Go Back   iRV2 Forums > iRV2.com COMMUNITY FORUMS > iRV2.com General Discussion
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 12-19-2015, 08:49 PM   #1
Member
 
MSD81's Avatar
 
Texas Boomers Club
Forest River Owners Club
Join Date: Mar 2015
Location: Van Alstyne TX
Posts: 53
Dealer finance guy/girl ?

Are the finance people paid directly by the RV dealer or are they also on commission of the higher interest rate they charge over the banks quote?

Is there room to negotiate the interest rate knowing that the bank is a minimum 1% lower? That 1% adds up to several hundreds or even into the thousands of a long term loan.
__________________

__________________
Mike and Susan
2015 Columbus 320RS
2015 Ram 2500 Diesel 4x4
MSD81 is offline   Reply With Quote
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!

Old 12-19-2015, 09:03 PM   #2
Senior Member
 
Dutch Master's Avatar
 
Join Date: Nov 2014
Posts: 103
Good day MSD81 - Dealers look at any and all "profit centers." When I was shopping for my motorhome, I "shopped" for a low percentage rate loan. I also did a "pre-approval" for the amount I wanted to spend. The dealer I purchased my motorhome from was FLABBERGASTED at the low rate I got when he asked about "his financing" options. TOO BAD for the dealers, you have to watch out for yourself and not trust them. They will try to get over on you every step of the way.
__________________

__________________
Dutch Master is offline   Reply With Quote
Old 12-19-2015, 09:08 PM   #3
Senior Member
 
UFO Pilot's Avatar
 
Winnebago Owners Club
Workhorse Chassis Owner
Join Date: Aug 2007
Location: Sonoma County, CA
Posts: 4,612
I am always prepared to counter with my own pre approved finance rate. If the dealer can't match it then I will arrange my own financing. In most cases the dealer will match an "honest" interest rate.
__________________
Wayne & Roberta and Maggie the Miracle Dog
08 Winnebago Destination 39W Gas UFO Workhorse Chassis
Making the Journey in our Destination

UFO Pilot is offline   Reply With Quote
Old 12-19-2015, 09:12 PM   #4
Senior Member
 
vsheetz's Avatar


 
Fleetwood Owners Club
Ford Super Duty Owner
Join Date: Jun 2012
Location: SoCal
Posts: 11,807
Dealers can and do make money from financing. This usually adds to your cost of financing. Arrange your own best rate financing, then ask the dealer if they can beat it. Usually not, unless they have some manufacturer or other sourced incentive.
__________________
Vince and Susan
2011 Tiffin Phaeton 40QTH (Cummins ISC/Freightliner)
Flat towing a modified 2005 Jeep (Rubicon Wrangler)
Previously a 2002 Fleetwood Pace Arrow 37A and a 1995 Safari Trek 2830.
vsheetz is offline   Reply With Quote
Old 12-19-2015, 09:18 PM   #5
Senior Member
 
Join Date: Nov 2015
Posts: 1,085
For cars or our motorhome I always contact my local bank and get their rate. When I'm talking to the finance people at the dealer no matter where they start they've always wound up meeting the rate I brought in from the bank.
__________________
CWJK55 is offline   Reply With Quote
Old 12-20-2015, 07:08 AM   #6
Senior Member
 
DDDonkey's Avatar
 
National RV Owners Club
Ford Super Duty Owner
Join Date: Dec 2013
Posts: 450
When I got home from a deployment in 2012 I went to a dealer to buy a used car for 10-12K, when it came time to do the paperwork after we made the deal they were ticked. I told them I was going to pay cash and they said if I don't finance they don't make any money.
__________________
2008 National SurfSide 34E (Bunk Model) Ford V10
Sold- 1990 Hawkins Chevy P30 454
DDDonkey is offline   Reply With Quote
Old 12-20-2015, 09:43 AM   #7
Moderator Emeritus
 
Gary RVRoamer's Avatar


 
Join Date: Jan 2000
Location: Silver Springs, FL. USA
Posts: 18,096
The dealer gets a commission on finance contracts. Whether the employee is on salary, commish, or some combination probably varies a lot, but I suspect at least some commission is common.

Of course you can negotiate the rate, or decline it altogether. Some dealers will kick back part of their finance commission as part of the "discount" on the deal, though they may not state it that way. They may also accept a reduced commission to help buy down the rate. What they might do (or not do) probably depends on their deal with the finance company and any current loan incentives the lender may offer.

I've had good results from dealer financing, but I always shop for rates myself ahead of time so that I know what is a "good rate" or not. I usually tell the finance person up front what rate I am looking for.
__________________
Gary Brinck
Former owner of 2004 American Tradition
Home is in the Ocala Nat'l Forest near Ocala, FL
Summers in Black Mountain, NC
Gary RVRoamer is offline   Reply With Quote
Old 12-20-2015, 09:49 AM   #8
Senior Member
 
ArmandV's Avatar


 
Winnebago Owners Club
Ford Super Duty Owner
Join Date: Apr 2015
Location: Tarzana, CA
Posts: 1,181
Quote:
Originally Posted by DDDonkey View Post
When I got home from a deployment in 2012 I went to a dealer to buy a used car for 10-12K, when it came time to do the paperwork after we made the deal they were ticked. I told them I was going to pay cash and they said if I don't finance they don't make any money.
That's interesting. I paid cash for my new RV. The dealer knew ahead of time I was going to. I wonder if it works the same way for RVs. They didn't utter a peep about not making any money by me not financing.
__________________
2015 Winnebago Minnie Winnie 22R

