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RV financing mistakes to avoid

Published on November 23rd, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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RV’s can be a great way to pack up and explore various parts of Australia with your friends or family. It can also be a place where a lot of holiday memories are made. Think of buying an RV the same way you buy a house or a car. Carefully considering how you plan to finance your RV can help you avoid these three mistakes, and make owning an RV more fun.

1. Pause the impulse button

The idea of camping out in an RV and exploring picturesque places can get anyone excited. However, before you rush out to purchase an RV on impulse it is advisable to hit the pause button. If you haven’t done your research into finding what type of RV would be suitable for you in terms of its features and the price range you could be biting off more than you can chew. Remember to put in the research to check whether you can afford an RV.

2. Not checking what finance options are out there

Financing your dream of finally owning an RV is possible with so many options available on the market, but this can get confusing. It’s all about knowing what finance options are out there and comparing them. Depending on the type of RV that you decide to purchase you could pay anything between $60,000 to around $130,000, and it is best to find financing that will help you to adequately cover the costs.

Some of the popular options that people use to finance RV’s are:

  • Saving up for it. You can choose to pay for cash by opening a savings account, which can also buy you more time to carefully consider your options.
  • Bank loan. Most banks can finance both new or used RV’s, but there could be a stricter lending requirement that you need to consider. Some banks may be reluctant to offer finance to people with bad credit.
  • Dealer finance. This option can give you a one-stop solution to finding an RV and financing in one place, but be mindful of the fact that dealer finance tends to come with high interest rates.
  • Broker finance. Brokers offer leisure loans that are specifically tailored towards purchasing RV’s and they offer you access to various lenders that offer competitive rates that are suitable to your finances.

3. Not weighing the pros and cons of buying new vs used

There are various reasons why people choose to purchase a new RV or a used RV. However, the mistake that some people make is not comparing the financial implication that comes with each. Your final decision should be affected by whether you are getting the best value for your investment.

A new RV may come with a higher price tag and you also get to enjoy the full original warranty. However, you could be shopping around for bits and piece to keep your house on wheels comfortable and functioning for the first part of ownership.

Used RV’s, on the other hand, may come at a cheaper price tag and don’t depreciate as quickly. However, you should prepare your budget to buffer maintenance and repair expenses.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for leisure loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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