RV Financing Terms Explained

Why RV Loans Are Different Than Car Loans.

Many first-time buyers are surprised to learn that an RV loan functions more like a mortgage than a standard auto loan. Because RVs are durable assets with a long lifespan, Canadian lenders offer specialized terms that you won't find at a standard car dealership.

At Leisure Days RV Group, we believe an informed buyer is a happy buyer. Here is a guide to the key terms and structures we use to make your purchase affordable.

Key Concepts

1. Amortization (The Length of the Loan)

This is the total amount of time it takes to pay off the loan in full.

The RV Advantage: While car loans are usually capped at 7 or 8 years (84-96 months), we can amortize RV loans for up to 20 Years (240 Months).
The Benefit: A longer timeline spreads the principal out, resulting in a significantly lower monthly payment.

2. "Open" Loans

The vast majority of the loans we secure for our clients are "Open."

What it means: You can pay off the entire loan balance at any time, or make extra lump-sum payments, without any penalty or fees.
The Strategy: Many buyers take the longest amortization possible (to keep their required monthly payment low for safety) but pay extra whenever they have surplus cash to pay the loan off faster.

3. Fixed vs. Variable Rates

Fixed Rate: Your interest rate and payment amount remain exactly the same for the duration of your term. This offers stability and easier budgeting.
Variable Rate: The rate fluctuates with the Prime Rate set by the Bank of Canada. These rates are often lower to start but carry the risk of increasing later.

Specialized Loan Structures

Refinancing Negative Equity

If you owe more on your current trade-in than it is worth, we can often "roll" that negative balance into your new loan structure. Because RV loans have longer terms, the impact on your monthly payment is minimized. Read about Negative Equity Solutions.

Cash Back Options

Did you know you can finance more than just the RV? We can structure a loan that includes the cost of your hitch, extended warranty, or even cash for debt consolidation. Learn about Cash Back Loans.

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