The initial cost of your travel trailer or RV will dictate the majority of what your RV payment will be. Other factors of how much your trailer payment will be are down payment, taxes upon purchase, interest rate on the loan, term of the loan, accessories added, insurance, and licensing/registration costs.
In order to be at a $150 per month payment like many dealers advertise, you would have to buy a $20,000 trailer with 0 down payment. Finance rate would be 4% and term would be 15 years.
The average RV loan can vary wildly, but on average a RV loan is $225-$650. This figure is based upon a $35,000 travel trailer at varying interest rates and payment terms with zero dollars for a down payment. Other travel trailer prices and payments can vary depending on many factors.
Lets go through the process of breaking down the monthly payment cost over different variables. All of these variables will vary depending on the travel trailer you choose, your credit, how much down payment, the term of the loan, the interest rate, etc.
Lets get into the RV monthly payment guide.
Travel trailers or RV's vary wildly in price. Travel Trailers can cost anywhere from $10,000 to over $100,000. RV's can cost from $40,000 to upwards of $300,000. On average, I would peg the average consumer spending $20,000-$35,000 to get a good quality travel trailer. For this example, we will use a price of $25,000 for a travel trailer.
You may be able to add some accessories at the time of purchase to your RV loan, this could include solar panels, generator, weight distribution hitch, or other items. When you add accessories at the time of purchase, you may able to add them to the financing on your travel trailer. If you are looking to get any bigger items, look into purchasing them with your RV as there may be an additional discount or your dealer ple, lets add a weight distribution hitch for $500 included in our purchase.
Many states have sales tax, if yours doesn't, woohoo you can celebrate your reduced trailer cost. If not, prepare to add an additional amount to your trailer purchase. The average state tax rate in the United States is 6.5% over all 50 states but range from 0% up to almost 10%. Lets use 6.5% in our example. 6.5% of the purchase websites price would total $1, on this transaction.
If you have money laying around, it is a good idea to put some money down on your travel trailer purchase and may even be required by some lenders, but make sure to save some for some accessories and gear. If you put $5,000 down on our example price of $25,000, you would only need to finance $20,000. The amount of a down payment can directly affect how much of your purchase will need to be financed. For this example we will use a down payment of $2,500 so you can have some money left over for your accessories or a generator.
At the time of this writing, RV loan rates range from 4.74 to 6.79%. A longer term also affects these rates as will your credit score and many other factors. If you have a relationship with a local bank, this may be the best way to get a good rate. We have seen some local banks advertise 1.99% recently, but could not find any of these promotions while doing our research.