Financing an RV or boat has similarities to home financing:
- Recreational vehicle and boat loans at Stoltzfus RVs and Marine in West Chester, PA are provided by local and National Banks and lending instititions specializing in RV and boat loans. Our dealership has arrangements with fifteen leading lenders and will handle all the paperwork.
- The RV is used as collateral for the loan.
- Payments are fixed amounts over the course of the loan and include both principal and interest. All loans are simple interest loans.
- There are no pre-payment penalties. That means that you can pay off the entire loan or pay additional amounts at any time. Any amount paid which is above the standard payment is applied to the unpaid balance. In fact, some people make additional principal payments in order to reduce their overall interest cost.
- In most cases, the interest on an RV loan is deductible for Federal and some state income tax purposes. This could reduce your interest costs by as much as 40% or more, depending on your tax bracket. The RV must be used as collateral for the loan and it must also have "sleeping, cooking and bathroom" facilities. There are also some other requirements, which most people are able to meet.
For more information you can look at IRS Code Section 280A(f)(l) or check out the definition of a "qualified home" on page 2 of IRS Publication 936, "Home Mortgage Interest Deduction." (You will need Adobe Acrobat Reader for this.)
And, of course, it would be best to check with your accounting professional to determine whether or not the interest is deductible in your particular situation.
- The bank or other financial institution will require you to have insurance to protect your RV and their financial interest in it!
There are, of course, some differences from home financing.
- Stoltzfus RVs and Marine can generally arrange for credit approval "on the spot" or in as little as one day. If you would like to, you can apply for a credit application on line. Just go to the Finance link above and click Credit Application on our secure server.
- RV loan payments can often be as little as $99 per month. The actual payment will depend on the unit being purchased, the amount of the down payment or value of the trade, the length of the loan, etc. You can use our payment calculator to determine approximately what it will cost you per month.
- RV loan terms typically range from 12 months to 180 months.
- You can often purchase an RV with no money down. This would depend on many factors, including your income, credit history, the amount borrowed, etc.
- If the RV or boat you are trading has an existing loan, we will arrange to pay it off as part of the purchase of your new (or used) model.
Please call Wes Markey, our Finance Manager, at 800-860-1406 x218 or directly at 484-307-5118, or email him for additional information.