Shopping for a camper can be exciting, but if credit concerns or hefty down payments are holding you back, buy here, pay here (BHPH) camper programs could be the solution. These programs enable dealerships to approve and manage loans directly, potentially offering more flexible credit requirements and reduced initial costs. Here's what you need to know about BHPH camper financing and how it compares to other options.
Understanding Buy Here, Pay Here Camper Financing
In a traditional RV loan setup, a bank or credit union reviews your application and, if approved, provides funding. You then make monthly payments to that financial institution. In contrast, a BHPH arrangement involves the dealership acting as both the seller and the lender. This means you "buy here" and "pay here," making payments directly to the dealership. Due to the dealership carrying the risk, BHPH camper lots often set their own approval criteria, which can be more accommodating for those with limited or poor credit histories.
However, it's important to note that BHPH programs may come with higher interest rates and shorter loan terms compared to conventional RV loans. On the plus side, they may offer faster approvals and lower up-front costs, allowing you to get on the road sooner.
Typical Inventory and Considerations
Inventory at BHPH dealerships typically leans towards older, used travel trailers, fifth-wheels, or motorhomes. Late-model units might be scarce, and the condition can vary significantly. Therefore, inspections and test drives are crucial when considering this option.
Comparing BHPH to Other Camper Financing Options
When exploring financing options, it's essential to consider how BHPH programs stack up against other methods:
1) Bank or Credit Union RV Loans
These loans often offer the lowest interest rates (APRs) and the longest terms, typically ranging from 60 to 180 months for qualified buyers. They also allow for larger loan amounts on newer vehicles. Credit unions, in particular, may consider applicants with fair credit and allow pre-qualification without a hard credit check.
- **Pros:** Lower total cost of ownership, longer terms, broader eligibility.
- **Cons:** Stricter underwriting, larger down payments, longer funding times.
For more information, you can explore options from providers such as Navy Federal Credit Union and the
NCUA credit union locator.
2) Dealer-Arranged Financing (Not BHPH)
Large RV dealers often submit your application to a network of lenders and present you with approved offers. Although the dealer doesn't hold the loan, this can be convenient if you wish to shop multiple lenders simultaneously.
- **Pros:** Single application for multiple lender decisions, potential promotional rates.
- **Cons:** Possible lender APR markups, pressure to accept add-on products.
For more details, you might consider
Camping World Financing and the
Good Sam Finance Center.
3) Specialized RV Loan Brokers and Online Lenders
These companies connect you with banks and credit unions that focus on RVs, sometimes including options for fair or challenged credit. While they do not typically offer BHPH, they can be accessible alternatives.
Examples include
My Financing USA,
Southeast Financial, and
LightStream RV Loans.
4) Personal Loans and Credit Cards
Unsecured personal loans can fund quickly but often carry higher APRs and shorter terms than secured RV loans. Credit cards are best reserved for smaller purchases like accessories or repairs due to their high rates.
Pros and Cons of Buy Here, Pay Here Campers
Choosing BHPH financing offers certain advantages and disadvantages:
- **Faster Approvals:** Decisions can sometimes occur the same day, helping you secure a camper before peak-season demand increases prices.
- **Lower Up-front Cash:** Smaller down payments and reduced bank fees can lessen initial costs. Some dealers may offer no-money-down promotions on select units.
- **Credit Flexibility:** Dealers may approve applicants with limited credit history or past issues.
- **Simplified Paperwork:** A one-stop shop for unit selection, financing, and titling.
However, BHPH financing often involves higher APRs, increasing the total cost. Shorter loan terms mean higher monthly payments, and the selection of units is generally limited to older or higher-mileage campers. Additionally, some BHPH dealers may install GPS or starter-interrupt devices; it's essential to ask about these and get disclosures in writing.
When BHPH Makes Sense (and When It Doesn't)
BHPH financing could be a suitable choice if you need a camper quickly for reasons like seasonal work, travel nursing, or family trips, and you have limited savings for a down payment. It may also be beneficial if your credit is still recovering.
