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Old 02-10-2014, 11:36 AM   #15
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Then it is not a "trade in". The dealer paying off $38K, then adding $38K to our new to be financed coach, brings his "payoff" as paying $0 for our coach. What happens with, let's say, the $45K(or whatever he sells it for)? Sounds like a $45K clear profit to me.
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Old 02-10-2014, 11:56 AM   #16
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Originally Posted by Edski1999 View Post
Then it is not a "trade in". The dealer paying off $38K, then adding $38K to our new to be financed coach, brings his "payoff" as paying $0 for our coach. What happens with, let's say, the $45K(or whatever he sells it for)? Sounds like a $45K clear profit to me.
If these are two separate deals then the sales papers for the new mh should ONLY reflect the agreed upon sales price plus any taxes and fees with no mention of the old mh.

If they are adding in the loan payoff amount to the new deal they ALSO need to show the trade in value so they net out. (Trade in value less Payoff amount) Otherwise you're getting screwed.

Then if you allow them to take your old mh "Off Your Hands" by simply paying off your old loan, so be it but seems like a bad deal.
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Old 02-10-2014, 12:15 PM   #17
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No, they shouldn't add the 38k back to the price you're financing. They pay off the 38k for you, but they get their money back plus whatever profit is involved when they re-sell your coach.
Slap the salesman and then walk away......
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Old 02-10-2014, 12:27 PM   #18
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To the OP, who said your trade is worth 52K? Is that an agreed upon amount they will give you for the trade, or is it a value you attached to it from some other source? Your story of how the transaction went is a little confusing with you first making a deal on the new rig, then discussing the trade. Either way, if 52K is the number they said they'd give you for your trade, and you still owe 38K, then as previously posted your trade-in credit should reflect by that term as 14K.

The problem at many RV dealers, and why so many get screwed by them, besides greed of course, is when they take a rig in on trade they continue to make the payments due on them versus paying off the balance due immediately. They wait until a rig is sold before they pay off to generate a clear title. Keeps more of their cash in the bank over the course of dozens or hundreds of deals a year.
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Old 02-10-2014, 12:29 PM   #19
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Me thinks you're right. You're paying them to take your motorhome. It wouldn't surprise me that your $52,000 motorhome is only worth $38,000 to a dealer, but you shouldn't see that show up on the contract for your NEW motorhome. What a crock.
Exactly...you have given the dealer the MH with it's inherent value and you are still stuck with the $38K loan piled onto the debt of the new unit. Plus, if the trade in is really worth $52K, you've also lost that $14K as well. Sompin ain't right.
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Old 02-10-2014, 12:54 PM   #20
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Edski1999, there is a lot of confusion being expressed here. In order for us to properly assess your "deal," we need some simple information.

What is the price you are paying for the new mh? Before any trade, tax, etc. In other words, what would they be willing to accept as a cash price. Let's play with $90,000 as a hypothetical figure.

Let's say they allow $38K for your old mh, as a trade. You would then owe a balance of $90,000. But your old loan is paid off, by the dealer. If this were the case, the dealer would have $38K into your old unit, and if he sold it for any more than that, that would be his profit. (By the way, he rarely makes less than $10K or more than $20K, on one of these traded in units.) But you still are paying $90K for your new unit, and will be making payments on that amount.

Look at it this way. Suppose you sold your old mh for $38K. You would have no debt, no payment, and no mh. Then let's say you went in to buy this new one. It's price is $90K. That's what it would cost you, and that's what you would owe and make payments on.

The only real difference, adding to the confusion, is if you traded, there would be $38K less to pay sales tax on.

More information from you would be helpful.

Thanks.

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Old 02-10-2014, 01:06 PM   #21
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that's a bad deal.... they are getting your trade 100% for free. They should be discounting your new coach by the amount you owe or more. Unless they offer less than what you owe. So say they offer you 30k, the 2000 would carry onto your new loan.
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Old 02-10-2014, 01:39 PM   #22
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that's a bad deal.... they are getting your trade 100% for free. They should be discounting your new coach by the amount you owe or more. Unless they offer less than what you owe. So say they offer you 30k, the 2000 would carry onto your new loan.
That is....of course....unless the OP still owed $38k on his trade in. Then the amount would be rolled into the new purchase. I think.
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Old 02-10-2014, 01:58 PM   #23
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Here's whats happening and its legit.

selling price 120000.00 (example)
trade value -52000.00
cash diference 68000.00
plus balance owed +38000.00

total to finance 106000.00

plus I would assume any taxes plates ect. what your not getting is that somebody has to make the payoff on your trade in. You only have the equity in your trade to reduce the selling price. In this case the equity is the difference between the 52000.00 its worth and the 38000.00 that is owed. You have 14000.00 in equity as a down payment. using the above example, 120000.00 - 14000.00 = 106000.00 same difference.....Get it? Im a dealer. That is how it is done. If it makes you feel better check with your bank or credit union. They will tell you the same thing.
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Old 02-10-2014, 02:00 PM   #24
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More information is needed. If the dealer adds the $38,000 loan balance on your current MH to the purchase price of the new MH....there was NO TRADE-IN. However, if the dealer reduced his purchase price by $38,000 and then added the payoff of your present loan back into the purchase price, then you are back to the dealers original asking price. In that scenario the dealer takes a pretty good hit unless the MH was over-priced to begin with.
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Old 02-10-2014, 02:05 PM   #25
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No.
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Old 02-10-2014, 02:13 PM   #26
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Really guys? You cant understand what I just wrote? The man has a motorhome that the dealer is putting a value on of 52000.00........he owes 38000.00........that means he has equity of only 14000.00..........whatever the selling price is, deduct the 14000.00 in equity and you have the balance. They are doing it correctly. he banks need it laid out that way.
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Old 02-10-2014, 02:16 PM   #27
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They said that they would give me $45,900.00 as a "Trade". To me that meant I would net $7900 towards my down payment. Not so with their clever financing techniques. When they started playing the "let me see what my manager can do" game they totally started trying to cloud the original deal. Also, this is at an RV show here by a MAJOR Nationwide dealer. I feel sorry for any folks who bought from them.
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Old 02-10-2014, 02:16 PM   #28
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what is the selling price of the new coach?
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