Good Sam RV Travel Guide & Campground Directory

Financing and Insuring Your RV Fargo ND

So you are thinking about buying a recreation vehicle? Whether you are a young family seeking the pleasures of family camping adventures, busy professionals seeking quality leisure time, or a mature couple considering RV travel to bring variety and excitement to your retirement years...there's an RV to meet your needs and budget. Your path to RV ownership will be smoother if you are prepared in advance to approach decisions about RV financing and insuring your new unit.

Songstad- Lyle E - State Farm Insurance Agent
(701) 235-0123
1401 32nd Street Southwest
Fargo, ND
 
Lykken- Dean W - State Farm Insurance Agent
(701) 280-2811
1202 23rd Street South
Fargo, ND
 
Bob Roesler Agency
(701) 271-6902
15 Broadway
Fargo, ND
 
Stirling- Michael R - State Farm Insurance Agent
(701) 232-5585
7 10th Street North
Fargo, ND
 
Hanson- Theodore L
(701) 237-5877
657 4th Ave N
Fargo, ND
 
Farmers Insurance Group
(701) 235-6409
1815 S University Dr
Fargo, ND
 
Vaaler Insurance
(701) 298-8200
3137 32nd Avenue South
Fargo, ND
 
Conzemius- Michael J
(701) 293-5464
1313 14th Ave S
Fargo, ND
 
American Family Insurance
(701) 237-3202
650 1st Avenue North
Fargo, ND
 
Van Engelenhoven Evert Insurance
(701) 293-0011
3345 39th Street South
Fargo, ND
 

Financing and Insuring Your RV

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Financing and Insuring Your RV




So you are thinking about buying a recreation vehicle? Whether you are a young family seeking the pleasures of family camping adventures, busy professionals seeking quality leisure time, or a mature couple considering RV travel to bring variety and excitement to your retirement years...there's an RV to meet your needs and budget.

Your path to RV ownership will be smoother if you are prepared in advance to approach decisions about financing and insuring your new unit. We'd like to share with you some of the wisdom and experience accumulated by some of the nine million RV owners who have preceded you.

Consider Your Financing Options


Self-financing. Before making an RV purchase, check your resources to determine if it will pay you to borrow from yourself. You might finance your purchase by using your retirement payout, proceeds from the sale of a residence or other "windfall" income to make your purchase for cash.

You might borrow against a paid-up whole life insurance policy. If the cash value of your policy is large enough to cover the annual interest payments, you can skip making monthly payments, if necessary. You might consider a home equity loan; however, one big advantage - the deductibility of interest - is not needed if your RV qualifies for a second home deduction (see below).

There is an offsetting disadvantage to self-financing. Your funds, if otherwise invested, could be producing dividend income for you. Also, by converting some assets to cash, you might incur taxable capital gains or (in the case of bank CDs) early redemption penalties. However, as a rule, the yield from most investments will not match the interest you would have to pay for a bank loan. So, if you have sufficient capital, it will be cost effective to borrow from yourself.

Bank Financing


Most purchasers do finance their RVs, tailoring monthly payments to fit their budget. RV loans are considered good business by banks - they suffer fewer defaults than on other types of loans. But, you'll need to shop around for the best deal. Don't assume bankers won't lend for low-cost units or used ones, if that's what you plan to purchase. In fact, they will.

Make your inquiry to the loan officer at the bank where you do your regular banking, or which issues your credit card. Likewise, you can approach a bank or financial institution where you've borrowed before. These banks will know your credit history, and you can often shop by phone.

In an annual survey of RV financing by the RV Industry Association, nearly 300 banks and financial institutions responded. They indicated the willingness of lenders to finance family camping vehicles. A typical RV loan for a new vehicle, according to the survey, averaged $16,744.00, maturing in 10 to 15 years. Down payments ranged from 10 to 20% of the purchase price.

Loan terms for used RVs usually require a 20 to 25% down payment. But, since initial outla...

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