Tim Harrison

Tim Harrison


Is Taking Over RV Payments a Bad Idea?

by Tim Harrison 06/22/2024

Owning a recreational vehicle (RV) can be a dream come true for many, promising adventures on the open road and the freedom to explore. However, when it comes to financing this dream, one option that often surfaces is taking over someone else’s RV loan payments. It might sound tempting – a shortcut to bypassing lengthy loan approvals and potentially lower upfront costs. But hold that thought! Before you take the plunge, it's crucial to understand why this path can be full of risks and deprived of the benefits that come with purchasing an RV through traditional means.

1. Building Credit: A Missed Opportunity

One of the hidden perks of financing an RV through a secure loan is the opportunity to build your credit score. Timely payments on a loan that's in your name can positively impact your credit history, paving the way for better loan terms in the future. Every payment you make on your RV isn’t just about paying off a vehicle. It’s about building your future. By taking over someone else’s payments, you miss out on this chance to enhance your creditworthiness.

2. Establishing Lending Relationships

Purchasing an RV through a bank or financial institution helps you build valuable lending relationships. These relationships can be beneficial for future investments or purchases. Unfortunately, when you bypass this route, you lose the opportunity to establish a rapport with lenders, which could be a disadvantage in the long run.

3. Securing Ownership: Legal and Financial Implications

Ownership goes beyond having the keys to the RV. When a loan is not in your name, the legal standing of your ownership can be murky. In the eyes of the law and the original lender, the RV still belongs to the original loan holder. This arrangement can lead to complex legal situations, especially if disputes arise. 

4. The Confidence of Independent Purchasing

There's a certain confidence and sense of achievement that comes with purchasing an RV on your own. It's not just about the financial transaction but also about the learning and experience gained in the process. Taking over payments deprives you of this personal growth opportunity.

5. Missing Legal Protections

Purchasing an RV through standard channels comes with consumer protections. This includes warranties, the right to return, and other legal safeguards. When your name isn’t on the initial paperwork, you may not be entitled to these protections, leaving you vulnerable to unforeseen issues.

6. The Risk of Changing Circumstances

When you take over someone else’s loan, there’s always this little voice in your head asking, “What if they change their mind? What if something goes wrong?” That’s not fun. But when it’s your loan, your RV, that little voice goes quiet. You don’t have to worry about sudden surprises or changes because you’re in control.

People's situations can change – they might encounter financial difficulties, or there could be disagreements about the arrangement. These changes can leave you in a difficult position, both financially and legally.

Bottom Line

While taking over an RV loan payment might seem like a shortcut to your dream, the reality is that it's a path riddled with risks and devoid of many benefits. The wiser course of action is to secure your RV through a proper loan in your name. Not only does this ensure legal ownership and credit benefits, but it also provides a sense of security and achievement, knowing that your dream RV is truly yours.

Imagine this: You’re lying in bed after a cool trip in your RV, and instead of worrying about all the “what ifs” of not really owning it, you’re just thinking about where to go next. That’s because the RV is 100% yours. You signed the papers, the loan's in your name, and every payment you make is a step closer to fully owning it. 

At RV Depot, we can help you achieve this peace of mind. We help families every day find the RV of their dreams. We can get you approved regardless of your credit history, so why would you even consider any other option?

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