The longest term you can typically get on an RV loan is 20 years, though terms that long are reserved for secured loans on higher-priced RVs. Most RV loans fall in the 5 to 7 year range, and reaching 15 or 20 years requires meeting specific lender requirements around loan amount, creditworthiness, and collateral.
How RV Loan Terms Break Down
RV loan terms generally range from 5 to 20 years, and where you land within that range depends mostly on two things: whether the loan is secured or unsecured, and how much you’re borrowing.
Unsecured RV loans, where the lender has no claim on the vehicle if you default, typically max out at 5 to 7 years. These work more like personal loans and carry higher interest rates because the lender takes on more risk.
Secured RV loans use the RV itself as collateral, which gives lenders more confidence to extend repayment over a longer period. Secured terms can stretch to 12 years or longer, with some lenders going up to 15 or 20 years for larger loan amounts. The logic is straightforward: a $150,000 Class A motorhome needs a longer repayment window to keep monthly payments manageable, while a $20,000 travel trailer doesn’t justify a two-decade loan.
What Qualifies You for the Longest Terms
Getting approved for a 15 or 20 year RV loan isn’t automatic. Lenders evaluate several factors before offering their longest terms.
- Loan amount: Larger loans are more likely to come with extended terms. Lenders generally reserve their longest repayment windows for high-value RVs, often Class A or Class C motorhomes that cost six figures.
- Credit score: Strong credit opens the door to longer terms and better rates. Current RV loan APRs range from about 6.49% for borrowers with excellent credit up to 35.99% at the high end, so your credit profile significantly affects both your term options and your total cost.
- RV age and type: Most lenders cap term length based on the model year. A brand-new motorhome is far more likely to qualify for 20 years than a used one, since the lender needs the collateral to retain enough value over the life of the loan.
- Intended use: Some lenders ask whether the RV will be your primary residence. How you plan to use the vehicle can affect both your eligibility and the terms offered.
The Cost of Stretching Your Loan
A longer term lowers your monthly payment, but it dramatically increases how much you pay overall. This is the core tradeoff with RV financing, and it’s worth running the numbers before committing to the longest available term.
Consider a $100,000 RV loan at 8% interest. Over 10 years, you’d pay roughly $45,600 in total interest. Stretch that same loan to 20 years and you’d pay approximately $100,700 in interest, more than doubling your cost. Your monthly payment drops from around $1,213 to $836, saving you about $377 per month, but the price for that breathing room is an extra $55,000 over the life of the loan.
Interest rates also tend to climb with longer terms. Lenders reward shorter repayment periods with lower rates because they’re taking on less risk. Choosing a shorter term is one of the most straightforward ways to lock in a better rate.
When a Long Term Makes Sense
A 15 or 20 year RV loan isn’t inherently a bad deal. For expensive motorhomes that function as a second home or even a primary residence, it can be the only realistic way to afford the purchase without draining your savings. Some RV loans on qualifying vehicles even allow you to deduct mortgage interest on your taxes, since the IRS treats certain RVs as a second home if they have sleeping, cooking, and bathroom facilities.
The key is making sure the loan term doesn’t outlast the RV’s useful life or resale value. An RV that depreciates faster than you’re paying down the loan puts you “underwater,” meaning you owe more than it’s worth. This becomes a real problem if you want to sell or trade in before the loan is paid off. If you do take a long term, consider making extra payments when you can to stay ahead of depreciation and reduce your total interest cost.
Where to Find Long-Term RV Financing
Banks, credit unions, and specialized RV lenders all offer RV financing, but their maximum terms vary. Credit unions often have competitive rates and may offer longer terms on secured loans. Specialty RV lenders that work exclusively with recreational vehicles sometimes offer the most flexible terms, particularly for new, high-value units. Dealership financing is another option, though it’s worth comparing any dealer offer against what you can get from a direct lender.
Before you apply, get preapproved with at least two or three lenders. This gives you leverage at the dealership and a clear picture of what term lengths and rates are actually available to you based on your credit, income, and the specific RV you’re buying.