Community Forums

Mrs agasrcng · 02-10-2018, 12:58 AM

Quote:

Originally Posted by Bahamaniac

I just wanted to say thank you to the op. I never heard of such a thing! And I thought I knew all of the tricks..

Well, I'm just passing along something that I learned from a Facebook group that I'm in. And actually, since I posted this early this morning, I went back to the group and reread through the group again and found where somebody posted that they had actually asked about the buy rate and the finance dude got really upset and refused to show the customer!

In addition, his salesperson, who he stated was an "internet" salesperson gave him some kind of line about how he doesn't make any kind of commission??? With that, the guy in the post was really starting to question whether or not he was getting a good deal or not!

Mrs agasrcng · 02-10-2018, 01:01 AM

Quote:

Originally Posted by attackgirl

I bought my first and only one used and was shocked at the interest rate. How does 10% grab you and you find the day you go to pick her up, ugh. . The LOC is the best idea and have considered using, to pay this one off but I’ve already paid all the interest at some point the balance I’ll start going down. I’ve done lots of repairs and upgrades aka full medical coverage and support. If I didn’t love her I would trade her for a newer model. Perhaps one in her 20s

What is LOC? Sorry, some of these acronyms are new to me. And 10% seems extremely high to me!

nutcker · 02-10-2018, 01:15 AM

Depending on the terms you are asking for 5.45% might be a little high. You can go to Good Sam Financing web site and look at a table that shows amount to finance, how long to finance and what interest rate would be through them, they are not the best but are below average I think. It is true that the dealer will get any difference between the buy rate and your rate, I worked several years selling and financing large trucks and busses and this is the norm. usually it isn't all that much and will get you better service down the road, (usually). you can google "RV Financing" and come up with many options to get some ideas. Good Luck

Mrs agasrcng · 02-10-2018, 01:21 AM

Quote:

Originally Posted by nutcker

Depending on the terms you are asking for 5.45% might be a little high. You can go to Good Sam Financing web site and look at a table that shows amount to finance, how long to finance and what interest rate would be through them, they are not the best but are below average I think. It is true that the dealer will get any difference between the buy rate and your rate, I worked several years selling and financing large trucks and busses and this is the norm. usually it isn't all that much and will get you better service down the road, (usually). you can google "RV Financing" and come up with many options to get some ideas. Good Luck

Thank you, I will definitely check that out! And interest rates are based on your credit score right?

nutcker · 02-10-2018, 01:30 AM

That is mostly correct, the amount to finance and for how long has an effect on the interest rate also, shorter the term, the better the rate because the bank gets the money back sooner. I thing most of the rv finance industry gets their money from someone like Wells Fargo, Bank of America , Chase or one of the really large banks and they all bump the rate up. Shopping around for the best term you can get and checking references is a good thing.

nutcker · 02-10-2018, 01:35 AM

Oh and one other thing, you can shop around for the best deal on financing and go back to your dealer and just be honest with them, tell the salesman you have better financing else where and see if he can match or come close to that deal, If this is the dealer you intend to use for service I would let them make a little, just not too much though.

Mrs agasrcng · 02-11-2018, 10:35 AM

We will be using this one for service as they are right by where we live (we are rural) so they are EXTREMELY convenient to us. They seem to have a good reputation also.

C2tuck · 02-11-2018, 12:12 PM

Quote:

Originally Posted by nutcker

Oh and one other thing, you can shop around for the best deal on financing and go back to your dealer and just be honest with them, tell the salesman you have better financing else where and see if he can match or come close to that deal, If this is the dealer you intend to use for service I would let them make a little, just not too much though.

I did this when I bought my truck. Dealership said they could get me 3% or whatever it was, my bank said they could do it for less. Called the dealership and told them. She tells me to hand on and comes back with 1.5%. Their tricky and don’t want to leave any money on the table either.

JBDALHB · 02-11-2018, 02:31 PM

Quote:

Originally Posted by nutcker

Oh and one other thing, you can shop around for the best deal on financing and go back to your dealer and just be honest with them, tell the salesman you have better financing else where and see if he can match or come close to that deal, If this is the dealer you intend to use for service I would let them make a little, just not too much though.

X2. Great advice. You have time while your coach is on order to shop and lock in the best rate. We did exactly this last year. Good luck and let us know if you beat the dealers rate!

