Recreational vehicles (RV) and boats are some of the most popular ways for Americans to enjoy the outdoors. Especially in recent years, these two industries have seen more growth and demand than was expected. Sales have skyrocketed, loans are desirable and lenders need to understand the state of these industries to provide customers with the necessary funds to make these investments. The need for loans is higher than it has ever been. My Financing USA wants to partner with you to connect our customers to your loans.
RV Industry Overview
The RV industry has grown substantially in recent years, partly due to the pandemic. For example, the number of RVs sold in 2021 increased around 40% from 2020. In 2022, even more RVs are on the market in anticipation of further industry growth. Millions of Americans own RVs, and as younger generations get more into the lifestyle, that number will continue to grow.
RV Industry Statistics
As Americans embraced their new work-from-home lives and looked for safe ways to get out of the house, many turned to RVs and camping. In 2020, the number of households that went RVing increased from about 11 million in 2019 to about 13 million in 2020. The RV owner demographic is beginning to shift to younger generations, especially with the growth of the van life trend. While Generation Z and millennials are recently responsible for pushing the industry to new highs, most RV owners are between the ages of 35-54.
RV Loan Industry
The average RV-owning family has an average annual income of $62,000. With most RVs ranging in price from $10,000-$300,000, most RV owners will take out an RV loan to purchase their vehicle. As the demand for RVs has increased, lenders have seen a corresponding increased interest in loans.
With an increased demand in RV sales, lenders have seen an increased interest in loans.
RV loan terms and rates will vary depending on numerous factors, and you'll likely make adjustments depending on considerations like the asking amount and whether the borrower is buying new or used. Most commonly, RV loan repayment periods are between 10-15 years, though some lenders will extend the range to as long as 20 years. In 2021, interest rates on RV loans were as low as 4.3% and could reach 12% or higher for borrowers with poor credit.
The RV Industry Association estimates that the average amount financed for new RVs was over $43,000. Since the demand for RVs is still reaching new highs, more and more loan applicants are looking for lenders. Many applicants are unsure of how to connect with the right lender, so they turn to us. Partnering with My Financing USA is beneficial for you as a lender because you can diversify your applicant pool and connect with more applicants.
Factors like age, gender and location affect the number of people getting loans. For example, My Financing USA applicants in the 35-44 age range tend to have the highest number of closings. Additionally, while we had over 2,000 male applicants apply and 879 of them closed on their loans, our ratio of females who applied versus those who closed on their loans was over 6% higher than that of the male applicants.
Our applicant pool is large, and we'll guide RV loan applicants to you after determining whether they're a good fit for your lending program.
Boat Industry Overview
Like the RV industry, the recreational boating sector has seen substantial growth in the last few years. Much like many other industries, recreational boating took a hit in 2020 at the beginning of the pandemic. As Americans looked for ways to get outside amidst lockdowns and work-from-home life, the boating industry made a quick recovery and earned over $35 billion by the end of the year. Boat sales were up 59% between May 2020 and April 2020.
The watersports tourism industry is primarily driving growth in the boating sector. A growing attraction to recreational water activities among millennials and Gen Z age groups has resulted in higher demand for the boating industry. Additionally, the pandemic led to more women and various age groups becoming boat buyers. Since these demographics weren't as targeted before, this change is something to pay attention to moving forward.
Recreational Boating Industry Statistics
In 2020, there were nearly 12 million registered recreational boats in the United States. With such high demand for personal watercraft, manufacturers have increased production and dealerships have been unable to keep their inventories stocked. With first-time buyers entering the market in an abundance, rising 10% from 2019, they'll continue influencing other first-time buyers to make purchases.
Lenders pay close attention to the demographics of their borrowers. Most American boat owners are established, middle-class homeowners. Boating is popular among these groups of people because they don't necessarily need to live on the water to make good use of their investment. My Financing USA can help lenders like you target deals based on certain demographics, including geographic location, credit score, debt-to-income (DTI) ratio and more.
Boat Loan Industry
Many people think boat owners have to be wealthy, but the National Marine Manufacturers Association (NMMA) reports that over 60% of boat owners have incomes that are $100,000 or less annually. While boats aren't a cheap investment, many Americans use boat loans to buy their vessels. Boat loan amounts can range from $10,000 to more than $2 million. Pontoons and fishing boats are among the most popular types purchased because they're versatile and tend to be more cost-effective regarding initial price.
In the past year, standard boat loan terms are between 5-20 years. Most boat loans that are less than $75,000 are written for a 15-year term. However, the size of the vessel has a strong effect on the length of the term. In general, larger vessels will have a longer term. Interest rates on boat loans have been between 4%-6%, though they'll get higher for applicants with poor credit. Since boat owners are most often in the 45-54 age range, this is the same segment that retains the most boat loans.
Learn About Our Lending Program at My Financing USA
At My Financing USA, we receive a high volume of loan applicants, and we're continuously searching for new lending programs we can connect our customers to. With more lenders working with us, we can give our customers more options when they apply for a loan. Many loans continue to go unfunded, which is why we want to work with you. Partnering with My Financing USA will simultaneously benefit you and our customers.
To learn more about our lending program, contact our specialists to discuss your options and find out how we operate.