Financing Camper Vans and Conversion Vehicles
Camper van financing falls into a unique category between auto loans and RV loans. Whether classified as an auto loan or RV loan depends on the vehicle's specifications: weight, sleeping facilities, cooking amenities, and bathroom presence. This classification significantly affects interest rates, loan terms, and lending requirements.
Professionally manufactured camper vans from companies like Mercedes Sprinter, Ram ProMaster, or Ford Transit typically qualify for RV loans with terms up to 15-20 years and interest rates 1-2% higher than standard auto loans. Class B motorhomes under this category must have sleeping, cooking, and bathroom facilities to meet RV criteria. Lenders view these as recreational vehicles, requiring specialized RV financing rather than traditional auto loans.
DIY conversion vans present unique financing challenges. Most lenders won't finance converted vehicles unless professionally done with certified documentation. The base vehicle (unconverted van) can be financed through a standard auto loan, but conversion costs typically require personal loans, credit cards, or cash. Some borrowers finance the base vehicle through auto loans then use home equity lines of credit (HELOCs) for conversion costs at lower rates.
Down payment requirements for camper vans vary by classification. Standard auto loans for unconverted cargo vans require 10-20% down. RV loans for professionally manufactured camper vans require 15-25% down. Larger down payments improve interest rates and demonstrate financial stability to lenders. Some specialty RV lenders offer lower down payments for well-qualified borrowers with excellent credit.
Loan-to-value ratios matter significantly in camper van financing. Lenders typically won't finance more than 80-90% of the vehicle's appraised value. For conversions, only the base vehicle's value counts—conversion improvements don't increase financed value. This creates challenges for borrowers who want to finance both the vehicle and conversion costs. Consider the total project cost and available financing before starting a conversion project.