Purchasing an RV through a Buy Here Pay Here (BHPH) dealership might be a practical choice if traditional financing options are out of reach.
However, understanding the intricacies of this process is crucial to making an informed decision. This guide will help you navigate the costs, types of RVs available, and where to find reputable BHPH dealerships. Additionally, we’ll cover tips to ensure you protect your investment and avoid common pitfalls.
Understanding Buy Here Pay Here RVs
Buy Here Pay Here (BHPH) dealerships offer a unique financing model where the dealer sells and finances the RV directly, bypassing banks and credit unions. This arrangement can be especially beneficial if your credit history is less than perfect, as these dealerships often consider factors beyond your credit score, such as income stability, residence history, and down payment capability. Payments can be made weekly, biweekly, or monthly, and are often more flexible in terms of payment methods.
However, it's important to note that interest rates tend to be higher, and the selection may include older models.
Key Factors in BHPH RV Financing
| Factor |
Details |
| Approval Flexibility |
Faster approvals with less emphasis on credit score |
| Interest Rates |
Typically higher, ranging from 12% to 24% |
| Payment Options |
Weekly, biweekly, or monthly payments accepted |
| Inventory |
Often includes older RV models |
Breaking Down the Costs of BHPH RVs
When assessing the cost of an RV through a BHPH dealership, consider not just the sticker price but the entire ownership cost. This includes the purchase price, interest, taxes, insurance, fuel, maintenance, storage, and campsite expenses.
Typical Purchase Price Ranges
- **Teardrop & Pop-up Campers**: $5,000–$15,000
- **Travel Trailers**: $10,000–$35,000
- **Fifth Wheels**: $20,000–$60,000
- **Class B Camper Vans**: $40,000–$110,000
- **Class C Motorhomes**: $30,000–$90,000
- **Class A Motorhomes**: $40,000–$150,000
To ensure you’re getting a fair deal, always check fair-market values through resources like J.D. Power (NADA) RV values and compare listings on platforms like
RV Trader.
Understanding Financing Costs
Financing through BHPH often involves higher APRs than traditional loans. For instance, financing a $25,000 RV with 10% down at an 18% APR over 48 months results in monthly payments of about $660–$670, with total interest paid ranging from $9,000 to $10,000. Opting for a shorter term or a larger down payment can significantly reduce the total interest.
Additional Ownership Costs
- **Sales Tax, Title, Registration**: Varies by state; check with your local DMV.
- **Insurance**: Ranges from $500 to $1,500 annually, depending on the RV type and use.
- **Maintenance and Repairs**: Budget 1%–3% of the RV’s value annually; pre-purchase inspections cost around $200–$500.
- **Storage**: Typically $50–$200 per month, depending on whether it’s indoor or outdoor.
- **Campground Fees**: $25–$80+ per night, based on amenities and location.
- **Fuel and Propane**: Expect 8–12 mpg for motorhomes; tow vehicles vary.
- **Accessories**: Initial costs for hoses, surge protectors, and other essentials can add $500–$1,500.
Types of RVs Available at BHPH Lots
The inventory at BHPH dealerships tends to vary based on region and season. However, you’ll often find popular pre-owned models. If you’re new to the RV lifestyle, familiarize yourself with the different types available:
Towable RVs
- **Teardrop & Pop-up Campers**: Lightweight and easy to tow, suitable for small SUVs and weekend getaways.
- **Travel Trailers**: Offer the broadest selection and price range, with various floor plans for families or couples.
- **Fifth Wheels**: Provide a spacious, residential feel but require a pickup with a bed-mounted hitch.
Motorized RVs
- **Class B**: Van-sized and nimble, perfect for solo travelers or couples, though they come with a higher price per foot.
- **Class C**: Known for over-cab beds and family-friendly layouts, typically more affordable than Class A motorhomes.
- **Class A**: Offer bus-style comfort and ample storage, but come with higher maintenance and storage needs.
