The vast majority of people do not have a bag full of cash that I can take to a dealership and purchase a brand new RV. An RV is a major purchase, just like a car or home, and that means you are likely on the lookout for RV loans in Florida. If you have ever purchased something on finance before, you will know that it can be quite complicated to secure a loan for this. You should also know that choosing the right type of financing will help to save you thousands of dollars over the course of the loan. So how do you find the right type of financing?
Factors that Determine Which RV Loans in Florida Are Good for You
A number of factors that will help you to determine the type of finance that is right for you and the interest rates that are currently available for both new and used RVs. Those factors include:
- The current interest rates. Interest rates on RV loans are static, just as they are on vehicle and home loans. The rate will go up and down down depending on the rest of the market, shadowing overall loan rates. In other words, if you know that the rates on vehicle loans are low right now, then there are likely to be low on RV loans as well.
- Your credit score. The rate you will be offered depends not only on what the national interest rate currently is and not even on the rate charged by different lenders. In fact, one of the most important factors is what your credit score is, with the better your score the better the rate. That doesn’t mean that you cannot find a loan if you have poor credit. It does mean, however, that you should find someone who works specifically with people with poor credit scores.
- You down payment. The more cash you have in that aforementioned bag, the better your rates are going to be. If you can, try to put at least 10% down because this will significantly lower your monthly payment and give you some leverage in negotiating the rest of your finance rates. Plus, it means you will pay your loan off 10% quicker than if you had no down payment.
Different RV Financing Options
There are different ways for you to finance an RV. Often, the dealerships themselves offer finance options but you can also go to a third party. If you have a good credit rate and a good relationship with your bank, that could be an option for instance. The financing options include:
- A dealership. If you want to finance your RV through a dealership come out then do make sure that you have researched them properly. Try to find reviews from other people worse than the same and look into the interest rates that they are paying. If possible, speak to them directly to ask whether they are happy with the solution they chose. Dealership finance is a very convenient and quick and you may even find very low rates because they offer regular sales and promotions. However, the rates tend to be less competitive and they tend to have fewer payment options in place. Finally, the sales person may be quite pushy.
- A bank. This has its own pros and cons, with one of the greatest advantages being that they are likely to show you a little bit of leniency if you ever miss a payment. Additionally, you don’t have to go through an intermediary. However, you will usually have only one deal to choose from and it generally takes a little bit longer to complete the process.