Nowadays, it’s very easy and tempting to get things since everything can be financed. However, you should stop and think for a second if everything you want deserves to be financed (like that car you’re eyeing on). This is especially true when it comes to owning an RV.

As we all know, having an RV is a luxury, and not everyone has the privilege to own one. However, thanks to various financial institutions, more doors are open for interested individuals who want to own an RV and live different lifestyles. But the question is, does getting your RV financed a good move? Or should you pay in cash?

This situation might put you in an unexpected dilemma. But to help you sort things out before you make the final decision, here are five deciding factors that you should look into first. This might help you weigh things before you sign that loan form or break your bank.

Your Financial Status

There’s nothing more important than determining your current financial status before deciding whether to file for an RV loan or purchase it by cash. This comes first before anything else since this will be an essential thing in the list. You need to be honest and true on what’s the current standing of your finances.

Are you earning more profit? Does your monthly income cover all your monthly expenses? Are you currently in debt, such as a mortgage or car loan? All these questions are essential to be answered before you make up your mind about getting an RV.

If you can answer all these questions with confidence, and you can say that you’re financially free from any other engagement, you can start RV shopping around your area. If you have enough savings to purchase an RV by cash, go ahead and do it. But if you want to apply for an RV loan to keep your finances liquid, you can do so too. You can even check for an easy RV loan application.

Just make sure that your current financial status won’t be a hindrance and a reason that will put you in deep waters because money became an issue.

RV Sticker Price

Next on the list is the RV sticker price. We already know that an RV is an expensive vehicle. It even costs almost the same as a house. That’s why it’s not surprising that living in an RV is a new lifestyle. And that’s the reason why you need to be diligent in researching and shopping around for an RV sticker price.

RV sticker price depends on what RV type you want. If you have already found the RV you want, you can ask the dealer to calculate the sticker price, or you can do it on your own. You must know how to calculate things while you’re shopping around. You can even get the best deals if you are resourceful and found a friendly salesperson.

Pro-tip: Brand new RVs means higher and expensive sticker prices, and dealers will do their best to negotiate it with you. So, the best move is to check on a fixer-upper. You can get one now and customize it later to turn it into a cozy home with the features and functionality that you want.

Living Expenses

Do you know why keeping your finances liquid is essential? This is all because of this reason, your living expenses. Living expenses include your day to day finances such as gas, food, utility bills, and others, depending on your current lifestyle. It would help if you considered this important factor before deciding whether to pay cash or get an RV loan.

Here are some essential points to remember.

  • When you pay your RV in cash, it means your savings are out. Your finances currently depend on your monthly income or business profit, which is a good thing if you do have both.

But living on a single source of income might lead you to some tight ends and unexpected financial trouble. So, to prevent this from happening, you should save big enough to cover at least 3-4 months of living expenses to give you a jumpstart on the new lifestyle you’re trying into.

  • When you file for an RV loan, you need to work out the downpayment and handle the loan’s repayment for the upcoming months. This will give you the advantage to work on other sources of income to cover the repayments or manage your finances better. However, be prepared since RV loans usually run up to 15 years, and you don’t want to be exhausted while you’re still paying it.

Maintenance Cost

Once you choose an RV, whether you have it by cash or through an RV loan, maintenance cost is present. This means you again face another set of responsibilities other than the living expenses mentioned above. The maintenance cost of an RV includes fuel and energy, towing a trailer, campsite fees, RV storage, and even household maintenance.

All of these comprise the coverage in maintaining an RV. Always think that living in an RV is a different lifestyle. You’re going to different places which require gas, you’re living in it, which means you need to check all the equipment inside just like what you do in a traditional home. You need to park your RV, which requires you to pay the parking fee, and you need to make sure it’s covered when it’s raining or snowing too much.

This might be overwhelming, but this is what every RV owner faces, and you should know all of it too before jumping into a decision.

Know What You Really Want

Identifying what you really want is important. If you think that paying for cash upfront suits you and gives you more financial freedom in the long run, you can do so. But if you think applying for an RV loan gives you a better option in managing your finances, you need to do some research first about the interest rate you’re getting and how flexible your dealer will be.

The decision falls on you, which will all boil down to what you want when owning an RV.


Owning an RV is a luxury. It’s expensive, and it’s not ideal for many. However, its popularity grows over time, and more individuals are now interested in owning one and living in it. Fortunately, many dealerships and financial institutions offer RV loans, giving more chances for others who can’t save a big amount to buy one.

But, on the other hand, some buyers can pay cash upfront. Whatever option you choose, you need to consider these things, which are important as they will be the deciding factors whether paying upfront or filing for an RV loan works for you.