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HOW TO BUY AN RV
step two:
Setting a Budget

Cash Purchase
Setting a budget is simplified considerably when you’re sure you will pay cash and do no financing. All you need to worry about is the simple purchase price and the cost of any extras you may wish to add to the RV. Your budget limits are set by your bank accounts and your willingness to spend. The main problem here is fitting the right RV into your budget.

Financed Purchase
Many people do choose to finance their RV purchase. RV financing has the added benefit of providing tax-deductible interest to your tax return. RVs are considered second homes and the interest may be deducted from your federal income tax as long as you aren’t already deducting interest on two homes. For more information, see an accountant and refer to IRS Publication 936 (January 1989). Also, if you’re in business or want to start one, owning a RV can be a huge tax advantage.
If you’re planning to finance, you will be working with several areas of budget concern. Your primary concern is the monthly payment and then the initial investment or “down-money” required. The total selling price, the financing rate, and the term of the loan are also very important.

How Much “Down-Money” Do You Need?
Most RV financing sources require a down payment in the 10% to 20% range. There are some that offer programs with no money down. It is best to consider the maximum amount you would be comfortable putting down, and set your budget based on that amount.
Possible credit considerations are Bankruptcy, Slow Pay and Repos. These issues may have an impact on your ability to finance. Check with a qualified RV finance manager for assistance.

How Do You Know How Much Per Month You Can Afford?
One of the best ways to set a budget when financing is to complete an RV financing worksheet. This sheet will help you look at your financial position in a way similar to a RV financing institution.

Buy To Try Or Rent?
Many people choose to rent an RV to get a feel for the benefits of ownership and decide whether or not they “like” it. It can be a great way to get a feel for what RVing is all about.  If you choose to rent, be sure to visit www.rvra.org for more rental information.  RVRA is the Recreational Vehicle Rental Association, an association of RV rental operators.  You can locate rental services in your area from this site.

Unfortunately renters miss some of the greatest benefits of ownership. Benefits like every weekend mini-vacations and other multiple travel opportunities throughout the year with an RV packed and always ready to go. While there are many reputable RV rental companies, there are also many poorly maintained rental RVs. Renters often experience some of the worst RV nightmares, souring them on what could have been a wonderful RV ownership experience. Rental fees can also approach or even exceed the depreciation an owner would experience on an annual basis. For many people, the experience would be better—and the cost would be lower—by doing more homework, buying the right RV and becoming an RV owner right from the start.  This often holds true even if they discover RVing isn’t right for them. If an RV owner discovers RVing is not what was expected and decides to liquidate their investment, many RV owners will be able to recoup a large portion of their purchase price, often losing less than they would have spent on one or two multiple week rental vacations alone. 

In many ways the best way to try is to buy.

Use our budgeting worksheet to figure out your RV budget and payment information. It even leads you through comparing your budget for three RVs!