FLEXIBLE FINANCING OPTIONS MAKE BUYING AN RV EASIER

RESTON, Va. -- Financing a recreation vehicle (RV) is easier than ever with attractive interest rates and financial institutions acreoss the country offering flexible payment plans to meet buyers' needs. RVers are also able to take advantage of IRS tax deductions while enjoying their purchase.

One factor making it easier to purchase an RV is the predominant attitude among lenders that RVers are reliable buyers. A low 1.09 percent of all RV loans are delinquent. As a result, lenders are extending RV loans terms and making monthly payments more affordable, according to a survey of RV lenders jus published by Recreation Vehicle Industry Association (RVIA).

Loans for new, large RVs typically range from 10 to 12 years, with many even extending 15 years. Whether the purchase is financed through a bank, savings and loan, finance company, credit union or RV dealer, six out of ten lenders require less than a 20 percent down payment. Most of the remaining lenders require a 30 percent payment with about 7 percent of lenders requiring up to a 25 percent down payment.

Long terms for used RVs usually require 20-25 percent down payments, but initial outlays are small because used RVs are priced lower. This makes it easy for the family on a budget to get into the RV lifestyle economically. Financing packages for used RVs generally extend from four to eight years.

For the vast majority of RV buyers, the interest on their loan is deductible as second home mortgage interest. To qualify, the RV must be used as security for the loan and must have basic sleeping, toilet and cooking accommodations. Virtually all RV types - motorhomes, van campers, travel trailers, truck campers and even some folding camping trailers - are equipped with these facilities. The Internal Revenue Service (IRS) publishes two booklets that contain helpful information regarding the tax deductibility of RV loan interest. Copies of "Publication 936 - Home Interest Deduction" and "Publication 523- Selling Your Home" are available by calling the IRS at 1-800-829-3676.

"Flexible, financing options make buying an RV easier than ever," said RVIA President David J. Humphreys. "Families can readily find a vehicle and payment plan to fit their needs. Small towable RVs start as low as #3,500 and now motorhomes can be had for approximately $61,000 -- much less for a used RV."

When considering and RV purchase, Humphreys recommends assessing the varied forms of equity available for credit and financing purposes. There are also other financial advantages of owning an RV.

RVs traditionally have good resale values. Units 10 years old and even older frequently sell for almost the same amount today as when they were originally purchased. Recreation Vehicle Dealers Association has reported an unprecedented demand for used RVs in the past few years.

Some owners rent out heir RVs when not in use. Depending on the time of year, dealers and rental outlets usually charge from $70 to $170 per day for motorhomes and from $50 to $120 per day for truck campers or travel trailers. Individuals who rent their personal units usually charge less but still profit because of the high rental demand.

To find an RV dealer near you check the Yellow Pages under "Recreation Vehicles -- Dealers." A free booklet on "Choosing & Your RV" and a complete directory of RV shows, publications and clubs is available by writing to: RVIA, Dept. PR, P.O. Box 2999, Reston, VA 20195-0999.