How to Finance your Dream Van Conversion
Converting a van into a camper or mobile living space can involves a significant financial investment. Here are detailed methods to finance your van conversion project:
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Bundling Conversion Costs with the Vehicle Loan
Combining the purchase price of the van with the conversion costs into one loan is a convenient option. This method often uses vehicle financing plans, such as those from Mercedes-Benz Financial. When using this approach, be prepared for the possibility of needing a substantial down payment, especially if the total cost exceeds the lending limits.
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RV Loans
Some banks offer specialized RV loans that cover both the vehicle and the conversion costs. For example, Umpqua Bank has a structured process involving three main steps:
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Purchase of the van.
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Completion of the buildout or conversion.
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Refinancing the initial loan into a longer-term RV loan.
These loans typically have longer terms and may provide lower monthly payments compared to standard auto loans.
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We've partnered with a couple brokers to assist you in the purchase process. Message us on our contact page or contact them directly at:
My Financing USA
Maria Kellogg
502-630-0780
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RVLoanGuy.com
619-699-9900
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Alternative Financing Options
If traditional loans are not suitable, consider these alternatives:
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Home Equity Line of Credit (HELOC): Utilize the equity in your home to secure a line of credit that can be used for the van conversion.
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Home Refinance: Refinancing your mortgage can free up cash that can be directed towards your van conversion project.
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Personal Loans: Companies like SoFi and Upstart offer personal loans that can be used for large expenses, including vehicle conversions.
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Important Considerations
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Credit Score Requirements: A strong credit score, typically above 690, is essential to qualify for favorable loan terms.
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Loan Terms and Interest Rates:
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Auto Loans: These generally span from 24 to 72 months with Annual Percentage Rates (APRs) ranging between 4.99% and 9.99%.
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RV Loans: These can extend up to 180 months, with APRs from 6% to 15%, providing flexibility in repayment.
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Conclusion
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Financing a van conversion requires careful planning and consideration of various financial products to find the best fit for your situation. Whether you choose to bundle costs, take out an RV loan, or explore alternative financing, understanding your options and credit requirements is crucial. Partnering with Exodus Builds makes this process much simpler.