Conversely, if you qualify for a significantly lower APR through a bank or credit union, can wait a few weeks for funding, or are shopping for newer, higher-priced rigs where rate differences are substantial, other financing options might be more cost-effective.
Steps to Choose the Right Financing Option
Selecting the appropriate financing option involves several key steps:
1) Know Your Credit and Budget
Check your credit report for free at
AnnualCreditReport.com and estimate an affordable payment using tools like the Bankrate RV loan calculator. Aim to keep your total RV payment (loan + insurance + storage) under 10–15% of your take-home pay.
2) Compare Total Cost, Not Just the Payment
Request the APR, term, amount financed, and all 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) increases interest to roughly $11,300. A lower sticker price at a BHPH lot might still result in a higher overall cost if the interest rate is significantly higher.
3) Thoroughly Inspect the Camper
Older rigs can harbor expensive issues. Check for soft spots, roof leaks, delamination, tire age, and appliance function. Consider having an independent inspection before committing.
4) Scrutinize the Contract
Look for potential prepayment penalties, refinancing options, and whether the dealer reports to major credit bureaus, as on-time payments could help improve your credit. Verify the presence of GPS or starter-interrupt devices and understand the policies on late payments and repossession. It's also wise to check required insurance levels and get quotes from providers like Progressive RV Insurance.
5) Cross-Shop Alternatives
Even if BHPH seems like the best option, submit applications to a credit union and a specialized RV lender simultaneously. This approach confirms whether BHPH is the optimal choice or if a cheaper option exists, potentially saving thousands over the loan's lifespan.
How BHPH Can Speed Delivery and Reduce Up-front Costs
Because BHPH approvals are handled in-house, you may transition from a test drive to receiving the keys in just a few hours. Dealers can also include taxes, title, and some add-ons in the loan, minimizing day-one cash outlays. This convenience is particularly valuable during peak buying months when the right floorplan might sell quickly.
Mini Case Study
Consider Maria, a travel nurse with a fair credit score (620 FICO), who opted for a 2014 bunkhouse trailer priced at $16,500. Her BHPH dealer approved her the same day at 21.9% for 48 months with $1,000 down, resulting 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 began with the BHPH option to start a contract job on time, then refinanced with the credit union six months later after on-time payments improved her rate.
Companies Offering Buy Here, Pay Here Campers (Plus Alternatives)
Availability of true BHPH RV programs can vary locally, so always verify current terms, inventory, and licensing. Checking dealer reviews with the Better Business Bureau is also advisable.
Buy Here, Pay Here RV Dealers (Examples)
- **RV Depot (Cleburne, TX):** Offers in-house financing on a range of used travel trailers, fifth-wheels, and motorhomes, with credit-flexible programs advertised. Consider searching “buy here pay here RV” or “in-house RV financing” on marketplaces like RV Trader and local maps to find regional dealers. Call ahead to confirm they truly carry the note and don't merely arrange third-party financing.
Alternative Financing Providers for Campers
- **Camping World Financing:** Dealer-arranged financing through partner lenders nationwide.
- **Good Sam Finance Center:** RV-focused financing programs accommodating wider credit bands.
- **My Financing USA:** Connects buyers to multiple RV lenders, including options for fair credit.
- **Southeast Financial:** RV loan specialist with national reach.
- **LightStream RV Loans:** Offers unsecured loans for qualified borrowers with fast funding.
- **Navy Federal Credit Union:** Provides competitive rates for eligible members with 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.
- Ensure on-time payments are reported to credit bureaus and prefer dealers that report.
- Budget for taxes, registration, insurance, storage, and maintenance.
- Have a mechanic or inspector review any used camper before signing.
Helpful Resources
- **CFPB:** Offers auto financing shopping tips that apply to RVs.
- **FTC:** Provides insights on buying a used vehicle, including warranty and contract tips.
Bottom Line
Buy here, pay here camper financing can enable you to hit the road sooner and keep upfront costs low. However, you'll trade that speed for a higher APR and potentially older inventory. By comparing total costs, inspecting carefully, and getting alternative quotes, you can make an informed decision and even plan to refinance later if a better rate becomes available.