Unlike purchasing a car or a home, purchasing a recreational vehicle, or RV, with a Recreational Vehicle Industry Association seal offers assurance that the vehicle complies with at least 500 safety specifications. In many cases, the purchaser will finance a portion of the purchase price. The buyer must sign an agreement that obligates him to purchase the RV.
A purchase agreement is a legally enforceable contract that sets out the terms and conditions of buying specific property. It defines the rights and responsibilities that each party must fulfill. The title to the property transfers to the purchaser when the parties comply with the terms.
Each RV purchase agreement will have different terms. Basic terms include the names of the parties, a description of the vehicle, the amount of the purchase price, delivery of the vehicle and warranties. RVs typically come with a warranty and an optional extended warranty that the buyer can purchase for an additional price.
If the buyer obtains financing from the seller, a purchase agreement will state the terms of financing. The agreement will state the amount of the loan, the interest rate, the loan-to-value requirement, the term of the loan, the amount of the monthly payments and the right of the seller to accelerate the loan if the buyer defaults. Because the purchase price can exceed $100,000, many lenders offer 15 to 20 year terms.