Author: Manix Phayvanh

4 Things to Consider Before Buying an RV

Whether for local jaunts or a several-week adventure, purchasing a recreational vehicle can provide an unlimited amount of enjoyment for you and your family—particularly during a time where social distancing and contained forms of travel are preferred. It is also a significant financial investment, and as with any financial commitment, education is key to making the best decision. Here are 4 critical questions to ask when considering the purchase of an RV.

Consider what classification is the right fit for you. RV Classification can be confusing, and with each step up in size, although you will have more rooms and amenities, you are almost certainly going to pay more. Plus, larger RVs tend to require more skills to navigate effectively.

Driving Options
Class-A are your largest RVs and most states, including California, require a non-commercial “Class B” license for motorhomes over 40’.
Class-B is a great choice due to the price, versatility, and ease of operation and are typically referred to as “Camper Vans”.
Class-C RVs are smaller versions of the Class-A RVs and are built on a classic truck or cab chassis. They come with an array of amenities and sleeping options, typically topping out at comfortably sleeping 4.

Towing Options
Towing options include small campers, pop-ups, fifth wheels and travel trailers. Trailers can be very convenient as you can park them and then use your vehicle to easily drive to places such as a local grocery store. If you go this route, you’ll want to check your vehicle’s towing capacity before purchasing a trailer.

You have two options here: your driveway/yard or a storage center. Many communities in Southern California have HOAs that restrict RVs on property, so check your Covenants, Conditions & Restrictions (CC&Rs) before purchasing. If you plan to store the RV, you’ll want to consider the additional cost of doing so; usually ranging between $200-$500 a month.

RVs that are over 10 years old typically cannot be financed; and as a result, you will need to pay cash directly to the seller. For this reason, most RV Retailers do not carry old RVs. However, if you decide to take this route, you can hire a specialist to come inspect the RV with you—a few hundred dollars could save you thousands in repairs.

In addition to all the bells and whistles, newer RVs are eligible for financing. Plus, the newer they are, the lower the rate typically is.

Unlike a trip to Hawaii where the money is spent and only to return in the form of sunset selfies and memories, an RV is an asset and an opportunity to travel, while keeping your finances flexible and cash accessible. If you pay cash for your RV, the only way to is to liquidate or sell it; which might take some time and potentially put you in a desperate seller position. If your RV is financed and you want to sell it, you will be far more likely to wait for a “great offer” and not just the “best offer”.

Interested in financing an RV through Wheelhouse Credit Union? Check out your options here.

Protect Your Independence

For most of us, having our own car gives us a sense of freedom. It allows us to go where we want, when we want. Having a car, however, can also be costly – especially if you have mechanical issues, lose your source of income but still have car payments, and/or if your car is stolen or totaled in an accident.

That’s when Payment Protection, Mechanical Repair Coverage (MRC) and Guaranteed Asset Protection (GAP) come in handy and can help protect your independence.

And the great news is that credit unions, like Wheelhouse, offer these products at a very low-cost compared to dealers. Here’s how they work:

Payment Protection provides relief from the financial burden of delinquency, default, or foreclosure if death, disability or involuntary unemployment should unexpectedly happen to you. Payment Protection will pay your loan payments, relieving you and your family’s worries about paying loans during a time of reduced income.

Guaranteed Asset Protection (GAP) protects your vehicle loan, should your car get stolen or totaled in an accident, GAP will help pay the difference between what you owe and the value of your vehicle.

Mechanical Repair Coverage (MRC) can help deflect the risk of costly repairs. With different coverage levels and deductibles to choose from, you can find the plan that best fits your budget. MRC can come with rental reimbursement, emergency roadside assistance, and more.

What’s also great is that these products can be applied to other types of consumer loans, including credit cards, recreational vehicle and motorcycle loans, to name a few. Add protection to your loan when you apply through Wheelhouse today.