Airstream RV Financing 101

A big-ticket purchase like an Airstream RV is not generally something people can pay cash for up front. These vehicles, while spacious and convenient, do cost several thousand dollars, necessitating a firm budget and the use of financing options to finalize the purchase. Over 70% of RV buyers actually use financing when buying their RVs, so if you choose this option, you are certainly not an outlier.

But what does RV financing entail? Airstream of Utah in Salt Lake City is proud to be your Beehive State Airstream RV dealer, so we’re happy to help you in any way we can. Below, you’ll find an explanation of what to do when you’re considering the use of financing for your Airstream RV purchase.

1. Establish a Firm Budget

Before you do anything, you’ll need to take a good look at your finances to determine exactly how much you can afford to spend on an RV. Remember that you don’t necessarily need the biggest RV out there; a smaller RV can be perfectly comfortable and convenient for your family, too.

Loan terms can range between a few and twenty years, so you should also think about how your financial situation will change over time. Don’t forget to factor in additional costs like fuel, maintenance, storage rental, insurance and accessories so that you can actually use your RV once you’ve bought it.

2. Save Up Your Down Payment

Paying a larger down payment will allow you to save money since you’ll need to borrow less money. Generally speaking, a seller will require you to pay at least 10% of the full cost of an RV at the date of purchase. Some places may require as much as 20%. Investigate your options and save up as much as you can in advance.

3. Check Your Credit Score

A good credit score is key to getting a good financing option. If your credit score is over 700, then you’re more likely to get more money in your loan and have more success with getting a loan in the first place, so check your score with all three bureaus and do everything you can to raise it as much as possible before you purchase your RV.

Consider whether you want to obtain a secured or an unsecured loan. Each option has its benefits, but you’ll want to exercise caution either way you go.

A secured loan uses your RV as collateral, which means that it can be repossessed if you default on your loan payments. Rates will be lower for this type of loan, but you must be careful with them.

An unsecured loan doesn’t require you to put up any collateral, but the rates will be higher and you may not be able to borrow as much money.

4. Don’t Spend Too Much Beyond the Cost

All vehicles, RVs included, have a high depreciation rate during the first year or so of ownership. This drop in value levels out over time, but you don’t want to end up spending far more than the RV is actually worth due to a long loan term or an extremely expensive model. Over time, the amount you pay on such a loan can end up being a great deal more than the RV is worth, which is a loss on your part.

Make sure that you’re only investigating options that are affordable for you. You may not be able to get the most luxurious RV out there, but you can get a good-quality model that will serve you well for years to come if you’re smart about it. Making a large down payment will also help you to reduce the total amount you need to borrow and pay off over time, saving you money in the long-term. 

5. Investigate Your Financing Options

When you’re ready to look into financing your RV purchase, talk to the finance department here at Airstream of Utah. Our staff will be more than happy to assist you in any way we can to make your purchase easier. You can even use our finance calculator on our website to figure out terms and monthly amounts before applying online for a quote!

Seeking RVs for sale near SLC? Visit our website to see the full stock of new and used Airstream RVs we have available for sale at our Salt Lake City dealership location. Airstream of Utah serves the cities of Provo and Park City, UT.