What happens when you buy an RV
Buying an RV is different from buying a car because you are financing a depreciating asset that loses value quickly in the first few years, and because the loan terms, insurance costs, and storage or parking rules vary widely depending on what type of RV you choose and where you live. The basic steps are: decide what type and size of RV fits your needs and budget, search for used or new models through dealers or private sellers, inspect the specific RV you are considering (or have an inspector do it), negotiate the price, arrange financing if you are not paying cash, and then complete the paperwork with the seller or dealer and your lender.
Most people finance an RV through a bank, credit union, or the dealer's lending partner. The down payment is typically 10 to 20 percent of the purchase price, though some lenders require more. The loan term usually ranges from 5 to 20 years depending on the RV's age and the lender's rules. Because RVs depreciate quickly, you may end up owing more than the RV is worth for the first few years — a situation called being "upside down" on the loan.
Key Takeaways
- RV loans typically require a down payment of 10 to 20 percent and have terms ranging from 5 to 20 years, with interest rates that depend on your credit score and the RV's age and condition.
- You will need to register the RV with your state's motor vehicle department, get a title in your name, and purchase insurance before you can legally use it.
- Inspecting the RV in person — or hiring a professional inspector — is critical because RVs have complex plumbing, electrical, and appliance systems that can be expensive to repair.
- Private sellers usually offer lower prices than dealers but provide no warranty, while dealers handle paperwork and often offer limited warranties but charge more.
- Budget for ongoing costs including insurance, fuel, campground fees, maintenance, and storage, which can total hundreds of dollars per month depending on how often you use the RV.
Choosing the type and size of RV that fits your needs
RVs fall into a few main categories: motorhomes (which you drive), travel trailers (which you tow behind a vehicle), fifth wheels (larger trailers that require a special hitch), and truck campers (small units that sit in a truck bed). Motorhomes are the most expensive upfront but require no separate towing vehicle. Travel trailers and fifth wheels are cheaper to buy but require a vehicle capable of towing their weight — and towing adds fuel costs and wear to your vehicle. Truck campers are the smallest and cheapest option but offer the least living space.
The size you choose affects the purchase price, financing terms, fuel economy, campground fees, and insurance. A small travel trailer might cost $15,000 to $30,000 used, while a large motorhome can cost $100,000 or more. Smaller RVs are easier to maneuver, park, and tow, but offer less comfort and storage. Larger RVs are more comfortable for extended trips but are harder to drive, park in tight spaces, and fuel. Think about how often you plan to use it, how many people will travel with you, and whether you want to camp in developed campgrounds or more remote areas.
Finding RVs for sale and comparing prices
You can find RVs through RV dealerships, private sellers, online marketplaces like Craigslist and Facebook Marketplace, and auction sites. Dealerships are the most common route and handle all the paperwork, but they mark up prices and may pressure you to buy. Private sellers usually charge less but offer no warranty and may not disclose problems. Online marketplaces let you compare many options quickly, but you have to travel to see them in person and verify the seller's claims.
Before you contact a seller, research the RV's market value using resources like NADA Guides or Kelley Blue Book, which track used RV prices by model, year, and condition. Check the RV's history using an RV-specific history report service if it is used — these reports show accident damage, title problems, and service records. When you find an RV you are interested in, ask the seller or dealer for the maintenance records, any warranty documents, and the reason they are selling. If you are buying from a dealer, ask what warranty comes with the RV and whether it covers parts, labor, or both.
Inspecting the RV before you commit to buying
An RV inspection is more complex than a car inspection because RVs have plumbing, propane systems, generators, air conditioning, and appliances that can fail and cost thousands to repair. If you know how to inspect vehicles, you can do a basic walk-through yourself: check for water damage or soft spots in the walls and floor, run all the appliances and systems, check the roof for leaks or damage, inspect the tires for age and wear, and test the brakes and steering. However, a professional RV inspector can spot hidden problems you might miss.
