Introduction
There are many ways to afford a skoolie. Beginning with how much skoolies cost, they can range between $5,000 and $30,000 USD. The cost depends on how furbished you make your skoolie. The main methods involve cash, using loans, or financing. Let’s get into it.
Cash & Debt-Free Options
Cash or Savings
A debt-free, zero-interest way to be able to buy your skoolie. It’s best to use a small portion of it rather than all of it. Depending on the skoolie you want you’ll only need a couple thousand dollars. This is the best and most recommended way.
Afford a Skoolie Through a Second Job
Another debt-free, zero-interest solution to finance your skoolie. Pick up a second job to make more money temporarily until you can afford your skoolie.
Sell Your Car to Afford a Skoolie
This is a way to get more cash that you can use to buy your skoolie. You’re selling one vehicle for another that you can live in.
Loans to Afford a Skoolie
Afford a Skoolie Using Zero-Interest Credit Cards
The best zero-interest credit cards have long promotional annual percentage rate (APR) periods, usually between 9 to 21 months. But before you sign up for one, make sure you know what you’re getting into. Ensure your the APR applies to purchases.
In-House or Seller Financing
If the skoolie’s fully-built you can pay the seller with the option of financing. Most sellers are willing to do that. Annual percentage (APR) interest depends on the seller.
Afford a Skoolie With a Personal Loan
For skoolies mortgages & auto or RV loans are not available. Consequently, personal loans are the next best thing if you do not own a home. Be sure to shop around with different lenders to find the lowest interest rate.
Interest rates range between 4% to 36% in the United States. In Canada interest rates range between 2% to 47%.
Unsecured Personal Loan
An unsecured loan is a loan where you don’t need an asset, such as a house or car, as collateral. Approval is instead based on your credit score & finances. They can be used for anything, including skoolies.
Secured Personal Loan
Secured personal loans are like unsecured personal loans. The key difference is that you must have collateral, in the form of an asset such as a house or car, to borrow money. Failure to pay your monthly payments will let the lender take your asset(s).
Home Equity Loan
You can borrow equity you have in your home to buy your skoolie. A home equity loan or second mortgage lets homeowners borrow against the equity in their homes. The loan amount is based on the difference between the home’s current market value and the homeowner’s mortgage balance due.
The average interest rate in the United States is 7% as of October 2022. Canada’s lowest interests in October 2022 start at 5%.
Installment Loan
An installment loan lets you borrow a set amount of money all at once. It’s repaid in monthly installments with the same annual percentage rate (APR) and interest rate until its paid off.
APR ranges between 6.99% and 24.99% in the US as of October 2022. In Canada the APR ranges from 8% to 47% as of October 2022.
Home Improvement Loan
Home improvement loans can be taken for anything related to home improvements. Repayment can be done in many ways; an unsecured loan, using home equity as collateral, a first mortgage loan, or a subordinate loan.
APRs range from 5% to 36% in the US as of October 2022. In Canada APRs range between 5% to over 19% as of October 2022.
Bad Credit Loan
A bad credit score loan is useful when your credit score’s too low to get a personal loan. The best one usually have the lowest annual percentage rate (APR), but there are other factors to consider when applying.
Interest rates range from 4% to 36% in the US as of October 2022. In Canada the interest rates range between 3% and 46% as of October 2022.
Approve it as an RV
The easiest way to finance a skoolie is to approve it as a recreational vehicle (RV). The required steps are:
- Get manufacturer authorization to decommission the vehicle.
- Plan the vehicle layout and note any changes in the specifications.
- Work on the bus to standards using the approved steps.
- Get the file certificate by showing your skoolie to an approved inspector
- Get another certificate for the file by weighing the vehicle.
- Submit the finished file to the prefecture and attach all the documents. The mining engineer performs several checks, then declares the vehicle compliant with a report. This report is itself transmitted to the Prefecture;
- Apply for a vehicle registration certificate for the approved skoolie.
Summary
Mainly cash, loans, or financing are the ways to afford a skoolie. Think we missed one? share your way in the comments. Follow us on social media as well! Check out these solid tools to lighten your skoolie conversion budget.
Here’s a table showing the differences for each way to afford your skoolie.
| Interest Rates / APR | United States | Canada |
| Cash | 0 | 0 |
| 0% Interest Credit Card | 0 (for promotional APR periods) | 0 (for promotional APR periods) |
| Personal Loan | 4% – 36% | 2% – 47% |
| Home Equity Loan | average = 7% | lowest = 5% |
| Installment Loan | 6.99% – 24.99% | 8% – 47% |
| Home Improvement Loan | 5% – 36% | 5% – 19% |
| Bad Credit Loan | 4% – 36% | 3% – 46% |
