Work out the true monthly cost of financing a motorhome, travel trailer or fifth wheel — sales tax on the net-of-trade price, negative equity rolled in, and the interest cost of a 20-year term.
| Scenario | Monthly Payment | Total Paid | Total Interest | Amount Financed |
|---|---|---|---|---|
| $65,000 / 10% down / no trade / 6.5% / 15 yr | $550 | $98,978 | $35,854 | $63,124 |
| $120,000 / 20% down / $18k trade / 7.25% / 20 yr | $669 | $160,514 | $75,895 | $84,619 |
| $40,000 / 5% down / trade $12k w/ $16k owed / 8.9% / 10 yr | $560 | $67,203 | $22,804 | $44,399 |
| $250,000 / 25% down / 8.49% / 20 yr | $1,734 | $416,251 | $216,251 | $200,000 |
Every row above is produced by this page's own calculation: sales tax is charged on the price minus trade-in (the trade-in credit is applied pre-tax in most states), then down payment, trade equity and any negative equity are netted into the amount financed. The loan is then amortized at APR/12 over the term in months.
| Credit tier | Typical new RV APR | Typical used RV APR | Down payment usually required |
|---|---|---|---|
| Super prime (781+) | 6.0% – 7.5% | 6.5% – 8.5% | 10% |
| Prime (661–780) | 7.5% – 9.5% | 8.5% – 11.0% | 10–15% |
| Near prime (601–660) | 10.0% – 13.0% | 11.5% – 15.0% | 15–20% |
| Subprime (600 and below) | 14.0%+ | 16.0%+ | 20%+ |
RV loans are secured by the vehicle but carry higher rates than auto loans because the collateral depreciates fast and repossession is expensive. A 20-year term on a depreciating asset is a real risk: you can be underwater for years, which is why gap insurance matters here even more than on a car.
Going from a 10-year to a 20-year RV loan at the same 7.25% APR cuts the monthly payment by roughly a third — but it more than doubles the total interest. On $100,000 financed, 10 years at 7.25% costs about $40,800 in interest; 20 years at the same rate costs about $94,900. Many buyers need the longer term to fit a monthly budget, so the honest framing is: the 20-year term is a cash-flow tool, not a savings tool. Pay extra in the early years if you can.
An RV is one of the few consumer purchases where a 15- or 20-year loan is normal — the asset costs as much as a house down payment and lenders will stretch the term to keep payments near $500. That is a cash-flow convenience with a real price. Travel trailers depreciate roughly 20–30% in the first three years, so a 20-year loan leaves most buyers underwater for the first half of the term.
Many RV loans are simple-interest installment loans, which means there is no prepayment penalty on most contracts — paying extra in year one cuts interest far more than the same extra payment in year ten. Ask the lender to confirm in writing before you sign.
⚠️ Important Note: RV loan figures here exclude insurance, storage, maintenance and fuel, which typically add 15–25% to the annual cost of ownership. Rates are estimates for planning, not an offer of credit — confirm the actual APR, term and any prepayment penalty in writing before signing.