How to Finance a Camper Van/Build: Financing Options Explained

Congratulations on starting your van life journey! Whether you’re looking to buy a new Sprinter van, convert a van into your dream home on wheels, or both, financing these investments is the first step.

This guide will walk you through various financing options for your van or built-out.

The Basics of Financing a Camper Van

Financing a camper van involves two main components: securing funds for the van itself and finding a way to finance the conversion or build-out. Depending on your financial situation, you may need to consider different loan types or even mix-and-match financing options to cover all aspects of your van life setup.

Consider Your Credit History

Credit history plays a role in determining your eligibility for loans and the interest rates you’ll be offered. Lenders prefer to see a strong credit history with a mix of high-dollar installment loans, such as mortgages or car loans, as it demonstrates your ability to manage large debts responsibly.

If your credit score isn’t where you’d like it to be, consider taking steps to improve it before applying for financing. This might include paying down existing debts, ensuring timely bill payments, and avoiding new credit inquiries in the months leading up to your loan application. Another route would be to ask a loved one to be a co-signer with higher credit to have a better chance of being approved by the lender.

RV Loans

One of the most common ways to finance a camper van is through an RV loan. These loans are designed specifically for recreational vehicles, which includes qualifying camper vans and Class Bs. RV loans are offered by banks, credit unions, and online lenders, with terms typically ranging from 5 to 20 years (the 15-20 year range is more realistic for most people).

Down Payment and Loan Term Expectations:

RV loans usually require a down payment of 10% to 20% of the vehicle’s purchase price. The loan term can significantly impact your monthly payments—longer terms lower your monthly payment but increase the total interest paid over the life of the loan.

Interest Rates:

Interest rates for RV loans can vary widely based on your credit score, the loan amount, and the lender. Rates typically hover around 10%. Shopping around and getting pre-approved by multiple lenders can help you secure the best rate.

Personal Loans

If you’re looking to finance the build-out or conversion of your van, a personal loan might be for you. Personal loans are unsecured loans, meaning they don’t require collateral like your van or another asset. This makes them a flexible choice for financing everything from solar panels to custom cabinetry.

Loan Amounts and Terms:

Personal loans typically offer amounts ranging from $1,000 to $50,000, with terms between 2 and 7 years. However, because these loans are unsecured, they often come with higher interest rates compared to secured loans like RV loans.

Interest Rates:

Interest rates on personal loans can range from 5% to 36%, depending on your credit score and the lender. Borrowers with strong credit scores will generally receive better rates, making it crucial to shop around and compare offers. This high interest rate is why it’s recommended to put down a higher down payment to lower your overall accrued interest.

Cash is King

If you have the financial means, paying cash for your van or the build-out offers big advantages. While financing can help spread out the cost, paying upfront can save you thousands of dollars in interest over the long term. Additionally, buying outright means you own the van and all its components free and clear from day one.

Financing the Van, Paying Cash for the Build:

One strategy that some van lifers use is to finance the van purchase itself and then pay cash for the build-out. This approach allows you to keep monthly payments manageable while avoiding high interest rates on a personal loan for the conversion. It also gives you the flexibility to work on the build as your budget allows, without the pressure of a loan payment hanging over your head.

Recommended Financing Options

Finding the right financing option is critical to ensuring your van life dream becomes a reality. Here are a few lenders and financing options to consider:

IntoRV: For RV Loans, IntoRV makes the loan process very easy, quick, and their team is very responsive, so you will have no problem getting a hold of them (Link to IntoRV Credit Application).
Bank of America: A great choice for Auto Loans (Link to Bank of America Loan Application). This bank typically views Sprinters as a regular vehicle whereas some banks will view them as a commercial vehicle and will struggle to approve an auto loan for one.
LightStream: Known for offering competitive rates on RV loans, including Class B RVs. They also provide personal loans for home improvement, which could be used for your van build-out. (Link to Lightstrem Loan Application)
SoFi: A popular choice for personal loans, offering low rates and flexible terms, making it ideal for financing your van conversion.
USAA: If you’re a member, USAA offers RV loans with excellent customer service and favorable terms.

Got Financing Questions? Geotrek Can Help

Financing a camper van and the accompanying build-out can seem overwhelming, but with the right approach, it’s entirely manageable. Take the time to explore your options, consider your credit history, and choose the best path to make your dream van life a reality. Check out our recommended financing options on page 3 of this guide. Because we’re a car dealership, we can help tie in your van and build expenses all in one loan!

How to Finance a Camper Van/Build: Financing Options Explained

The Basics of Financing a Camper Van

Consider Your Credit History

RV Loans

Down Payment and Loan Term Expectations:

Interest Rates:

Personal Loans

Loan Amounts and Terms:

Interest Rates:

Cash is King

Financing the Van, Paying Cash for the Build:

Recommended Financing Options

Got Financing Questions? Geotrek Can Help

Recommended Reads

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