Exploring The Differences Between New And Used RV Loans

differences between new and used rv loans recreational vehicle loan

Recreational vehicles are the new must-have for vacation lovers and people who want to enjoy the freedom of life on the road. It's a pleasant idea when you think of it - driving around the countryside with your family and friends, away from the hubbub of your daily life. 

Maybe a friend or family member has embraced this lifestyle and you're tempted to try it out. It's a good decision. However, as the cost of an RV often surpasses that of a home, you have a whole lot of planning to do. 

We'll go into the details of RV financing as well as the difference between a new and used RV. 

Understanding RV Financing 

The process of RV financing can be simple and straightforward. You can get an RV loan from your favorite dealership or My Fy USA. Loan rates are determined by factors such as your credit score, initial down payment, length of loan terms and the loan amount. 

To reduce the length of your loan term, you need to carefully weigh your options. There are different ways to pay off your RV loan quicker and it all depends on the choices you make. 

Start your search for an ideal loan rate by getting quotes from different lenders. Work through several options and pick the best loan offer you get. 

Differences Between New And Used RVs 

1 A Fresh Start 

One of the advantages of getting a new RV is the luxury of the latest features. Also, the knowledge that no one has spent months or years wearing it out is sure to give you immense satisfaction. Unfortunately, a used RV cannot give you this same pleasure. 

2 Depreciation 

Although the initial cost of an RV rivals that of a house, it depreciates quickly. Your vehicle starts to lose its value the moment you drive it out of the dealer's lot. Within weeks, you can record a 20- 30% depreciation rate. 

This is the advantage of a used RV. With its significantly reduced market value, you stand the chance of saving a lot of money when you opt for a used RV. 

3 Wear And Tear 

Your RV is bound to experience the effects of wear and tear after some time on the road. Whilst new RV owners would not have to worry about this for a while, the same cannot be said for buyers of used RVs. 

You'd have to factor in the costs of repairs for any damages caused by the previous user. Even if there is no visible sign of wear and tear, a visit to the mechanic for a proper check is in order. 

Final Word On RV Loans 

With a used RV, you have more potential for hidden issues, but you also enjoy the price slash that comes with depreciation. A new RV, on the other hand, gives you a fresh start and the ability to tinker with your vehicle however you like. 

Whatever you opt for, you still get to experience new adventures on the road. The choice is yours and your recreational vehicle.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, & Blog Outreach Services