Looking for a new RV?
Think through the finances when making a purchase of an recreation vehicle.
Are you thinking of purchasing a new recreational vehicle such as a camper, ATV or boat? There are many things to consider when making decisions about your purchase. Besides looking into what model and features you are looking for in a recreational vehicle, also consider the financial aspects of the purchase before you begin shopping.
Do you have money in a savings account for the purchase of an RV or for a down payment? If you will have to apply for a loan for the purchase, look at your current monthly expenses and income. Do you have enough extra money in your budget to comfortably afford making a payment? Will there still be money for savings, unexpected repairs, etc. Consider the cost of operating the RV such as gasoline, camp site fees, trail fees, safety equipment like helmets, and other operating expenses.
How long will you want to finance the purchase? Is it worth it to finance an RV for 10 years if the RV will be obsolete in 5 years? If you will be financing the purchase, shop around for a loan. Ask what loan terms are available such as 60 months, 84 months, etc. What are the interest rates for each loan term? Will you purchase a new or used RV? Many times the loan term will vary according the age of the RV. There are many online calculators available to calculate what the monthly payment will be at various loan terms and interest rates.
Also look into the cost of insuring the RV. It’s important to calculate this cost into your monthly costs of the vehicle. Check with your current homeowners and automobile insurer for rates.
There are many considerations when purchasing an RV, but a very important part of your decision should be the financial aspects of the purchase. Take the time before making the final decision about your purchase to ensure you will not regret it later. Michigan State University Extension has more information on financial management and decision making on money matters go to www.mimoneyhealth.org.