How Much RV Can I Afford?
RVs are expensive items. The price range of an ordinary RV ranges between a few thousand dollars to several million dollars. They are significant investments which require a lot of maintenance. Prior to buying an RV, it is critical to have a defined budget set up. If you have rented an RV before from a rental company, you probably are ready to own one. Discussed below are a few items that should appear on your RV budget sheet.
How Much RV Can I Afford - 4 Things You NEED To Know
1. How to Finance an RV
You probably do not have a lot of money lying around waiting to buy an RV at any given time. Which is totally fine! Like buying a personal car, there are many options that you can get to help you obtain an RV. Outlined below are several important things you should know when it comes to financing an RV.
Acquire a loan from a financial institution such as a bank or credit union
You can acquire a loan from a financial institution such as a bank or credit union. Additionally, a dealership of a company that specializes in issuing loans can help you out too. It is highly recommended that you search for an organization that provides long-term financing options if you are planning to live in your RV.
How old is the RV?
The age of an RV plays a major role when it comes to financing. Most financial institutions tend to stay away from financing an RV that is older than ten years. It is not entirely impossible to get a company that funds purchasing of older RVs. However, you will need to do thorough research in this area to get such a company.
Look for a balance between the repayment period of the loan and the monthly payments
It is commonly known that the longer the repayment period, the lower the interest rates. To avoid incurring high monthly payments, you could save money which you will use as a down payment. This will go a long way to improve your credit score so that you do not get into any risks while paying the loan.
Know your loan minimum.
This will come handy if the RV costs less than your loan minimum. In such a case, you need to secure a personal loan instead. Before acquiring this type of loan, you will need to carry out adequate research. Outrageous interest rates are charged on personal loans, so beware!
2. Insuring the RV
Your budget should include insurance costs. You need to understand how RV insurance works. Not only does it cover the vehicle but also everything in it including the people. If you are looking forward to using your RV for general vacation trips, you can simply insure it through your regular insurance company.
However, this is not the case if you are planning on using it full-time. Full-time insurance is specifically set up for homeowners and auto insurance. Visit several insurance companies and get a few quotes from them regarding insurance costs. You will be able to choose a package that suits your need best and also fits within your budget. Usually, the insurance cost is roughly a hundred and fifty dollars every month.
3. Storage and Maintenance Expenses
These are expenses that vary from time to time depending on how you use your RV. The location you park or store your RV determines the costs you will incur. Many RV owners prefer renting out their RV when they are not using them through certain online sites. This eliminates some of the costs the owner would have to bear every month if the RV was in storage.
On the other hand, it is quite challenging to predict maintenance for an RV. It is your responsibility to purchase an extra service plan other than the usual warrant when you buy a new RV.
4. Add Up Your Budget
Use the RV Buyers Budget Savers Plan to calculate the exact costs when planning to buy an RV. It is a guide developed to help you acquire the knowledge you require when deciding on what RV to buy. It also enables you to gather the confidence to purchase the RV that you deserve.
The amount of money you have will determine if you can afford to buy an RV or not. You need to be in control of the amount you want to spend when making this purchase. As a result, you need to find out of there are any hidden costs that you were not aware of. It is also possible to misunderstand some expenses which is why you should do enough research.
If you are splitting the RV costs between you and your partner, you need to agree to avoid any conflicts. This will also help to prevent the “I told you so” moments.
Additionally, it is important to realize that your budget should include the costs of fitting out the RV. These items include insulation materials, cabinets, electrical and plumbing systems, kitchen items, a bed among others. With these items included in your budget, you can begin to shop for an RV to get an idea of the different prices in the market.
Ensure that you understand all the items outlined in this list so that you can get the best prices. You should also realize that budgeting for the purpose of buying an RV is different from budgeting for a trip in an RV.
For more information regarding making plans for your next trip, visit the RVshare site.
Have fun in your RV!