Should you pay cash or finance your RV purchase?
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- Опубліковано 16 бер 2023
- So you’re buying an RV? How exciting! Congratulations!! When buying an RV it’s important to consider the financial aspect of your decision in more ways than just one. Should you pay cash or finance your purchase? If you finance, how can you pay as little interest as possible? If you have the cash to purchase your RV, why on earth would you choose to finance your purchase instead? All of these questions are answered and then some. If you have any questions, need clarification, or have any ideas to add to this video, PLEASE drop your comments down below. If you like this content, please SMASH that LIKE BUTTON, hit the SUBSCRIBE and then ding that bell so that you receive notifications as new content is added to the RV Pro Tips channel. Thanks for watching!!!
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Very informative about the finance process for an RV. A decent down payment is important and then payoff the loan as quickly as possible. Extra principle only payments, etc. Thanks for sharing this info and take care.
Thank you! You are very kind… your videos are great!
Very informative! Can’t wait for the next one
Thank you!
Is there a prepayment penalty normally?
And you said pay all in the30 days, but you’ll still pay the interest for these 30 days, right?
Recently, the interest rate is higher and higher.
In addition, there is a financing fee right? I think the total cost, plus the first 30 days interest, it is more expensive than the discount you can get.
No, there should never be a pre-payment penalty but always ask to make sure they haven't set you up with a lender who includes such fees. On a simple interest loan, which is the type of loan typically secured during a purchase, you only pay interest as calculated per day based on the remaining principle. If you pay down the principle as described in detail in the video, then there is very little interest accrued... meaning the deal you get for financing will almost always surpass the cost of the short term loan. I hope this reply helps clear things up and answers your excellent questions. ;)
If you have bad credit, the only option is paying cash
Typically true, though there are many options for securing an RV loan even with bad credit... and these types of loans, IF granted, will quickly repair and rebuild your credit. Always try to secure a loan, especially if you have bad credit, as a way to repair your credit profile.
Great video! As someone’s who’s 23, would there be a better strategy for someone my age vs someone who’s in there 30-40s+?
Nope, an RV loan is a great way to establish your credit so getting a loan using this sort of collateral is a great business strategy. You will typically have to start smaller, like on an RV in the low to mid $20k range, but this will catapult your credit with great payment records thus opening the doors to future purchases of all sorts. Buying a car/truck will always be easier, since the lenders view this purchase as a necessity versus a luxury item, but once you're able to secure an RV loan, the credit world will open up to you in spades.
🙈 Promo-SM
Promo-SM? Please explain. I have no idea what this comment means. Thnx!