Anyone who owns an RV knows they cost a lot of money to buy and maintain. But have you ever considered what your RV is worth and whether it makes sense to cash out some equity with a title loan?
How To Get Cash With A Title Loan On My RV
How Do RV Title Loans Work
RV title loans are great for someone who needs quick cash but doesn’t want to sell their RV or go through the hassle of applying for an unsecured personal loan. Instant title loans online are a type of secured loan, which means they use your RV as collateral. This gives lenders peace of mind knowing that if you can’t repay the loan, they can repossess your RV and sell it to recoup their losses. With that, the borrower knows they can borrow a large amount of cash by using their recreational value as collateral.
The funding amount with RV title loans depends on its current value in your state. Lucky for most applicants, much like cars, the value of an RV is higher than ever, and some used RVs can still be worth well over $100,000. On average, most lenders will lend you up to 50% of the value of your vehicle. So, if your RV is valued at $20,000, you could potentially borrow $10,000 with an online title loan.
What’s Required For A Title Loan On An RV
To apply for an RV title loan, you’ll need to bring your RV to the lender’s office for an inspection so they can determine its value. The inspection can take an hour or more and will last longer than what we see with auto title loans. This is because equity loans on an RV are a bit more complicated. After all, they’re worth a lot more, and any serious mechanical issue can significantly lower the loan amount.
You’ll need to have a clear title to your RV, which means there can’t be any liens or additional owners claiming to own the property. Expect to provide your current registration info and certificate of insurance so the lender knows you have full coverage. Once you’re approved for the loan, you’ll sign over the title of your RV to the lender and receive the cash you need.
Can I Get An RV Title Loan With Poor Credit
Unlike unsecured personal loans, which require a credit check, title loans are secured by your RV and typically don’t require a credit check.
An equity lender will spend more time checking the value of your recreational vehicle than they will checking your credit history. This means that even if you have multiple loan defaults, bad credit, or no credit history, you may still be able to get an RV title loan.
Your lender will likely do a soft credit check to look for any recent repossessions or bankruptcies, and they will run a VIN Lookup for the RV to see the recent purchase and ownership information.
How Much Does An RV Title Loan Cost?
The cost of an RV title loan will vary depending on the lender and the value of your vehicle. But in general, you should count on paying a large amount in interest and fees over the life of the loan.
So, if you borrow $10,000 with a five-year term, you may pay more than the principal loan amount in just finance charges and other fees! Because of those high rates, you should do what’s possible to pay down the principal loan balance and only borrow what’s necessary to pay for unexpected expenses.
RV title loans aren’t for everyone, but they can be a lifesaver if you need to borrow more than $5,000 but have little chance of being approved for a bank loan or line of credit because of a poor credit history. Before taking out a loan, check to see if your lender is licensed in your state and look up recent reviews and customer feedback to ensure the company is reputable.