Financing a travel trailer can seem daunting, especially if you’re new to the RV world. Understanding the process, however, can make your dream of owning a travel trailer a reality. This guide breaks down the key steps involved in securing Travel Trailer Financing, drawing from real-world experiences to provide you with practical insights.
Securing financing for a travel trailer shares similarities with auto loans, but there are nuances specific to RV purchases, particularly for factory-ordered models. One common question revolves around the timing of loan disbursements, especially when dealing with manufacturers who require specific documentation and have unique production schedules.
One individual’s experience highlights a typical financing journey. They successfully financed their Oliver travel trailer through a credit union. A key advantage they found was that Oliver didn’t require a middle payment during the production phase. Instead, proof of loan approval was sufficient to move forward. However, they encountered a common hurdle: interest rate lock periods. Their credit union only offered a 30-day rate lock and initially wanted to perform monthly credit checks. Negotiation was needed to reduce the frequency of credit checks, as multiple checks can negatively impact credit scores. They managed to arrange for an additional credit check closer to the trailer pickup date.
The timing of the Vehicle Identification Number (VIN) also plays a crucial role in the financing process. The VIN is typically generated late in the production cycle, after all ordered equipment is installed and the trailer has been weighed. This means you’ll need to coordinate with the manufacturer to obtain the VIN before finalizing your loan.
Once the VIN was secured, the buyer had the manufacturer’s sales representative directly contact their loan officer. This direct communication streamlined the process of providing the bank with necessary documents like the invoice and statement of origin. After document submission, the bank issued a check, which the buyer personally delivered to the manufacturer upon pickup. While hand-delivering a check might feel unusual, it’s sometimes necessary, especially with out-of-state purchases or specific lender requirements. Following payment, the original documents were overnighted to the bank to finalize the loan on their end.
Insurance is another critical component of travel trailer financing. Lenders typically require proof of full coverage insurance before releasing funds. In this case, the buyer used Prudential for “full replacement” insurance, a type of coverage often recommended for new RVs to protect against significant losses.
This personal account demonstrates that while travel trailer financing can have its complexities, especially with factory orders and specific lender policies, it is achievable. By understanding the process, anticipating potential challenges like rate lock limitations and VIN timing, and maintaining clear communication with both the manufacturer and your financial institution, you can navigate travel trailer financing successfully and hit the road with your new adventure companion.
