Can You Finance an RV Over 10 Years Old?

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A 10 year old RV on the road

RV parks aren’t the only ones with a problem with trailers older than 10 years. Financing is never fun, no matter what you want to buy. However, if you purchase an older RV, it can be even less fun. Figuring out how to finance an RV over 10 years old can be frustrating. Is it even possible? 

Today, we’ll share some tips and tricks for funding the purchase of an older rig. Let’s get started!

What Is RV Financing?

Consumers finance all sorts of purchases, including RVs. The RV financing process is typically similar to what you’d expect from an auto loan. However, many banks and financial institutions consider RVs more luxury purchases than necessities.

RV financing allows a consumer to pay for their rig over an extended period. Once they complete the loan terms or pay off the balance, they become the outright owners.

A financial institution will collect your personal financial information and run a credit check during the financing process. What they discover will greatly impact your ability to get approved and the financing terms.

Can You Finance an RV Over 10 Years Old?

Most lenders will be hesitant to finance any RV older than 10 years. This is typically because RVs depreciate incredibly quickly. A bank needs to have confidence that they can recover any funds if you default on the loan.

Some institutions will finance an RV over 10 years old. However, they’re harder to find, and the process may not be as easy. These loans typically require a larger down payment or have higher interest rates. This helps protect the financial institution from any potential risks.

Is Financing an Older RV Hard?

Financing an older RV can be incredibly difficult but not impossible. You must have your financial ducks in a row before starting the process. If not, it could end up costing you dearly.

A bank may lend you the money for the rig but increase the interest rate by several digits. Depending on the RV’s cost and the loan’s length, this could result in you paying thousands of dollars more for your older camper.

You must put yourself in the bank’s shoes to understand the potential risks. Would you loan someone thousands of dollars to purchase something that will lose value? Likely not. If you would, you’d likely hedge any potential risks. You’d have a plan for ensuring you could recoup any funds.

A 10 year old RV on the side of the road

What Is the Average Interest Rate on a Used RV Loan?

Interest rates greatly depend on an individual’s financial picture and the market. Used RVs typically have a higher interest rate than new campers.  

Current APRs are anywhere from 5.24% to 29.99%. Generally, consumers with average credit can expect anywhere from 7.0% to 9.25% for a used RV loan.

How to Finance an RV Over 10 Years Old

If you plan to finance an RV over 10 years old in the future, here are some things you should work on now. The sooner you start the process, the sooner you can enjoy your RVing adventures.

Have a Solid Credit Score

Before applying for financing, ensure you have a solid credit score. Use a resource like Credit Karma or see if your bank offers a service. It’ll give you a general idea of your credit score so you can know where you stand.

It’ll also help you quickly spot any potential issues you must address with your credit. Minimizing your revolving debts, like credit cards, student loans, or vehicle loans, can help boost your score.

Checking your credit score will help you to see any black marks on your account, like foreclosures, bankruptcies, or defaulted loans. You want to do whatever you can to present the best financial picture to future lenders.

A woman checking her credit score

Get an Inspection

Finding the perfect used rig can be extremely challenging. Once you do, it can feel like you’ve hit the jackpot. However, you must keep your emotions in check before you get too excited.

We recommend that anyone shopping for a used camper should hire an inspector, especially if you need to finance an RV over 10 years old. It’s easy to overlook faults, especially if you get too excited.

Hiring a professional may cost you a few hundred dollars, but it can be worth it. They may discover a major issue that could cause you to question whether the rig is for you. 

We know many RVers who have hired inspectors and negotiated with the seller to lower the sale price based on the inspection results.

Pro Tip: RV inspections are critically when buying a rig! Here’s How to Get an RV Inspection before you make your purchase

A man working on an older RV

Check With Credit Unions

Most large lenders won’t do loans for rigs over 10 years old. However, credit unions are often more willing to take the risk. Check with a local credit union, especially if you already have an established relationship with them.

In addition, credit unions tend to offer some of the best interest rates on loans. This is because credit unions aren’t corporations but cooperatives. They report directly to their members instead of corporate stockholders.

Get a Personal Loan

If you can’t get a bank to finance an RV over 10 years old, you can always try a personal loan. These are unsecured loans that don’t require collateral. The financing institution makes its decision based on your creditworthiness.

This is a common way for individuals to purchase towable campers, including fifth wheels and travel trailers. However, larger Class A and Class C motorhomes typically won’t qualify for these loans. Most banks will require a secure loan where the bank holds onto the title.

Keep in Mind: Before you decide to get a loan, here are 6 Things You Should Know About RV Loans

Should You Finance an RV Over 10 Years Old?

You must take the time to consider every purchase you finance. Just because a bank is willing to lend you the money doesn’t mean it’s a great deal for you. Read the fine print of any loan before signing on the dotted line.

Don’t forget that things tend to break on RVs, especially as they age. You could find yourself paying for a camper no longer in good working order. This is why you need to do your research, hire an inspector, and ensure you’re making a good investment.

Are you thinking of financing an older RV?

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