Paying For Van Life | Bankrate

The number of van lifers in the United States has increased by 63 percent in the last couple of years, going from 1.9 million in 2020 to 3.1 million in 2022 — and it’s easy to see why.

Besides the appeal of being able to switch locations whenever you crave a change of scenery, van life is substantially more affordable than buying a home. According to Zillow, the average cost of a house in the U.S. is about $359,892. A new camper van, on the other hand, starts around $100,000, but that number can increase or decrease substantially based on the model year and features.

In addition, van life is not dirt cheap. There are some significant costs that interested adventurers must be ready to finance before taking the plunge.

How much does a van cost?

The cost of buying a van can vary dramatically, depending on the make and model of the vehicle and whether it needs to be converted. You can find older, used vans for under $10,000 on average. However, a new van can set you back $80,000 or more, depending on the exact model you choose.

Still, buying a van is more affordable than purchasing a home. For instance, the average price for a new 2025 Mercedes-Benz Sprinter is $53,125. By contrast, the average price of a home in Toledo, Ohio — one of the most affordable places to buy a home in the U.S. — is $205,725.

Other popular models among van lifers include Mercedes-Benz Sprinters, Ram Promasters, Ford Transits, buses and budget cargo vans. Budget cargo vans are generally one of the best for van life, as they can be a cheaper option to convert.

Preparing for van life

Before deciding to take the leap into van life, it is important to consider all you need to do to prepare. Aside from preparing your van to be livable and making the proper accommodations for income, you must figure out what to do with your current home and where to store any possessions you can’t take with you on the road.

Financing a van

Buying and converting a vehicle to live in can be expensive. Some vans have already been converted; these used vehicles can bring down the costs of a vehicle. Paying in cash is probably the easiest route for buying and converting a van. It can be cost-effective to sell your home and/or other vehicle(s) so you can use the profits since many people do not have the cash on hand for a major project like this. If you do not have the cash to fund this project, consider asking your van dealer about financing options for a van loan.

If the dealership is unwilling to finance the vehicle conversion through a van loan, there are also RV loans and unsecured personal loans available to help. RV loans are secured loans designed specifically for the purchase of recreational vehicles, using the vehicle itself as collateral. Lenders offer payment plans with term lengths up to 20 years.

Unsecured personal loans, on the other hand, are not backed by collateral, meaning you do not run the risk of losing your van if you cannot pay off the loan. The interest rates for unsecured personal loans tend to be higher, especially for those with poor credit. You can take out a personal loan for any purpose, making them ideal for a large recreational purchase like this.

Converting a van

The cost of van life is more than the initial cost of the vehicle. Converting a van includes buying building materials, appliances and features and, depending on whether you plan to do the work yourself or not, labor costs. The amount you spend depends entirely on the amenities you choose to include, where you buy your materials and the types of materials.

Costs also depend on whether you hire a company to take care of the conversion or you do the conversion yourself. DIY conversions tend to be less expensive than professional conversions. With the DIY approach, you could spend just a few thousand dollars, while professional companies can charge upwards of $100,000 to get the job done, according to Contravans.

The amenities you can include in your vehicle will depend on its capacity for plumbing and electrical. Solar panels tend to be the largest expense for van lifers, with an off-grid solar setup ranging from an average of $1,500 to $4,000. Bigger items like fridges for campervans and working plumbing also tend to be larger expenses.

Van life expenses

Once you have converted your vehicle, everyday expenses of van life also need to be considered. These expenses will largely depend on personal needs and habits.

Your weekly and monthly expenses depend largely on your eating and traveling habits. Some are easier to plan for, such as a gym membership to shower if you don’t have one in the van. Others come up depending on how much gas is at a given time or where you go to eat.

Current van lifers tend to spend anywhere from $1,000 to $3,000 on their monthly expenses, including insurance, camping and recreational fees and miscellaneous expenses, according to RV Blogger. Although these figures may seem shocking, it’s important to note that the cost of many goods and services has risen considerably due to high inflation over the last two years.

There are additional expenses you may incur as well, including:

• Campsites: While the most economical choice is finding free campsites in your area, this may not always be feasible. Paid campsites run an average of $22 a night, meaning that if you stay at a paid campsite every night for a month, you will likely pay around $660 total.
• Insurance: Insurance for recreational vehicles varies by provider and specific circumstances, but you can generally expect to pay $2,388 per year for a full coverage policy for vehicle insurance.
• Incidentals: Emergencies happen, and you should have money aside for vehicle repairs and any other expenses that may come up. Having at least $500 in savings is generally a good idea, but it is better if you can set aside half a year’s worth of living expenses as an emergency fund.
• Taxes: Paying state taxes can be complicated when you live in multiple states throughout the year. It may be a bit easier if a specific employer employs you, but freelancers who live on the road may want to consider hiring a professional to help sort out their state taxes.

RV life costs

Another popular alternative to traditional housing is an RV. Although these tend to be more expensive than most vans, they are also more spacious and can be easier to finance, as there are RV loans designed specifically for them.

• The average cost of an RV ranges from $35,000 to $300,000, depending on the vehicle’s class and amenities featured.
• Unlike vans, which can be bought with no down payment, RV companies require you to put down at least 10 percent of the cost of the vehicle, although many prefer a 20 percent down payment.
• Fifth wheels and travel trailers are the most inexpensive RVs, with new models starting at $20,000 and $35,000, respectively.
• Class A RVs are the most expensive, with some models costing more than $1 million.
• The average monthly payment for an RV loan ranges from $225 to $650, which is between two and eight times cheaper than the average mortgage payment for a house, which is $2,105.

Bottom line

The phenomenon of widespread remote work has given those with the financial freedom to do so a unique opportunity to hit the road permanently. However, buying, converting and living in a recreational vehicle is expensive and can be cost-prohibitive for many. Camper van financing can help, but it will not cover all the costs you may incur. If you are thinking about taking the leap into van life, make sure that you are aware of all the costs and will be able to maintain your financial health and income along the way.