1. Pause the impulse button
The idea of camping out in an RV and exploring picturesque places can get anyone excited. However, before you rush out to purchase an RV on impulse it is advisable to hit the pause button. If you haven’t done your research into finding what type of RV would be suitable for you in terms of its features and the price range you could be biting off more than you can chew. Remember to put in the research to check whether you can afford an RV.
2. Not checking what finance options are out there
Financing your dream of finally owning an RV is possible with so many options available on the market, but this can get confusing. It’s all about knowing what finance options are out there and comparing them. Depending on the type of RV that you decide to purchase you could pay anything between $60,000 to around $130,000, and it is best to find financing that will help you to adequately cover the costs.
Some of the popular options that people use to finance RV’s are:
- Saving up for it. You can choose to pay for cash by opening a savings account, which can also buy you more time to carefully consider your options.
- Bank loan. Most banks can finance both new or used RV’s, but there could be a stricter lending requirement that you need to consider. Some banks may be reluctant to offer finance to people with bad credit.
- Dealer finance. This option can give you a one-stop solution to finding an RV and financing in one place, but be mindful of the fact that dealer finance tends to come with high interest rates.
- Broker finance. Brokers offer leisure loans that are specifically tailored towards purchasing RV’s and they offer you access to various lenders that offer competitive rates that are suitable to your finances.
3. Not weighing the pros and cons of buying new vs used
There are various reasons why people choose to purchase a new RV or a used RV. However, the mistake that some people make is not comparing the financial implication that comes with each. Your final decision should be affected by whether you are getting the best value for your investment.
A new RV may come with a higher price tag and you also get to enjoy the full original warranty. However, you could be shopping around for bits and piece to keep your house on wheels comfortable and functioning for the first part of ownership.
Used RV’s, on the other hand, may come at a cheaper price tag and don’t depreciate as quickly. However, you should prepare your budget to buffer maintenance and repair expenses.