RV financing: loan, line of credit or dealer financing?
RV financing: loan, line of credit or dealer financing?
Personal loan, HELOC, dealer plan or cash — the math, the trade-offs and what to ask before you sign.
Four ways Quebec buyers finance an RV
1. Dealer financing
Typical: 8–11% APR, 7-to-20-year amortization, weekly payments. Pro: one-stop, no haggling at the bank. Con: longest amortization means highest total interest — a $60K trailer at 9% over 15 years costs $109K all-in.
2. Personal loan (bank/credit union)
Typical: 6.5–9% APR, 5-to-7-year amortization. Pro: shorter term = less interest paid. Con: higher monthly payments, harder approval.
3. Home equity line of credit (HELOC)
Typical: Prime + 0.5% to + 2%, no fixed amortization. Pro: lowest rate available, flexible draws. Con: rate floats with prime, and your house secures the debt. A wobble in your finances now puts your home at risk.
4. Cash
Pro: no interest, simple. Con: opportunity cost — that $60K in a TFSA growing at 6% beats a 8% loan over 5 years only if you have iron discipline.
A real comparison · $65 000 trailer
| Option | Rate | Term | Total paid |
|---|---|---|---|
| Dealer 15yr | 9.0% | 15 yr | $118 600 |
| Personal loan 7yr | 7.5% | 7 yr | $83 800 |
| HELOC 7yr | 6.2% | 7 yr | $80 100 |
| Cash | — | — | $65 000 |
What to ask before signing
- Is the rate fixed or variable?
- What’s the prepayment penalty?
- Are there origination fees? (Common 1–2%.)
- Is insurance financing bundled? (Decline it — buy directly.)
- Can you transfer the loan if you sell within 3 years?
