How boat and RV loans work
Boat and RV loans are usually secured by the vehicle itself and work much like car loans, but with longer terms: often 10 to 15 years, and up to 20 years for larger purchases. Enter the price, your down payment and trade-in, sales tax and fees to see the amount financed, the monthly payment and the total cost.
Tips for financing a boat or RV
- Put more down – many lenders want 10% to 20% down, and a bigger down payment protects you from owing more than the vehicle is worth.
- Watch the term – a 20-year loan has a lower payment but can cost tens of thousands more in interest.
- Budget for ownership – insurance, storage, fuel, maintenance and registration add up every year.
- Shop lenders – credit unions and marine or RV lenders often beat dealer financing.
Frequently asked questions
Is boat or RV loan interest tax-deductible?
It can be, if the boat or RV has sleeping, cooking and toilet facilities and qualifies as your second home, and you itemize deductions.
What credit score do I need?
Many lenders look for scores of about 680 or higher for the best rates; lower scores may need a bigger down payment.
Do boats and RVs lose value quickly?
Yes, especially in the first few years, so a long loan can leave you owing more than the resale value.