How Much Is Your RV Monthly Payment? We’ve Got Answers.
When it’s time to purchase your RV, or upgrade, the monthly payment is often a big factor. What’s the typical RV financing budget? And, how does yours compare to others?
Today, we’ll talk about RV financing including typical APR and possible monthly payments.
Let’s dig in!
Financing Your RV
Financing for monthly payments on your RV means making an investment in something that depreciates around 20% as soon as you take it off the lot. So, it’s not something to be taken lightly.
Plus, you have all the other expenses associated with owning an RV, such as insurance, storage, campsite fees, maintenance, repairs, and the ever-desired renovations.
Reddit User ‘buddylee’ notes, “You can get a pretty cheap payment. I think if you finance for 10 years you can be under $300/month for a $25k trailer. But, don’t forget insurance and storage. Insurance is probably another $50/month and storage is another $50/month. RVs and trailers are not an investment, they’re a money pit. Fun, but if you go camping 12 times a year keep in mind that weekend camping trip probably actually cost you about $400-$500. :)”
Deciding if RVing is affordable for you is really your first step in joining the RV life.
Then, take a look at what will be most cost-effective for you. Full-timers without a home base swap their RVing costs for the house costs and often come out ahead or at least break even.
As a part-timer or weekend warrior, you might need to go with something smaller or older unless you have a large budget.
Typical Interest Rates
The typical APR seems to be running around 4%, give or take a percent. That said, Nerdwallet shows RV loan APRs for 2021 at anywhere between 4% and 6%, with some as high as 19.99%. Your percentage may depend on your credit, who you get your RV loan through, how much your loan will be, and for how long you choose to spread out your monthly payments.
Reddit User ‘rubybluemonkey’ got an excellent APR for a very low monthly payment on their RV, “… 2020 18′ travel trailer. Bank financing 2.2% rate – $160/Mo.”
So…What Are Typical RV Monthly Payments?
Well, that depends on a few things such as total price, including any extended warranties, your down payment, the interest rate, and how many years you’ll have on the loan. It’s difficult to give even a small range in monthly payments since RVs can be priced anywhere from a few thousand to hundreds of thousands of dollars.
Reddit User ‘Rooster_CPA’ agrees, “Lol. Are you buying a 25k trailer or a 125k trailer? Gonna be different payments.”
That said, most people with towables are seeing around $250 to $450 as a medium payment. Reddit User ‘drarrajdr’ states, “Monthly payment on our 2018 Grand Design Imagine 2800BH is $300. We pay about $180 a year for insurance and currently pay way too much for storage ($150 /month).”
If you look at a towable, you’ll also be paying for the tow vehicle as Reddit User ‘journeywiththegs’ adds, “2021 Grand Design Reflection 337RLS fifth wheel. $399. We got the 20 year. 2020 Chevy Silverado 3500. $979.”
Motorhomes or more expensive towables may incur monthly payments well above that unless you can apply a large down payment. We know people who pay $800 a month for their 40-foot used motorhome.
In truth, to figure out what your monthly payment might be, you’ll either need to talk with a loan officer or use one of the many online calculators.
You enter just a few bits of information, such as the RV price or style, down payment, and how many years you want for the loan. Then it gives you an estimate for your RV monthly payments.
Pro Tip: We like RV Trader because it has a payment calculator at the bottom of each RV for sale.
Is It Worth Having a Monthly Payment for Your RV?
For some, especially full-time RVers, it’s certainly worth having an RV with a monthly payment compared to a mortgage or rent.
Reddit User ‘drewadams5812’ says, “2020 heritage glen 378fl 5th wheel. 61k, financed for 20 years at 5.99 APR. payment is 419. Of course, I’m paying it off as fast as possible, I owe 28k after nearly 2 years. Hopefully paid off in 2 more or less. Oh and since I know people will be attacking this, I full time in this in San Diego. My rent was nearly 3k prior to full-timing. I was just putting cash in the trash. 3k for 12 months 36 k a year just for rent, no brainer.”
For others, it may not be as cost-effective and they’re better off paying cash as Reddit User ‘always-paranoid’ confirms.
“Like most things your better off saving the money and paying cash instead of paying over time. If you are going to finance put down as much as possible and pay it off as quickly as possible just like a house. You don’t want to give the banks any more money than you have to.”
Keep in mind: Here are 5 Reasons We Avoid RV Dealers.
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RV loan ;what i did, get the (principal payment only) address & i sent what i could every month to lower the Loan total. paid it off much faster,so 2 checks a month. Loan dropped from 10 year to pay off 2 years.+ now it’s mine.title in hand.