Perhaps you have dreams of retiring and traveling in an RV while exploring the countryside, spending more time relaxing, and enjoying your loved ones. Whether you’re close to retirement or not, your dreams could be within reach. Owning an RV has become increasingly popular in recent years as more people find new ways to travel and enjoy a more fulfilling and simple life.
Is owning an RV right for you? Before you make the investment, you'll want to know how much you can afford, the pros and cons of RV ownership, and your financing options. Here are a few things to keep in mind while determining if owning an RV is right for you.
Can you afford an RV?
The first step you’ll want to take before purchasing an RV is to research what you want and the cost. According to Cruise America, the average cost of an RV ranges from $35,000 to $300,000 depending on the RV class and features you want. Once you’ve decided what you want and you’re comfortable with the price, the next step is to create and review your budget to determine if you can comfortably afford an RV without putting a strain on your finances. It's also important to factor in the other costs associated with owning an RV such as insurance, taxes, RV gear, maintenance, and storage.
Pros and Cons of owning an RV.
There are always pros and cons with any major purchase. Here are a few to consider when it comes to owning an RV.
Pros.
- Let’s face it, traveling can be quite expensive. You could save lots of money traveling in an RV compared to traveling other ways. For example, you don’t have to pay for airplane tickets, hotel accommodations, and excursions.
- You have the freedom and flexibility to go whenever you want to go. It’s a great way to travel and explore the world. There are no flight cancellations or layovers. There are no hotel reservations to make or cancellation penalties if you need to cancel your trip at the last minute.
- When you’re ready to hit the road, the only things you'll have to pack are your clothes and the food you want to take for your trip. Most likely, your camping gear is already packed in the RV so there’s no unpacking and packing in preparation for every camping trip.
- Owning an RV enables you to relax and create memorable experiences. The space inside the RV is limited which allows for more interactions with your loved ones. The limited space could also be an encouragement for you to get out and explore nature and the great outdoors.
- You could live in your RV full time and make it your home, especially if you want to travel extensively. Also, RV ownership could save you thousands compared to the costs of owning a home. For example, costs and fees such as utility expenses and homeowner association fees could be drastically reduced or eliminated from the budget.
Cons.
- One of the biggest cons of RV ownership is the cost. Aside from the initial investment to purchase an RV, you'll also need to factor in the costs associated with sales tax, registration fees, and other long-term costs like regular maintenance and unexpected repairs. Also, you'll have to purchase all the necessary essentials for your RV. For example, you will need RV sewer and water hoses, toilet chemicals, a generator, an electric surge protector, fuel, RV parking fees, etc.
- If you plan to use your RV for traveling only a few times a year and not full time living, you’ll need a place to store your RV especially if you don’t have the space on your property or your homeowner's association doesn’t allow RVs to be parked in the driveway. In that case, there’s the option for indoor and outdoor storage and the cost could range from $100 to $400 per month depending on the type of storage you would need.
- If you use your RV for weekend getaways and vacations, you may be limited with how far you can travel because of time. You may not have the time or flexibility to travel long distances compared to those who are retired, work remotely, or live in their RVs full time.
- Adjusting to the limited spacing may be a challenge. Depending on the RV size, you may not have the extra room to move around or store your belongings, especially if you live full time in your RV.
Know the financing options.
Now that you’ve determined how much you can afford and you’re aware of the pros and cons of RV ownership, you may be wondering about financing options. The financing process for an RV works much like financing a car or boat. Before you apply for an RV loan, you'll want to research to find the interest rates and loan terms that best meet your financial situation and budget. At AllSouth, we offer RV loans with flexible terms and competitive interest rates.
Your dream of owning an RV and exploring more than your backyard is possible. If you do your research and know what’s involved in owning an RV, it could be a great asset to you. RV ownership could be an adventurous lifestyle that’s rewarding, satisfying, and filled with endless possibilities to create wonderful memories.