Have you ever envisioned yourself having a full-time RV lifestyle? Well, an RV can be an ideal remedy to get you on the road at your own pace. You can adequately connect with nature, experience the freedom of driving, and get an opportunity to explore the nation’s beauty.
But should you rent to own an RV? The simple answer is Yes. Especially if you are not completely sure if you want to own an RV. Keep reading to find out all the details about rent to own an RV.
- 1 How the Rent to Own RV Program Works
- 2 How Much Does It Cost to Rent Own an RV
- 3 Things to Consider Before Renting to Own an RV
- 4 What Is the Minimum Credit Score for RV Loan
- 5 Advantages of Renting to Own an RV
- 6 Rent to Own RV Cons
- 7 So Is Renting to Own an RV Worth It
- 8 Where to Find Rent to RVs Near You
How the Rent to Own RV Program Works
Most people contemplate buying an RV at some point in life but drop the idea along the way because of several hindrances such as initial cost, increased taxes, limited utilization, insurance, maintenance, wear and tear, service fee, and other expenses.
Fortunately, renting an RV has emerged as the ideal solution to this financial problem. It is the perfect remedy for individuals who are not creditworthy or who have zero credit history, but it could ultimately be a path to RV ownership for anyone.
Just as the name suggests, a rent-to-own program is where some portion of your monthly rent pays for the RV over time. As time progresses, your regular monthly payments accumulate until you have sufficient to own the RV. Eventually, you gain full ownership of the RV at the end of the lease.
You formulate the terms of the rent to own in advance and then sign a contract that highlights the rent you propose to pay to buy it. The contract also entails the total monthly payments and the portion to be channeled towards the overall cost of the RV.
Lastly, it involves the point at which you will come up with a decision of whether to buy the RV or not. It is remarkably essential to know that if you fail to purchase with rent-to-own contracts, you will ultimately lose the whole money you have been contributing towards the cost through your rent payments. In lieu, the payments are strictly used as rent. Eventually, the RV owner or the dealership keeps the money.
Renting an RV is an unusual way to avoid the numerous roadblocks curbing you from acquiring financing from an RV as you may not be obtaining a loan from the bank. That’s because they have a minimum credit requirement since the rent-to-own contract is minimal risk for the seller.
How Much Does It Cost to Rent Own an RV
The cost of renting to own an RV may depend on several factors, such as the models and features. The average cost of an RV ranges from $10,000 to as high as $500,000 and above. Therefore, you may end up paying less than this when purchasing a used RV.
Things to Consider Before Renting to Own an RV
Here is a list of factors you need to think about before deciding to rent to own an RV.
The Various Types of Rentals
Researching the different RV rentals can be overwhelming. Before renting to own an RV, consider the type you are interested in renting to own and decide what works best for your needs.
The Size of the RV You Need
The size of the RV to rent may depend on the family size and whether or not you will be undertaking any camping with it.
The Amount of Each Monthly Payment
Your monthly payment should aim to reduce the installments. The less you pay, the more time you take to clear the entire amount. Thus, you end up paying more than necessary.
The Sale Price
The cost of renting to own an RV is very crucial. Before deciding to buy one, ensure you get a reasonable price from the RV owner or dealership.
The Issues of Maintenance and Repairs
In most cases, paying a rental fee doesn’t mean the burden of maintenance and repairs is transferred to the owner. However, it is important to check the contract’s states before committing to the agreement. It is crucial to buy from an owner who bears such costs.
What Is the Minimum Credit Score for RV Loan
You stand higher chances of getting a bank loan if you have a credit score of 670 and above. The minimum credit score for an RV loan is 550. However, it is crucial now to understand that these loans will normally have a higher interest rate and need a huge down payment.
Advantages of Renting to Own an RV
Below are the benefits of renting to own an RV:
Lower or No Down Payment
Renting an RV to own is more advantageous compared to when you purchase it outright. With this option, you tend to pay a lower down payment, and in some cases, you may not be required to pay a down payment at all.
It’s a Good Option for People With Low or No Credit Scores
Since the financing is not coming from a bank, the RV owner or the dealership company will arguably not run a credit check. This option means that you can still rent to own an RV if you are credit unworthy.
A Portion of the Monthly Rent Is Applied Towards the Overall Cost of the RV
When you rent to own an RV, part of the monthly payment goes toward the entire cost of the RV. You have the opportunity to negotiate the amount that is deducted for the purchase each month.
You Become the Owner of the RV at the End of the Lease
The best part about this arrangement is that after the duration of the lease the RV is paid for has elapsed, the RV becomes yours.
There Is a Vast Array of RVs to Select from
When you rent an RV to own, you have the benefit of choosing any type you want to lease from the huge variety of RVs.
Rent to Own RV Cons
Below are some of the disadvantages of renting to own an RV:
The major issue while renting an RV to win it over the years is the depreciation value. As time progresses, the RV prices are undoubtedly going to reduce dramatically if the model is precisely old.
Therefore, by the time you pay off the last installment, the current market price of the RV would be considerably lower than the overall amount paid throughout renting to acquire ownership.
Not Customized With all Desired Kind of Fittings
When you rent to own an RV, you may not get all the desired fittings you actually comprehend and expect. In the long run, you may end up incurring more money to equip the RV with all the desired things that you would like it to have.
Since most people are shifting to this option to gain assets that your finances and credit score do not permit using the conventional methods, an overwhelming majority of individuals have begun turning in for personal gains.
Hence, numerous scammers have intrinsically emerged whose primary aim is to defraud people of their money while offering them an RV that could probably be stolen or one that possesses fake papers.
Repair and Maintenance Costs
You are entirely responsible for maintenance and repairs when you rent to own an RV. However, this may not necessarily be the case if the contract states otherwise.
So Is Renting to Own an RV Worth It
If you are in a situation where you can manage to offset monthly expenses and other small expenses, but you can’t necessarily afford a substantial down payment outright, renting to own is absolutely worth it.
Where to Find Rent to RVs Near You
The best to get an RV rent to own is your local dealership. If you want to work with private RV owners, you can check them on Facebook and Craigslist.
However, it is imperative to conduct a profound background check to avoid dealing with swindlers. Big RV rental companies such as RVShare and Outdoorsy do not offer the option of rent to own RVs.