Finance Recreation

Common Myths Associated With Recreational Financing

by Brenda | March 30, 2021

Common Myths Associated With Recreational Financing

Every consumer has different ideas of the process involved in financing recreational product purchases. Some may think that it is all based on their credit score and if they have current loans or not. Others may assume that it’s easier than getting a car loan. Potential RV buyers must learn the basic facts before they consider their financing options.

Myth #1: There Are No Options for Bad Credit Borrowers

Although the credit score is an important component, the borrower’s financial profile is only one factor that lenders consider. They also look at the individual’s salary, length of employment, the recreational vehicle’s age, and additional collateral, if any. Recreational product financing providers realize that many people have bad credit; low credit scores may be due to student loans, credit card debts, or unforeseeable circumstances. As a result, many providers provide lenient options for bad credit borrowers.

Myth #2: Approval for Recreational Vehicle Loans Is the Same as for a Car Loan

Some people think that a recreational loan is the same as a car loan. The reality is that getting approved for a recreational loan is more difficult due to the increased risks of late payments when the customer gets into a financial bind. When customers are having financial problems, they may fall behind on their RV loan payments – the luxury purchase – while continuing to pay off their car or mortgage loans.

Myth #3: Only the RV Is Being Financed

Consider the full range of benefits that you get in an RV financing plan. You are not solely covering the vehicle but also the costs of certain types of insurance, service contracts, and more. The loan amount increases when you include additional coverage for other types of expenses.

Myth #4: A Down Payment Is Not Necessary

Not making a down payment is only recommended if you want to spend extra money on interest (and who does?). A down payment is an ideal option for borrowers to save money by reducing the total cost of the loan repayments, which includes the monthly principal amount and interest. For more affordable payment terms, every borrower should have a down payment equal to typically 10-20% of the RV’s purchase price.

Myth #5: The Purchase Price Is Nonnegotiable

For any new or used vehicle that exists, the borrower can negotiate the purchase price. Some of the best negotiating opportunities may be if hidden damage is found on the vehicle or if the RV’s price and value are incorrectly stated. However, your negotiated price must be an industry standard that is supported by research at other dealerships, private sales listings, or current automotive/RV guides.

The recreational product industry will always be a world of great opportunities for people looking to buy an RV. Securing a loan is the less fun part that means researching interest rates, understanding payment terms, and reviewing the myths associated with recreational product loans. Recreational dealerships should help their customers select the perfect RV and remind them of their financing options.

If you are interested in offering financing to your customers, please contact Medallion Bank. We specialize in helping recreation dealerships finance customers with past credit challenges, including bankruptcy and other credit issues.

Home Improvement

Hours of Operation Monday – Friday
8am – 6pm MT
Saturday
9am – 4pm MT

Holiday Closures

Please note: Holiday closures are not the same for the Recreation and Home Improvement Departments.

  • New Year’s Day
  • Labor Day
  • Memorial Day
  • Thanksgiving
  • Independence Day
  • Christmas
  • New Year’s Day
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving
  • Christmas
  • Day before Thanksgiving,
    Wednesday,
    November 26, 2025
    – Closing at 3:00 MT

    Day after Thanksgiving,
    Friday,
    November 28, 2025
    – Closing at 4:00 MT
  • Day before Christmas,
    Wednesday,
    December 24, 2025
    – Closing at 3:00 MT

    Day After Christmas,
    Friday,
    December 26, 2025
    – Closing at 4:00 MT

    Saturday after Christmas,
    December 27, 2025
    – Closed
  • New Year’s Eve
    Wednesday,
    December 31, 2025
    – Closing at 4:00 MT

    Day After New Years,
    Friday,
    January 2, 2026
    – Closing at 4:00 MT

    Saturday After New Years,
    January 3, 2026
    – Closed

Home Improvement Application Processing Open as Follows

Home Improvement loan application processing is open on the following holidays. All other departments are closed.

  • Martin Luther King Jr. Day
  • Columbus Day/Indigenous Peoples’ Day
  • Presidents’ Day
  • Veterans Day
  • Juneteenth
  • Martin Luther King Jr. Day
  • Presidents’ Day
  • Juneteenth
  • Columbus Day/Indigenous Peoples’ Day
  • Veterans Day

Recreation

Hours of Operation Monday – Friday
8am – 5pm MT
Closed Weekends

Holiday Closures

  • New Year’s Day
  • Labor Day
  • Martin Luther King Jr. Day
  • Columbus/Indigenous Peoples’ Day
  • Presidents' Day
  • Veterans Day
  • Memorial Day
  • Thanksgiving
  • Juneteenth
  • Christmas Day
  • Independence Day
  • New Year’s Day
  • Martin Luther King Jr. Day
  • Presidents' Day
  • Memorial Day
  • Juneteenth
  • Independence Day
  • Labor Day
  • Columbus/Indigenous Peoples’ Day
  • Veterans Day
  • Thanksgiving
  • Christmas Day
  • Day before Thanksgiving,
    Wednesday,
    November 26, 2025
    – Closing at 3:00 MT

    Day after Thanksgiving,
    Friday,
    November 28, 2025
    – Closing at 4:00 MT

    Day before Christmas,
    Wednesday,
    December 24, 2025
    – Closing at 3:00 MT
  • Day After Christmas,
    Friday,
    December 26, 2025
    – Closing at 4:00 MT

    New Year’s Eve
    Wednesday,
    December 31, 2025
    – Closing at 4:00 MT

    Day After New Years,
    Friday,
    January 2, 2026
    – Closing at 4:00 MT

Borrower Services

Hours of Operation Monday - Friday
8am-11pm MT
Saturday
9am-1pm MT

Holiday Closures

:
  • New Year's Day
  • Thanksgiving
  • Memorial Day
  • Christmas
  • Independence Day
  • New Year's Day
  • Memorial Day
  • Independence Day
  • Thanksgiving
  • Christmas

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