Why finance your RV?
When you finance your purchase instead of liquidating assets or paying
cash, you maintain your personal financial flexibility. Plus, your RV
may qualify for some of the same tax benefits as a second home
mortgage. Of course, check with your tax advisor, but basically to
qualify for these benefits, such as the deductibility of interest on
the loan, the RV must be used as security for the loan along with
providing basic living accommodations such as a sleeping area,
bathroom and cooking facilities. Remember, the RV is considered a
qualified second residence as long as you designate it for each tax
year.
What are the advantages of financing through a RV lending
specialist?
Down payments are lower - Although final terms are determined based on
your credit profile and the age, type and cost of the RV being
purchased, financing through RV lenders usually requires down payments
in the 10%-20% range.
Finance terms are longer / Monthly payments are lower - Because RV
finance specialists know that RVs maintain their value and resale
appeal, they tend to offer more attractive terms. In fact, it's not
uncommon to find 15-20 year repayment schedules to help you afford the
RV of your dreams.
How does RV financing compare with other payment options?
Borrowing against an owned home is not an option unless the money is
used directly for that home. Home mortgage interest deduction is
restricted to interest paid on mortgage debt used to purchase or
improve a residence, or to refinance the remaining balance on a
purchase or improvement. The purchase of an RV, therefore, does not
qualify for this deduction. Home equity loans limit the amount of
interest that is deductible, if your RV loan balance exceeds $100,000.
Home mortgage interest deduction is limited to interest paid on home
equity loans up to $100,000.
The last word on RV financing
Your RV might actually cost you less in the end if you finance your
purchase. By not tapping into your financial assets to purchase the
RV, you can take advantage of attractive new investment opportunities
that might come along and the earnings from those investments can
potentially exceed the cost of your RV financing. The bottom line is
that if you are thinking of buying an RV, you should check financing
options to maximize your purchase enjoyment. You'll be on the road
enjoying your new RV before you know it!
Information provided by GoRVing.com
