RV Loans For Older RVs: How to Finance an RV Over 10 Years Old
It is a tough decision. Financing a depreciating asset is not always the best option to take. Sometimes, it is the only option you have available. Weigh the costs carefully and look for creative yet low-interest ways of obtaining a loan.
This may be hard to do as many financial institutions have age limits for loans on RVs. Some of these institutions set their limit at 10 years and some at 12. If you are trying to finance a 15-year-old RV you may have to go the home equity loan route.
To learn more about this topic, just continue to read our article. It explores this issue so you have the best information possible to guide your own financing efforts. While rates may be low right now, bank rules do not change that much.
Can I Get a Loan on a 10-Year-Old RV?
This is a possibility. Most banks and financial institutions have set their loan restriction at 10 years so it is possible to get a loan for a 2012 RV. Next year, it may be next to impossible to get one for a 2012 RV because it is older than ten years.
The key is the lender you go with. Some lenders offer great rates and others that will offer lousy ones. One that we saw was offering interest rates between 18 and 36% while the better loan institutions were offering 5 to 19% approx.
The credit score you will need to have will have to be 660 and above for almost all of these lenders with one that we saw saying there is no credit score rating minimum for them. They also charged up to 36% interest.
You may beat those rates as another source said but finding them may be hard as the banks prefer younger RV models not older ones. You may have to have a long history with the bank to get such low rates as well.
It will take some research on your part to find a lender that will provide you with the terms you are comfortable with honoring.
RV Loans on Older Models
The first place to look and to get favorable terms would be a credit union. These institutions are known to lend money to RVs that are older than 10 years. Their age limit is usually 15 years of age but they have been known to extend credit on 20-year-old RVs as well.
One of the requirements for getting a loan would be that you put 20% of the purchase price down on the RV of your choice. Don’t forget to have a good credit rating to help keep the interest rates as low as possible.
But when the RV is older than 10 years, that may be hard to do. Other options would be to try to get a personal loan or a home equity loan. The rates would be a lot more favorable and you do not pay interest on the money until you use it.
The financial details would be up to the bank, credit union, or financial institution you elect to go with. Just so you know, an RV loan is harder to get than a car loan. Expect more red tape on these types of loans than on a car or house loan.
How Old of an RV Can You Finance?
This depends on the financial institution as we have come across some money lenders who do not set an age limit. We will get to those in a minute. The majority of traditional lenders do have age limits.
Banks may only loan on RVs that are 10 years old and younger with a few exceptions. Credit unions will go older sometimes up to 15 to 20 years old and sometimes they will stop at 14 years of age.
It all depends on the bank or credit union you are talking to. We have run across two money lenders who will finance any age of RV however, expect to pay through the nose when it comes to interest rates.
Plus, you have to have good credit to boot. Some lenders will work with those with bad credit and get you a nice loan on an older RV. But their interest rates are extremely high as well.
You also get shorter loan life and smaller loan amounts. So check your credit score first to see if you qualify for better terms. Don’t forget, if you shop around, all those credit checks done by different loan institutions will count against you as well.
How To Finance an RV Over 10 Years Old
You can try the banks first as there may be one that will finance an older RV. They may do that if you have been an upstanding customer for many years. These loans would be an exception, not the rule. Some banks do go to 12 years and 14 years for RV age.
Credit Unions are your next best place to go. They tend to finance RVs up to 15 years of age and sometimes older. Your success would depend on their rules. It is always worth a shot as their interest rates and terms can be quite favorable.
Then there are the money lenders. They are not banks but have their whole business wrapped around making loans. You can get quick approval through these money lending options but watch out for the loan term and interest rates. They may not be as good as you would like.
If you want to beat bad loan terms and interest rates, you could take out a personal loan if your credit is good enough. This will spare you the high RV loan interest rates and get you a nice loan term.
Or you could use your traditional house to get a loan It would be a home equity loan and you usually can use the money for any purpose you want. You also do not have to worry about use restrictions placed on the RV by the lending institution.
The best thing to do is to do very thorough research before you apply for a loan. Check your own financial status first to make sure you can afford to pay back the loan even when money gets tight. Also, do this research so you have an idea of what you will be expected to agree to and pay.
RV Loan Quick Comparison Chart
We decided to create this chart to get you on the right path for your research. There are a lot of loan companies out there including banks and credit unions and getting an idea of their terms is essential in filtering out the bad loan companies from the goods ones.
At no time is anything critical being said nor are any warranties or guarantees being made. This chart is for informational purposes only
| Financial Institution | Interest rates | Loan term | RV age restriction | Permissible RV Use |
| Great RV Loan Co. | Good credit- 3.99 to 5.99% Bad credit- 7.95 to 17.95% | Good credit- 240 months Bad credit- 180 months | 15 years of age | Recreational use only |
| Alliant Credit Union | Starting at 4.24 to 5.24% | 240 months | 15 years of age | Recreational or full time |
| Bank of the West | Starting at 4.29 to 9.99% | 240 months | no older than 2009 model | Recreational or full time |
| My Financing USA | Starting at 3.64 for good credit 7.95 for bad credit | 240 months for good credit & 180 for bad | no older than 2008 with exceptions made for older models | Recreational use only |
| Southeast Financial credit union | Starting at 4.24% | 240 months | 15 years of age | Recreational use only |
| Good Sasm | Starting at 4.29 to 9.99% | 240 months | no older than 2010 | Recreational or Full time use |
| Lightstream | Starting at 4.29% | 84 months | any age of RV | no restrictions |
| Sun Trust Bank (Truist Bank) | Starting at 4.74 to 5.74% | 240 months | 10 years of age | Recreational use only |
*** data taken from this website https://www.thebalance.com/best-rv-loans-5088419
Who Should Get an RV Loan
RV loans are not for everyone. They can be very costly and can take up o 20 years to pay. These loans are for those people in a very solid financial position who can make between 10 and 30% down payment.
Plus, you need to make sure your travel plans do not include crossing any international borders.
Some Final Words
There are ways to finance an older RV. You just have to do some good research to find the right institution to make the loan. If you are a good customer at your bank, that would be the first place to go.
You should get the best rates and terms there as well. A home equity loan is the best way to avoid high interest rates and harsh penalties.
