RV Glossary
Browse RV and towing terms
Browse RV and towing terms with practical definitions and related concepts used throughout our towing-capacity pages.
A
APR
APR, or Annual Percentage Rate, represents the yearly cost of borrowing money including interest and certain fees. It is one of the most important numbers when comparing RV financing offers.
D
Dealer Prep Fee
A dealer prep fee covers the dealership’s cost to inspect, clean, test, and prepare an RV for delivery. It is commonly added to the transaction price.
Depreciation
Depreciation is the loss of value an RV experiences over time due to age, mileage, condition, and market demand. It is a major factor in long-term ownership cost.
Destination Charge
A destination charge is the cost of transporting an RV from the manufacturer to the dealership. It is often included in the total purchase price of a new RV.
Doc Fee
A doc fee is a documentation fee charged by the dealership for preparing and processing purchase paperwork. It varies by dealer and, in some states, by law or regulation.
Down Payment
A down payment is the upfront amount a buyer pays toward the purchase of an RV before financing the remaining balance. A larger down payment can reduce monthly payments and total interest.
E
Extended Warranty
An extended warranty is an optional service contract that provides repair coverage beyond the original manufacturer warranty period. It can help reduce out-of-pocket repair costs after the factory warranty ends.
L
Loan Term
Loan term is the length of time over which an RV loan is repaid, usually expressed in months or years. Longer loan terms can lower monthly payments but increase total interest paid.
M
MSRP
MSRP, or Manufacturer’s Suggested Retail Price, is the base retail price set by the manufacturer for a new RV before discounts, options, taxes, and dealer fees. It serves as a starting point for pricing discussions.
O
Out-the-Door Price
Out-the-door price is the final total cost to buy an RV including price, taxes, title, registration, and dealer fees. It is the number buyers should use to compare real offers.
T
Trade-In Value
Trade-in value is the amount a dealer offers for a used RV or vehicle that is applied toward the purchase of another RV. It can reduce the amount financed and lower the buyer’s out-of-pocket cost.