OffGrid Travel's Adventure Guide

2024 Camper Van Financing: The Complete Guide

Written by Korey Kelly | Sep 5, 2024 9:17:33 PM

 

Understanding the Basics of Camper Van Financing

When you're ready to finance a camper van, it’s important to explore all your options. Whether you're considering a brand-new Noovo Lite or a gently used model, choosing the right financing plan can make a huge difference in how manageable your monthly payments are. If you go with a Noovo, our team at OffGrid can even help you turn it into a short-term rental, making it easier to cover those payments and offset your investment (click here to learn more).

Another crucial factor to consider is selecting a camper van manufacturer (like Noovo) that’s RVIA (Recreational Vehicle Industry Association) certified. Many lenders require this certification, as it ensures the van meets industry standards for safety and quality—making it a safer investment for both you and the lender. Certified vans comply with strict regulations for electrical, plumbing, and fire safety, reducing risk and increasing your chances of securing financing. Without RVIA certification, finding traditional RV loans or other financing options can be much more challenging.

 

TABLE OF CONTENTS

 

1. RV Loans: Financing with Long-Term Flexibility

One of the most popular options is an RV loan, which uses the camper van itself as collateral. These loans are typically offered by banks, credit unions, and online lenders. With terms that can stretch up to 20 years, RV loans often give you the ability to spread out your payments over a longer period, making it easier to fit into your budget.

Why Choose an RV Loan?

  • Longer Terms: RV loans often offer terms of 15–20 years, meaning lower monthly payments.
  • Collateralized Loans: Since the camper van acts as collateral, you may get a lower interest rate compared to unsecured loans.

For example, if you're planning to invest in a Noovo Plus with its spacious interior and premium off-grid power systems, an RV loan could make it easier to finance the purchase while keeping your payments manageable.

 

 

2. Unsecured Personal Loans: No Collateral Required

If you’d rather not use the camper van as collateral, an unsecured personal loan is another option. These loans don’t require any assets to back them, which means the van isn’t at risk if the loan isn’t paid off. However, since there’s no collateral, lenders tend to charge higher interest rates—especially if your credit score isn’t stellar.

Key Points About Unsecured Loans:

  • No Risk to the Van: Since there’s no collateral, you don’t risk losing your camper van if you can’t make payments.
  • Higher Interest Rates: These loans tend to have higher rates, particularly for those with poor credit.

If you're just starting your van life journey with a Noovo Lite, an unsecured loan could be a good option—just be sure to shop around for the best interest rates.

 

 

3. Dealership Financing: One-Stop Shop

Some dealerships offer their own financing options for both new and used camper vans. This can be a convenient option, as it allows you to take care of everything—selecting your van and arranging financing—in one place.

Pros of Dealership Financing:

  • Convenience: You can handle both the purchase and financing at the dealership.
  • Promotions: Some dealerships may offer promotional rates or deals.

For example, if you're buying a family friendly Noovo Pop and want a simple financing process, dealership financing might be worth considering. However, it’s always a good idea to compare offers with external lenders to ensure you’re getting the best deal.

 

 

4. Approved Outfitter Financing: Build and Finance Your Dream Van

If you’re going through an approved Mercedes-Benz Outfitter, you can finance both the van and the outfitting costs together. This is a great option for those looking to build a fully customized camper van.

Why Choose Outfitter Financing?

  • Finance the Van and Outfitting Costs: It’s a streamlined way to cover both the van purchase and the conversion or outfitting costs.
  • Get the Van of Your Dreams: By working with an approved outfitter, you can build out your van exactly how you want it.

This option is perfect for those who want a high-end custom camper van and prefer to handle all financing in one go. 

 

5. Home Equity Loans: Using Your Home to Finance Your Van

For homeowners, a home equity loan can be another option for financing a camper van. These loans allow you to borrow against the equity in your home, often at lower interest rates than personal or RV loans.

Benefits of Home Equity Loans:

  • Lower Interest Rates: Since these loans are secured by your home, the interest rates tend to be lower.
  • Flexible Use of Funds: You can use the loan to cover the entire cost of the van, including any customizations.

This option may be appealing if you’re looking to purchase a more expensive van like the Noovo Plus and want to keep your monthly payments low.

 

6. Financing Through a Credit Union: Lower Rates and Personalized Service

Financing a camper van through a credit union is another solid option. Credit unions are member-owned financial institutions that often offer lower interest rates and more personalized service than traditional banks.

Why Consider Credit Union Financing?

  • Lower Interest Rates: Credit unions typically offer lower rates compared to banks, which can help reduce your overall loan cost.
  • Flexible Terms: Many credit unions offer flexible repayment terms, allowing you to choose the best plan for your financial situation.
  • Member-Centric Approach: Credit unions tend to have more personalized service and are often more willing to work with you to find the right loan.

If you’re planning on purchasing a Noovo Lite, Pop, or Plus and want a more tailored loan experience, working with a credit union could be a great fit. Just remember that you may need to become a member of the credit union to access these benefits.

 

 

 

Credit Scores Matter: How They Impact Financing

No matter which financing option you choose, your credit score will play a big role in determining your loan approval and interest rates. Most lenders look for a FICO score of at least 670, but higher scores—especially those in the mid-700s or above—will get you the best rates.

What to Keep in Mind:

  • FICO Score: A score of 670+ is usually required, but higher scores unlock better deals.
  • Poor Credit: If your credit score is lower, you may face higher interest rates, especially with unsecured personal loans.

Before applying for a loan, it’s a good idea to check your credit score and take steps to improve it if necessary. This will ensure you get the best possible financing deal.

 

 

Choosing the Right Camper Van Financing for You

When it comes to financing your camper van, there's no one-size-fits-all solution. Here are a few things to consider:

  • Assess Your Budget: Take a close look at your finances and determine what you can comfortably afford for a down payment and monthly payments. This will help you decide whether a loan or lease is the better option.
  • Use Online Pricing Tools: You can also try using tools like our Noovo Virtual Van Builder to help narrow down what your dream van will actually cost. 
  • Compare Offers: Don’t rush into the first financing option you’re offered. Shop around, compare rates, and find the best deal for your budget and lifestyle.
  • Think About Your Travel Plans: If you plan to use your camper van for long-distance travel, consider how your financing decision will affect your ability to hit the road. For example, a lease with mileage limits might not be ideal for frequent travelers.


 

Final Thoughts: Make Your Camper Van Dream a Reality

Financing a camper van doesn’t have to be complicated. From RV loans to personal loans, dealership financing, or even home equity loans, there are plenty of ways to make your dream van life a reality. No matter which route you take, always ensure the financing terms align with your financial situation and travel goals.

At OffGrid, we're here to help you through every step of the process. Whether you’re looking for a compact Noovo Lite or a family-friendly Noovo Pop, we’ll guide you toward the best financing options to suit your needs. 

 

 

Ready to get started?

Schedule a consultation today to receive tailored advice on choosing and financing the camper van of your dreams!