Sky River and the almost deal

[6jsgrandma]

Well, the deal on the 40' duel pusher we were looking out fell through. We more than qualified but they wanted us to make payments of 800-900 a month. We told them originally we wanted 500-600. After a week of stringing us along, Sky River that is, we told them we wanna deposit back. This wa a 40' 2004 Fleetwood American Eagle. The guy at Sky River said he would put it back on the Internet for 145K.




Just had a friend today tell me NOT to go through Sky River for anything. She said they committed fraud on a trailer they almost bought. They were going to sell them another trailer and make them think they were getting the one advertised. Her husband did research and found that it was not registered in California and it was the wrong VIN number. Please beware of this when you go to buy a motorhome.

We will continue to look, but we'll be carful where we look. We believe God really intervened and protect us in our situation. In the meantime, we will just enjoy our 2003 Coachmen gas MH.

[vsheetz]

I would suggest to arrange your own financing before going shopping for the Motorhome. Stops them from fooling around and puts you in a better negotiating position. Always talk price, not payment. IMHO.

Then you can also give them the opportunity to beat your own financing deal. Sometimes maybe they can, and still make themselves a bit of money or spiffs. Everyone wins.

[38Chevy454]

BTW, work on the price, and *then* worry about how to make the payment fit your desired budget. Telling a salesman "I can afford $xxx per month" is just going to cost you money. Going in with some information from your bank/credit union on total finance amount, down payments required, financing terms, and any trade-in values before any new RV shopping will put you in much better position.

Repeat, do not shop monthly payment amounts, rather get a good price and then determine the best way to make the financing work.

[Jake74]

When I bought my wife her new 2014 tdi passat the sales man said what kind of payment can you afford and I said let's not worry about the payment lets talk price. After an hour of negotiating they sold us the car for 5k less than sticker and payment was very reasonable but she did put a decent amount down also.

[Rich-n-Linda]

You should NEVER, EVER finance an RV purchase through the dealer! Set up your own financing with your bank, Essex Credit or whomever you like to buy money from.

By going it that way, YOU maintain control over the deal. It also becomes a cash deal for the dealer, which can often get you a better price on the deal.

Focusing on on the monthly payment instead of the actual purchase price is a HUGE mistake. Monthly payments can set up to be almost anything, once you know the price. It is the PURCHASE PRICE that ultimately shapes the deal.

[barmcd]

Originally Posted by Rich-n-Linda

You should NEVER, EVER finance an RV purchase through the dealer! Set up your own financing with your bank, Essex Credit or whomever you like to buy money from.

By going it that way, YOU maintain control over the deal. It also becomes a cash deal for the dealer, which can often get you a better price on the deal.

Focusing on on the monthly payment instead of the actual purchase price is a HUGE mistake. Monthly payments can set up to be almost anything, once you know the price. It is the PURCHASE PRICE that ultimately shapes the deal.

I have to disagree with this advice. I've gone into dealers to buy cars, trucks, boats, RVs--you name it and always have the financing in my back pocket, whether its cash or a loan through my CU, when I go in. The dealer will always try to get you to finance through them because they get a kickback from the finance company if you use dealer financing. They have no incentive to give you a better deal when you pay cash because it eliminates another source of potential income for the dealership.

Two experiences I've had illustrate this point. I bought a new truck in 1997 and financed through the dealer, he gave me a great deal with the understanding I'd finance the car through the dealership. His rate was higher than what I could get, but the discount was substantial enough that I used his finance company and then refinanced through my credit union. He asked me not to refinance for 90 days so they wouldn't lose their stipend from the finance company.

I bought a new car last year and had a pre-approved loan through my CU for 1.6 percent for 60 months. The dealer asked for the chance to beat the rate and did so I went with his finance company.

You don't want to discuss anything about financing before making the deal except to establish the fact that you'd like the dealer to finance it. You always have the option to "change your mind" and bring your own financing to the table at closing. Just be prepared for a PO'd F&I guy.

[dmurdock]

Originally Posted by barmcd

I have to disagree with this advice. I've gone into dealers to buy cars, trucks, boats, RVs--you name it and always have the financing in my back pocket, whether its cash or a loan through my CU, when I go in. The dealer will always try to get you to finance through them because they get a kickback from the finance company if you use dealer financing. They have no incentive to give you a better deal when you pay cash because it eliminates another source of potential income for the dealership.

Two experiences I've had illustrate this point. I bought a new truck in 1997 and financed through the dealer, he gave me a great deal with the understanding I'd finance the car through the dealership. His rate was higher than what I could get, but the discount was substantial enough that I used his finance company and then refinanced through my credit union. He asked me not to refinance for 90 days so they wouldn't lose their stipend from the finance company.

I bought a new car last year and had a pre-approved loan through my CU for 1.6 percent for 60 months. The dealer asked for the chance to beat the rate and did so I went with his finance company.

You don't want to discuss anything about financing before making the deal except to establish the fact that you'd like the dealer to finance it. You always have the option to "change your mind" and bring your own financing to the table at closing. Just be prepared for a PO'd F&I guy.

I agree..I always have financing lined up but I'd say over my lifetime 80% of the time the dealer beat the deal (I'm assuming by using part of their kickback to bring down the rate below market).