Finding Reputable Buy Here Pay Here RV Dealers
For those seeking to purchase through BHPH, knowing where to look is key. Local independent RV dealers are a good starting point. A simple search for “buy here pay here RVs nearby” on Google Maps can yield useful results. Calling ahead to confirm on-the-lot financing and stock availability is advisable.
Additionally, some used car dealers may have RV sections, offering a handful of towable RVs or Class C motorhomes. Online marketplaces like
RV Trader and Facebook Marketplace also list options, though it's crucial to vet sellers thoroughly. Checking dealer reputations through the Better Business Bureau and reading recent Google reviews can also help ensure you’re dealing with reputable providers.
Advantages of Choosing Buy Here Pay Here
Opting for a BHPH dealership can offer several benefits:
- **Easier Approvals**: BHPH dealers often have more flexible underwriting criteria, making it accessible for those with limited credit history.
- **One-Stop Shopping**: You can choose and finance your RV in one place, often on the same day.
- **Flexible Payment Schedules**: Options for weekly or biweekly payments can better align with your pay schedule.
- **Potential to Build Credit**: If the dealer reports to credit bureaus and you maintain timely payments, your credit score may improve. Always confirm reporting policies in writing.
- **Older Models Accepted**: BHPH lots often finance vehicles that banks may not due to age or mileage.
However, it’s crucial to balance these conveniences against the typically higher APRs and fees. Always compare the total cost of payments, not just the monthly installments. For more detailed information on comparing loans and understanding your rights, refer to the
FTC’s guide to shopping for vehicle loans.
Tips for Getting the Best Deal
To secure a favorable deal, follow these strategies:
- **Set a Realistic Budget**: Keep your RV payment plus insurance under 10%–15% of your take-home pay.
- **Compare Offers**: Even if you’re set on using BHPH, obtaining a quote from a local credit union can provide a beneficial benchmark.
- **Be Prepared**: Bringing pay stubs, bank statements, references, and insurance information can expedite approval and improve terms.
- **Negotiate the Price, Not Just the Payment**: Insist on knowing the out-the-door price, APR, term, and total finance charge. A longer term might conceal an inflated price.
- **Opt for a Shorter Term**: It can lower total interest and help you build equity faster.
- **Consider a Larger Down Payment**: A 10%–20% down payment can reduce both the APR and monthly payments.
- **Read the Contract Thoroughly**: Be aware of prepayment penalties, late fees, and whether the dealer uses GPS/kill-switch devices. Ensure the dealer reports to credit bureaus if you’re aiming to build credit.
- **Get an Independent Inspection**: Hire an NRVIA-certified inspector to check for leaks, soft floors, roof issues, and appliance problems before committing.
Red Flags and How to Protect Yourself
To safeguard your investment, watch out for these warning signs:
- **No Right to Inspect**: If a dealer resists inspections or testing systems, walk away.
- **Salvage or Flood Titles**: Verify the title status and run a free check via NICB VINCheck.
- **Vague Warranties**: Ensure all promises are in writing, including coverage details, duration, and who pays for labor or diagnostics.
- **Payment-Only Sales Tactics**: Avoid sellers who won’t disclose the APR, term, or total payment amounts.
- **Pressure to Sign Immediately**: A legitimate deal today will still be a good deal tomorrow. Take your time to compare options.
Ready to Shop? A Quick Checklist
Before heading to the dealership, ensure you’re fully prepared:
- Confirm your tow rating (for trailers) and match hitch/weight specifications.
- Bring a moisture meter and flashlight to check for leaks or soft spots.
- Test all systems, including slide-outs, generator, fridge, furnace, AC, water heater, and lights.
- Request maintenance records and check tire DOT dates (replace around 5–7 years).
- Obtain the out-the-door price, APR, term, total payments, fees, and warranty details in writing.
- Price similar models on J.D. Power and RV Trader before negotiating.
The Bottom Line
Buy Here Pay Here RVs can be a viable option for those eager to embark on camping adventures, even with imperfect credit. Approach the process with careful planning: verify pricing with third-party sources, compare total loan costs, insist on an independent inspection, and ensure every term is documented. With a solid strategy and a reasonable budget, you can secure an RV that meets your needs without overspending.