New vs. Used RV Loans: What’s the Difference?
When it comes to choosing between financing a new or used RV, there are benefits and drawbacks to consider with both. Not only do they differ in price, but you’ll also encounter differences in features, technology, maintenance requirements and long-term value.
Ultimately, choosing between the two will depend on your personal needs, budget and long-term goals, so you’ll want to carefully evaluate new versus used RV options to ensure you make the best decision for your lifestyle and financial situation.
- Shopping around for recreational vehicle (RV) loans can save you money by helping you find the best rates and terms.
- New RVs offer lower maintenance costs, warranties and updated features but come with higher purchase prices, depreciation and insurance costs.
- Used RVs may offer the advantage of a lower purchase price and slower depreciation, but may have outdated features and limited warranties
RV loan rates
Shopping around for RV loan rates can help you land the most favorable APR, potentially saving you significant money over the life of the loan. Several factors influence loan rates, including your credit score, income and debt-to-income (DTI) ratio.
In addition, the terms of your loan directly affect your monthly payments, your total interest and the overall affordability of the RV, so be sure to find financing that aligns with your budget and long-term financial goals.
There may also be special features to consider, including rate discounts, which can impact your selection.
| Starting APR | Loan amounts | Loan terms | ||
|---|---|---|---|---|
 | 6.99% | $10,000 to $2,000,000 | 72 – 240 months | |
 | 5.99% | $10,000 to $10,000,000 | 60 – 240 months | |
 | 5.99% | Starting at $10,000 | 84 – 240 months | |
 | 6.74% | $5,000 to $1,000,000 | Up to 240 months | |
 | 6.74% | $10,000 to $4,000,000 | Up to 240 months |
New vs. used RVs
| Pros | Cons | |
|---|---|---|
| New RVs | Lower maintenance costs May come with manufacturer warranties Offers updated technology/features | More expensive purchase price Will see higher depreciation than with used RV Comes with higher insurance costs |
| Used RVs | Lower purchase price Less depreciation on your RV May come with lower insurance costs | May come with higher maintenance costs May not offer the latest technology/features Limited warranties |
When deciding between a new or used RV, there are key differences to consider.
New RV loans typically have fewer maintenance costs, thanks to manufacturer warranties, newer parts and updated features. However, new RVs also come with higher price tags, may cost more in insurance and depreciate much faster than used RVs, losing around 20% of its value in the first year.
Used RV loans may be appealing because they offer a lower purchase price and depreciate less quickly. Still, they may come with outdated features and higher maintenance costs, since the manufacturer’s warranties have likely expired. However, the lower cost of insurance may help offset maintenance expenses.
Where to get new and used RV loans
LendingTree
The LendingTree marketplace can be used to shop around and compare RV loan rates from multiple lenders. You can receive loan offers from up to five lenders, allowing you to determine the best option for your needs.
Instead of applying with multiple lenders, this process can save you time since you’ll only have to fill out one simple form in five minutes or less.
Dealerships
Dealerships offer RV loans through in-house financing or partnerships with lenders. This can be convenient, as the financing and purchase processes are streamlined in one place. Once you pick out your RV, your dealership can submit your loan application to multiple lenders.
You may pay more fees at an RV dealership. In addition, a dealership may also not prioritize matching you with a loan you can afford and you may face pressure to accept their terms.
Still, buyers looking for a one-stop-shop experience and those who prioritize convenience may find this option a good fit.
Banks
If you already have an account with a bank, this may be a good place to start, but you may need good to excellent credit to qualify. Unfortunately, many banks don’t offer RV loans or only offer them through partner dealerships so you may have to do some research on lenders.
Credit unions
If you’re willing to become a member or have an established relationship with a credit union, this could be where you get the best deal on your RV loan (regardless of your credit score), since credit unions have APR caps.
You may also find special perks you can’t get with other types of lenders.
Online lenders
Online lenders offer convenient applications, often with quick approval processes. They’re also more likely to work with borrowers with poor credit. However, if you don’t have good credit, online lenders may offer rates as high as 36%.
This may be a good option for those who prioritize speed and are struggling to get approved for a loan with other types of lenders.
How to get an RV loan
Determine your budget
Before financing an RV, it’s important to establish a budget. Consider not just the cost of the RV itself but also additional expenses like insurance, maintenance and storage. And don’t forget to factor in the down payment — some lenders may require a down payment of 10% to 20%, and may even need one as high as 30%.
You can use our RV loan calculator to estimate monthly payments and determine how much you can comfortably afford.
Check your credit score
Your credit score plays a major role in securing an RV loan with favorable rates and terms. Lenders offer the lowest interest rates to borrowers with good or excellent credit scores.
It’s wise to check your score ahead of time and, if necessary, work on improving your credit score before applying.
Find the right RV
Once you know your budget and have been preapproved, it’s time to start shopping for an RV. Consider factors like size, amenities and condition (new or used), and don’t forget to compare options to make sure you’re getting the best value within your budget.
Be sure to take the RV on a test drive, pull the vehicle history report and get it independently inspected before you make your official decision.
Finalize your loan
To finalize your loan, you may need to submit documentation, including a copy of your government-issued ID, purchase agreement and proof of income (think bank statements or W-2s). Once everything’s in place, sign the paperwork.
Get preapproved
Getting a preapproved loan gives you an estimate of how much you can borrow. It also strengthens your position when negotiating with sellers, as it shows that you’re a serious buyer and can move forward with the purchase if you find an RV you love.
RV loan alternatives
If an RV loan isn’t the right fit for you, there are alternative options to consider:
- Personal loan: Unsecured personal loans can be used for a variety of purposes, including RV purchases. They may be a good option for those with good credit who prefer not to use their assets as collateral. Keep in mind, however, that unsecured loans may come with higher interest rates since you won’t be using your RV as collateral.
- Home equity loan: A home equity loan allows you to borrow against your home’s equity. It can be a great option for homeowners who have substantial equity and want lower interest rates. However, you’d be putting your home at risk if the loan isn’t repaid.
- Cash: Paying for an RV with cash is ideal if you have the funds available and prefer to avoid taking on debt. This option works well for those who want to keep the cost of an RV low by avoiding interest and fees.
Frequently asked questions
In addition, the “ten-year rule” can limit your access to some RV parks that don’t allow for RVs older than ten years.
Compare RV Loan Offers
Read More
Looking to Take a Trip in Your RV This Fall? Here Are 4 Things to Know Updated September 15, 2022 A recreation vehicle (RV) offers a unique opportunity to see the country, from charming small…Read More
Best RV Loans for Bad Credit Updated January 27, 2025 This guide will discuss how to get an RV loan when you have bad credit…Read More