JBDALHB · 02-11-2018, 02:36 PM

Quote:

Originally Posted by Mrs agasrcng

We are in the process of purchasing our first RV ever and I'm pretty sure we got approved? We are doing everything based on my husband's credit score, which was REALLY good. However, they wanted us to fill out a financial statement considering the price of the motorhome. I turned all that in the other day and I didn't have it completely filled out, but the finance guy had emailed me asking about it so they could go ahead and order the coach. (I was struggling to fill the stupid thing out) He went ahead and accepted it just based on little bit that I had already filled out on assets and we don't really have any liabilities. I guess, the point to doing all that, was because we had never borrow a large sum before? I don't know. So, before I leave the dealership, I ask him when will we know something and he tells me by the end of day or the next. I don't know if that is just determining what our interest rate is or whether or not the bank is actually approving us??? BTW, his credit score was 815.

Anyway, I'm in a FB group that talks about financing and the moderator says that when you finance through the dealer, they will tell you what your interest rate is when you make a deal and get approved. However, when you actually sit down with the finance person, you should ask them what the BUY RATE is from the bank and we'd like to see the email from the bank stating the rate they sent over regarding our loan and THAT is the rate that we, as the buyer want. Because if we sign any paperwork with the dealer accepting any other interest rate other than what the bank actually quoted the dealer, that is just extra money in their pocket.

Has anybody ever heard of anything like this and has anybody ever done this before and the rate be different than what was originally quotes them? I was told our interest rate would more than likely be either be 4.99-5.99%. But in the group was told it can actually be lower than that.

So which coach did you decide to go with? I recall you were balancing budget and need for towing your race trailer.

RVPioneer · 02-12-2018, 08:20 AM

Quote:

Originally Posted by Mrs agasrcng

What is LOC? Sorry, some of these acronyms are new to me. And 10% seems extremely high to me!

LOC is a line of credit, typically taken on the equity of your home. Whether you have a LOC, mortgage or MH loan, you still have debt. If you become unable to pay your debt someone will come after the money or your possessions.

Motorhomes depreciate in value at an alarming rate. If you finance 100% or even 80%, you will owe more than it is worth as soon as you drive it off the dealer's lot. If possible, finance 80% or less and be aggressive with your payments. Perhaps aim to pay it off in 12 years. Have you looked at the total cost of the loan over a 20 year period? By trying to stay ahead you may be able to sell the coach for what is owed should a time come when you are unable to make the payments.

I would also recommend that you verify with your accountant/CPA, exactly what will and will not be deductible on your tax returns. The salesman at the dealership as well as anyone in their financing Dept will tell you anything to make the sale. This will eliminate any shocks at tax time.

joesgt281 · 02-12-2018, 07:28 PM

Mrs. A,
I think I'm in the same FB group and just made a deal on a new MH at the Houston RV show. The dealership is in the process of working up the financing on it so I'm expecting to hear what my "Contract Rate" is going to be.
What I've concluded from the FB posts is that the dealer will get a "Buy Rate" from their source (call it BoA for example), then offer us whatever they think they can get away with, ie, what is competitive. If I can't get any better than 6% because of my credit, they will probably be able to determine that, and offer that or something slightly less. If they themselves can get money at 3%, they will pocket the difference.
Seems to me there is no way for us to get the rate that the banks give dealers due to the large amount of borrowing that the dealers do with them.
I think the only way to get leverage is if we're willing to walk on the deal, or pay cash (however that can happen (out of pocket or another lending source)). Only then do I think they will come off of their contract rate.

Brian W · 02-12-2018, 07:43 PM

Disclaimer: I work at one of those evil RV dealerships.

So, you want the dealer to do all of the shopping for the loan, but not let them make any money for doing that? Believe it or not, it can be a very time consuming process, even for someone with good credit. The more expensive the rig, the more paperwork, and dealing with the lenders. It sounds like you have already seen this play out by the extra requirement of filling out a Liquidity Statement. We often see requirements of tax records, as well as other requirements.

If you are worried about the dealer ripping you off in financing, do what others have recommended and shop for your best rate. Shopping for a RV loan will not hurt your credit score if multiple reports are run by different lenders. The credit agencies typically give you 14 days of shopping rates as long as it is for an auto loan, rv, mortgage, etc. They have models built in that will only count the multiple reports as one credit check, as long as they are for the same type of loan.

In the end, let the best rate win. Does it really matter if the dealer makes money by arranging your financing IF they can meet or beat your best shopped rate?

joesgt281 · 02-12-2018, 08:07 PM

Quote:

Originally Posted by Brian W

In the end, let the best rate win. Does it really matter if the dealer makes money by arranging your financing IF they can meet or beat your best shopped rate?

That's where I'm at on this....if they have an advantage in getting a rate, good for them. If I can't get a better rate than they're offering on my own, then I should take their deal.