RV Financing FAQs
Thank you for your interest in our RV financing program. This RV Loan FAQ will help you to better understand the process we use to secure you the best rate and terms available.
What is an online application?
An online application is simply a series of questions that you complete in order to request your RV loan.
What is the best way to get started?
It's really very easy. First, find the value of the RV you are interested in purchasing. Second, calculate your monthly payments to see if they are within your budget. Third, fill out the online loan application and/or print out the form, complete it and fax it in to our office. Fourth, review your loan offer if accepted, and close on your loan.
What type of information do you collect from me?
You will be asked questions about loan information, RV information, personal information, co-applicant information (if applicable), and a personal financial statement. To expedite your RV loan application, please have the following information readily available if the lender requests it:
- Two years current 1040 Federal Income Tax returns complete with all schedules, including W-2s.
- If Self Employed - Business Financial Statements and two years Corporate Federal Income Tax returns.
- Copy of RV Purchase Agreement
- Any documents or statements explaining a unique or special situation.
Will my information be secure and safe?
Yes. Wholesale RV Club uses the most advanced secure technology available in the world. This means that all of your data will remain absolutely confidential and secure while in transit over the Internet.
Are you going to share or sell my information later to anyone?
Who are the camper lenders that you use?
Wholesale RV Club uses multiple lending sources to assure that you will be receiving the best rate possible. They are all dedicated to giving you the absolute best service and competitive rates.
How many different camper lenders will see my loan request?
Depending on your particular credit score, one major lending institution will be reviewing your loan application. However, it will not count against your credit no matter how many lenders we show you app to.
Will each lender go in and pull my credit report?
NO! We use one report to gain your financing.
Do you have any camper lenders who deal with someone with sub-par credit?
Yes! Wholesale RV Club has several RV lenders who deal with all types of loans.
Do you charge any sort of origination or fee to obtain financing?
Absolutely not! we will not charge you any extra fees to obtain financing.
If I go ahead and accept the loan offer, how do I close my loan?
If you accept your loan offer, Wholesale RV Club's Finance Department will get in touch with you or you can them.
If I am living outside the United States, can I still get a RV loan?
YES! we now can finance in Canada as well as the US.
Is it possible for you to delete my information I gave you?
Can I find out how much I would qualify for or do I need to have a contract on a RV first?
You are required by many of our lenders to have a singed purchase agreement on a specific unit prior to applying for a loan.
How much of a down payment do I need?
As a general guideline, you can finance up to 90% of the selling price of the RV. The selling price can include any extras that you are adding to the RV at the time of purchase.
How long of a term can I get?
This depends on the amount you're financing and the age of the RV. Most loans over $50,000 can be financed for as long as 20 years. Loans between $10,000 and $25,000 will have maximum term of 12 years and 25,001 and $50,000 have a term of 15 years.
Is there an advantage to financing for a shorter vs. a longer term?
Our general feeling is that a shorter term has many advantages. However there are a number of individual issues that should be considered (i.e. percentage of down payment, financial ability to handle increased monthly payment....) basically, a shorter-term loan will build up your equity in the RV quicker. Down the road this translates into more money into your pocket when it's time to sell.
How long will it take to process my RV loan?
Once we have your information it only takes us 1 or 2 working days to give you a formal, in writing, credit decision which will be good for 60 days.
RV Financing Facts
For the first time RV purchasers, financing their new RV is a new experience. Read on to uncover some facts that will help you understand the process better.
The rate on an individual's RV loan is determined by three factors; the amount financed, the length of loan and your credit score / quality. Current interest rates on RV loans range from around 7 percent to 10 percent.
Is a big down payment helpful?
Contrary to what one would think, a big down payment will not necessarily reduce your interest rate on a loan. Most lenders require less than a 20 percent down payment and many lenders require a down payment of less than 10 percent. There are even some zero-down loans. The reason is that lenders are in the business to ‘make money’ on their loans. They want to lend the largest amount they can on an RV, at a rate that will make them money – to the safest borrowers they can. Lenders actually prefer to have larger loans on their books, so you may actually pay a higher interest rate for a small loan to allow the lender to make their margin.
The majority of RV loans are simple interest rate loans. With a simple interest rate loan, the amount of each payment that is allocated for interest is determined by the loan's unpaid principal balance, the loan's interest rate and the number of days since the last payment. The remainder of the payment goes to a loan's principal.
Many RV lenders also offer automatic bill pay. With automatic bill pay, a loan payment is automatically deducted from a bank or credit union account on a certain day of the month. If you plan on using your RV a lot – make it easy on yourself – get the auto bill pay.
Terms on RV loans typically average 10 years but can go longer, even up to 15 years. For extremely large loans, $100,000 or more, many lenders will allow you to extend the loan term to a full 20 years or more.
RV owners have a reputation for being consistent in making on-time loan payments year after year. Historically, RV loans have an extremely low delinquency rate nationwide. Generally, it's fewer than 2 percent, making RV loans one of the safest loans a lender can make.
Don’t forget your tax break!
RV owners should be aware that the interest on their loan is tax-deductible as second-home mortgage interest.
To qualify, the RV must be used as security for the loan and it must have basic sleeping, toilet and cooking facilities. Almost all RVs, from smallest camper to large travel trailers and fifth wheels, come with these facilities and qualify for the deduction.
For more information on the tax deductibility of RV loan interest, contact the Internal Revenue Service or your accountant. Copies of "Publication 936 -- Home Interest Deduction" and "Publication 523 -- Selling Your Home" are available by calling 1-800-829-3676 or by visiting the IRS Web site. The tax advantages of this deduction can reduce your effective loans percentage rate from 9% to 5-6%.
Should you pay in cash for your new RV?
We will often have a retired couple tell us that they would like to buy their RV and pay it in full with cash. While this sounds like a great idea, it may not be in your best interest. You will need to do your homework and compare your loan rate to your investment rates but it may actually be better for you to borrow, rather than pay cash.
Determine how much money you will not earn from your savings account, real estate, stocks or bonds because you liquidated the asset to buy your RV. Also, remember that any income derived from liquidating an asset may incur a capital-gains tax. These are all the costs of paying cash.
We hope this helps, and as always, we recommend that you consult your financial advisor for final advice.
For any other information about our offerings or anything to do with RVs, contact us today.