RV Lending & Loan Rate News for 2024

Current economic conditions boost RV financing rates.

RV sales have been slower than expected in 2024. The year's sluggish performance may be due to the legion of Americans who purchased recreational vehicles in the years prior to the rapid fire rate hikes of 2022 and much of 2024.

Note: After the Covid19 outbreak eased, and the CDC began allowing people to leave their home confinement in April and May of 2020, RV and boat sales surged to a 500% increase! The frenzy continued for the next 2 years, but many dealer's inventories eventually depleted. Now the RV dealer lots are packed again, but the buyers are waiting for rates to head back down, or at least until rates on loans of $50,000 to $99,999 relax.

But Why $50,000 or More?

Since our processing costs are about the same, no matter if it is a $25,000 loan or a $250,000 loan. These costs, (and processing time), when added to the rates in loans under $50,000, would make us less competitive than some other sources.

You should be aware that many other online brokers will all be looking at many, if not all of the same lenders. These national and larger regional lenders, like our own, tend to specialize in amounts over $50,000, so be careful who you authorize to pull your credit reports if you submit an actual application.

Now things are returning to the new normal, and all the impulse buyers are wondering what to do with that "pandemic RV" gathering dust in storage. All the new has worn off, just as the budget has worn thin. These perfectly good RVs will soon need a new home, so be on the lookout for deals and steals.

2024 RV Loan Rates are Holding Steady - For Now

If you have recently been searching for the best RV loan rates, you may have noticed 2020's year-long wave of RV interest rate decreases. While the recreational vehicle loan rates leveled off as the Covid-19 pandemic began easing in mid-2021 - now in 2024 we expect some back and forth movement as the Fed, and its new chairman, react to recent events.

The banks and online RV loan brokers feel the trend could quickly reverse course if the economy begins to sputter. Or if things start to heat up and jump-start a new ripple of competition between RV lenders. (That seems less of a chance now, as there are so few national RV lenders still in the market.)

A rebounding economy and growing consumer confidence should continue to stimulate more sales of motorhomes and other types of recreational vehicles. RVs are even becoming "Cool" with the evolving baby boomer market.

Some of this year's new RV buyers may be people who have been "on the fence" in deciding when to purchase. However, MOST of the new RV buyers are people who have extra money from canceled vacations, frugal living, or just sick of the house. Many other new RV buyers don't plan to be boarding an aircraft any time in the foreseeable future.

If you are in the market, remember, we finance older used RVs and motorhomes. (from 10 - 12 years old). So you can easily find seven to ten-year-old luxury motorhomes from $60,000 to $80,000, or even less. If you've been thinking of taking the plunge, come on in - the water (and rates) may be rising soon.

And Now, a Word from the Government

Although current economic conditions have improved, uncertainty in government policies may still dampen spirits if political leaders continue to focus on their interests above those of the American people. This issue seems to be a common topic in recent events. Many people surveyed at recent shows, the industry news, and media have expressed concern at the governments' inability to get along for the good of the people.

Yes, the Fed reversed course with this years' rate cuts. With inflation remaining stable, all the ongoing political theater and news-worthy-events may not be enough to derail the recreational industry's current "freight train" momentum.

On the other hand, the bull market fueled, globally warmed, geopolitical thrill ride has already left the gate. Hang on while it continues clickety-clicking its way skyward to what we are coining the "weeee point."

But Wait - There's More

All global and political issues aside, the RV market is being "buoyed" by the ever-increasing demands of retiring or "soon to retire" baby boomers. The Gen X'ers and Millennials are falling in line right behind them.

With these higher numbers of potential RV buyers entering the market, forward-thinking RV manufacturers continue to engineer and produce lighter and more efficient units at virtually all price levels. This evolution helps keep the younger, entry-level buyers engaged with more economical and more affordable to purchase RVs at most levels.

These gains in innovation are also keeping older, or should I say "seasoned," RVers in the game by helping reduce operating costs, making more maneuverable units. Manufacturers are even lightening up the big diesel "heavies," so what can you do but keep on rolling!

Continued gains in the job market, higher household incomes, and the current near-record-low interest rates would seemingly project an extremely favorable outlook for the recreational industry in the foreseeable future.

Regardless of the outcome, the near-future may be the best time to purchase or finance an RV. So, if you are in the market or may have been waiting for rock bottom, that time could very well be now. So either lead, follow, or get the Sam Hill out of the way, because be it a freight train - or the "weeee point," something is coming - and post-2020 may well be about hindsight.