| How much can I save by refinancing my existing RV | | | | banks and credit unions are now offering longer |
| loan? | | | | terms. Rarely however, will they go any longer than 7 |
| The answer to this question depends upon several | | | | years. Even if you are financing an RV, the same |
| factors. It would depend on how much you could | | | | terms will apply. This can make for an extremely high |
| reduce your interest rate. It would also depend on | | | | payment. |
| your unpaid loan balance. You would need to weigh | | | | This is where the RV dealer has an advantage. RV |
| the potential savings against the closing costs... if any. | | | | dealers are set up with lenders who finance |
| For example: If a loan with $50,000 remaining to be | | | | recreational vehicles on a daily basis. In order to fit |
| paid at 8.5% interest could be refinanced at 6.25%, | | | | the payments into your budget, you can easily |
| you could save over $11,400 in finance charges over | | | | finance for 10, 15 or even 20 years. This can mean |
| the term of a 15 year loan. You could also choose to | | | | the difference between an affordable payment - and |
| lower your payments, or lower your repayment | | | | one that is difficult if not impossible. |
| term. The choice is yours, but in the case of RV | | | | Alternate Sources of Financing |
| refinancing, there are usually very minimal closing | | | | With the emergence of the Internet, many |
| costs. This means that virtually any savings in interest | | | | specialized financing companies have gained |
| rate make refinancing a smart move. | | | | prominence. Most of these companies specialize in |
| What's your percentage rate? | | | | recreational vehicle financing. This not only includes |
| Finance is a tricky business that can help you save | | | | RV, but also boats, aircraft and other higher priced |
| thousands of dollars, or can sneak up and bite you in | | | | items. |
| the behind. There is more to consider than interest | | | | The primary benefit of using a specialized recreational |
| rate and payments when financing any type of | | | | vehicle finance company is that you will nearly always |
| vehicle, although these are the two things that | | | | secure a much lower interest rate. In many cases we |
| people usually focus on. | | | | have seen a savings of 1% to 2% over the financing |
| The first factor to consider is obviously interest rate. | | | | rate offered by the RV dealer's finance department, |
| The savings of even a quarter to a half percent in | | | | or even the customer's local bank or credit union. |
| interest rate can translate into thousands of dollars | | | | When using a specialized finance company, you |
| over the course of the loan. This will be one aspect | | | | should allow for a 5 to 7 day processing and funding |
| of comparison between your dealer's F & I | | | | period. Applications are normally taken by secure |
| department and alternate sources of financing that | | | | form on the Internet, with supporting documentation |
| are currently available. | | | | usually handled by fax. You will be required to provide |
| The second aspect you must consider is term. In | | | | a recent pay stub and your last 2 years W-2 forms |
| other words, how long will they finance the loan. This | | | | from your tax returns. If you are self-employed or |
| will directly effect your monthly payment amount. | | | | retired, you may be required to provide tax returns |
| You should normally choose a long enough term to | | | | or proof of retirement income. |
| provide a comfortable payment, but not so long as | | | | Remember, if you are purchasing or refinancing an |
| to severely limit the amount of principle included in | | | | RV you should always investigate your financing |
| your payment. | | | | options to secure your best interest rate and terms. |
| Dealership vs. Bank Financing | | | | Even though specialized recreational vehicle financing |
| Most banks are set up primarily to finance | | | | take a little longer to process, it's usually well worth |
| automotive loans with maximum terms of only 5 to 6 | | | | the wait. Don't let your impatience end up costing |
| years. Because of constantly rising car prices, some | | | | you thousands of dollars in finance charges. |