What Is the Interest Rate on an RV Loan?

When considering the purchase of a recreational vehicle (RV), understanding the associated financing options is important. An RV loan allows individuals to spread the cost of the vehicle over time, making ownership more accessible. The interest rate on an RV loan is a primary factor influencing the total cost of borrowing. These rates are not uniform and can vary significantly based on the borrower’s financial profile and broader economic conditions.

Factors Determining RV Loan Interest Rates

A borrower’s credit score is a primary factor lenders evaluate when determining an RV loan interest rate. A higher credit score signals lower lending risk, often resulting in more favorable interest rates. Individuals with excellent credit (720-850 FICO score) typically qualify for the lowest available rates. Conversely, those with lower scores (e.g., fair 640-679 or poor 300-639) can expect higher rates due to increased perceived risk.

The length of the loan term also plays a role in the interest rate offered. Shorter loan terms (60 to 120 months or 5 to 10 years) often come with lower interest rates. While these terms result in higher monthly payments, they lead to less interest paid over the loan’s life. In contrast, longer terms, which can extend up to 240 months (20 years) for larger loan amounts, may have higher interest rates but offer lower monthly payments.

The amount of the down payment directly influences the loan-to-value (LTV) ratio and the interest rate. A larger down payment reduces the principal loan amount, decreasing the lender’s exposure to risk. This reduced risk often translates into a lower interest rate. Typical down payment requirements for RV loans range from 10% to 20% of the purchase price, though some lenders might require more for borrowers with less robust credit profiles.

The condition of the RV, new or used, impacts the financing terms. New RVs generally qualify for lower interest rates and longer loan terms compared to used RVs. This is often due to their higher initial value, warranty coverage, and perceived reliability. Used RVs may be subject to higher interest rates and shorter repayment periods, as lenders consider factors like depreciation and potential maintenance needs.

The type of loan also affects interest rates. RV loans are commonly secured loans, meaning the RV itself serves as collateral. This arrangement reduces the lender’s risk, typically resulting in lower interest rates than unsecured personal loans, which do not require collateral. Lenders also assess a borrower’s debt-to-income (DTI) ratio, which compares total monthly debt payments to gross monthly income. A lower DTI ratio, ideally below 36%, indicates a borrower’s capacity to manage additional debt and can lead to more favorable loan terms and interest rates.

Typical RV Loan Interest Rates

Current RV loan interest rates are subject to market dynamics and the borrower’s financial standing. As of August 2025, RV loan rates can be as low as 5.99% for individuals with excellent credit. The average RV loan rate typically falls between 9.5% and 13.5%. Unsecured personal loans, sometimes used for RV purchases, can see rates ranging from approximately 7% up to nearly 36%, depending on creditworthiness.

Interest rates are often tiered based on credit score ranges. For those with excellent credit (720-850), average annual percentage rates (APRs) for RV loans are around 9.05% to 9.17%. Borrowers with good credit (680-719) might see average APRs of 11.86% to 11.87%.

For individuals with fair credit (640-679), average RV loan APRs are between 13.89% and 14.09%. Those with poor credit (300-639) face the highest rates, with APRs around 16.12% to 16.19%. These rates are influenced by prevailing economic conditions, including inflation and central bank policies, which cause fluctuations in lending costs across the financial sector.

Lender Options and Rate Variations

Different types of financial institutions offer RV loans, and their approaches can lead to variations in interest rates and terms. Traditional banks, such as U.S. Bank, Truist, and Commerce Bank, provide RV financing options. These institutions often offer competitive rates to well-qualified borrowers. Banks may also have established processes and a wide array of other financial services, which can be convenient for existing customers.

Credit unions are another prominent option for RV financing, known for their member-focused services and potentially lower interest rates. Institutions like Alliant Credit Union, Navy Federal Credit Union, and Solarity Credit Union often provide competitive APRs and flexible terms. Some credit unions may also offer benefits such as no down payment options or quicker approval times, making them an attractive choice for certain borrowers.

Specialized RV lenders and dealership financing departments also provide loans tailored to the recreational vehicle market. Dealerships can offer a streamlined purchasing and financing process, sometimes including special incentives or promotional rates. Specialized RV lenders, such as Good Sam Finance Center or Trident Funding, possess a deeper understanding of the RV market and may offer programs designed for various types of RVs or borrower profiles. While convenient, rates from these sources can sometimes be higher compared to banks or credit unions, depending on the specific offer.

Online lenders provide a convenient and quick application process for RV loans. Companies like LightStream offer a fully digital experience, with varying rates depending on creditworthiness and loan terms. The convenience of online lenders is a notable advantage, as they allow borrowers to compare offers from multiple sources efficiently. However, rates offered by online lenders can vary widely, necessitating careful comparison to ensure a competitive offer.