We know that many readers of RVtravel.com paid cash for their RVs. But we know that many others, maybe even most, financed their purchases.
These days, RV financing terms may stretch 10, 15 or oftentimes even 20 years—the last the same as a home mortgage. The difference, of course, is that in most cases, a traditional home will have appreciated in value, even doubled or tripled in value, while the RV will almost certainly have depreciated to where it is worth very little or even next to nothing.
Long loan terms can help reduce monthly payments, making RV ownership more accessible to more people. But they also mean owners could still be paying off their rig long after its best years are behind it—or even after they’ve sold it or stopped using it altogether. It’s not uncommon for RVers to owe more than the vehicle is worth, especially if they bought during a time when prices were at a peak.
And while interest rates have come down from their highest levels in recent years, they’re still high enough to make a big difference over time. That can turn what seemed like a manageable monthly payment into a long-term financial commitment that’s anything but recreational.
What about you? Are you making monthly payments on your RV? If so, how much is the monthly payment? Please feel free to leave a comment. Please do not respond if you are currently NOT making payments.
And, remember, as always, if your internet connection is slow, it could take a bit for the poll to load. So stand by … it will be along.
MORE INTERESTING POLLS
- Do you plan to spend more or less time RVing this summer than last?
- If you suddenly became filthy rich, would you buy a new high-end RV?
- Is your RV model older than 10 years or newer than 10 years?
- In what season(s) of the year do you most often RV?
- If you buy another RV, will it most likely be motorized or a towable?
RVT1209
Ouch! Payments! Ugly budget busters.
And how many years?
RVing is expensive enough even without payments!
Three RVs over the years, but never a payment!
I pay cash…no payments…period.
I can’t believe you didn’t have a box that said mine is paid for just to see what percentage of people do have theirs paid for.
A never ending debate on a RV purchase is “pay cash or make payments?” Here is a simple answer. Use a number of $100,000, that money, staying in a well designed retirement account, should make you an easy 10-12% interest (compounded) over a 5 year period. That would become around $176,234.17 at 12%.
Paying that $100,000 on a all cash purchase on a depreciating asset and you will never see that income. If you do the math, making monthly payment at 5-7% over 5 years out of your “retirement income” ($650 a month =$40k) you should be able to afford (if you can’t, then you should not be buying an RV), then selling that RV and you will come out way ahead.
Paid cash for the last two motor homes. Only way to go.
Second home loan for minor portion, cash for most of it.
Thankfully the coach has been paid off for many years, I believe 2011.
We almost double our monthly payment to get it paid off quicker.
Thank you for the question, RV Travel! I didn’t vote. We aren’t making payments, except we are. We self-financed (?) through a home equity line of credit. Thus, we have a clear title but are increasing the unused part of the line of credit each month. Have a great week and safe travels!
We are putting additional principal on the loan to pay off early. This was the first RV we financed. The other 3 we paid cash.
zero…love it. I did have payments for 3 months until the CD came to maturity and then BAM, no payments