If you’re in love with camping and the great outdoors, you could take things to the next level by purchasing a camper or tent trailer. These pull-behind camping options provide you with accommodations wherever you go, which can help reduce your travel costs. That said, purchasing a camper does come with a significant upfront cost, which is why you may want to consider financing your purchase.
Key Points You Should Know About Camper & Tent Trailer Financing
- You can finance a camper for up to 20 years
- A down payment of 15% – 20% is standard when purchasing a new camper
- Financing rates are similar to auto loans
- It pays to shop around for loans
- Buying a used camper is significantly cheaper than new
Can You Finance A Camper Or Tent Trailer?
Depending on your purchase, a tent trailer or camper trailer can cost anywhere from $15,000 to $60,000. Similar to regular automobiles, if you opt to buy used, you can get a lower price. Whether you decide to purchase new or used, you can get camper financing, which will help you manage your overall costs.
New vs. Used Camper Financing Features
| New Camper | Used Camper |
| Lower interest rates | Higher interest rates compared to new campers |
| Longer loan terms | Loan terms are typically shorter compared to purchasing new |
| Manufacturers may offer special financing | Financing is available through banks, used dirt bike dealerships and private lenders. |
| More expensive | Lower cost compared to new |
| Fast depreciation | Insurance is typically cheaper |
Camper Financing Features
That said, you should consider a few things when making a decision.
Interest Rates
Camper financing rates will vary by lender. In addition, the rates you’re offered will depend on the current Bank of Canada overnight lending rate. When it comes to rates, it always pays to shop around. First, check the rates your dealer offers and ask if there are any promos for manufacturing financing. You could also check with your bank or credit union to see if they offer camper financing. Generally, loan rates are similar to those of an auto loan.
Down Payment
You’ll need a down payment of 15% – 20% when purchasing a new camper. That means if you’re looking for a trailer that has a price of $45,000, you need to have $6,750 – $7,000 saved.
Loan Term
You also need to consider the term and amortization. It’s common to offer RV camper financing on a 20-year amortization schedule. This makes your monthly payments appear affordable. However, since the amortization period is so long, you pay significant interest.
Additionally, you need to look at the term. Some lenders will offer a good rate for the first term. For example, five years. However, after that term expires, you’ll need to get a loan at the current market rate, which may be higher than what you previously paid. On a 20-year amortization, you could end up with four different five-year terms.
How To Apply For Camper Financing In Canada
You can apply for camper financing by:
- Visiting a dealership: If you want to purchase a camper, the easiest way to finance it is usually from the dealership. They will offer competitive rates, but they’re not always the cheapest.
- Applying directly with a manufacturer: When visiting a camper dealer, they may advise you that manufacturer financing is available. This option is often cheaper than what dealers can offer.
- Applying directly with a lender: Another option is to check with your financial institution or a lending company to see if they offer financing for campers and tent trailers. The rates and terms offered may benefit you.
What Do You Need To Apply For Camper Financing In Canada?
Similar to a regular car loan, you’ll need to provide documents such as your identification, proof of income, proof of address, and social insurance number. You’ll also need to:
- Provide a down payment: A down payment of 15% – 20% is often required. The larger your down payment, the less you’ll pay overall for your new camper.
- Undergo a credit score: No exact credit score is required to be approved for camper financing since it varies by lender. That said, a good to excellent credit score can help you secure better interest rates and favourable terms.
- Get insurance: Insurance is required before you drive the camper or tent trailer off the lot. Be sure to check with multiple insurance providers to get the best quote.
- Get a license: Generally, a standard driver’s license is required to drive motorhomes and recreational vehicles under 11,000 kg. Some lenders will want you to have a valid license to ensure you can legally drive the financed camper.
Can You Finance A Camper or Tent Trailer With Bad Credit?
Getting financing for a camper or tent trailer with bad credit is possible, but it can be challenging. Generally, you’ll be rejected immediately by a bank if you have a low credit score. That said, some lenders are willing to work with people with lower credit scores. However, due to this added risk, lenders may charge you a higher interest rate. You may also be required to come up with a larger down payment.
Another option for getting a loan with bad credit is to get a cosigner. This can make sense if you purchase the vehicle with your spouse or partner. However, this does come with some risk, as if the relationship breaks down, the cosigner is responsible for the loan.
