How RV loans work
RV loans run much longer than car loans, often 10 to 20 years on larger loans, because RVs cost more. A long term keeps the payment low but the interest adds up, and an RV loses value faster than the loan pays down in the early years. The calculator has terms up to 240 months.
A worked example
A $120,000 motorhome with 6% tax, $15,000 down and nothing traded in, at 8.5% for 180 months:
- Tax: $7,200
- Amount financed: $112,200
- Payment: $1,104.88 a month
- Interest: about $86,678 over 15 years
What rate to use for a RV loan
Lenders price RV loans their own way, by the loan size, the RV's age and your credit. The credit chips start from car loan averages as a rough guide: type the rate your lender quotes for the real number.