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\u2013 Like car loans, RV loans are calculated using simple interest, meaning you will only pay interest on the principle owed at the time of your payment. How Much of a Down Payment is Required? \u2013 Most banks and credit unions require a minimum down payment of 20% of the total cost being financed.
The average RV loan has a higher interest rate than the typical car loan, and also tends to be longer. According to data from S&P Global, the average RV loan's interest rate is 6.17% for a new RV purchase and a 36-month loan term, and 6.15% for a 60-month loan on a new RV purchase.
As for monthly payments, the average monthly payment for an RV will be anywhere from $225 to $650 monthly. This average is based on a $35,000 vehicle with $0 down and varying interest rates. Most lenders who offer RV loans will require a minimum down payment of 10%, while others require 20%.
Most lenders that offer recreational financing will require that your debt to income ratio be less than 40%. You can calculate your DTI ratio by totaling up your monthly recurring debts (total of all of your monthly payments for installment loans and revolving loans), then divide that number by your monthly income.
How long is an RV loan term? The loan term and details for financing a new or used RV or camper are very similar. On average, RV loans range from 10-15 years, but many banks, credit unions and other finance companies will extend the term up to 20 years for loans of $50,000 or more on qualified collateral.
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Many sources say that the lowest credit score range at which to qualify for an RV loan is around 650-660. Ideally, your credit score should be closer to (or over) 700. Such a score demonstrates strong creditworthiness, usually through a consistent payment history and low balance utilization.
Unsecured RV loan terms are usually two to seven years, while secured RV loan repayment terms can be up to 20 years. You can enter any repayment term into this calculator. You'll pay more interest overall with a longer repayment term, while a shorter repayment term means higher monthly payments.
Compare the Best RV Loans CompanyStarting Interest RateLoan Terms (range)Alliant Credit Union Best Overall5.09%120 to 240 monthsSoutheast Financial Best for Bad Credit5.49%Not statedBank of the West Best for Good Credit4.74%48 to 240 monthsLightStream Best for Quick Funding4.49%36 to 120 months
RV Loan Options Most RV loans are financed by RV dealerships, banks, and credit unions. RVs can be considered primary or secondary homes so lenders can offer loan periods that can stretch out between 5 and 20 years.

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