Financing a motorhome.

Newer units are easier to finance. A dealer can usually shop the best rates. There are 2 sides to this and both have their pros and cons. A new unit is easier to get terms and a lower rate. it's also under warranty. Since rates are historically low, this is a good time to stretch the loan. This means more gets applied to principal which helps in offsetting depreciation on a new unit which is worse than a used one. However, you can claim all the interest on your returns as RV's are considered a second home. A used unit is usually better priced and realizes less depreciation than new, but financing can be trickier especially if buying private. Based on your situation, you are still working, know you will be in the unit for 10 years or more, I would go with new on a 10 or 15 year note. A 10 year old unit will be 20 years old by that time and you will be back in the same boat. A new unit will still have plenty of life in it. As with any loan, any additional funds you apply can go directly to principal so perhaps in 5 years or so you are in an equity situation. Another note, a new unit will require at least 10% down payment. I am not sure how liquid you are or if your trade will equate to that. Banks, even on used units - will still probably require the same amount and could be more based on the age of the unit your are buying. Rates will also be higher on used.