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