RVs are a great way to hit the road and explore more of the country. Whether you’re considering an RV for weekend getaways to the beach or mountains or a more permanent lifestyle change, they’re a great way to travel and live in comfort.
They’re also big purchases, which means you’ll probably need a loan to be able to secure a new or used RV. If you’re considering financing an RV, you're probably wondering what your options are and how to get the lowest rate and best terms possible.
So let’s explore everything you need to know about financing an RV and why credit unions offer the best RV loan rates.
How does RV financing work?
RV financing works a lot like auto financing with a few key differences. Like auto loans, RV loans are typically available for both new and used RVs, and you’ll pay back the loan in monthly installments over a set period of time.
But since RVs are generally much more expensive than cars, loan amounts are usually bigger, and loan terms are longer. Loan terms can range from a few years to as many as 15 or 20, depending on the type of RV and the amount borrowed.
Your interest rate, loan amount, and term will be determined by several factors, including:
- The year and type of RV
- Your credit score and credit history
- Your income and debt-to-income ratio
- Whether the RV is classified as a recreational vehicle or a primary residence
Some lenders may also require a down payment, especially for higher loan amounts or luxury models. The better your credit and financial profile, the more favorable your rates and terms will be.
RV Financing Options
When it comes to RV loans, you generally have a few different options.
If you're buying a new RV, you can often get a loan through the dealership you’re purchasing it from. However, this usually comes with a lot of fees and higher-than-average interest rates.
Another option is to secure a loan through a traditional or online bank. But keep in mind that, like dealerships, banks are concerned with turning a profit and, again, you may be met with high origination and processing fees and suboptimal rates.
A third option is to get your RV loan through a credit union. Because they’re member-owned, not-for-profit organizations, credit unions are often able to offer loans with lower interest rates, better terms, and fewer fees.
Why do credit unions have the best RV loan rates?
Credit unions are built differently, and that’s exactly why they can offer better rates than most banks or dealerships. As not-for-profit financial cooperatives, their mission is to serve their members, not shareholders.
In practice, here’s why that structure leads to better RV loan rates:
- Profits go back to members: Instead of paying dividends to stockholders, any extra revenue is reinvested in the form of lower loan rates, fewer fees, and improved services.
- Lower operating costs: Credit unions typically have leaner operations than big banks, which helps them keep interest rates more competitive.
- Community-driven lending: Local decision-making means credit unions can focus on long-term member relationships, not short-term profit margins.
- Flexible, people-first underwriting: Credit unions often take a more personal approach when evaluating loan applications, especially for members with limited or rebuilding credit.
All of that adds up to one thing: lower-cost loans and a better financing experience for you!
Benefits of Credit-Union RV Financing
So what does all of that mean when you’re shopping for an RV loan? It means there are lots of benefits of financing your RV through a credit union! Credit unions can do everything that the large banks can do, and they still generally offer a comparable range of products, just with better terms and better service.
Here are just a few of the many reasons to choose an RV loan from a credit union as opposed to a for-profit lender:
- Lower interest rates
- Lower fees
- Easier to qualify
- More personalized service
- More forgiving of poor credit
- Community-focused approach
You can use our loan calculator to get a sense of credit union loan rates.
Joining a Credit Union
Unfortunately, many people write off credit unions because they’re worried they won’t qualify or they think they’ll have to sacrifice the convenience and flexibility of large, mainstream banks. In reality, many people find that credit unions are actually more convenient than large banks.
While credit unions do have membership requirements, it’s almost guaranteed that you’ll be able to find one you qualify for. There are more than 5,000 credit unions nationwide, and 99 percent of Americans are eligible to join.
Every credit union is required by law to have a “field of membership,” which establishes who the potential members are that can join. A field of membership, or eligibility, can be based on things like geographic location, employer, profession, labor union, school, place of worship, etc. It’s part of what gives credit unions their community feel, because members share a common bond.
RV Financing FAQs
What credit score do you need for an RV loan?
It depends on the lender, but most RV loans require a credit score of at least 650. At Valley Credit Union, we work with members to find the best possible terms, even if your credit isn’t perfect.
If your credit score is low, make sure to check out our tactics for rebuilding your credit score.
Can you finance a used RV?
Yes! Many lenders, including credit unions like Valley, offer financing for both new and used RVs. Keep in mind that interest rates for used RVs may be slightly higher.
How long are RV loan terms?
RV loans typically range from 5 to 20 years. Longer terms mean lower monthly payments but more interest paid over time.
Do I need a down payment?
Most lenders will ask for a down payment between 10% to 20% of the RV’s purchase price. However, this can vary based on your credit history and the value of the RV.
Can I refinance an existing RV loan?
Absolutely. If your current RV loan has a high rate or monthly payment, refinancing through a credit union like Valley could save you money.
Get Your RV Loan From Valley Credit Union in Salem, Oregon
At Valley Credit Union, we treat our members like family. We’re a community-based credit union, serving four Oregon counties: Linn, Marion, Polk, and Yamhill. If you live or work within this area, consider getting your RV loan through us and taking advantage of our low interest rates, low fees, and personalized service. We offer online and mobile banking services and are part of a shared branching network, which gives our members access to over 5,600 locations.
Valley Credit Union will also beat members’ current interest rates or lower their payments on any vehicle or RV loan not currently financed at Valley. If we can’t, we’ll pay you $500 in cash, as long as you’ve been a member for at least 90 days.
Come visit us on Mission Street in Salem, call us at (503) 364-7999, or contact us online to join the Valley family!
About the Author
Justin Roberts, Vice President of Lending
Justin Roberts is our Vice President of Lending and has been in the financial industry for over 18 years. He is an Oregon State University Graduate and has just completed Western CUNA Management School. When he is not focused on helping the members at Valley, you will find him coaching his two sons and volunteering his time to help develop the youth in our communities through sports.