| Deciding which motorhome or RV to buy often is | | | | make different financing arrangements. |
| only part of the buying process at hand. Actually, | | | | 2. Avoid any financing that is not a simple interest |
| more money can be lost on making the financing | | | | loan. Lenders have all kinds of tricks up their sleeve |
| arrangements than almost anywhere else in the deal. | | | | to get more money from lending to you and one of |
| If you have the money to pay cash for a | | | | the ways that has been most detrimental to |
| motorhome, then financing isn't even an issue, but | | | | consumers is by writing a contract that doesn't allow |
| with the rising cost of new and even used RVs, | | | | you to start paying down the principal amount of the |
| motorhome loans are a necessary part of the sale | | | | loan in any meaningful way until the loan is in it's final |
| for many. | | | | stages. It's called frontloading the interest and what it |
| There are some mistakes that are commonly made | | | | means is that most, if not all, of the money that you |
| that can cost you dearly if you don't take steps to | | | | pay for the first half or so of the loan only goes |
| avoid them and here they are: | | | | toward the interest, not the principal. So when you |
| 1. Don't focus on the monthly payment figure alone | | | | decide to sell, you will still owe them a huge chuck of |
| to determine if you can afford a particular | | | | money and they make a lot more profit with this |
| motorhome model. This is often done by car buyers | | | | kind of loan. |
| too, but the monthly payment is only part of the | | | | It's best to avoid any loan that is not based on a |
| whole loan picture. You need to take that monthly | | | | simple interest process. In other words, the interest |
| payment figure and multiply it by the number of | | | | is a set part of the monthly payment from the very |
| months that the loan contract is in force. Once you | | | | first payment all the way through to the end of the |
| have that figure, then compare the final cost of the | | | | loan period. If a lender tells you that you can't qualify |
| loan contract with the cost of just buying the rig | | | | for a loan like that, never take their word about that. |
| itself. Usually this will be an eye-opening exercise and | | | | Always shop around and get other loan quotes on |
| can help you see if exhorbitant interest is being | | | | your own. Most often you can come up with a |
| charged on this loan. If you find that you are paying | | | | better financing arrangement by doing that anyway. |
| almost as much in interest as you are for the | | | | Getting a motorhome loan doesn't have to be costly |
| motorhome itself, you may be better served to | | | | or mysterious if you just watch what is going on and |
| either look at something much less expensive, or | | | | keep your eye on the bottom line. |