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vsheetz · 08-11-2019, 03:57 PM

No reason a deposit must be tied to a credit check. They are likely just wanting to get you committed soonest possible.

Whenever a car/RV/other seller tells me "its their policy" to do such and such, I tell them it my policy not to do such and such. Then i stop talking.- and let them decide if they want to stop the dealings at that point.

MSHappyCampers · 08-11-2019, 04:01 PM

Quote:

Originally Posted by Gary RVRoamer

It's "normal" for a dealer to push you for a deposit. They want you demonstrate some commitment so you are less likely to back out. As far as the credit check is concerned, the dealer pays a fee to do a credit check, so they want to know you are serious. The sales manager may waive that demand if he believes you are indeed a serious buyer, but it's more of a gamble for him if you ultimately do not buy.

I would think that if you have reached the stage where credit & financing are being discussed, a deposit should not be a burden. However, if they won't even give a final price without it, I'd probably walk. I've also been asked to give them a credit card before they would quote anything other than the asking price. Huh! I walked. Not because there is risk in doing that - I just dislike high-pressure sales tactics.

X2!

mobilemike · 08-11-2019, 05:27 PM

Quote:

Originally Posted by Gary RVRoamer

It's "normal" for a dealer to push you for a deposit. They want you demonstrate some commitment so you are less likely to back out. As far as the credit check is concerned, the dealer pays a fee to do a credit check, so they want to know you are serious. The sales manager may waive that demand if he believes you are indeed a serious buyer, but it's more of a gamble for him if you ultimately do not buy.

I would think that if you have reached the stage where credit & financing are being discussed, a deposit should not be a burden. However, if they won't even give a final price without it, I'd probably walk. I've also been asked to give them a credit card before they would quote anything other than the asking price. Huh! I walked. Not because there is risk in doing that - I just dislike high-pressure sales tactics.

exactly!!
At what point were you in the negotiations when they asked for a deposit?

rollindown · 08-12-2019, 03:09 AM

I had picked out a unit, we had agreed on a price, that's when they asked for the deposit. They told me they wouldn't run my credit until I put the deposit down.

I am more than willing to put a deposit down AFTER I find out what the monthly payments are going to be. If I am comfortable with the payments then I am more than happy to give them the security deposit and move forward and finalize the deal. But just to put a deposit down for them to run my credit seems like it is putting the cart before the horse.

MidMichHunte · 08-12-2019, 06:19 AM

Quote:

Originally Posted by rollindown

I had picked out a unit, we had agreed on a price, that's when they asked for the deposit. They told me they wouldn't run my credit until I put the deposit down.

I am more than willing to put a deposit down AFTER I find out what the monthly payments are going to be. If I am comfortable with the payments then I am more than happy to give them the security deposit and move forward and finalize the deal. But just to put a deposit down for them to run my credit seems like it is putting the cart before the horse.

At that point, I think a request for a deposit is not unrealistic. You've found the RV, agreed on the price and are close to finalizing the deal. If you don't have an idea of what your payment would be by now, base on research of current APR's and basic math you've not done all your homework. Also, since you've found the rig you want, I'd lock it down with a little $ before someone else grabs it and you get to start the process all over again...

Hit_the_Rhod · 08-12-2019, 07:10 AM

IF we have picked out a unit which is noted on the contract by VIN and
IF we have agreed on an all up, out the door price, and
IF we have agreed on the trade in value of my trade in (if any), and
IF we are ready to sign a BINDING sales contract, contingent upon results of a professional inspection by inspector(s) of my choice,

I would be ready to leave a deposit check.

Please note that before I even got to this point, I would already have gotten pre-approval for a loan for an amount I am willing to spend from my own lender. There is no legitimate reason for them to HAVE to run a credit check if I am bringing my own financing . . . , and no reason for any deposit of any type until a price has been agreed on, in writing.

HOWEVER, once we have agreed on an out the door price (no other price matters), I am willing to let them check to see what financing they would offer me if they do the financing. That will require them running a credit check. I know what my credit is, but THEY don't. Sometimes they can beat the financing that I am bringing to the table through volume business with a specific lender, etc. I say "financing", NOT "monthly payment", which is really immaterial. Also, make sure any loan agreement includes provisions for early payoff of loan without any penalties!

Once the inspection takes place, and either we are satisfied with the RV as is, or have negotiated a reduction in price based on results of the survey/inspection, we will agree to an amendment to the contract IN WRITING stating something like "the below listed repairs will be completed to the customers satisfaction no later than (insert date), at which time the remainder of the funds will be paid. If repairs cannot be completed in the time allotted, the buyer is entitled to a full refund. If they balk at this, suggest that the time required for repairs that THEY GAVE you must not be realistic.

