Wednesday, March 29, 2023


How many years is (or was) the loan on your present RV?

How many years is (or was) the loan on your present RV? Did you pay it off relatively fast, say 5 or 6 years? Or did you stretch it out for 15 or 20 years, which is increasingly popular these days (but not always a good idea)?

Based on similar polls in the past, we know that some RVers simply pay cash and that’s it — no payments at all — a lot of money saved on interest, and no payments to remember to pay every month.

So how did you do it? It may take a moment for the poll to load, so please stand by. Your comments are welcome, of course.



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Denise Gray
2 years ago

We had to take a 20 year loan to get a decent interest rate. . We pay double each month to pay it off in 5 years.

Diane Mc
2 years ago

Soon after we bought our motorhome which was a 20yr (next year will be our 20th yr owning it, so never experienced underwater trying to buy newer one) interest rates starting coming down. Refi’d our home to eventually 3.5% rate. With minimal inflation, tax deduction, paying almost zero for both motorhome & S&B home. We’ve thought about paying off mortgage, but decided we can keep our money invested and growing & just make the monthly payments as loan is pretty much costing us nothing.

2 years ago

We bought in 2014 could have paid cash but with a 3% 20 year loan it made sense to let our investments that were paying more than 3% pay the loan. We will have more than we we paid for it still invested when paid off and the money will have paid for the MH.

2 years ago

Took out a 15yr loan to keep payments low, knowing I would pay it off in 2 yrs. Paid off and credit rating gone up.

E Step
2 years ago

Took out a five year note with my bank. Paid it off in two years. Could have just paid cash but like to keep a good reserve available for emergencies.

2 years ago

On my first trailer, pop up we took a loan out and paid it off within 5 years. Then the second pop up was all cash and trade in. Then the pop up thing got old and we paid cash with the trade in for a trailer. Then we needed a bigger trailer to house all 4 of us. We pay off the loan this year. I think it took us less then 3 years. We are happy with what we got now because with the 4, one died, one is moving out and one is staying home and I am heading to Maine to start my retirement next year. All by myself…..Going to be interesting to say the least.

2 years ago

we bought a used travel trailer and the guy had a 15 year loan that he still owed 5 years on. we paid cash.

Paul S Goldberg
2 years ago

We took a 15 year loan when we bought our Phaeton in 2012. The interest rate was under 4%, before tax. The funds I would have liquidated to pay cash have earned significantly more than 4% net of tax. So long as I can foresee making more than 4% net after tax I see no reason to pay off the loan. I am dollars ahead. The main point is I have the cashflow to make the payments and don’t lose any sleep over this loan.

Diane M
2 years ago

We saved until we had the money for our $22,000 travel trailer. Dealer was happy to take cash. Why would you even buy from a dealer who refused cash and made you buy with a loan?

Denise Smith
2 years ago

We took out a 15 year loan on our new 2021 TT. Paid it off after the 1st month. $75 early payoff fee was less than 1 month’s interest. Dealer wouldn’t do a cash deal.

DL Jenson
2 years ago

I believe it was 12 years but we paid it off in 2~

Bob M
2 years ago

I’ll probably be dead before my travel trailer is paid off. Or I’ll probably trade it in in a couple years. The loan is in my name only. So if I die the wife can call the bank to come up and take it.

Gene Bjerke
2 years ago

I never was guided by the smartest financial advice. So now I am two-thirds of the way through a 15-year loan on a motorhome. But it is my most-valued possession. I am happiest going down the road to an interesting destination; so I just think of the monthly payments as rent on my favorite activity.

Seann Fox
2 years ago

The dealer basically forced me to take a 20-year loan but I noticed in the contract it said I could make extra payments at any point the loan was paid off in 2 years

2 years ago
Reply to  Seann Fox

There is never a reason not to pay double what you owe. We did that with the trailer we have now. Almost paid off. Banks love it when people pay off early. Some do and don’t but it is great for your credit rating if a big ticket item is off the books. Thats why we hope to pay off our trailer by June. Good luck.

Edmund Rapin
2 years ago

I managed a 2.75% loan, wasn’t taking money out of investments that are paying 4x that.

Ron T.
2 years ago

We put 50% down and I believe it was a 15 year loan. However, we paid it off in two years as funds became available.

Ron Lane
2 years ago

We did the 20 year load mainly because there was no way we could afford this 1/4 million dollar motorhome. We did put 30% down (that we could afford) and in addition purchased an rv resort lot that was selling at a basement price. The motorhome would depreciate and the rv lot would appreciate…..hopefully offsetting the difference between what we will owe on the motorhome vs what it will sell for. So far, we have spent several years enjoying both and our “plan” seems to be working as we hoped it would. Our rv lot has now tripled in value and the rv value is close to what we owe on it. We also have been able to deduct both on our income taxes that has helped offsetting the yearly costs. I realize that with the 20 year loan we (if we keep it to final payoff) we will undoubtedly pay close to 50% more than the original cost. However, due to our age, there is no way we will keep it that long and the total $$ we have spent for this motorhome will be substantially less than the original selling price.

Ed K
2 years ago

24 Months and we paid it off earlier.

2 years ago

We decided to take the 20 yr loan rather than cashing in retirement savings taking into account interest tax write off, investment earnings and selling fees. We are traveling full time retirees with no house. Emotionally, I would prefer to pay it off and have no debt but when I do the math it doesn’t make financial sense in the long run.

Grant Graves
2 years ago
Reply to  Zeet

Yep, in exactly the same situation. The numbers just work out way better to finance given the loan is deductible and the investment return is so much higher.

2 years ago

At the time, local dealers were offering ridiculously low interest rates. We financed for 4 years. After doing the math, it cost less to use their money rather than redeem investments earning a much higher interest rate.

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