20% of Americans became more interested in RVing due to the COVID-19 pandemic. Among the many types of RVs that people are buying are campervans. Campervans can serve as a more budget-friendly alternative to larger RVs and allow owners to see the country while also retaining a lot of flexibility as well. While a van conversion can be cheaper than buying a factory RV or campervan, it can still be costly. You’ll need to budget carefully and consider your financing options if you want to start living the van life. Fortunately, we’re here to help. In this van loan guide, we’ll tell you how to finance a van conversion.
Consider Auto Loans and RV Loans
One of the best places to start looking for van conversion financing is in typical auto loans or RV loans.
If you’re purchasing a van for your conversion and the vehicle isn’t yet considered an RV, then an auto loan may suffice. You might be able to get some great rates based on your credit score and personal finances. Be sure to check out CarsFast if you’re looking for an auto loan in Canada.
If the van has already been converted into an RV, then you might need to look for an RV loan instead.
Get a Personal Loan
Aside from getting an auto loan or an RV loan, taking out a personal loan could also allow you to finance a campervan conversion. However, keep in mind that a personal loan will usually carry a higher interest rate than an auto loan and it might also be more difficult to get approved.
However, if you’re interested in going this route, you’ll find that there are a lot of great lenders out there including banks, credit unions, and online lenders.
Apply for a P2P Loan
Whether you’re getting an auto loan or a personal loan, remember that there are a variety of alternative lenders to consider aside from banks, credit unions, and traditional financial institutions.
One of the great modern options to consider are peer-to-peer (P2P) lending platforms. P2P loans will be funded by individual investors and in some cases can be easier to get than a traditional loan will be.
There are a variety of online P2P platforms, so be sure to consider your options when looking for van conversion financing.
Take Out a Home Equity Loan
If you own a home, then a home equity loan (HEL) or a home equity line of credit (HELOC) are options that you can consider for funding a campervan conversion.
A home equity loan allows you to leverage your home’s equity to get funds. A HELOC works similarly, but serves as a revolving line of credit instead.
Making use of either one of these options for your campervan can be worthwhile if you already own a house and have a significant amount of equity in it.
Understanding Your Options for Getting a Van Loan
If you’re interested in getting a van loan for your conversion, be sure that you consider all of the possible van financing options. An auto loan, a personal loan, or a home equity loan are all worth considering if you’re serious about living the van life.
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