Financing Department at A&L RV Sales

Maintain your personal financial flexibility by financing your purchase instead of liquidating assets or paying cash. Some RVs may also qualify for similar tax benefits as a second home mortgage.

Double check with your tax advisor to be sure, 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.

A major advantage of financing your RV is lower down payments. Although final terms are determined based on your credit profile as well as the age, type and cost of the RV, financing through RV lenders usually requires down payments in the 10% range.

Financing an RV also means longer finance terms and lower monthly payments. 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.

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.

Financing your RV purchase may end up costing you less in the end. By not tapping into your financial assets to purchase the RV, you can take advantage of attractive investment opportunities that may exceed your financing costs over time.