesel engines, the maximum is 100,000.
Newcoast Financial Services
Newcoast financial services will consider RVs of any model year.
What Are the Benefits of Financing an RV?
There are many benefits to financing an RV, including:
- You can purchase a nicer RV than you may be able to afford outright.
- Interest rates on RV loans are typically much lower than those on car loans.
- Many lenders offer flexible repayment terms, allowing you to choose a monthly payment that fits your budget.
- RV financing allows you to spread the cost of your purchase over several years, making it more manageable.
- If something happens and you can no longer make your payments, most lenders offer hardship programs that can help you keep your RV.
How Hard Is It to Qualify for RV Financing?
It’s not hard to qualify for RV financing as long as you have good credit and reliable income. The interest rates are usually pretty reasonable, and you can usually get a loan for up to 90% of the value of the RV with a 10% down payment.
You’ll need to provide proof of income, your driver’s license and registration, and insurance information. There are also restrictions on age or condition if you’re financing a used RV.
If you are interested in RV financing, be prepared to have a good credit score and a stable job. Lenders are more hesitant to finance an RV purchase than a car, as RVs tend to be more expensive and require more maintenance. If you have a poor credit score (less than 660), you may still be able to get approved for an RV loan, but the interest rate will be much higher than if you had a good credit score (720+). It is also important to have a 10-20% down payment saved up, as most lenders require this when financing an RV.
Plus, some lenders won’t finance the purchase of an RV that will be used as a full-time or secondary residence.
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Just remember: When financing an RV, there are a few critical things to keep in mind. The age or condition of the RV may affect whether you can get a loan, and most lenders will restrict RV maximum age to 10-12 years. It’s also important to have a good credit score and a stable job. Increase your down payment and shorten the loan term if you’re trying to persuade your lender!
If you’re interested in financing an RV, do your research and compare interest rates from different lenders. Good luck out there!
Andy Herrick is a blogging nerd, #8 Enneagram, wannabe bread baker, INTJ, RV industry professional, and small business entrepreneur. He can be found hanging out with his lovely wife and family, skiing, cycling, climbing, hiking, and convincing anyone who will listen why dogs aren’t really that great of pets. Also, he runs this website.
