The median age of an RV owner is now 49, according to 2025 research by the RV Industry Association (RVIA), bringing a significant shift to the $140 billion RV industry. In fact, RIVA found 46% of owners are now within the 35-54 age range and there’s been a notable increase in first-time owners, who now make up 36% of all RV owners.
With the changing demographics in mind, we asked Scott Anderson, senior vice president of recreational lending for Merrick Bank, to share his insights on how RV dealers can partner with lenders to meet the evolving demands of consumer RV financing.
You helped establish Merrick Bank’s Rec Lending business in 2004. How have has the industry evolved and what emerging trends are having the greatest impact on the RV market right now?
The RV industry has continued to grow in popularity, creating a larger base of RV enthusiasts. Changes I’ve noted in recent years include:
- Continued advances in RV technology, connectivity, and onboard amenities make it easier than ever for owners to stay connected while enjoying the flexibility and freedom of the RV lifestyle.
- A shift to a younger demographic enjoying the RV lifestyle.
- An increase in smaller, lighter RV options, making it easier for people to get away while maintaining obligations they still would have at home.
- Significant consolidation of RV dealerships. What was once dominated by many small, family-owned single location dealerships has evolved to large-scale operations with corporations owning multiple stores across the country.
- Some consolidation of manufactures as well and;
- New manufacturers offering new products that meet the evolving demand of what the consumer wants, which is driving healthy competition.
Technology continues to reshape financial services. How are digital tools, automation, and data analytics transforming the recreational lending experience for both consumers and industry partners?
Today’s consumers expect speed, convenience, and a seamless buying experience. Technology is helping dealers market more effectively, streamline the financing process, and close sales faster. In many cases, consumers can complete nearly every step of the RV purchasing process online, visiting the dealership only to take delivery of their new RV if they choose.
At the same time, data analytics is playing an increasingly important role in dealership decision-making. Larger dealerships, in particular, have access to significant amounts of customer and operational data that help inform business strategy, optimize inventory, improve marketing efforts, and enhance the overall customer experience.
What do RV customers expect from the financing process today?
Consumers want a fast and reliable credit decision that supports the purchase. They want to be able to apply for financing at the dealership and have instant credit approval from the dealer’s lending partners. Consumers don’t want to be forced to chase additional documents to qualify for the loan. They expect a digital loan application so they can easily digitally sign and receive financing documents.
Once the loan is established, they expect a similar experience in the loan payment process. Dealers should understand what the customer financing experience and have lending partners that can meet those demands. As a bank, it is critical for Merrick to offer best in class service to customers the dealerships refer to us. This helps close the loop on a positive buying experience, benefiting both the dealers’ and the bank’s reputation.
What RV financing misconceptions prevents first-time buyers from purchasing an RV?
A common misconception is that RV loans are like auto loans in terms of their length, which consumers then anticipate payments will be unaffordable. RV loan terms are longer than auto loans to help facilitate a larger purchase and ownership of the collateral that is expected to last a lot longer than most auto purchases.
RV loans offer competitive financing rates as well. Because it is a discretionary purchase, many potential buyers believe interest rates will be higher if they choose to finance. The stability and popularity of RVing have attracted competitive lenders who are willing to compete for the RV financing of buyers across the credit spectrum.
How can dealers convert more first-time RV buyers?
Purchasing an RV for the first time can be an intimidating experience. From a lending perspective, ensuring the customer knows that the loan terms are designed to be different from an auto loan. Dealer’s providing end-to-end education on the RV purchase process is key to building that first time buyers’ confidence. A thorough walkthrough of the RV and how to use all its features is very helpful. Providing good information on towing and RV safety also helps. Offering a range of options that fit the first-time buyers’ comfort level is important.
Studies show that RV buyers are repeat buyers. On their second and third purchases they are often increasing the size of their purchase. Providing a comfortable entry price point to the RV lifestyle sets the stage for future sales. Connecting a first-time buyer with resources for where and when to use their RV, campgrounds, state and national parks etc. can also open their eyes to the possibility of the RV lifestyle.
How can dealers get the best interest rates and competitive terms for their customers from their lending partners?
At Merrick Bank, we appreciate the dealers’ referral of their buyers to the bank for financing, and from the start, we work to offer fair pricing and terms to customers. We aim to create a win-win-win experience for the customer, the dealership and the bank. The bank and the dealership need to run a successful business, but the customer also needs to feel they have received value in the purchase of the RV and it’s financing to become an advocate for the RV industry, the dealer and lender they worked with.
To learn more about how to become a dealership partner of Merrick Bank’s Recreational Lending team, visit www.merrickbank.com/recreation-loans/partner.