A professional RV inspection costs $300 to $600 and takes 2 to 4 hours. The inspector will check the structure, roof, plumbing, electrical, propane, heating and cooling, appliances, and engine (if it is a motorhome). Many lenders require an inspection before they will finance the RV, especially if it is older than 10 years. If the inspection finds problems, you can use the results to negotiate a lower price or ask the seller to fix the issues before closing.
Arranging financing and understanding loan terms
If you are not paying cash, you will need to arrange financing before or shortly after you find the RV you want to buy. Banks, credit unions, and dealer financing all offer RV loans, and the interest rate you receive depends on your credit score, the RV's age and condition, and the loan term. A newer RV with a shorter loan term will have a lower interest rate than an older RV with a longer term. Credit unions often offer lower rates than banks if you are a member.
When you explore for a loan, the lender will ask for proof of income, employment, and assets. They will also run a credit check and may require a down payment before they approve the loan. Once approved, the lender will send the funds to the seller or dealer, and you will sign the loan documents. The lender will hold the title to the RV until you pay off the loan, at which point the title transfers to you. Some lenders require you to have insurance in place before they release the funds, so contact an insurance company early in the process.
Completing the purchase and registering the RV
Once you and the seller agree on a price and you have financing in place, you will sign a bill of sale (for private sales) or a purchase agreement (for dealer sales). The bill of sale documents the sale price, the RV's identification number (VIN), and the date of sale. The dealer or seller will also give you the title, which proves ownership. Do not sign anything until you have read it carefully and understand all the terms.
After the sale closes, you must register the RV with your state's motor vehicle department within a set time frame — usually 10 to 30 days. You will need the title, bill of sale, proof of insurance, and a completed registration form. Registration fees vary by state and by the RV's weight and value. Once registered, you will receive license plates and a registration certificate. You must also purchase liability insurance before you drive the RV, and comprehensive and collision insurance if you financed it (the lender will require this).
Understanding ongoing costs and budgeting for ownership
The purchase price is only the beginning. RV ownership comes with fuel, insurance, campground or storage fees, maintenance, and repairs. Fuel costs depend on the RV's size and fuel economy — a large motorhome might get 5 to 7 miles per gallon, while a small travel trailer uses no fuel on its own. Insurance for an RV costs $1,000 to $2,500 per year depending on the RV's value, your age, and your driving record. Campground fees range from $20 to $100 per night depending on the location and amenities.
Maintenance includes oil changes, tire replacements, roof sealing, and appliance repairs. Many RV owners set aside $100 to $200 per month for maintenance and unexpected repairs. If you are not using the RV year-round, you will also need to pay for storage or parking, which can cost $50 to $300 per month depending on your area. Before you buy, add up all these costs and decide whether RV ownership fits your budget.
Frequently Asked Questions
What credit score do I need to get an RV loan?
Most lenders prefer a credit score of 650 or higher, though some will work with scores as low as 600. A higher score gets you a lower interest rate. If your score is below 650, you may need a larger down payment or a co-signer to be approved.
Can I buy an RV with bad credit?
Yes, but you will pay a higher interest rate and may need to put down 20 to 30 percent instead of 10 to 15 percent. Some dealers specialize in bad-credit financing, but their rates are often much higher. Building your credit before you buy will save you thousands in interest.
Should I buy a new or used RV?
Used RVs depreciate more slowly than new ones and cost less upfront, but may have hidden problems and no warranty. New RVs come with a warranty and the latest features, but lose 20 to 30 percent of their value in the first year. Most buyers find a 3 to 10-year-old RV offers the best balance of price and reliability.
What happens if I want to sell the RV before the loan is paid off?
You can sell it, but you will owe the lender the remaining loan balance. If the RV is worth less than what you owe, you will have to pay the difference out of pocket. This situation is common in the first few years of ownership because RVs depreciate quickly.
Do I need a special driver's license to drive an RV?
It depends on the RV's weight. Most states require a commercial driver's license (CDL) only if the RV weighs more than 26,000 pounds. Check your state's motor vehicle department website to find out the weight limit in your state.