Everything You Need to Know About RV Loans in San Antonio

Recreational vehicles, more colloquially known as RVs, have always offered a world of exploration and excitement, which unfortunately also comes with quite a hefty price tag. The costs of campers and travel trailers typically range from $10 thousand up to $1 million, depending on the year, make, and model.

Fortunately, thanks to the wonders of RV loans, your dreams of the open road, the freedom of the great outdoors, and the thrill of RV adventures can become reality. Buyers, or in this case, borrowers, can obtain their loan from traditional lenders, such as River City Federal Credit Union, or even from the authorized RV dealership.

The best thing about RV loans, which typically differ from usual vehicle loans—they’re generally short-term—is that the financing option applies to both new and used vehicles. Below, we go through how RV loans work and how to get an RV loan in San Antonio. 

How Do RV Loans Work?

While they differ from typical car loans, RV loans work just like any secured loan that uses the vehicle itself as collateral to guarantee the loan. This provides River City FCU with the confidence to grant you the loan, but it also means that the lender can repossess the RV if your monthly payments go off-road for too long. 

Obtaining a recreational vehicle loan is rather straightforward; just submit a loan application with the necessary documents to River City Federal Credit Union and await their response. Their response, in terms of loan acceptance, loan offer, and loan terms, hinges on your credit score. 

While lenders use the RV itself as collateral, they’re basing their loan amount and loan rates on your creditworthiness. Of course, the better your credit score is, the smoother the ride in terms of securing better loan offers, lower rates, and lower down payment requirements. 

Once the loan has been approved, you’ll receive your loan amount within a few business days. All you have to do now is buy your RV (a new model or a pre-owned gem), enjoy the ride, and pay off the loan over the next few years. Your monthly payments will be determined by the amount borrowed, as well as other factors, such as your credit score and your income. 

How to Finance an RV

There are a few factors worth considering if you’re interested in taking a loan for an RV or motorhome. First, you need to choose whether you’re getting a secured loan or an unsecured loan—the latter doesn’t imply credit checks and collateral, but they feature incredibly high annual percentage rates, which makes them less of a viable option.

River City Federal Credit Union offers some of the most favorable Annual Percentage Rates on the market for vehicle loans, ranging from 6.5% to 9.0%, depending on the loan terms—with higher rates reserved for longer terms and downpayment amounts.*

The specific rates also depend upon your credit score, the collateral value of the vehicle, the amount financed, and the year, model, and make of the vehicle, as well as other factors. This, of course, means that not all applications will qualify for low rates. 

That’s why it’s important to save some money for the down payment, typically 10% to 20% of the overall price of the vehicle. Improving your credit score in the meantime through various methods is also a good way to ensure access to more competitive rates provided by the lender. 

Get an RV Loan in San Antonio Today

RVs can be quite pricey, and obtaining a loan might provide a shortcut to obtaining one. If you’re looking for a reputable lender with great rates, get in touch with us.

*APR means Annual Percentage Rate effective as of December 7, 2023, and subject to change without prior notice. The specific rate and term will be dependent upon your credit rating, collateral value, amount financed, vehicle year, vehicle model, and other factors. Not all applicants will qualify for the lowest rate. Rates apply to Boat, RV, Motor Home, Travel Trailer purchases. Offer valid on new loans financed at RCFCU.