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RV Loan Financing

RV Loan Financing

Financing a recreation vehicle (RV) is easier than ever with attractive interest rates and financial institutions across the country offering flexible payment plans to meet buyers' needs. RVers are also able to take advantage of IRS tax deductions while enjoying their purchase.

One factor making it easier to purchase an RV is the predominant attitude among lenders that RVers are reliable buyers. A low 1.09 percent of all RV loans are delinquent. As a result, lenders are extending RV loan terms and making monthly payments more affordable, according to a survey of RV lenders published by Recreation Vehicle Industry Association (RVIA).

Loans for new, large RVs typically range from 5 to 15 years, with many even extending 20 years. Whether the purchase is financed through a bank, savings and loan, finance company, credit union or RV dealer, lenders typically require a 10 percent down payment on loans up to $100,000 and 15 percent down for loans over $100,000. Most of the remaining lenders require a 30 percent payment with about 7 percent of lenders requiring up to a 25 percent down payment.

For the vast majority of RV buyers, the interest on their loan is deductible as second home mortgage interest. To qualify, the RV must be used as security for the loan and must have basic sleeping, toilet and cooking accommodations.

Virtually all RV types-motor homes, travel trailers, truck campers and even some folding camping trailers-are equipped with these facilities. The Internal Revenue Service (IRS) publishes two booklets that contain helpful information regarding the tax deductibility of RV loan interest. Copies of "Publication 936-Home Interest Deduction" and "Publication 523-Selling Your Home" are available by calling the IRS at 1.800.829.3676.

"Flexible financing options make buying an RV easier than ever," said RVIA President David J. Humphreys. "Families can readily find a vehicle and payment plan to fit their needs. Small towable RVs start as low as $3,500."

Source: Recreation Vehicle Industry Association


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