If you have a camper, you know how much fun it is to get out on the road. But if you’re like most of them, you probably don’t have a lot of extra cash lying around to cover the cost of buying and maintaining your vehicle. Luckily, there are options available to help finance your camping vehicle! Here’s what you need to know about camper financing:
Pay cash
If you have the option, pay cash for your camping vehicle. While this is not always possible, it’s best to save up as much as possible and pay for the vehicle in full when you take possession of it. The reason for this is simple: money down equals money saved!
If a person needs to finance their camping vehicle, they will be paying interest on top of the principal amount borrowed. This can quickly add up over time and make monthly payments more expensive than they’d like them to be.
Get a secured loan
A secured loan is a loan that is backed by collateral, which is a property that can be seized by the lender if you don’t pay back the loan. This kind of financing is most often used for things like cars and homes because those items have value and will sell for more than what you owe on them. If you get in trouble paying off your car loan, the lender will simply take back the car from you.
Finance with the dealer
If you want to finance with the dealer, shop around and ask questions. All dealers are not equal, so ask around for recommendations or go with a dealer that has had good reviews online. The advantage of financing through your dealer is that they can help you locate a loan that’s right for you. They’ll know what kinds of lenders they work with, what their rates are and how much they charge per point (the price charged when borrowing the money).
They also may offer incentives on specific models if you pay cash because it allows them to lower their markup percentage on how much profit they make off each sale and pass those savings along to you as an incentive. However, keep in mind that dealerships generally have higher interest rates than banks and credit unions do so this may not be the most cost-effective way for some people to borrow money for their vehicle purchase. If you really want to buy a camper and don’t know where to start go to reputed sites like camping world.
Finance through a credit union
Credit unions are not-for-profit and member-owned. This means that credit unions are not about making money for their stockholders, but rather about putting profits back into the community. Credit unions are regulated by the National Credit Union Administration, a federal agency (the same one that regulates banks).
Credit unions must also comply with state laws and regulations. Finally, they must follow Federal Reserve rules regarding how they set rates on loans or investments made by their members.
Financing a camping vehicle is not difficult as long as you are careful about the details. Make sure you have enough money for both the down payment and monthly payments, find out what financing options are available to you, and be sure that your credit score is good enough to get approved for any loan or line of credit offered by a dealership or financial institution. In addition, always compare rates on different loans before committing yourself.
