Good Sam RV Travel Guide & Campground Directory

Financing and Insuring Your RV Hannibal MO

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.

Wenneker- Edwin L - State Farm Insurance Agent
(573) 221-2171
838 Grand Avenue
Hannibal, MO
 
American Family Insurance
(573) 769-2405
116 East Lafayette Street
Palmyra, MO
 
Constable- Julie G
(217) 224-0087
508 S 11th St
Quincy, IL
 
Jacobson- Bruce J - State Farm Insurance Agent
(217) 224-6665
2632 Broadway Street
Quincy, IL
 
Benner- Christopher L - State Farm Insurance Agent
(217) 222-2202
1621 Broadway Street
Quincy, IL
 
Wehde- Richard C - State Farm Insurance Agent
(573) 221-0204
2727 Saint Marys Avenue # J
Hannibal, MO
 
Spratt- Craig S
(573) 769-3330
211 S Main St
Palmyra, MO
 
American Family Insurance Jerry Poore - Agents- Poore Jerry
(217) 228-2275
1704 North 24th Street Suite 1
Quincy, IL
 
Dozier Insurance Agency
(217) 224-3121
820 State Street
Quincy, IL
 
Bean Jerry American Family Insurance
(573) 735-4884
1 Gateway Square
Monroe City, MO
 

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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