Hello, my name is Kyle Springer, finance director here at Happy Trails USA RV Supercenter, and I'd like to address some the most frequently asked questions about RV financing. One of the benefits of financing your RV purchase instead of liquidating assets or paying cash is maintaining your personal financial flexibility and in addition, your RV may qualify for some of the same tax benefits as a second home mortgage. Be sure to check with your tax advisor, but basically to qualify for these benefits, such as the deduction of interest on the loan, the RV must be used as security for the loan along with providing basic living accommodations such as a sleeping area, bathroom and cooking facilities. Your RV is considered a qualified second residence as long as you designate it for each tax year.What Are the Advantages of Financing Through a RV Lending Specialist?
Down payments are lower. Final terms are determined based on your credit profile, age, price and type of RV being purchased. Financing through RV lenders generally require down payments in the 15-20% range, however, the other side of the finance equation is that finance terms are longer and monthly payments are lower. RV finance specialists know that because RVs maintain their value and resale appeal, they tend to offer more attractive terms. It's not uncommon to find 12-20 year repayment schedules to help you afford the RV of your dreams. Often times, RV loan specialists can provide very competitive interest rates and terms compared to traditional banks and lending institutions.
How Does RV Financing Compare With Other Payment Options?
Borrowing against an owned home is not an option unless the money is used directly for that home. Home mortgage interest deductions are restricted to interest paid on mortgage debt, purchasing or improving a residence, or refinancing the remaining balance on a purchase or improvement. The purchase of an RV does not qualify for this deduction and home equity loans limit the amount of interest that is deductible if your RV loan balance exceeds $100,000. Home mortgage interest deduction is limited to interest paid on home equity loans up to $100,000.
The Last Word on RV Financing
Your RV might actually cost you less in the end if you finance your purchase. Not tapping into your financial assets to purchase an RV allows you attractive new investment opportunities that may come your way over the term of the RV loan. Potential earnings from those investments could exceed the cost of your RV financing! Bottom line is that if you are thinking of buying an RV, check financing options to maximize your personal investments and have the peace of mind of knowing you've made the right choices concerning your RV purchase. You'll be on the road enjoying your new RV and beginning your RV adventures before you know it!
If you have any questions about RV financing not covered here that you would like to address, feel free to give me a call or simple drop me an email and I'll be happy to try to try to answer your questions! I may be reached by email at
kyle@happytrailsusarv.com
