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 campers is a process that must be approached with great care, as a single misstep can land you in 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 too late that they cannot afford their campers because owning one, even when unused, 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 fees, insurance, and even storage space if your home doesn’t have the facility to accommodate it.
Shying away from negotiating
Few emotions surpass customers’ sinking feelings when they discover they could have gotten their latest purchase at a much fairer deal. But this will always be the lot of RVers who do not hone their negotiating skills.
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 much less self-conscious about negotiating once you realize that dealers are out to take as much from you as possible, 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 camper’s initial price in interest.
If you’ve been looking to buy a camper and your credit score is impressive, your best bet is to hold off on the purchase for a while. In the meantime, you should improve your credit score by keeping 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 is 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, should cover the proceeds from the investment. This win-win situation ensures you remain liquid while gaining possession of your desired camper.
