The form you fill out is sent directly to our finance manager who will review the information and check your credit score. If this is your first step with us, we will stop there and contact you to determine your goals. We will not proceed without your permission. If you have already set up a purchase agreement with our sales staff, we will submit the application to a minimal amount of lenders to determine the best interest rates and terms for you.
The main factors in determining interest rate are your credit score, the total amount financed, and how much down payment. Generally, the higher your score, the greater your downpayment, and the more you finance, the better the rates get. We won't know the exact rate until you choose a unit and the bank approves you. Lately, rates have risen somewhat - our customers with average credit will be around 6.99%, while very good credit and downpayment can sometimes get around 5.99% or below. Rates for customers with low credit scores can vary from 9.95% all the way up to 17.95%. It's important to understand that RV lenders are stricter than auto lenders and while nobody can get 0-3% interest like in the vehicle world, we will work hard to get you the very best rate possible.
RV lenders generally require 10% - 20% downpayment (cash or trade equity) for financing, and some even more. We do have a couple lenders that will finance 0% down RV loans, but only for high credit customers, and the associated rates are often higher.
We have a great working relationship with about 8-10 banks and credit unions that offer very competitive rates for fifth wheel, travel trailer, and horse trailer financing. We deal with competitive national banks such as Bank of America, US Bank, Bank of the West, Ally Bank, Huntington, Banterra, & Merrick as well as credit unions such as Advancial FCU, & Essential FCU.
In many cases, even if your credit has been dragged down by various issues, we are still able to get you approved for a loan. Depending on your particular situation, we have a few banks that will provide financing even with a low credit score. Typically there are more stringent requirements in term and downpayment, but we will find an option that works for you.
Customers are often suprised to find out the length of terms available for RV loans. We can frequently get financing approved for 10, 12, and 15 year terms, depending on the size of the loan. This leads to a much smaller monthly note than one typically gets for an auto. Rates are fantastic right now and financing your RV lets you maintain your liquidity rather than put all of your hard-earned cash down at once.
There are no pre-payment penalties for any of the lenders we work with. The big advantage of this is while you can pay extra principal when times are good, you are only obligated for a small note when times are lean. There may be a small documentation fee (~$25) to payoff in full, but it is worth it to save years of interest. We definitely recommend paying extra when you can!
We are very protective of our own credit scores, and so we look out for yours too. We are not like many dealers out there that 'shotgun' your credit out there and thus drag your score down with a ton of inquiries. Our finance managers carefully select a couple lenders that fit your individual situation and start with those before moving on to more. This is more laborious for us and can take a little longer but the end result is better for you. We will not share your personal information with anyone else except the actual lenders looking at your loan.