Is this the year you’re ready to buy a new RV and head off down the road less (or more) traveled? Perhaps you’ve thought long and hard about your decision, but you just can’t seem to shift your RV purchase plan out of neutral. You may be stalled by one or more of these common RV-buyer roadblocks. But don’t worry – we’ll show you some detours.
You Have Bad Credit
Imperfect credit shouldn’t be the end of your new-RV dreams. In fact, statistics show that 56% of Americans have subprime, or bad, credit. You can still buy a new RV with bad credit if you plan ahead, do your homework, and rethink your spending habits.
The key to turning around your bad credit and getting that RV loan is to start early. Getting an RV loan can be more difficult than getting a typical auto loan, so it’s critical to combat your bad credit history head on by establishing good credit habits.
- Check your credit score.You can get a free copy of your report from each of the three nationwide reporting agencies every 12 months from com. Or you can contact the credit bureaus individually: Equifax Credit Information Services: 1-800-685-1111, Experian: 1-888-397-3742, TransUnion Corporation: 1-800-916-8800. It’s important to check your report from all 3 bureaus because mortgage lenders usually pull credit scores based on each of these reports and base your rate on the median score.
- Pay your bills on time. Even one missed or late payment can negatively impact your credit score, not to mention you can get hit with a late fee. Mark exactly when your bills are due on a calendar and get in the habit of checking it daily. There are many free calendar and reminder apps for your phone, tablet, or desktop computer that can help keep you on track.
- Pay down your existing credit bills. A little extra money can go a long way when it comes to paying down your credit. That’s because the money you put toward your payment, beyond the minimum required, goes toward the principle, not just the interest. The sooner you pay off your principle, the less you’ll end up paying in interest. Plus, it looks good on your credit history.
- Start saving for a down payment. The more cash you have upfront, the better chance of getting approved for a loan, and the better your loan rate will be. Try to put away a little bit every paycheck and watch it add up over time.
- Don’t open or even apply for any credit cards. Lenders look at “credit inquiries,” which show that other lenders have asked for your credit record and indicates that you might be about to take on new debt.
- Don’t close any credit card accounts, either. Almost 30% of your FICO credit score, the one most lenders rely on, is based on the amounts you owe, including how much of your available credit you’ve used. If you close a card that has a high credit limit but keep your balance the same on your other cards, it will look as if like maxing out your available credit, which can hurt your score.
Your Vehicle Can’t Tow the RV You Want
Unless you’re in the market for a motorhome, you’ll need a way to get your RV to its destination. But the thought of investing in a towing vehicle could be giving you RV-buyer’s cold feet. You may be surprised to learn that your current vehicle might be up for the job – if you choose a new lightweight RV.
Lightweight RVs are a great choice for many campers because they’re easy to tow, even in hilly terrain. They can be towed by many kinds of vehicles – including light-duty SUVs, trucks, and some mini vans – so investing in a heavy-duty towing vehicle is not a requirement.
That being said, ALWAYS consult the towing specifications in your owner’s manual before purchasing an RV. Remember that the weight limits stated refer to a towing weight after packing. It’s easy to stow several hundred pounds of food and gear, especially if you’re going for more than a weekend jaunt. If you don’t factor that in, your vehicle’s transmission may undergo excessive wear and tear.
Another lightweight RV bonus: Because lightweight RVs weigh less than standard models, you’ll have less fuel costs when towing them. They’re also often more aerodynamic than their heavier counterparts, which is another way they can save on fuel.
You’re Worried About Its Resale Value
A new RV is a big investment – no doubt about it. And you might be concerned about how quickly your RV will lose its resale value. But when you think about RVs, think about their long-term resale value, rather than their short-term depreciation.
Sure, a new RV loses some of its value as soon as you drive it off the lot. But typically, depreciation on the value of an RV slows dramatically over time. Not only that, well-cared-for RVs usually have a long lifespan (averaging 12-15 years and 200,000+ miles). So even though a new RV is a big investment, it’s a smart one if you’re in it for the long haul.
Taking good care of your RV is key to keeping its resale value as high as possible. That includes:
- Performing routine maintenance at recommended intervals.
- Using it as often as possible (long-term storage isn’t good for RVs).
- Storing it properly when not in use.
Pro tip: If you’d like to get an idea of what resale value you can expect for your RV, refer to NADA RV guides, Craig’s List (in your area), and eBay Motors or similar online vehicle sales sites.
If you’re looking for a new RV, the professionals at RV Wholesale Superstore can find the model that’s perfect for you! Visit us in-person at 5080 W. Alexis Road, in Sylvania, OH or call us at (855) 589 7692
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