Have you taken out a loan for your RV and now want out but aren’t sure how?
Perhaps you no longer need the loan and want to know how to get rid of it? Maybe you are just curious about RV loans and want to know more? Whatever your reason might be, we have the answer for you!
We know how stressful loans can be. You borrow money and are stuck, unable to get out, doomed to make payment after payment in what seems like an endless loop.
You wonder if there’s a way out of these loans, an escape from the endless payments and interest rates.
Well, today, we are here to help you! We will be exploring if you can get out of an RV loan and how to do it! Keep reading for all you need to know about RV loans and see if you can get out of yours today.
What Is An RV Loan?
For those in the room that need it, let’s have a quick recap. An RV loan is a personal loan that allows you to pay for your RV. They are a good option for those that cannot afford the upfront cost of the RV. Instead, you can spread the payments over a few years and still enjoy the RV of your dreams!
RV loans come as either unsecured or secured loans, depending on the lender and your credit score. Unsecured loans will cover the cost of the RV, with you paying monthly payments to the lender. The repayment term will vary depending on the amount borrowed and your monthly payments. There will also be interest rates attached and late or missed payment fees.
As the loan is unsecured, you can find yourself in trouble should you miss payments. There tend to be higher interest rates, and they can be riskier loans to take out.
You can also have a secured RV loan, where you either place a deposit down or your RV is listed as collateral. Usually, you can get accepted to these loans with poor credit scores, and collateral provides the lender with peace of mind. Like an unsecured loan, you will make the payments over a few years and include interest rates. There will also be fees for late or missed payments.
There is a range of RV loans out there with varying interest rates and repayment terms, so you are sure to find one that suits you! Be sure to check for any additional fees and interest charges you can incur. You will want to ensure that you can afford the monthly payments, too, to avoid negatively impacting your credit score.
Now that we have covered an RV loan let’s move on and see how you can get out of one.
How Can I Get Out Of My RV Loan?
While RV loans are excellent ways to purchase your RV, they aren’t without their issues.
The repayments can be high, and many people find themselves borrowing more than the RV is worth!
When you throw in interest rates and the running costs of an RV, you can be spending hundreds unnecessarily and harming your financial situation in the process.
Thankfully, there are a few things you can do to get out of the RV loan.
Keep reading to see what your options are.
Sell Your RV
Selling your RV is a fine choice and one that will get you the income you need to pay your RV loan and get out of it! When selling your RV, you will want to ensure that you get enough money from the sale to cover the remaining loan.
Give your RV a clean and service before taking some pictures and listing the sale online.
You can also take the RV to a dealership to be sold there, but you won’t always get as much as it’s worth there!
It can be helpful to have your RV valued, so you know what it’s worth before selling it. You can usually find someone online who will be interested in your RV.
Arrange to meet them in a public place so they can see the RV and possibly test it before proceeding with the sale.
You can then contact the lender to settle the remaining balance on the loan. You will then be free of the RV loan. The selling process can be tedious for some owners, so be sure to explore all selling options before listing the RV yourself.
Cancel The Payments
This method can impact your credit score and isn’t one we recommend, but it’s worth mentioning.
If you can no longer afford the RV loan payments, you can cancel them with your bank. Next, call the lender to explain that you can no longer afford the payments for the RV.
Stop driving it and cancel the insurance too, which will save you some more money.
The lender will repossess your RV and sell it, usually at an auction. The money generated from the sale will be used to pay the remaining loan. In some cases, the sale will not generate enough money to cover the entire loan.
This deficiency will need to be paid by yourself, or you risk being taken to court or chased by third-party debt collectors.
However, if you are a senior, you don’t need to worry too much. Under federal laws, your income is protected, meaning if you are sued for not paying, your income cannot be taken from you.
Other assets like your car and home are also likely to be protected under exemption laws. This does vary from state to state, so be sure to check before exploring this avenue.
This method allows you to sell your RV and not dip into your pocket to pay off the loan. We recommend seeking legal advice before exploring this avenue and checking your state laws too!
And there you have it, two ways you can get out of your RV loan!
Whether you decide to sell your RV loan or cancel the payments to your lender, you can free yourself of the RV and its attached debt, alleviating your stress! Be sure to seek legal advice and speak to your lender if you have any concerns.