I will be buying a 5th wheel soon and this will be our first RV purchase. We are looking at 5th wheels in the $45-65,000 price range. Would it be better to get financing directly through the dealership or would it be better to deal with a broker to line up financing and then go to the dealership? My wife and I both have good credit and own our home located in Florida.

Honestly best to save up and pay caswh. Always better to earn interest than pay it. The only possible worse investment than an RV might be a time share or a boat. No offense intended. Just my take on this.

Credit Union! Not the dealership! Or HELOC!

RV loan interest rate ~3-4%, maybe lower.National Average savings account rate <1%.However, many people can invest at 7-10%+ annual rate of return. So borrowing "cheap money" at a lower rate than you can earn investing can be beneficial even if you have the cash. I don't have a problem with a loan on any depreciating asset. Justr make sure you understand the depreciation rate is similar to automobiles. I recommend loans at similar rates, say 10-20% down payment and <6yr loan payment schedules.My advice is to shop rates on your own prior to discussing financing with the RV dealer. Many people have established relationships with specific banks already that often make the logistics of getting, paying, and closing a loan easier than some random bank.

Would it be better to get financing directly through the dealership or would it be better to deal with a broker to line up financing and then go to the dealership? My wife and I both have good credit and own our home located in Florida.Your best bet is to research all your options: banks, broker, credit unions, on-line, and thru the dealer. I'm not in the OP's area, and didn't buy a 5th wheel, but I got a pretty good rate thru the dealer with Bank of the West after letting them know I would only be interested if they were competitive since I had excellent credit and other options. Frankly, most of the financing sources I explored seemed more interested in long-term 10 or even 15-year loans with little or nothing down. I'm sure many dealers have links to similar deals, which undoubtedly pay a higher commission, but they may also have pretty good rates for those looking for shorter loans with larger down payments and lower interest rates, although they may not do as much to promote those loans.You'll only know you're getting a good deal if you know what the alternatives are.

Loans are one of the easiest things there are to shop. Just compare terms (length of loan and interest rate). I would check with my bank, a local credit union, maybe an online source (such as Good Sam which uses Essex, which is a division of Bank of the West) and see what the dealer can offer. Take the best deal. The one thing people get a bit out of whack on is length of loan. Longer loans do have lower monthly payments, but doubling the loan term does not cut the payment in half. It is best to take the shortest term you can comfortably afford. You will build equity quicker and pay of the loan sooner. Bankrate.com has a bunch of financial calculators that can help you with your analysis.

Financing & Loan Options for RV 5th Wheel | Good Sam Community

APT
Explorer
Nov 02, 2015
RV loan interest rate ~3-4%, maybe lower.
National Average savings account rate <1%.
However, many people can invest at 7-10%+ annual rate of return. So borrowing "cheap money" at a lower rate than you can earn investing can be beneficial even if you have the cash. I don't have a problem with a loan on any depreciating asset. Justr make sure you understand the depreciation rate is similar to automobiles. I recommend loans at similar rates, say 10-20% down payment and <6yr loan payment schedules.

My advice is to shop rates on your own prior to discussing financing with the RV dealer. Many people have established relationships with specific banks already that often make the logistics of getting, paying, and closing a loan easier than some random bank.
blackeyed1
Explorer
Nov 02, 2015
Credit Union! Not the dealership! Or HELOC!
Oasisbob
Explorer
Nov 02, 2015
Honestly best to save up and pay caswh. Always better to earn interest than pay it. The only possible worse investment than an RV might be a time share or a boat. No offense intended. Just my take on this.

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