RVs depreciate just like any vehicle. Some depreciate rapidly, and families are often prone to upgrade or downsize to a different RV while there is still a lot of life left in their old one.
This means that the gently pre-owned RV marketplace is rife with interesting options.
Though even a used RV is still going to be a major investment, which means you will have to go to a lender with your hat in your hand to try to secure a loan.
If you’re looking to buy a used RV through finance, it’s worth finding out, how old is too old to secure financing for a used RV?
Typically, most lending institutions will only offer financing for an RV older than 10. Though they might be willing to go out as far as 15 years old for a high-value RV that has been well maintained.
Just like anything financial, the devil is in the details. Being able to make a case to secure financing on an older gently used RV might rely on a variety of key factors.
With so many great used RVs on the market today, we decided to dig a little deeper into this interesting opportunity.
What Are The Lender Requirements For Financing An Older RV?
The ability to secure financing for any home, vehicle or RV is generally influenced by the policies of the underwriters who ultimately have to sign off on the loan.
Though some lenders do have their own internal policies that might influence whether or not you can secure financing through them. This might include the following factors:
The Age Of The RV
A lot of lending institutions will base their willingness to offer financing for an RV based on age. Most limit their financing availability to 10 years or newer.
Though there might be some wiggle room for a high value RV that is as much as 15 years old and in good condition.
The age of the RV can also influence the duration of the loan you are able to secure. The older the RV is, the shorter the term of the loan will likely be.
The Type Of RV
While all RVs depreciate, some lose their value faster than others. Class A motorhomes, Class C motorhomes and fifth-wheel trailers tend to be easier to get approval for than popup campers and truck campers which tend to see a lot more wear and tear as they age.
The Mileage Of The RV
Motorhomes have an odometer just like a car or a pickup truck. This acts as an additional barometer for lenders to determine usage as well as the risk of general wear and tear.
The lower the mileage of the RV, the more likely you are to be able to secure financing. It can also influence the total duration of the loan.
The lower the mileage, the more likely you are to be able to secure a loan with longer terms, which can also translate to lower monthly payments.
Your Down Payment Amount
Most lenders require a minimal amount of earnest money or down payment to secure the loan.
The amount can vary depending on the current market trends and interest rates determined by the US Federal Reserve.
Though in general, you should consider the absolute floor to be a down payment of 3% of the total loan amount.
The more money you put forth as a down payment, the more likely the lender is to approve the loan.
Especially on an older RV. It will also, of course, lower your monthly payment, which might have the same net effect as increasing the terms of the loan to get a lower monthly payment.
Your Credit History
Just like with any loan, you are likely going to find better terms and available conditions if you have good credit.
This includes things like the interest rate they are willing to offer as well as the maximum term limit, and the maximum amount they are willing to loan you.
Best Lenders For Financing An an RV Older than 10 Years
The number of lenders and financial institutions who are willing to finance an RV loan continues to grow each year.
Though the terms and conditions of each can fluctuate based on the requirements of their underwriters as well as the market conditions.
1. Great RV Loan
Great RV Loan is a US-based lending house based out of the state of California. As their name implies they specialize in RV loans. Some of their key terms and condition limits include:
2. Alliant
Alliant is a Chicago-based financial institution that has been financing vehicles and the earliest RV loans since 1935.
They tend to specialize in new RV loans, though they are willing to also finance older RVs for individuals with good credit. Some of their key terms and condition limits include:
3. Bank Of The West
Bank of the West is another California-based company. When it comes to RV loans, they tend to stick to higher-value models such as Class A, B and C motorhomes, fifth-wheel trailers, destination trailers and high-end travel trailers.
They do not generally consider lesser RV loans for things like popup campers or teardrop campers. Some of their key terms and condition limits include:
4. My Financing USA
My Financing USA has a reputation for being more willing to work with people who have bad credit or minimal credit history.
Though they are just as likely to offer favorable terms to someone with good credit. Some of their key terms and condition limits include:
5. Southeast Financial
Based out of Nashville, Tennessee, Southeast Financial specializes in a wide range of RV loans.
They are also one of the best lenders for high-value RVs like Class A motorhomes as they have one of the highest lending limits in the industry. Some of their key terms and condition limits include:
6. Good Sam Club
One of the friendliest lenders on this list, they are willing to work with people who have bad credit or minimal credit history.
They also like to offer extended warranty plans for older RVs and are very willing to offer friendly terms on those warranties, which gives you a little added piece of mind when you finance an older RV through Good Sam Club.
It’s also worth noting that Good Sam Club is one of the few lending institutions that is willing to offer financing for someone who wants to live in their RV full time. Some of their key terms and condition limits include:
7. SunTrust (Truist)
SunTrust Bank (Trust) has more restrictions and covenants than a lot of other lenders. Though they are willing to finance Class A, and C motorhomes. Some of their key terms and condition limits include:
Conclusion
The number of lenders who are willing to offer financing for older RVs continues to grow each year.
Though the terms and conditions are always going to be subject to market fluctuations and the policy changes of the US Federal Reserve.
If you are in love with an older RV, and you want the peace of mind that comes with an approved extended warranty, then Good Sam Club might be the best lender for you.
Just bear in mind that they will only offer financing for RVs that are model year 2010 or newer.
If you have your eye on a high-value older RV, such as a used Class A motorhome, then Southeast Financial might be the best lender for you.
They are willing to finance an RV up to 15 years old and have a lending limit of up to $4,000,000.
This means they could also be a great option for purchasing multiple RVs if you wanted to start your own small RV rental agency.
