Campers are a great place to create lasting memories, and there has never been a better time to own one than now when the world is just resuming its regular activities after several months of being grounded by the Covid-19 pandemic.
But financing for campers is a process that must be approached with a lot of deliberateness as a single misstep can land you in an ugly debt or leave you with a purchase to be regretted for years.
Here’s a shortlist of the most commonly recurring financing mistakes RVers make, and we hope you do well to avoid them:
Dismissing additional costs
Many RVers find out a little too late that they cannot really afford their campers because owning one, even when not in use, leads to perpetual expenses.
Although buying a brand-new RV will significantly reduce your maintenance cost for the first few years, you should consider the cost you will likely incur to modify and furnish the interior to suit your unique needs.
Other expenses include gas, campsite fee, insurance, and even storage space if you don’t have the facility in your home to accommodate it.
Shying away from negotiating
Only very few emotions surpass customers’ sinking feeling when they discover that they could have gotten their latest purchase at a much fairer deal. But this will always be the lot of RVers that do not hone their negotiating skill.
Do not be embarrassed to admit to the dealer that you are actively shopping around and will be settling for the most favorable option.
Also, you’ll be a lot less self-conscious about negotiating once you realize that dealers are out to take as much from you as they possibly can, so you owe it to yourself to look out for your best interest too.
Financing with a bad credit score
Poor credit scores make it extremely difficult for RVers to get a good loan, and they often end up paying as much as more than double the initial price of the camper in interest.
If you’ve been looking to buy a camper and your credit score is all but impressive, then your best bet would be to hold off on the purchase for a while. In the meantime, you should work on boosting your credit score by putting your finances in order.
This wait of a few weeks/months can mean a huge difference between a satisfactory purchase and one you will regret and be stuck with while paying outrageous interest for years.
Making a full upfront payment
Every so often, an RV lover walks into a dealership lot ready to pay in full for their camper, but financial experts opine that this the least smart use of money. Investing the money in a profitable venture while seeking a reasonable loan is more advisable.
Spreading out the cost with a sizeable down payment will get you a good interest rate which, all things being equal, proceeds from the investment should cover. This is a win-win situation that ensures you remain liquid while gaining possession of your desired camper.