"Outside of a dog, a book is man's best friend. Inside of a dog is too dark to read." - Groucho Marx
ArmandV is offline   Reply With Quote
Old 12-20-2015, 09:54 AM   #9
Registered User
 
Join Date: Feb 2012
Location: Troy Mo
Posts: 1,951
It's hard to justify paying cash when interest was in the low 3's, when/if you can double or triple that in investments.
__________________
loisjop is offline   Reply With Quote
Old 12-20-2015, 09:59 AM   #10
Senior Member
 
DSL417's Avatar


 
Entegra Owners Club
Join Date: Sep 2012
Posts: 6,213
Blog Entries: 2
Have to agree with Noel...also, that dealer finance person shopped my credit and got in the 3.5% range. I don't know what their commission is, but the rate is at or less than similar home loans. You go to your bank and get an RV loan...tell them you want 3.5%. When they stop laughing, my guess is you won't see a rate lower than 6-7% after making at least a 30% down payment. JMHO
__________________
Dave and Beth
2015 Cornerstone 45J
Ford F-150 and 2016 Polaris Razor
DSL417 is offline   Reply With Quote
Old 12-20-2015, 10:38 AM   #11
Senior Member
 
ArmandV's Avatar


 
Winnebago Owners Club
Ford Super Duty Owner
Join Date: Apr 2015
Location: Tarzana, CA
Posts: 1,181
Quote:
Originally Posted by loisjop View Post
It's hard to justify paying cash when interest was in the low 3's, when/if you can double or triple that in investments.
Who says that those of us who paid cash don't already have investments? And, those of us who paid cash saved a "ton of money" with great deals, which would be eaten away by finance charges and interest over the long haul. I saved over $20K off MSRP.
__________________
2015 Winnebago Minnie Winnie 22R

"Outside of a dog, a book is man's best friend. Inside of a dog is too dark to read." - Groucho Marx
ArmandV is offline   Reply With Quote
Old 12-20-2015, 11:03 AM   #12
Senior Member
 
Pigman1's Avatar
 
Join Date: Sep 2011
Posts: 1,940
In any major purchase like an RV or even a car, there are three separate deals to be negotiated. First is the price of the unit. PERIOD. Nothing else... Who'll give you the best price. Second is what you get for your trade... Again, can you get more elsewhere with a private sale, an auction or some other means. And third is the price of your money. Do you have enough to pay cash and forgo the the funds you could have earned on that money elsewhere. What's the bank offering and what's the dealer offering.

Many people get all wrapped up when the dealer tries to combine two or all three of these deals and things rapidly get foggy and confused as to what you're really paying. That's why he does it. A confused buyer is to his advantage. If getting it all at one place is worth the extra money you'll pay to have that type of a deal, go for it, but the smart buyer does his homework before the sale and and keeps all the three negotiations separate. You'll notice then that you're dealing with three separate people at the dealership. Three separate dealer profit centers all trying to pry as much out of you as you'll give. Just be smart.
__________________
Pigman
2013 Tiffin Allegro Bus 43QGP
2011 Chevy Silverado 1500 Toad
Pigman1 is offline   Reply With Quote
Old 12-20-2015, 07:42 PM   #13
Senior Member
 
DSL417's Avatar


 
Entegra Owners Club
Join Date: Sep 2012
Posts: 6,213
Blog Entries: 2
Quote:
Originally Posted by ArmandV View Post
Who says that those of us who paid cash don't already have investments? And, those of us who paid cash saved a "ton of money" with great deals, which would be eaten away by finance charges and interest over the long haul. I saved over $20K off MSRP.
Yep...and while I don't know specifically, my guess is, owning similar and financing that Noel saved somewhere North of $160K off MSRP. Don't know what minnie Winnie's sell for, but my bet is the % off MSRP (which is silly numbers anyway) was similar.
__________________
Dave and Beth
2015 Cornerstone 45J
Ford F-150 and 2016 Polaris Razor
DSL417 is offline   Reply With Quote
Old 12-20-2015, 08:39 PM   #14
IC2
Senior Member
 
IC2's Avatar


 
Join Date: Jun 2010
Location: Upstate New York
Posts: 1,886
The way I have done it for years with cars, trucks and now RVs is to get the signed 'deal' on paper which of course I generally dicker with the salesman for the final price. Then always comes the spiel from the finance person on how good they will make me feel with their super special rate. Yeah, sure it is!!!! NOT. The next step is mine and it's where I tell the stealership that I will be arriving for delivery with check(s) from my bank. Last year we purchased our new 5er. I brought two checks from two credit union accounts, neither of which indicated that I was borrowing any money. While I didn't borrow very much, the rate was 4% less then the dealer's 'very best'. That's more a few bucks savings even with the small amount borrowed. I honestly don't care how they make their profit on a sale - I can assure you that it wont be via a loan company fee back to the dealer.
__________________

__________________
Dave W along with my DW, Susan and our poodlepups, Callie & Molly,2011 Ford F250 6.7 CCLB, 5er Hitch Option w/B&W Hitch,,Ride Rite air bags, 2014 Montana High Country 343RL (38')
IC2 is online now   Reply With Quote
Reply

Tags
dealer



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Dealer Only Auctions cucotx iRV2.com General Discussion 28 05-21-2014 08:42 AM
Winnebago Industries Announces Motorized Dealer Sales Award Winners DriVer RV Industry Press 1 04-30-2014 07:13 PM
Winnebago Industries Dealer Open House Event DriVer RV Industry Press 0 07-24-2013 10:21 AM

» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 07:15 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.