Camper Trailers & RV Financing Recommendations

There is nothing wrong with financing your travel trailer or fifth wheel.  Actually, it might be a smart move to finance your camper.  You are probably asking “Why would it be smart to have another bill?”.  Campers that are considered self-contained can be considered a second home.  That means that you can write off the interest paid on your taxes.  Now, most RV finance companies don’t automatically send out interest statements at the end of each year so you will probably have to call and request a statement.  So basically, in the end, you are borrowing money and it’s not costing you any finance charges.

Another recommendation is that if you are considering an RV loan, make sure to pay your sales taxes and any warranty or insurance costs out of your pocket and ONLY finance the actual cost of the camper.  If you buy your camper at a good price and you heed this word of advice, you will not have to worry about becoming “upside-down” in your camper.  That way, if you ever go to trade it in our sell it, you should be in a positive equity position and not have to come out of pocket with any money to get rid of it.

When it comes to GAP insurance, if you are buying a new camper without a trade-in, you shouldn’t need this type of insurance.  The only time that you will need GAP insurance is if you are trading in a camper towards the purchase of another camper and you owe more money on your trade in that what it is valued.  If you are trading in a camper and you have to carry extra money on the new camper to be able to trade in your old camper, you will want to get GAP insurance.  GAP insurance protects you in the event that your camper gets totaled and you owe more money on it that what it is worth according to NADA guidelines.  This insurance picks up the difference so that you don’t have to pay out of pocket.

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