20 year loan for RV?

Bought our first trailer cash from the wife's uncle. Outgrew it, sold it and bought our current trailer with our HELOC. Paid it off in 3 years. Next camper is likely to be $40-50K for an extended living 5th wheel bunkhouse. I'm going to have to borrow money again to pay for it. Our camping friends have a 12 year loan on their camper... I don't think I'd want to stretch payments out that far either.

Some of us aren't independently wealthy, nor are we willing to sacrifice our younger years to save for a camper to pay cash. I've got a 7 year old, 5 year old and 14 month old and we love to camp now. Kids enjoy it immensely, we use it for educational purposes as well. It was definitely worth paying a little but of interest to get an appropriate camper that we can use NOW.

The next camper will be our "cross country" camper. My bride came from a farming family, didn't have extra money for vacations. I want her to see our gorgeous country, I want my children to see our gorgeous country. I want to see it again. I'm willing to take on some interest payments to provide that experience for my kids. Again... hopefully I can pay it off in a relatively few years, but sometimes it costs money to live life.

But... you gotta take care of them! Our current camper is parked under a Carolina Carport. Hopefully our next camper will live in a fully enclosed shelter when its not in use. Keep rain off the roof, put some wax on the paint and treat the inside with kindness, they'll last more than 10 years.

doghouseman wrote:
A friend of mine was telling me that I can get a 20 year loan on most new RVs. Is this true? Now I realize how people afford those Class A RVs.

That’s not how people with class A’s can afford them. More likely for someone who bought a TT from Camping World to be in financial stress than the person with a DP.

There’s an old saying that banks like to loan money to people who don’t need it. It’s also true that people who have money are likely to use other people’s money when the numbers favor it.

I don't think a modern RV will last 20 years.

I wonder. Most likely sky high interest rates that the lender will get their money back + profit in 7 years and the rest is gravy.

RV is considered worthless after 10 years. That's why some private campsite won't permit one as they might end up with the headache of disposal when the owner abandon it in their yard.

I like a 15 year loan on a house. Unless it is my only residence, I would not go longer than 7 years on an RV. Cash is best.

doghouseman wrote:
A friend of mine was telling me that I can get a 20 year loan on most new RVs. Is this true? Now I realize how people afford those Class A RVs.

Yes it is true. And after a few months there is generally no prepayment fee so feel free to accelerate payments.
This allows flexibility in bad times and interest savings in good times. Not entirely bad for those that are disciplined with finances.

Just because you can, doesn't mean that you should.

Initial cost is only the first cost of an RV. Then come costs for license, insurance, storage, maintenance, repairs, upgrades, etc etc. Get real about the whole picture and don't buy an RV if you have to take such a huge loan.

The answer is yes. You can get a 20 year loan on a newer RV.

However, just because you get a twenty year loan, doesn’t mean you have to take twenty years to pay for it. You can make double or triple payments, but if you run into a financial difficulty for a while, you can make only the required payment, or no payment at all for a while.

i dont think i could swallow making payments on something i no longer have. 20 years is well past the usable life of a lot of units. even if you stay on maintanance and keep it 20 + years a 20 year old rig will require constant upkeep and attention which costs money on top of the payment you are already making. ill pass. lots of nice used units for 20-40% initial cost that are pleanty good for me.