No closing the deal and coming back for agreed repairs. The sales dept and service dept are two separate entities, and service dept's typically aren't bound by promises that the sales depart makes ie; Sorry that you believed the sales dept when they said we could get you in tomorrow so you can go camping in a week, our earliest appointment is 7 months out!
One last thing, this should have been covered in the inspection, but if not, check the date codes on the tires, and load test the batteries (if any). Require replacement of tires, or price adjustment if tires were manufactured over 12 months earlier prior to date of contract, and replacement or price adjustment on batteries if they test anything other than "new" on a load tester, (readily available for under $25.00).

Good luck with your purchase!

egwilly · 08-12-2019, 07:17 AM

Hit the Rhod is spot on.....

Dealers for motor vehicles, RV's and other highway items can run a fast credit check that shows your FICO score, income to debt ratio, and total outstanding credit accounts. It does count as an inquiry on your credit report. The more risk you are, the more interest you will be charged.

I've seen these printouts laying around on the sale folks desks long after the customer had left. Huge identity theft opportunity. Par for the course.

Please take the time to get your own financing before you buy the RV. You are not in a good negotiating position during the fever of purchasing the RV.
That way you won't have to play the monthly payment game with the finance clowns at the dealer. A game I've played many times in the past. You'll know when they ask "how much a month can you afford"? Walk away.

My experience and opinions, yours may vary.

mobilemike · 08-12-2019, 10:51 AM

Quote:

Originally Posted by rollindown

I had picked out a unit, we had agreed on a price, that's when they asked for the deposit. They told me they wouldn't run my credit until I put the deposit down.

I am more than willing to put a deposit down AFTER I find out what the monthly payments are going to be. If I am comfortable with the payments then I am more than happy to give them the security deposit and move forward and finalize the deal. But just to put a deposit down for them to run my credit seems like it is putting the cart before the horse.

Sounds like the dealer is being reasonable to me.

The 4 steps are:
1) pick a rig
2) agree on price
3) secure financing

4) close the deal.

As a dealer I would not expect to go to financing until

1) the agreed price is in writing of some sort. Even a napkin or note pad.

2) the buyer has proven he is committed to the deal. Some for of money transaction has take place.

Keep in mind your earnest money is refundable in several ways.

1) approved test drive
2) approved inspection
3) approved financing terms
4) approved drivers license and insurance.

Edit to add:
I dont believe the dealer was charging you for the credit check. Or making you pay for the credit check.

I believe the dealer was making you put money down to continue the deal.

Gary RVRoamer · 08-12-2019, 12:56 PM

In this specific case, I think the request for a [refundable] deposit is totally reasonable. The price had been set and the buyer now wants to know about financing and monthly payments before proceeding to closing. The dealer wants to know if the buyer is serious before proceeding further.

TXTiger · 08-12-2019, 01:17 PM

A purchase of an RV is done via a purchase contract. A contract is an offer, acceptance and consideration. All 3 are needed to be a contract. Your deposit is the consideration. Also the dealer wants a deposit to remove the vehicle from its sales inventory. Just make sure the offer to purchase includes a statement that the deposit is refundable, subject to financing approval and other items you want such as a PDI etc.

Podivin · 08-12-2019, 01:26 PM

Quote:

Originally Posted by rollindown

I had picked out a unit, we had agreed on a price, that's when they asked for the deposit. They told me they wouldn't run my credit until I put the deposit down.

I am more than willing to put a deposit down AFTER I find out what the monthly payments are going to be. If I am comfortable with the payments then I am more than happy to give them the security deposit and move forward and finalize the deal. But just to put a deposit down for them to run my credit seems like it is putting the cart before the horse.

Since your credit score affects the loan rate, they can't tell you your exact payment until they know your credit score.
If you know your credit score then tell them 'work on the assumption that my score is xx, if it's not we'll refigure things'. That's what I've done on my last two car purchases and my RV purchase. That method worked fine for me, but it would make a difference on the dealer. If a dealer would NOT work with me that way then I'd probably walk, unless the deal was exceptional.

grindstone01 · 08-12-2019, 08:13 PM

Once both parties agree on a price, then a deposit with a contract/receipt of some sort needs to be the next step. If the monthly payments need to be a certain amount (or any issue for that matter), then that condition can be written into the deposit contract/receipt.

BYoshida · 08-13-2019, 04:35 AM

No deposit required for credit check. Don't even give them your social until you find the unit you want and start playing "Let's make a deal". No one needs a credit check to test drive. They are just trying to make it harder for you to walk away. Once you have a deal made, then they get the deposit. And you can shop for rates of they don't come up with good ones. If a sales person is going to lie about deposits and credit checks during the sales process, what else are they going to lie about. Run away from that dealer.

blang311 · 08-13-2019, 09:54 AM

This is an old trick that car dealers started years ago. By doing this it makes it harder to walk away from the deal when "things" about the deal change. Simply tell them I dont do that and be prepared to walk out. They will change their tune and you can get on with the deal. Don't weaken on this or you will put yourself at a negotiating disadvantage.