Quote:
Originally Posted by reubenray
My dealer said they will check into the financing when the motorhome closing is 30 days out which is about two weeks from now. I wanted to check myself to keep the dealer honest. I have read where some dealers will jump up the rates for a kickback from the lenders.
I have the means to buy this outright, but I would rather finance it also. I want to keep my nestegg in case of an emergency.
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Dealers sell the loan to the bank, and can be as high as 6 points, or 1.5 percent. Certain banks only allow up to a set amount, say $5,000 to be paid to the dealer so there is no point in marking it up any more than what it takes to get to that amount.
The dealer can still often beat what you can get on your own. In my case I was able to beat the rate I would have been able to get by about 1.25 percent.
As a disclaimer, I work for a dealership. I would look into what you can get verse what the dealer can get, even with the markup. Do you really care that the dealership makes money on the loan if they get you a better rate?