|
|
02-10-2014, 10:36 AM
|
#15
|
Junior Member
Join Date: Jan 2013
Posts: 17
|
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.
|
|
|
|
Join the #1 RV Forum Today - It's Totally Free!
iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!
|
02-10-2014, 10:56 AM
|
#16
|
Senior Member
Join Date: Jul 2010
Posts: 5,332
|
Quote:
Originally Posted by Edski1999
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.
__________________
Tom
2016 Newmar Bay Star Sport 3004
2021 Jeep Gladiator Sport Willys
|
|
|
02-10-2014, 11:15 AM
|
#17
|
Senior Member
Join Date: Mar 2013
Location: Fort Worth TX
Posts: 845
|
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......
__________________
2005 Newmar Dutch Star 4024
Pulling my 2012 Malibu w/Blue OX & Patriot brake unit
|
|
|
02-10-2014, 11:27 AM
|
#18
|
Registered User
Join Date: Aug 2011
Location: Western New York
Posts: 899
|
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.
|
|
|
02-10-2014, 11:29 AM
|
#19
|
Senior Member
Monaco Owners Club
Join Date: Jan 2010
Posts: 2,660
|
Quote:
Originally Posted by topdownman
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.
__________________
Jan and Bob
'05 Monaco Windsor 40 DST - ISL / '08 Wrangler
|
|
|
02-10-2014, 11:54 AM
|
#20
|
Senior Member
Join Date: Feb 2007
Location: Bellevue, Nebraska
Posts: 491
|
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.
GL Arnold
__________________
2015 Ford Flex SEL
Former Full-Timers
|
|
|
02-10-2014, 12:06 PM
|
#21
|
Senior Member
Fleetwood Owners Club Outdoors RV Owners Club
Join Date: Nov 2013
Location: Houston, Texas
Posts: 4,580
|
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.
__________________
RVM#78 - -USAF- F-15 Eagle Radar Vet
'5 Fleetwood Revolution- '15 Airstream Intl Sig. 27FB
Jay, Andrea, Stella '14 Ram 3500 Aisin '18 ORV F30RLS
|
|
|
02-10-2014, 12:39 PM
|
#22
|
Senior Dude
Triple E Owners Club
Join Date: Sep 2010
Location: Somewhere, BC.
Posts: 5,613
|
Quote:
Originally Posted by plasma800
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.
__________________
Les (RVM12), Bonnie and 4 leggers Shelby and Tea Cup
Triple E Empress A3802FW Diesel Pusher 330 Cat
FMCA-420438 Good Sam
|
|
|
02-10-2014, 12:58 PM
|
#23
|
Senior Member
Fleetwood Owners Club Ford Super Duty Owner
Join Date: Oct 2013
Location: northern IL
Posts: 2,557
|
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.
__________________
2014 Fleetwood Bounder 35k
|
|
|
02-10-2014, 01:00 PM
|
#24
|
Senior Member
Freightliner Owners Club
Join Date: Jan 2013
Location: Spokane, WA
Posts: 698
|
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.
__________________
02 Fleetwood Discovery 37U, 330 Cat pulling a 2006 diesel Liberty..or..2011 4dr Wrangler..or..20' Lund Salmon/Halibut Hunter
|
|
|
02-10-2014, 01:05 PM
|
#25
|
Junior Member
Join Date: Jan 2013
Posts: 17
|
No.
|
|
|
02-10-2014, 01:13 PM
|
#26
|
Senior Member
Fleetwood Owners Club Ford Super Duty Owner
Join Date: Oct 2013
Location: northern IL
Posts: 2,557
|
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.
__________________
2014 Fleetwood Bounder 35k
|
|
|
02-10-2014, 01:16 PM
|
#27
|
Junior Member
Join Date: Jan 2013
Posts: 17
|
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.
|
|
|
02-10-2014, 01:16 PM
|
#28
|
Senior Member
Fleetwood Owners Club Ford Super Duty Owner
Join Date: Oct 2013
Location: northern IL
Posts: 2,557
|
what is the selling price of the new coach?
__________________
2014 Fleetwood Bounder 35k
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Discussions |
|
|
|
|
|
|
|
|
|
|
|
|
|