A poor credit score is just one consideration when lenders consider your application. They’ll also examine your income, debt, and potentially even your investible assets. Pay off any existing debt and show the lenders that you have a stable income to increase your chances of being approved. You should also avoid other credit hits as you don’t want your potential lender to wonder why you’ve been trying to access new credit.
Can I Finance A Camper If I’ve Declared Bankruptcy?
Having filed for bankruptcy doesn’t automatically exclude you from future loans. That said, there will likely be more scrutiny, and you may only qualify at a higher interest rate. If available, manufacturer financing may be an option as they may be looking to clear inventory and are more open to exploring your whole financial picture, such as your current credit score, income, and debt.
Also, when applying for a loan, you should be patient. If your bankruptcy has already been discharged, it can be beneficial to wait a year before applying for a new loan, as that would give your credit score/history some additional time to recover.
Can I Finance A Camper If I’ve Filed A Consumer Proposal?
It is possible to get a camper loan if you’ve filled or are currently under a consumer proposal. The first step would be to contact your proposal administrator to ensure that any potential loan fits into your budget and does not affect any payment obligations you have under your consumer proposal.
That said, since your consumer proposal administrator will need to see the loan terms before they can advise you, it might be worth shopping around for financing to see your available options. The loan terms may not be favourable since you’re already under a consumer proposal.
Learn more: Can I Get A Loan While In A Consumer Proposal?
Calculate Your Camper Loan Payments
A camper or tent trailer can easily cost $15,000 to $60,000. Similar to cars, the fancier the model, the more you’ll pay. Pop-up and teardrop-style trailers are typically the most affordable. Truck campers and hybrid trailers are on the higher end of the scale since they’re bigger and offer more features.
Buying new will always be more expensive since you’re getting the latest technology. If you want to save, used campers can be reasonably priced as the depreciation is significant in the first few years.
Besides the actual cost of the camper, also consider the terms of the loan as it will impact your total cost. While taking a longer amortization – such as 20 years – may make the monthly payments appear lower, you’ll pay much more in the long run. With an amortization of 20 years, you’ll likely have at least four different term loans, so you need to consider the total potential cost.
Loans Canada Can Help You Find Camper & Tent Trailer Financing In These Provinces
- Ontario
- Alberta
- Quebec
- British Columbia
- Nova Scotia
- Manitoba
- Saskatchewan
- New Brunswick
- PEI
- Newfoundland and Labrador
Additional Factors To Consider When Purchasing A Camper
Purchasing a camper or tent trailer is a major decision. Not only will it cost you a significant amount, but there are also other camper costs. Besides the monthly financing costs and insurance, you’ll also factor in the following camper costs:
- Storage: Unless you have storage availability at your current home, you may need to rent a storage unit for your trailer. The storage cost will differ, but a good estimate is $100 – $300 monthly. Note that some storage facilities offer pricing just for the winter months, which can help lower costs.
- Maintenance: How much you spend on maintenance will depend on how much effort you want to put in. Winterizing your vehicle may cost only $200 a year, but you’ll also need to factor in parts, such as tires and panels, being replaced every few years.
- Special parking permits/ campground fees: Campground fees vary, but you can expect to pay between $30 and $80 per night.
- Registration fees: Depending on the province or territory in which you reside, you’ll need to pay plate, permit, and validation fees. This will total about $75 a year in Ontario.
- Fuel: Campers and tent trailers don’t need gas, but due to their added weight, you’ll spend more fueling your vehicle.
Do You Need A Special License To Tow A Camper Or Tent Trailer In Canada?
Regardless of your province or territory, you’ll typically only require a standard driver’s license to drive an RV or camper trailer. That said, a few different rules apply depending on where your license is from. For example, a Class 5 license from Alberta is fine if the RV does not have air breaks. In Ontario, a full class G license is sufficient as long the combined weight of the motor vehicle and RV is not more than 11,000 kg.
How To Insure A Camper Or Tent Trailer In Canada
Similar to autos, camper or tent trailer insurance is mandatory. Towable trailers have the most affordable insurance, whereas Class A motorhomes are the most expensive since they act as a home more than a vehicle.
To cover yourself, speak to a licensed insurance advisor, who can discuss different pricing options. Coverage will differ depending on the type of RV and how often you’ll be using the trailer. As the trailer is a separately registered vehicle, you need to insure it separately from your main automobile.
