What Can I Expect From a 180-Month RV Loan?

RV Parked on Grass at Night With Two Chairs Outside

Have you been daydreaming about getting an RV? Are you ready to take the plunge and make your life a grand adventure? If it’s time to get started on applying for an RV loan, you’re probably wondering where to start your research. We can help! Here are 7 things you can expect from a 180-month RV loan.

1. Is an RV loan similar to other loans?

A 180-month RV loan operates much like a car or home loan. You apply for and are preapproved for a loan from a credit union, bank, or other lender, and that institution becomes your lienholder—a fancy way of saying that they own your loan. The agreement you make with them will have the specifics about your loan, such as the term, the annual percentage rate (APR), and the amount of your monthly payments.

Most RV loans are secured loans, where you use the RV itself as collateral. This means that if you’re unable to make payments in the future, the lienholder is able to take possession of your RV, and you’ll be out of luck.

2. What kind of terms can I expect on an RV loan?

While an RV loan is similar to a car loan, it’s different in that the length of the terms are much longer than the terms for a car loan, considering how much more expensive an RV is than a car. Loan terms for an RV loan tend to be 10 to 15 years long (180 months equals 15 years). Some RVs are less expensive, and the terms may be shorter for loans like that.

3. Do I need to know what RV I want before I apply for an RV loan?

Not necessarily. In fact, it’s better if you don’t have a specific one in mind before you get the loan. If you set your heart on something way above what you’re approved for, you might be setting yourself up for heartbreak. Maybe take a look at different sizes and styles in general so you know what to expect as far as pricing, but you won’t know what you’re preapproved for beforehand.

Having a preapproved amount you can budget for gives you an advantage when negotiating with the dealer or seller. For instance, if they’re asking for $55,000 for their RV, but you’re only preapproved for $50,000, they might be willing or able to bring their price down for you.

4. How much will an RV loan cost me?

There are a lot of different variables when it comes to the price of the RV and the cost of the loan itself. For example, is your RV new or used? Do you have good credit? What’s the amount of your down payment? As with a car or home loan, there will be a down payment, and you’ll pay on the principal amount of the loan. You’ll also pay interest.

However, unlike a home loan, an RV doesn’t appreciate in value. If you intend to sell the RV before you’ve paid it off completely, you may end up owing more on the RV than what it’s worth. Be aware of this—in the worst-case scenario, you may still have an RV loan payment but no RV to enjoy in the meantime.

Also, consider that a lower APR may not mean you’re getting the best deal. If you have a longer loan term with a lower APR, you may end up paying more over time than if you had a higher APR in a shorter amount of time. The shorter your loan term, however, the higher your monthly payments will be. Make sure you have a plan before you sign all the paperwork to make sure you can cover all of the costs in every scenario.

5. Is it better to buy a new RV or a used one?

This decision is up to you—but we can help you finance either one. Think for a moment about what you want to use your RV for. Do you intend to use it for several weekend excursions and getaways throughout the year, or do you plan to live in it so you can have the freedom to experience every corner of the country? How long do you intend to own and use it? These are just some of the questions you should consider before shopping so that you have a good idea of what you’re looking for.

Whether you choose to get a new or used RV, we’ll make sure you’ll get a great fixed rate, and you’ll experience flexible financing for loans up to 180 months:

  • New RV: finance up to 100% of the cash sale price or 120% of the invoice
  • Used: finance up to 85% of Kelley Bluebook Retail or 120% of wholesale/trade-in NADA value

6. How can I make payments on my RV?

We have multiple ways you can make your payments, intended to keep up with your busy lifestyle. You may:

  • Log onto your Central Willamette Credit Union online banking and click on Funds Transfer.
  • Call us to have your payment transferred from your CWCU account or to make a payment from your account at another credit union or financial institution. You may also use your debit card or check by phone (though, fees may apply).
  • Mail us a check.
  • Send a payment from another financial institution through their bill pay service (if available).
  • Make an ACH payment.
  • Visit a branch to pay with cash, check, or debit card (if you visit and pay with a debit card, it will be processed as a cash advance).

Please note, it is not possible as of now to make your loan payment online with a debit card.

7. What do I need to apply for an RV loan?

Getting started is easy! You may apply online, visit a branch location, or call us.

If you have a hankering for a cruise across the country and an easy vacation decision, contact us today to start a loan application.