This is especially true for dealerships that are at some point up the line affiliated with the lender. Think about it...if your bank will give you a 2% loan, the bank is making the 2%. If the dealer is affiliated with the lender and gives you a 1% loan, the dealer (indirectly) is making 1% which is 1% more than they would make if you go through your bank. Obviously your credit rating plays a huge deal in this being possible because you have to be worth the risk to the dealer for the reduced return.

[NevadaNick]

Look online at finance calculators and determine what price the monthly payments reflect against price paid to determine what you can afford and go in buying on price alone. When you go shopping giving them a payment number to work with they will have the upper hand.

[Gavenger]

Originally Posted by dmurdock

Think about it...if your bank will give you a 2% loan, the bank is making the 2%. If the dealer is affiliated with the lender and gives you a 1% loan, the dealer (indirectly) is making 1% which is 1% more than they would make if you go through your bank. Obviously your credit rating plays a huge deal in this being possible because you have to be worth the risk to the dealer for the reduced return.

Not entirely. Most of the time, the dealer charges points on a loan if you finance through them. In CA points are maxed out at 2. Meaning if you are approved through the dealers bank at 2%, the dealer can charge you 4%. The dealer will almost NEVER show you the approval paperwork from the bank, or if they do, their computer software builds in the 2% bump.

They do this for several reasons. 1) The bank refunds the overage of percentage back to the dealer (back-end profit). 2) This gives the F&I guy room to play. THIS is where they get to say "If you buy the Extended Service Contract, the bank will lower your rate 1%." The bank doesn't give a rats ass if you buy anything from the F&I guy. Their only concern is the loan and your ability to pay it. If an F&I person tells you, ever, that "...they can lower your rate if you...", tell them to go ahead and lower the rate and you wont be buying any of their products (unless you want them).

[6jsgrandma]

Thank you all. Not sure about getting a private loan instead of dealer. We would probably have to have some collateral. We did check with our credit unin and their interest rate was higher than the dealer. We are going to take our time and look throughout the summer. We figure there might be better deals in fall or winter. Also, we want to find the right one.

[Gavenger]

Its a bit of a drive from where you are, but you could always wait for the Pomona show (RVIA). They always have a large corral with used inventory.

[cvbdsl]

I guess I must be different.

I do concentrate on the monthly payment, asking how much on the road, everything included.

However, I research the heck out of the vehicle prices, my trade in value (if trading) and current finance rates. I know what I expect to pay and will negotiate the monthly payments to what I want to pay bi-weekly. So even a $10 difference will come to $260 a year more or less for me over the term of the loan. That could be grand over the term of the loan.

When I go into the dealer I have a spreadsheet with monthly amounts and pay back periods (in years/ months). I also have a MSRP with all the options (I love the build and price sites) and the average selling price from Unhaggle with all the options.) Once the dealer sees me looking at my spreadsheet on my phone the deal usually starts moving along or I walk.

A local dodge dealer must have thought I was an easy mark, upped the MSRP on a 2016 Jeep Cheroke by $5K and told me what a good deal I was getting. Asked why I didn't buy, I told them they were $11,000 too high - was then immediately offered a better deal by $7K with 4.9% financing, but not good enough.

Just bought my 2016 Colorado at 0% interest, $1000 veteran discount, $750 new to GM discount and it's paid for in 3 years. Just in time to trade it in on a new toad when I retire. Matched my price expectations exactly!
(and yes I know there is really nothing such as 0%, cash is usually cheaper)


I've paid cash for all three used MH's I've owned so it came down to price (and new tires twice). Next MH I may be tempted to finance a bit but I may not be so cool when it comes to a nice MH

Chris

Chris

[Gary RVRoamer]

You should NEVER, EVER finance an RV purchase through the dealer! Set up your own financing with your bank, Essex Credit or whomever you like to buy money from.

I too disagree, but you should always have a firm idea of how much you want to borrow and other places to obtain the loan. Shopping for financing is just as important as shopping for the RV, and there are plenty of sources that will give you a quote, including online (both banks and brokers). And they also use the RV as collateral (if you want) and handle all the paperwork. I usually tell the dealer that I have financing at x% rate and challenge him to beat it if he wants my loan business. Very often they can do so.

It's not hard to get quotes to determine the amount that can be borrowed and still meet your monthly payment affordability goals. If you have to you can use a particular rv as a trial balloon to get the numbers quoted, then change to another rv later, but I've usually been able to gather the info I need without doing that.

Credit Unions and local banks may or may not have loans tailored for RVs. It's more like a house mortgage than a car loan, and not all lenders have terms set up to handle them. If they don't, shop online to find nationwide lenders who specialize in RVs.

Nothing you stated in your original message makes me think Sky River was doing anything unethical. You liked an expensive, high end coach but the payments were more than you anticipated. Is that so unusual? At worst, the dealer wasted your time with something that was out of your price range. Hardly a crime. Maybe they do that all the time, and maybe they have done some shady deals with others, but there is no evidence of that here. Yet.

[Rich-n-Linda]

Originally Posted by 6jsgrandma

Thank you all. Not sure about getting a private loan instead of dealer. We would probably have to have some collateral...

The motor home you are purchasing is the collateral!