Part of the confusion that, no doubt, comes into play when financing an RV is the lending rate. The rate that you obtain for an RV loan is based on a number of factors; the term of your RV loan, your credit quality, credit score, credit history, repayment history, down payment and loan-to-value. The basic rule is: The higher the risk, the higher the rate; the lower the risk, the lower the rate. The best way to improve your rate is with a larger down payment, shorter terms and a strong credit history.

If you are purchasing a used RV, whether from a dealer or a private individual, pre-approval gives you a negotiating advantage. It lets the seller know that you are a serious buyer because your financing is already in place. This way your offer can be made without any concern that you’re financing may fall through so you have the ability to close quickly. Pre-approval also helps you determine your credit and loan limits, allows you to address and resolve any credit issues before they become an issue, and helps eliminate any financing anxiety that might arise once you have entered into a purchase.

A final question that might be weighing on your mind is how the financial institutions that provide RV financing have weathered the current economic status in the country. Those that have not taken on too many high risk loans will certainly be able to provide a better financing package in a downturn economy than the ones that have.