Driving the nation in a comfortable motorhome while visiting attractions, state parks, and unique shops is a unique experience, with more people turning toward an RV lifestyle.
This leads us to ask: have you always wanted to purchase an RV, but you never quite meet the criteria with traditional buying avenues? Or do you want to explore your options to determine if renting to buy is better for you?
If so, you’ve come to the right blog, as our team at Cruise America is going to explain the pros and cons of renting to buy an RV. This way, you can determine if you should rent to buy an RV over a period of time or if buying outright is a better choice for you.
What Exactly Is Rent To Buy?
Rent to buy RV — what does this mean? Ultimately renting to buy is a way for people to become motorhome owners without needing to meet traditional financing requirements. It is a process that makes it easier for individuals to travel the nation in a reliable motorhome.
A rent-to-buy RV allows you to give it back after the rental term is complete or buy it outright. At Cruise America, we offer clients a rent-to-buy option, and the process is straightforward.
The Pros of Renting To Buy a Motorhome
Suppose you’re eager to purchase a motorhome, but your financial circumstances require you to seek alternative financing. In that case, you may want to consider renting to buy with a reliable company like Cruise America. Below we have briefly listed a few pros of renting to buy an RV that will help you decide.
There Are No Credit Checks
Unlike traditional RV financing, you won’t need to undergo a credit check if you want to rent to buy a motorhome. All you will be required to do is provide proof of residence, identification, and income. This means that if you’re an individual who is struggling with bad credit or if you’ve recently had to file for bankruptcy, you can still rent to buy without being turned away.
You Won’t Have To Work With A Bank
Unfortunately, most banks don’t provide a loan for motorhomes older than 15 years old. This often presents a significant obstacle to those who want to try out the RV lifestyle but are not quite ready to commit to it by spending thousands of dollars on a new rig.
Luckily, renting to buy might be the best option if you’re in the RV market for an older-style motorhome that will cost you less to buy and maintain. In addition to being more cost-effective, you’ll also have numerous RV styles to choose from, and you can even opt for an older model if you find its appearance and specifications attractive.
Fewer Upfront Costs
Let’s face it, if you buy a brand new motorhome outright, you will be set back tens if not hundreds of thousands of dollars. In addition, traditional financing through banks will require you to place down a large down payment. You’ll likely also have to contend with high monthly installments because you’ll be limited to newer models.
In today's economy, many people don’t have thousands of dollars for a large down payment, and many don’t want to go the bank loan route. If this sounds like you, renting to buy an RV could be the best choice. When you choose to rent to buy, you will have far fewer upfront costs.
Usually, you will only need to pay a small down payment, and you’ll often have the chance to negotiate your monthly payments, so you’re guaranteed to be able to afford them.
The Cons of Renting To Buy a Motorhome
Just as there are advantages to every situation, there are also disadvantages, and renting to buy an RV is no different. Unfortunately, renting to own is not always the best option for some adventurers.
Below we’ve spoken about some of the cons you could face if you choose to rent to buy that you need to be aware of to make a sound financial decision.
You Could Be Responsible For Maintenance and Repairs
Many people don’t realize that unless an agreement or contract states that the dealership, private individual, or rental company will cover the repairs and maintenance, you will be responsible for them.
This means that if you don’t carefully read your contract, you could suddenly find yourself responsible for unexpected and expensive payments. For example, if you’ve rented an RV and the engine blows on your road trip, you will have to pay to replace it if there is no agreement stating another party is responsible.
You Won’t Have a Customized Motorhome
One of the biggest downsides of renting to buy an RV is that, in most instances, you won’t be able to choose to add-on packages or customize them. For example, when you purchase a brand-new motorhome, you can choose which packages you want, such as a winter package or a sports package.
In contrast, when renting to own, you won’t be able to do this, so you might not get all of your desired fittings, features, and amenities. Sadly, this means that you might need to spend more, in the long run, to equip a rent-to-buy RV with all the features and amenities you would like to possess.
More Frequent Payments That Don’t Help Your Credit Report
Many rent-to-buy RV contracts will need you to pay far more often. In many instances, you will need to pay weekly or bi-weekly. Unfortunately, depending on your financial circumstances, this could be incredibly challenging or near impossible.
Additionally, you should note that even though you are paying more frequently and on time, rent-to-buy RV contracts don’t report your payments to the bank, meaning it won’t help you re-establish credit. After all, since a lease doesn’t require financing, there is no reason for the bank to be involved.
Rent To Buy An RV With Cruise America Today!
As you can see, there are many benefits and negatives surrounding renting to buy an RV. Even though the benefits often outweigh the disadvantages, it’s a good idea to examine a renting-to-own contract from all angles before making a final decision.
Should you decide that you want to rent to buy an RV, you can speak with our experts at Cruise America. We have extensive experience in the recreational vehicle field and offer rent-to-buy contracts to clients. If you want to buy a preowned RV outright, we can also help you, as we have an extensive selection that you can pursue.
Simply give us a call or contact us here, and we’ll help you find the right motorhome to rent to buy or purchase outright.