RV Financing Available for Creditworthy Customers Says RVIA
RESTON, Va., Nov 19, 2008 -- In response to widespread media reports on how the credit crunch is adversely impacting American industry and the national economy, the Recreation Vehicle Industry Association (RVIA) is reporting that financing remains readily available for well-qualified borrowers looking to purchase the recreation vehicle (RV) of their dreams.
"For the great majority of people who pay their bills on time and honor their loan commitments, there is money in the market to finance an RV according to our finance company members," said RVIA President Richard Coon. "The misconception that creditworthy customers can't finance an RV is simply not true."
Lyle Schaap of Schaap's RV Traveland, an RV dealership in Sioux Falls, S.D. echoed Coon's comments. "We do not have any difficulty securing financing for our customers as long as they have an adequate down payment and a good credit score," he said.
RV dealer Anthony Staab, sales manager at Rich and Sons Camper Sales, Inc., in Grand Island, Neb., also agreed saying that his dealership "still has avenues for financing."
Consumers typically arrange the loan for their RV through an RV dealer, who can most of the time provide on-the-spot financing through one or more major RV financing lenders. Local banks, finance companies and credit unions also offer RV financing in many cases.
Terms for RV loans can extend up to 20 years and the average down payment is 12 percent. The median term for new RV loans is just over 18 years for new RVs and about 17.5 years for used RVs, according to the Survey of Lenders' Experiences, an annual nationwide survey conducted by RVIA of financial institutions concerning their RV lending portfolios.
For the vast majority of RV buyers, the interest on their loan is deductible as second home mortgage interest. To qualify, the RV must be used as security for the loan and provide basic living accommodations such as sleeping area, bathroom and cooking facilities. Virtually all RV types -- motorhomes, travel trailers, truck campers and even most folding camping trailers - are equipped with these facilities.
"Anyone who is interested in shopping for an RV should not let fears about credit availability deter them," said Coon. "Families can readily find a vehicle to fit their needs at a price to fit their budget, and arrange financing for the purchase."
To learn more about RVing as well as financing options, GoRVing.com is a one-stop resource, offering helpful tips on choosing an RV type and locating a local RV dealer.
RVIA is the national association representing more than 500 manufacturers and component suppliers producing approximately 98 percent of all RVs made in the United States.