Dealer Creative Finance Techniques?

[Edski1999]

Mojoracing. Does the dealer not recoup his paying off the trade-in when he sells it?

[Edski1999]

mojoracing. The new coach was quoted at $70K. It had been sitting on the lot for almost a year, never used, still a new 2013.

[glarnold]

Edski1999, was that $70K a "cash price" or a "trade price" - there is a world of difference.

Not able to make sense of it until we learn this.

GL Arnold

[glarnold]

And with those figures, what was the balance the dealer was expecting you to pay?

GL Arnold

[Pepper2]

Originally Posted by dogpatch

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.

I think dogpatch has it right as I read the OP. He, the dealer, is paying off your loan and adding it to the price of the new MH. No way I would bury myself that deep.
Whether he should be getting $38 or $52 for his trade is a different debate.

[mojoracing]

Here is what it should look like. Again I just used 120,000.00 as an example but the numbers on the trade are what you supplied. I would guess there would also be taxes ect. Hope this clears it up.

[glarnold]

Those are the numbers I would like to see the OP provide us. Without them, we're in the dark.

GL Arnold

[mojoracing]

ok, here it is using all your #s sorry total should be 62100.00

[wildtoad]

Originally Posted by Edski1999

The new coach was quoted at $70K. It had been sitting on the lot for almost a year, never used, still a new 2013.

They said that they would give me $45,900.00 as a "Trade".

Seems some new information has surfaced. see if I have this right..

New coach = $70k
Less Trade of $45,900
Leaving a balance of $24,100

Payoff of Loan $38,000 paid by the dealer.

New loan amount = $24,100 (new mh price less trade) + $38,000 (pay off amount) = $62,100 (New mh loan amount).

Another way to look at it: You got $45,900 for you old unit but you still owed $38,000. The $7,900 difference is used to reduce the price of the new mh to $62,100.

If this is not how you see it or what the paperwork says... exit stage left.

[mojoracing]

now, lets assume you sold the coach on your own for the same 45900.00 and had to pay off the loan on it of 38000.00. That would leave you with 7900.00 in cash to put down on your new coach correct? Here is what that would look like. See...........same difference. sorry same mistake should total 62100

[virginiamtns]

Originally Posted by mojoracing

ok, here it is using all your #s sorry total should be 62100.00

If it doesn't look like this, walk away, regardless of the show deal, special discount price, or President's Day one day only sale.

Negotiated price, less trade in value, plus payoff value = price paid, plus taxes, title fees, etc. If not, negotiate the cash price and sell your rig on your own. Otherwise, it sounds like "new math."

[Superslif]

In the end, you have to figure out what you are really willing to "pay" (finance). Paying off what you still owe is a given. The equation here is #1. How much are they giving for the trade #2. How much are they knocking off the posted price of the new coach. Doesn't matter if they are only giving you 38k for a trade and then 30k off a $120k new coach.

Even thou I don't finance, I tell a dealer (RV or vehicle) "Give me an out the door price" That means everything (taxes, fees, prep, advertising fee......) You can do the same thing, just that your price will be the the financed amount.

My last deal a few months ago on a new tow vehicle involved a trade. The 2nd dealer I dealt with actually surprised me on the amount they offered me on the trade. Just for giggles I wanted to give my local dealer a chance to re-earn my business. I wrote a price (out the door) on a piece of paper thinking there was a 95% chance they would not deal. (they were fairly far more than #2 dealer) 15 minutes later after 3 managers walked around my trade again, the salesman came over and said "deal". What the final paperwork read I didn't care, I knew my number. period?

Your only other concern would be the % rate and terms on the new note. You can even sweeten the deal by saying "I want an out the door price with my XXX trade and $5000 cash". This way they know your serious.

About two years ago while scouting out a new tt, did the same thing also with a older tt (2005) as a trade. Believe it or not a dealer 2.5 hours away gave me a (out the door price) also with a trade-in on the same model and same options of 50% less than my local dealers out the door price....When he (over the phone) told me the out of pocket price, my mouth dropped...I was speechless...I like the back and forth...I was dumbfounded....To be fair, both dealers offered the same trade in value ($6500). Since it took 6 weeks to build, it was written into the contract, if I sold it myself, I would only pay the difference. Got a call the day after I put down a deposit on the new tt, for my old tt. Ended up selling it for $2000 more than the trade in value given.

In closing "you" and only "you" have to know, what a good price is. The positive on your part is your not upside down on the currant rig.

[mojoracing]

ding ding ding!!!!! virgin! we have a winner. holy cow! tiring...

I know a lot of you don't do this every day so it can be confusing. Always think of it as if you sold the coach, paid it off and had the cash equity in hand.

[Edski1999]

O.K. Here is the entire deal. After all negotiations. This is the paper work the Credit Mgr. sends the salesman back with;
New coach= $70,000.00 Trade-in is $45,900.00 Payoff $38,000.00 Taxes $4530.00

Dealer says we need to finance $112,530.00 ??????
Can Mojo explain??