How Long Can You Finance an RV?

If you’re considering financing a used RV, such as a toy hauler, you may be wondering, “How long can you finance an RV?” Generally, RV loan terms span from 10 to 15 years. However, credit unions, banks, and other lenders have been known to extend loan terms up to 20 years. Extensions are typically given on loans of over $50,000 or with more collateral. Read on to learn more about loan terms and the role they play in loan repayment. 

What Factors Contribute to Your RV Loan Term? 

When you apply for a loan, lenders will look at the following to determine whether you qualify for a short-term or long-term loan: 

• Size of the Loan: This is usually the first factor lenders consider. The larger the loan amount, the longer it may take for you to repay it. As stated above, certain loan amounts can qualify you for longer loan terms. 
• Type of RV: Lenders will also look at the condition of the RV and whether it’s brand-new or pre-owned. 
• Credit Score: The higher your credit score, the better your chances of getting approved for the loan term you want. There are financing solutions available for shoppers with not-so-great credit, but generally, lenders are looking for a score that falls within the 660 to 700 FICO range. 

Long-Term vs. Short-Term Loan: Which is Best? 

If possible, it’s best to take out a loan with a shorter term. Longer loan terms have lower monthly payments, but short-term loans cost less overall and offer the following advantages: 

• Quickly working toward repaying your loan means you’ll pay interest on a lower balance every month. 
• Applying for a short-term loan gives you access to lower interest rates. 
• You’ll tread a shorter path to eventual ownership. 
• You’ll erase your debt more quickly, giving you peace of mind and benefits for your credit score. 

Learn More About RV Financing at ClickIt Auto and RV Wandermere! 

Now that you know the answer to the question, “How long can you finance an RV trailer,” you’re ready to move forward with the next steps! The finance team at ClickIt Auto and RV Wandermere is here to guide you from start to finish. Contact us to learn how to apply for financing or visit us near Spokane Valley and Coeur d'Alene, ID to browse our RV specials and under-$15k inventory.