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Old 03-20-2015, 09:33 PM   #1
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Question Motorhome Finance

We've been looking around to get a newer coach. Seems the dealers want to take what I owe on my 2002 and add it on to the new loan...
So let's say I owe 35K on my 2002 and want to purchase a 2010 for 99k. When all is said and done I would have to borrow the 35K and tack it on the 99k for the 2010. So it cost me 134k for the 2010. I don't find this acceptable. They get to take my 2002 and I still get to pay for it. My question is are all dealers this way??? Three dealers in Eugene, Oregon....
Any info would help....
P.S. All I wanted was for them to take my coach and the owing figure and pay it off...and sell me a newer coach...
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Old 03-20-2015, 09:45 PM   #2
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Look at the numbers on the sale document. Look at NADA for the low/hi wholesale value.
Was your 02 worth more than they wrote as a trade-in?
If your 02 was not worth enough to also cover the $35K, the $ must come from you, not them. No magic.
If you feel jilted, see what a consignment lot would value your 02 at. It may give you a clearer picture.
Best wishes!
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Old 03-20-2015, 09:47 PM   #3
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what they are doing is giving you a low ball figure on your trade and subtracting the $35000 still owed to be added to your new loan and I bet they are then getting full price for there RV---so in my opinion they are screwing you royally!!!!! someone has to pay that $35000 off but are you getting a fair price for your trade and something off there price of there RV is the question only you have to ask yourself!!!!! Good Luck and watch out for salesmen and managers!!!!!


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Old 03-20-2015, 10:20 PM   #4
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Yes. It is how they make money. It is their desire to make as much money as they can. Your desire should be pay as little as you can. You must know what your units value for trade in is and what their units value is.
Since you may be what is known as upside down you may have to add something to the new note to do the deal but how much, if any, will depend on the values of both units and the balance of the first note. But since you already know your unit does in fact have value you are correct in feeling they are taking you to the cleaners. You could sell your unit for a dollar and be making a better deal than giving them your unit with a free and clear title.
You do not need a newer unit, you just want one, they on the other hand need to sell units to make money. They are counting on your want to over ride your sensibility. It is OK to walk away from any deal you are not happy with, after all once you get the new unit home you will have buyers remorse anyway. It will not last long if you do your homework. Put the pencil to the paper and walk when you get to where you are going to be on the wrong side of the line. Leave your number and let them know until you get your new unit you would be willing to purchase their unit. Sometimes three days makes the dealer decide to deal a little more if they believe you are actually looking elsewhere. And if not, your unit still works for another year, enjoy it.
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Old 03-20-2015, 10:22 PM   #5
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Here are some actual consignment sales
https://www.pplmotorhomes.com/rvs/rv...covery-rvs.htm
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Old 03-21-2015, 06:23 AM   #6
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Like any trade in it should be new vehicle minus trade in and add pay off plus taxes and all the other stuff.
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Old 03-21-2015, 11:05 AM   #7
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Well, you have to pay off the loan on the current coach before you can trade it in, so adding that pay-off to your new loan is the common way to do that unless you happen to have $35k lying around to pay off in cash. You don't actually own all of it until you do, so you can't sell it without the payoff. Then you get the wholesale value of that RV as trade-in credit on the new rig. Probably a lot less than you think it's worth, but that's business as usual. No dealer can afford to pay you the retail value of your RV and then turn around and sell it to somebody else at the same price. His business runs on the difference between what he pays (wholesale) and what he sells it for (retail). It ain't a charity!

It's common to owe more on the RV than its wholesale (trade-in) value, so you can end up with a substantial bump in the loan to get a new one. Ask me how I know...
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Old 03-21-2015, 11:40 AM   #8
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Before anyone begins to negotiate for a new RV they should know 2 things that can be easily researched on the Internet, The value of their trade-in (if they have one) and the value of the new(er) unit. Without these, you are going unarmed into a gunfight. NADA gives a close approximation of where the values lie which can be confirmed or changed with a little shopping on Craigslist or dealership websites. I always put the value somewhere between low and average retail, usually at the lower end of the scale for dealers. Private party sales are not retail so I value those below low retail. Figure all dealers asking prices are higher than what they will accept. Figure the value of your trade-in to be what the initial value on NADA with the mileage component added or subtracted. Do not add for any options or accessories and you will be in the ball park. The same goes for your new rig. Or you can call your bank or credit union and find out how much they would loan on either rig. That is what most buyers would be able to pay for an RV as many don't have the cash to put down. If you are going to spend $100 large you need to take the emotion out of the deal and approach this decision with logic.

The worst thing anyone can do is add your payoff of the old rig to your new rig's loan. That guarantees you will be upside down for as long as you own it. When we were looking, most of the private sellers were asking way above what their rig was worth because they were upside down on it. I wasn't going to be the patsy to pay for their bad decision. If you owe less on your rig than what it is worth, then sell it yourself and take the additional money to pay on the next rig. If you owe more than it is worth, you will need to bring money to the selling table when you make the deal. Don't expect the money owed on the old rig to disappear magically.
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Old 03-21-2015, 11:54 AM   #9
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What most people miss is that when they bought the first RV, they didn't put enough money down. These dealers will talk you into putting 10% down just to get the sale done, when you should have put at least 30% down. Putting less than 20% down on a house is what got the US into the housing financial collapse a few years ago and people are still paying for it. 10% basically covers tax and licensing, and then you are upside down as soon as you drive it off the lot. That is not due to extremely high depreciation, you just didn't put enough down and got into a MH pretty cheap and were willing to make higher payments so you could keep some money in your savings. And it is all good until you want to sell. At some point you will have to put the rest of that "downpayment" into the MH unless you keep it the entire length of the loan, which few people do. You can't expect the new buyer to pay more than your MH is worth just so you don't have to pay what you should have in the beginning. It's a matter of personal preference and not wrong if you did it that way, but you just have to know going into it that at some point you will have to make up that gap.
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Old 03-21-2015, 01:07 PM   #10
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sell it

you might try selling it yourself.


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Old 03-21-2015, 04:12 PM   #11
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Every time I get the fever for a nicer, newer unit the price starts me thinking...... What will a newer RV do or give me that I don't have in my old paid for Pace Arrow. Well the answer (to me) is very little. For sure they are nicer and the interior is a bit more "hip", but. Well I just can't make myself come off the money, maybe if I had a nicer unit I would see what it buys that I don't already have. Guess I'm a tight wad, but hey a hundred K will buy an awful lot of fuel.
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Old 03-21-2015, 09:02 PM   #12
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I would start with a different dealer
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Old 03-22-2015, 10:24 AM   #13
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They offered nothing for my trade. They want to put what I owe on the end of the new loan. I'm better off keeping the 02, and 0urchasing the 2010 with a down payment... The payments on the two motorhomes would be the same as for one...then I could sell the 02...I not upside down on the 02...
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Old 03-22-2015, 03:45 PM   #14
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So they don't want your RV as a trade -in? Or at least not at the price they quoted? So adding it to the loan is just an easy way to pay it off and you still have to sell it on your own. You will get more for it that way, if you don't mind the hassle of a private sale.

Agree, you may as well wait and let the buyer pay off the loan at delivery.
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