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Published January 13, 2024 | Last updated September 3, 2026
We financed our Class A motorhome, and looking back, the biggest lesson I would give a first-time RV buyer is simple:
Do not let the dealer sell you a payment.
You need to know the actual purchase price, how much you are putting down, the interest rate, the loan term, and the total amount you will repay.
A monthly payment can make an expensive RV feel affordable, especially when the loan stretches for many years.
That does not mean financing is bad. It means you need to understand the whole deal before you sign it.
How Does RV Financing Work?
RV financing works a lot like financing a car.
You agree on a purchase price, make a down payment if required, borrow the rest, and repay the loan over time with interest.
Most traditional RV loans are secured by the RV itself. That means the lender has a lien on the RV until the loan is paid off, and the RV can be repossessed if you default.
You can usually get RV financing through a dealer, bank, credit union, or lender that specializes in RV loans.
The best option depends on your credit, the RV, the loan amount, the term, and the offers available when you buy.
Our Real Class A Financing Example
When Susan and I bought our Thor Challenger, we paid about $160,000.
We put down about $25,000 and financed roughly $135,000 for 10 years.
Our interest rate was around 5.5%.
At those numbers, the payment is roughly $1,465 a month and the total interest over 10 years is about $40,800 if the loan runs the full term.
We got the financing through the dealer. We shopped around a little, but not nearly as much as I would recommend today.
We were excited about buying the RV, and the rate was reasonable, so we moved forward.
I do not regret the financing, but I would tell a first-time buyer to shop the loan just as hard as the RV.
1. Negotiate the RV Price Before You Talk Monthly Payment
This is the most important financing advice in this article.
If the salesperson asks what monthly payment you want, I would bring the conversation back to the purchase price.
A dealer can lower a payment by extending the term without actually giving you a better deal on the RV.
Negotiate the price of the RV first.
Then evaluate the financing separately.
Our guide on how much you can negotiate off an RV explains why those two parts of the deal should not get mixed together.
2. Shop Financing Before You Go to the Dealer
I would get at least one or two outside financing quotes before buying.
That might mean checking with your bank, a credit union, or an RV lender.
Then if the dealer can beat the rate or terms, great.
If they cannot, you already have another option.
Dealer financing can be convenient, and sometimes dealers have access to very competitive programs. But convenience is not a reason to skip comparison shopping.
3. Compare APR, Not Just the Interest Rate
The interest rate matters, but I also want to see the APR.
APR can reflect certain loan costs and makes it easier to compare competing offers.
I would also look at the total of payments over the full loan term.
Two loans can have similar monthly payments but very different total costs.
4. Be Careful With Long RV Loan Terms
RV loans can run much longer than many car loans, especially on expensive motorhomes and fifth wheels.
A longer term lowers the monthly payment, but it also usually means more total interest and a slower buildup of equity.
That is where buyers can get into trouble.
If the RV depreciates faster than the loan balance falls, you can owe more than the RV is worth.
That is called being upside down or having negative equity.
5. Understand Negative Equity Before You Finance
This is one of the biggest risks with long RV loans.
Suppose you owe $70,000 on an RV that is only worth $55,000.
If you want to trade it, that $15,000 difference does not disappear.
You either pay it in cash or the dealer may try to roll it into the next loan.
Now you are financing the next RV plus debt from the old RV.
That is a hole I would try very hard to avoid.
This is also why buying the right RV the first time matters so much.
6. A Down Payment Can Help, But There Is No Magic Percentage
Some lenders require a down payment and some may offer programs with little or no money down.
I would not treat 10% or 20% as a universal rule.
A larger down payment reduces the amount financed and can lower your payment and total interest.
It can also give you more protection against negative equity.
But I would not drain my emergency savings just to put more money down on an RV.
7. Do Not Automatically Roll Every Add-On Into the Loan
This is another place where the payment can hide the real cost.
Extended warranties, paint protection, tire plans, roadside coverage, accessories, service contracts, and other products may be offered in the finance office.
Some may be worth buying. Others may not.
