The open road is calling, and you're ready to answer with a loan for a new-to-you RV. But before you start your next adventure, it's crucial to understand the costs involved with your RV loan. That's where our RV Loan Calculator comes in. This first-of-its-kind tool will guide you through the financial landscape of RV ownership, enabling you to plan your budget effectively and make informed decisions with an honest look at all of the costs which are involved.
Glossary of RV Loan Calculator Terms
Our trailer loan calculator uses several terms to help you estimate the cost of your RV loan. Here is a breakdown of what they mean:
Cash Price: This is the sticker price of the RV you intend to buy.
Interest Rate: This is the rate you've received or anticipate for your recreational loan. If you have yet to receive your RV loan, you can check our article on current interest rates here.
Term Length: This refers to the duration of your RV loan payments.
Payment Frequency: This determines how often you'll make payments. Biweekly means a payment every 2 weeks (26 payments per year), semi-monthly implies twice a month (24 payments per year), and a monthly payment means once a month (12 payments per year).
Payment Estimate: This is the estimated payment amount at your chosen frequency.
Cash Down: The upfront down payment you plan to pay toward the trailer loan. Some lenders may require this. You may also enter the value of a trade-in or dealer assessed trade-in allowance here.
Dealer Documentation or Admin Fee: This is the fee charged by RV dealers, defaulting to our partners' cost at Revival Powersports. This amount may vary based on the dealership you are working with.
Lenders Fee Estimate: The initial setup, documentation or admin fee charged by RV lenders to register your loan. This defaults to an average cost based on our knowledge, but may vary.
Other Fees: Additional charges that are included in the loan, like private sale charges, government lien registration fees, upgrades, warranties, etc.
GST 5%: This federal tax auto-calculates based on the sticker price. Some lenders and dealers may also tax add-on products and service fees.
Total Amount to Finance: This is the estimated total principal loan amount of the RV loan.
Provincial Taxes and Other Loan Term Factors to Consider
Also, it's important to remember that all the figures provided by our RV loan calculator are estimated values and not exact. Some lenders may have different fees and costs that will impact the loan's cost. This information is only an estimate and subject to approval OAC.
Finally, it is important to remember how your annual interest rate will differ from recreational vehicle loans to other types of personal loans. Because RV loans carry a higher risk, you'll likely be looking at a higher interest rate and monthly payment.
With this guide in hand, you're now better prepared to navigate the RV loan world. Our RV loan calculator is a helpful tool when shopping RVs to estimate costs with full transparency and honesty. To qualify for an RV loan, visit our partners at Revival Powersports who offer the top borrowing options in Canada with access to a lender network who can help customers with a wide array credit history.
And for more information on loans for RVs in Canada, check out our other guides: