Interest rates on RV loans typically range from 5% to 8% in 2024, depending on your credit score, loan term, and lender. These rates determine how much you'll pay in interest over the life of your recreational vehicle loan.
RV loan interest rates function similarly to other secured loans, like auto or home loans. The lender charges you a percentage of the loan amount as interest, spread over monthly payments. Rates are usually lower than unsecured personal loans because the RV serves as collateral.
For example, if you borrow $50,000 at a 6% interest rate over 10 years, you'd pay about $2,833 per month. Over the loan term, you'd pay roughly $15,000 in interest.
RV loans come in several types, each with different rate structures:
| Loan Type | Typical Rate Range (2024) | Loan Term |
|---|---|---|
| New RV Loan | 5%-7% | 10-15 years |
| Used RV Loan | 6%-8% | 5-10 years |
| RV Refinance Loan | 4.5%-7% | 5-15 years |
| Lease Buyout Loan | 5.5%-8% | 3-7 years |
Note that longer loan terms often come with higher interest rates, even if the monthly payment is lower.
Several factors influence the interest rate you'll receive:
I once helped a friend compare rates from three lenders for a used RV. His credit score (740) qualified him for rates between 5.8% and 7.2%. The difference over 10 years? Nearly $3,000 in interest.
To secure the lowest possible rate:
Pro tip: Some lenders offer discounts for automatic payments or existing customers. Always ask about available promotions.