Find financing to get an RV so you can hit the road!
What are my RV financing options?
When it comes to financing your RV, you have a few options to choose from.
Compare RV loans
What types of RVs can I buy?
No matter which road you chose to travel on, there’s an RV out there for you. Make memories in a towable RV, a full-sized motorhome, or anything in between.
How should I compare RV loan options?
- Look at the APR. Your loan’s APR is an expression of your loan’s interest and fees as a percentage. It’s the easiest way to compare costs on loans with the same term.
- Will the loan be secured or unsecured? RV loans can either be secured or unsecured. Unsecured loans do not require you to provide collateral, but they often have higher interest rates to make up for it.
- Are there flexible payment options? Most RV loans have flexible loan payments, offering anywhere from weekly to monthly payments.
- See what loan terms are offered. The amount of money you borrow will influence the term length. Make sure you know how long it’ll take you to repay the loan before agreeing to anything.
What to avoid with a RV loan
- Going in without known your credit. Knowing your credit score before you apply can help you avoid applying for a loan you’re ineligible for and possible damaging your credit with too many inquiries.
- Not negotiating the price down. Many dealerships offer marked-up prices with the expectation that you’ll ask for a lower price.
- Not comparing financing options. The first type of financing you find could be the best deal out there, but there’s no way to know unless you shop around.
- Long loan terms. An extra long term might give you lower monthly repayments but you’ll pay more in interest and could end up owing more than your RV’s resale value.
- Committing to a high loan amount. Make sure you’re not borrowing more than you can afford. If you’re in a lot debt or your credit is poor, it may be a better idea to pay other debt down before taking on more loans.
- Any hidden surprises in your contract. Be sure to read the loan contract in full before signing anything. Look out for hidden fees (including early repayment fees) and terms.
Checklist for buying a camper trailer
“Different strokes for different folks” holds true when it comes to shopping for a camper trailer. But keep an eye out for a few things that can affect your travels if they’re overlooked:
- Chassis. This is the base frame of a trailer and plays a crucial role in holding it together. For more durability, look for a chassis made of high-quality materials — especially if you’re planing to carry heavy loads of drive off-road. Frames are usually made of wood, steel or aluminum. Aluminum is the best choice because it’s rust-proof, impossible for termites to eat and lightweight, making your drive much more fuel efficient.
- Suspension. Suspension springs should be strong enough to take the weight of the trailer as well as the load that it carries. Make sure you pay attention to the condition of the trailer and find out if the suspension can handle driving off-road or on irregular roads.
- Tailgate and doors. Remember to check all seals, not just on the doors and the tailgate, but also on all compartments and even the tool box to avoid water damage and rust buildup.
- Towing. The towing coupling should be strong enough to take the camper trailer’s weight and everything it carries. For off-road driving, getting a coupling that turns 360 degrees is ideal. In addition, consider getting recovery points (sometimes called snatch points) at the trailer’s rear section to help move the trailer in reverse in case you’re stuck in a ditch or somewhere that you need to back out of. Make sure the recovery points are strong enough to handle this kind of movement (often, these mechanisms aren’t built strong enough to handle lots of stress).
- Protection. Camper trailers tend to flick up stones from time to time, even on completely paved roads. Some trailers deflect these stones by using built-in stone guards or shade cloth attachments to bridge the space between the trailer and the car.
- Tires. If you can manage to get the same set of tires on your trailer as you have on your main vehicle, you can look forward to a smoother drive.
- Trim. The canvas on your camper trailer should be durable, given that it provides shelter. But remember that lightweight canvas is quicker and simpler to set up. Check for water proof and mildew proof materials with no holes.
- Bedding. Make sure there’s enough bedding for all your travelers. Measure the beds (especially if they look small) so you know exactly what to buy.
- Possible add-ons. While the list of add-ons can be very long, most camper trailers tend to include water tanks, jockey wheels and awnings.
Are there any other costs I should expect with my RV?
Owning an RV is more than just paying the purchase price and driving away. When you commit to an RV, you need to make room in your budget for a number of related and ongoing expenses.
- Maintenance. RVs need yearly maintenance. The cost will vary based on the age of your RV and how often you use it. If you tow a trailer, you should also factor into your budget the cost of maintaining your primary vehicle as well.
- Fuel costs. It doesn’t matter whether you’ve opted for a diesel or a gas engine — you’re going to be paying quite a bit in fuel costs. Before you start on a trip, look up average gas or diesel prices at regular points along your route and start saving up.
- Park fees. Some parks and campgrounds charge per night. Depending on how long you want to stay, you might quickly find that just having your RV parked on a slip can be a pricey expenditure.
- Hookup fees. In a similar vein, you’ll likely have to pay to hook your RV up to electricity and plumbing. While it might not be as expensive as a hotel, you should still factor basic amenities into your budget when planning to buy one.
Storage. Unless you plan on living in your RV year-round or have a space to keep it when not in use, you’ll have to pay for storing your RV in the off-season. This can start at a few hundred dollars per week, although you may be able to find a cheaper deal if you:
– Look up private listings for RV storage on people’s personal/home properties
– Opt for storage without heating and protection from wintery elements.
These options will definitely increase your risk as you may not know how responsible a private storage seller is and you don’t want your vehicle to become damaged in bad weather. So choose wisely.
How to apply for an RV loan
If a RV loan sounds like it’s right for you, applying for one is very easy.
Typically, to be eligible for RV financing you must be at least 18 years of age and a Canadian citizen or a permanent resident. You must also have a good credit rating and be able to provide the lender with your financial details — bank statements, pay stubs and any other documents relating to your personal income, assets and debts.
What documents will I need for my RV loan?
Your application will run much more smoothly if you have all of your documents ready and available when you apply for a loan. You’ll likely need:
- Valid form of government-issued photo ID such as a driver’s license or a passport
- Social Insurance Number (SIN Card)
- Employment information and proof of income such as a few of your most recent pay stubs or Notices of Assessment from both the current and previous tax year
- Proof of residency such as a recent utility bill, bank statement, phone bill or anything that has both your name and address printed on it
- Personal details such as your address, phone number(s), date of birth and email address
- Either a VOID cheque or a withdrawal authorization form from your bank so that your loan repayments can be automatically debited from your bank account (some lenders may accept other forms of payment such as a mailed-in cheque or money order)
Frequently asked questions