RVs are big-ticket items. It’s an investment with upfront and ongoing costs. They vary widely in pricing, costing anywhere from a couple thousand dollars to millions. Before you commit to buying an RV, it’s imperative that you have a budget worked out. Maybe you’ve rented an RV from a rental company like RVshare, and are now ready to buy one of your own, keep reading to find out what needs to go on your RV budget sheet!
Chances are, you don’t have loads of cash lying around to buy your RV outright. That’s okay! There are tons of options for you to finance your RV, just like you would with a car. Here’s what you need to know about financing an RV:
- You can get a loan through the dealership, your own bank, a credit union, or a company that specializes in RV loans (like Good Sam Club). If you’re planning on living in your RV, you’ll need to look for companies that offer full-timer financing.
- The age of the RV comes into play when trying to finance. Most banks will not finance an RV that’s older than 10 years. It’s not impossible, though; you’ll just need to do some extra digging to find companies that finance older RVs.
- Try to find a balance between monthly payments and the length of the loan. The longer the loan; the lower the payments will be, but you run the risk of going upside-down on your loan. A more effective way to decrease your monthly payment would be to save up a bigger down payment and try to improve your credit score. See our RV Loan Payment Calculator.
- If the RV costs less than the loan minimum, you’ll need to get a personal loan instead. However, you must do a lot of research before getting a personal loan, as they often have exorbitant interest rates.
Insurance is another expense you’ll need to add to your budget. Understanding RV insurance can be tricky because it needs to cover not just the vehicle, but everything and everyone inside it. If you only plan on using your RV for vacations, insurance through your regular auto insurer should be just fine. But, if you plan on full-timing in your RV, you must get full-timer insurance. This specialized insurance is a hybrid of homeowners and auto insurance. Either way, you’ll need to get a few quotes to see what your insurance will cost, but be prepared to spend around $100 -$200 per month.
#3. Storage and Maintenance Costs
Storage and maintenance are very flexible line items. Of course, how you plan to store your RV will directly affect the cost. Some owners choose to rent out their RVs when they’re not using them, via a site like RVshare. This helps offset the costs of storage, which can range from $30 to $300 per month. Maintenance is far less predictable. If you’re buying a newer RV, it might behoove you to buy an extended service plan, which is different from (and better than) a warranty.
Make sure you take a look at our RV Buyer’s Budget Savers Plan. An easy to follow step-by-step action plan guaranteed to give you the knowledge you need and confidence you deserve as you buy your next RV.
Obviously, your budget is the main deciding factor in whether you can buy an RV. Make sure you get multiple quotes for each item in this article, so you can be sure you get the best rates. And keep in mind that budgeting for an RV purchase is separate from budgeting for an RV trip. You can learn more about planning your next trip with these in-depth guides from RVshare. Happy camping!