📌 Should you lease or finance your luxury RV? Many buyers struggle with this decision, but choosing the right option can save you thousands of dollars over time.
In this guide, we’ll break down RV leasing vs. financing, comparing monthly payments, long-term costs, tax benefits, and resale value.
📌 Related Guide: 👉 Best RV Loan Companies (2025) – Compare Rates
💰 Leasing vs. Financing: Quick Comparison
Before diving into details, here’s a side-by-side comparison of RV leasing vs. financing:
| Factor | Leasing an RV | Financing an RV |
|---|---|---|
| Ownership | No, you return it after the lease term. | Yes, you own it once the loan is paid off. |
| Monthly Payment | Lower | Higher |
| Down Payment | Often $0 or lower than financing | 10-30% down payment required |
| Mileage Limits | Yes, limited miles per year | No restrictions |
| Customization | No major customizations | Yes, full customization allowed |
| Long-Term Costs | Higher (since you never own it) | Lower (after loan is paid off) |
| Best For | Short-term travelers & full-time RVers | Buyers who plan to own long-term |
📌 Pro Tip: If you plan to own your RV for more than 5 years, financing is the better option financially!
🔹 RV Leasing: How It Works
Leasing an RV is similar to leasing a car. You make monthly payments, but you don’t own the RV—you return it at the end of the lease term.
✅ Pros of Leasing an RV
✔ Lower Monthly Payments – Leasing payments are typically 30-50% lower than loan payments.
✔ Easier Upgrades – Trade in for a new model every few years.
✔ Lower Upfront Cost – Many RV leases don’t require a down payment.
✔ Good for Businesses – Some business owners write off lease payments as tax deductions.
❌ Cons of Leasing an RV
❌ No Ownership – You never build equity in the RV.
❌ Mileage Restrictions – Many leases limit you to 12,000 – 15,000 miles per year.
❌ Wear & Tear Fees – Extra charges apply if the RV is damaged or overused.
❌ Higher Long-Term Cost – Over 10+ years, leasing costs more than financing.
📌 Best for: People who love upgrading frequently and don’t mind not owning the RV.
💳 Financing an RV: How It Works
Financing an RV means taking out a loan, making monthly payments, and owning the RV after the loan is paid off.
✅ Pros of Financing an RV
✔ You Own the RV – No restrictions, and you can sell it anytime.
✔ No Mileage Limits – Travel as much as you want without restrictions.
✔ Tax Deductions – If used as a second home, you may deduct loan interest.
✔ Lower Long-Term Cost – Once paid off, the RV is yours without monthly payments.
❌ Cons of Financing an RV
❌ Higher Monthly Payments – Loan payments are typically higher than lease payments.
❌ Requires a Down Payment – Most lenders require 10-30% down.
❌ Depreciation – RV values drop over time, similar to cars.
📌 Best for: People who plan to own an RV long-term and want full control over it.
💸 Cost Breakdown: Leasing vs. Financing a $150,000 Luxury RV
| Factor | Leasing | Financing (10 Years) |
|---|---|---|
| Monthly Payment | $1,200 – $1,500 | $1,800 – $2,200 |
| Down Payment | $0 – $7,500 | $15,000 – $30,000 |
| Total Cost (10 Years) (Without Down Payment) | $144,000 – $180,000 | $216,000 – $264,000 |
| Total Cost (Including Down Payment) | N/A | $231,000 – $294,000 |
| Resale Value After 10 Years | N/A – RV must be returned | $80,000 – $100,000 |
| Total Ownership Cost (After Resale) | Higher (since no resale value) | $131,000 – $214,000 (Lower after resale) |
📌 Key Takeaway: If you plan to own an RV for more than 5 years, financing saves money in the long run.
📌 FAQs – Leasing vs. Financing an RV
❓ Is leasing or financing better for full-time RV living?
Financing is better because full-time RVers drive more miles, and leases have mileage limits.
❓ Can you lease a used RV?
Most leases are for new RVs only. Used RVs are typically only available for financing.
❓ What credit score do you need for RV financing?
Most lenders require 650+, but for low rates, aim for 700+.
❓ Can businesses write off RV leases?
Yes! If used for business travel, RV lease payments may be tax-deductible.
🚀 Final Verdict: Should You Lease or Finance an RV?
✔ Choose Leasing if you prefer lower payments, frequent upgrades, and don’t mind mileage limits.
✔ Choose Financing if you want full ownership, tax benefits, and unlimited travel.
📌 Next Step: 👉 Check the Best RV Loan Rates Now (Coming Soon!)