Shopping for a camper can be exciting, but concerns about credit scores or hefty down payments may cause hesitation. Buy here, pay here (BHPH) camper programs might offer a solution, potentially allowing you to hit the road sooner. These programs let dealerships approve and manage your loan in-house, often with more flexible credit requirements and smaller initial costs. Understanding the ins and outs of BHPH can help you make an informed decision.
Understanding Buy Here, Pay Here Camper Financing
In a traditional RV loan, a bank or credit union reviews your application, and if approved, funds the purchase. You then make monthly payments to that lender. In contrast, BHPH financing allows the dealer to act as both the seller and lender. This means you "buy here" and "pay here," making payments directly to the dealership. This arrangement can offer faster approvals and lower upfront costs, though it often comes with higher interest rates and shorter loan terms.
BHPH dealers tend to focus on older, used travel trailers, fifth-wheels, or motorhomes. Late-model units may be limited, and conditions can vary, so it's important to inspect and test drive any potential purchase thoroughly.
Comparing Camper Financing Options
| Financing Type |
Pros |
Cons |
| Bank/Credit Union RV Loans |
Lower APRs, longer terms, larger loan amounts on newer rigs |
Stricter underwriting, larger down payments |
| Dealer-Arranged Financing |
One application, multiple lender decisions |
Potential APR markups, possible add-on product pressure |
| Specialized RV Loan Brokers |
Accessible alternatives, options for fair credit |
Not typically BHPH, may involve more complex processes |
| Personal Loans/Credit Cards |
Quick funding |
Higher APRs, better for accessories or small repairs |
Pros and Cons of Buy Here, Pay Here Campers
BHPH camper financing may offer several advantages:
- **Faster Approvals:** Decisions can happen the same day, helping you secure a camper before peak-season demand increases prices.
- **Lower Upfront Costs:** Smaller down payments and reduced fees make it easier to start your journey.
- **Credit Flexibility:** Dealers may approve applicants with limited credit histories or past credit issues.
- **Simplified Paperwork:** BHPH can be a one-stop shop for unit selection, financing, and titling.
However, there are potential drawbacks:
- **Higher APRs:** Expect significantly higher interest rates than prime RV loans, increasing the total cost.
- **Shorter Terms:** Monthly payments can be higher due to shorter repayment periods.
- **Limited Selection:** Inventory often includes older or higher-mileage campers.
- **Potential Tracking Devices:** Some dealers may install GPS or starter-interrupt devices; always ask and get disclosures in writing.
When BHPH Makes Sense
BHPH might be suitable if you need a camper quickly for seasonal work, travel nursing, or family trips and have limited savings for a down payment. It may also be appealing if your credit is still recovering. However, if you qualify for a substantially lower bank or credit union APR, can afford to wait a few weeks to fund, or are shopping for newer, higher-priced rigs, exploring other options may be beneficial.
Choosing the Right Camper Financing Option
To select the best financing option, consider these steps:
1. Know Your Credit and Budget
Check your credit reports for free at
AnnualCreditReport.com and estimate an affordable payment using a tool like the Bankrate RV loan calculator. Aim to keep your total RV payment under 10–15% of your take-home pay.
2. Compare Total Costs
Request a breakdown of APR, term, amount financed, and all associated fees. For instance, on an $18,000 used travel trailer over 60 months, a 10% APR costs about $4,900 in interest, while a 22% APR (common for BHPH) can increase interest to roughly $11,300.
3. Inspect the Camper Thoroughly
Older campers can hide expensive issues. Check for soft spots, roof leaks, delamination, tire age, and appliance function. Consider an independent inspection before signing any agreements.
4. Scrutinize the Contract
Assess if there's a prepayment penalty, if refinancing is possible later, and whether the dealer reports to major credit bureaus. On-time payments could improve your credit score. Also, verify insurance requirements and consider quotes from providers like Progressive RV Insurance.
5. Cross-Shop Alternatives
Even if you lean towards BHPH, apply to a credit union and a specialized RV lender concurrently. This approach confirms if BHPH is the best option or if a cheaper alternative could save you money over the loan's lifespan.
The Convenience of BHPH Financing
Because BHPH approvals are managed in-house, you might go from a test drive to holding the keys in just a few hours. Dealers can also incorporate taxes, title, and some add-ons into the loan, reducing your initial cash outlay. This convenience is particularly valuable during peak buying months when the right floorplan can sell quickly.
Case Study: Maria's Experience
Maria, a travel nurse with a fair credit score of 620, opted for a 2014 bunkhouse trailer priced at $16,500. Her BHPH dealer approved her the same day with a 21.9% APR for 48 months, requiring $1,000 down. This resulted in a monthly payment of about $470. Later, a local credit union pre-approved her at 14.5% over 60 months with $2,500 down, reducing her monthly payment to approximately $380. Maria initially chose the BHPH option to start her contract job on time but refinanced with the credit union six months later after her on-time payments improved her rate.
Exploring BHPH Camper Dealers and Alternatives
The availability of true BHPH RV programs can vary locally, so always verify current terms, inventory, and licensing. Check dealer reviews with the Better Business Bureau for additional insights.
Examples of BHPH RV Dealers
- **RV Depot:** Offers in-house financing on a wide range of used travel trailers, fifth-wheels, and motorhomes with credit-flexible programs.
- **Tip:** Search for "buy here pay here RV" or "in-house RV financing" in your area using marketplaces like RV Trader. Confirm that dealers truly carry the note and aren't just arranging third-party financing.
Alternative Financing Providers
- **Camping World Financing:** Facilitates dealer-arranged financing through nationwide partner lenders.
- **Good Sam Finance Center:** Offers RV-focused financing programs that may accommodate wider credit bands.
- **My Financing USA:** Connects buyers to multiple RV lenders with options for fair credit.
- **Southeast Financial:** Specializes in RV loans nationwide.
- **LightStream RV Loans:** Provides unsecured loans for qualified borrowers with fast funding.
- **Navy Federal Credit Union:** Offers competitive rates for eligible members and longer terms on newer rigs.
Smart Shopping Checklist
- Obtain at least two written offers (BHPH and non-BHPH) on the same day to compare APR, term, and total interest.
- Bring proof of income, residence, and insurance to expedite approval.
- Prefer dealers that report on-time payments to credit bureaus.
- Budget for taxes, registration, insurance, storage, and maintenance.
- Have a mechanic or inspector review any used camper before signing.
For additional resources, the CFPB provides
auto financing shopping tips that apply to RVs, and the FTC offers advice on
buying a used vehicle, which can be helpful when reviewing warranties and contracts.
By understanding the dynamics of buy here, pay here camper financing, you can make a well-informed decision that aligns with your financial goals and travel plans. Compare all available options, inspect carefully, and consider refinancing if a better rate becomes available later.