Evaluate each one separately.
A $3,000 add-on can look harmless when someone says it only changes the monthly payment by a small amount. But if you finance it for years, you may also be paying interest on that add-on.
8. Cash Does Not Always Get You a Better RV Price
Buyers sometimes assume walking in with cash gives them more negotiating power.
That is not always true.
Dealers may earn money when they arrange financing, so they may have less incentive to discount for a cash buyer.
I would negotiate the RV price without making cash versus financing the center of the discussion.
9. Be Very Careful Using Home Equity to Buy an RV
The old version of this article called home-equity financing a great option.
I would not frame it that way.
A home-equity loan or line of credit may have a competitive rate in some situations, but you are putting your home behind debt used to buy a depreciating RV.
That is a much bigger risk decision than simply comparing interest rates.
If someone is considering that route, I would want them to understand the consequences and discuss it with a qualified financial professional before using home equity to buy an RV.
10. What Credit Score Do You Need for an RV Loan?
There is no single minimum credit score for every RV loan.
Different lenders have different standards, and your rate can also depend on the loan amount, income, debt, down payment, RV age, and loan term.
Generally, stronger credit gives you more options and usually better pricing.
If your credit is weak, I would be especially careful about stretching the term just to force the payment into your budget.
11. What Interest Rate Should You Expect?
I would not publish a fixed “current RV loan rate” in an evergreen buying guide.
Rates change too quickly, and the rate one buyer qualifies for may be very different from another buyer’s rate.
Instead, get live quotes from several lenders when you are ready to buy.
Compare the APR, term, down payment, fees, prepayment rules, and total repayment—not just the headline interest rate.
12. Ask About Prepayment Penalties
If you plan to pay extra toward principal or pay the RV off early, check the loan agreement first.
You want to know whether there is a prepayment penalty and how extra payments are applied.
I would not assume every RV loan handles this the same way.
How I Would Shop for an RV Loan Today
If I were financing an RV today, I would do it in this order:
First, decide what RV I can truly afford.
Second, get outside financing quotes before visiting the dealer.
Third, negotiate the RV’s out-the-door price without focusing on monthly payment.
Fourth, let the dealer compete for the financing.
Fifth, compare APR, term, total interest, fees, and total amount repaid.
Finally, evaluate every finance-office add-on separately before putting it into the loan.
Should You Finance an RV?
Financing can make sense if the payment fits comfortably into your budget and you understand what the loan will cost.
What I would not do is use a long loan to make an RV affordable that really is not affordable.
Remember that the loan payment is only one part of RV ownership.
You still have insurance, storage, maintenance, repairs, fuel, campgrounds, registration, and everything else that comes with owning the RV.
If you are buying a motorhome, our guide on how much a motorhome really costs to own each year is worth reading before you settle on a payment.
My Bottom Line
RV financing is not complicated once you strip away the sales language.
You are borrowing money to buy a depreciating asset, and the details of that loan matter.
Our dealer financing worked out fine for us. We got what I consider a reasonable rate, and we were comfortable with the payment.
But if I were advising a first-time buyer today, I would tell them to slow down and shop the financing harder than we did.
Do not let the dealer sell you a payment. Know the purchase price, rate, term, and total amount you will repay.
Related Reading
How Much Can You Negotiate Off a Travel Trailer?
How to Know If You’re Paying the Right Price for an RV
How Much Does a Motorhome Really Cost to Own Each Year?
Mike Scarpignato – Bio
Mike Scarpignato founded RVBlogger.com with his wife, Susan, in 2018 to help new and experienced RVers make better decisions about buying, owning, and traveling in an RV.
Mike has decades of camping experience and has traveled extensively in both a Gulf Stream Conquest Class C and a Thor Challenger Class A motorhome. He and Susan spend much of the year on the road, attend RV shows, visit dealerships, and tour RVs across the country.
Through RVBlogger.com and the RVBlogger YouTube channel, Mike shares practical, first-hand advice about RV buying, floor plans, ownership, maintenance, gear, campgrounds, and the RV lifestyle.
