Free 7 Day Trial RV GPS App RV Trip Planner Campground Reviews RV Maintenance Free 7 Day Trial ×
RV Trip Planning Discussions

Go Back   iRV2 Forums > MOTORHOME FORUMS > MH-General Discussions & Problems
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 05-17-2020, 10:48 AM   #1
Member
 
Join Date: Oct 2019
Posts: 30
New Order Non-Refundable Deposit?

I'm planning to order a 2021 Tiffin. And, after getting quotes from several dealers, one offered much, much better pricing than the others. However, this dealer also said that they require a $20,000.00 non-refundable deposit. The other dealers only required a $5,000.00 non-refundable deposit.

Supposedly the non-refundable clause has many exceptions including natural disasters and other things, and they're just trying to protect themselves in case I simply change my mind. I'm not too worried about that part and will get that sorted out before I sign anything.

Questions –

1. Is a non-refundable deposit standard in the industry? (by the way, this unit will have only the most popular options, so I don't see that it would be any harder to sell than any other unit on their lot if the deal fell apart, i.e. it's not custom).


2. Does the deposit amount seems unreasonably high compared to the others?


Thank you.
nsail 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 05-17-2020, 11:02 AM   #2
Senior Member
 
Join Date: Jul 2000
Posts: 3,407
1. don't know, don't care. walk away. lot's of dealers out there.

2. yes. double yes. walk away. lot's of dealers out there.
__________________
Rich, Ham Radio, Sport Pilot
Retired 9-1-1 Admin.
2016 Itasca Suncruiser 38Q/2010 Jeep Liberty
rk911 is online now   Reply With Quote
Old 05-17-2020, 11:19 AM   #3
Senior Member
 
lllkrob's Avatar
 
Join Date: Nov 2008
Posts: 2,995
Dealers that require large non-refundable deposits are generally in poor financial condition and could quit operation at any time.


It is VERY risky to do business with them. Especially since they are quoting low ball prices to attract needed deposits to stay in business.
__________________
2013 Tiffin Phaeton 40QBH
2016 Chevrolet Equinox LTZ AWD V6
lllkrob is offline   Reply With Quote
Old 05-17-2020, 11:53 AM   #4
Registered User
 
Join Date: Jan 2019
Posts: 396
On a multiple hundred thousand dollar RV taking a deposit is almost a given.
There are two factors in play.
First, if the dealer actually wanted to stock that unit, they would. Just taking your word that you are going to actually take delivery and pay for it is a big, big leap of faith. Today, with all the uncertainty in the economic world it isn't a given you will still be employed when the rig arrives or that your financial situation hasn't changed dramatically because your investments crashed or your business was forced to close. Heck your heart may be taken by pretty, in stock, Entegra or Newmar while you wait for the Tiffin.
Second, there is a big problem in vehicle floor plan financing today. Believe it or not, not all my friends are in low places. I have several who are multi-generation high line auto dealers. A sea change in financing available to used car dealers and wholesale dealers recently occurred. Several of the largest floor plan lenders have ceased operation. Wholesale dealers who were able to finance 100% of the purchase price of new inventory are now only able to finance 80% of that amount, meaning they have to come out of pocket with the rest of the funds. This has caused wholesale used car prices to fall dramatically, effecting even the franchise dealers.
Most new car dealers do not face this issue on their inventory since they are floor planned by the manufacturer, but that is not the case with RV dealers. They likely have their inventory financing with those same companies that either went out of business or changed their requirements. If that happened to the dealer in question they would have to put down $40,000 on a $200,000 RV when they (not you) take delivery. Multiply that by the total inventory at the dealership and you can see why they want to run very lean. They are very likely looking to minimize their cash outlays as well as the risk the vehicle will end up unsold in their inventory, regardless of how desirable you think the rig is.
kcdogger is offline   Reply With Quote
Old 05-17-2020, 01:24 PM   #5
Moderator Emeritus
 
Gary RVRoamer's Avatar


 
Join Date: Jan 2000
Location: Silver Springs, FL. USA
Posts: 24,236
What kcdogger says! You may find a dealer somewhere willing to risk buying that unit for you without a non-refundable deposit, but I wouldn't bet on it in the current business environment. Maybe would have been different 6-8 months ago, but that's irrelevant now.


The higher deposit somewhat offsets the dealers risk but I'm kind of surprised it would make a big difference in the selling price. Makes me wonder if there aren't other things that you have missed that will crop up as hidden charges at delivery. And you can't really back away at that point because of the big deposit. I'd be suspicious...


I would also worry that my $20k could be tied up indefinitely or even lost in the current environment. Either the dealer or the factory could suspend operation for weeks or months or even fold up altogether.. That happened back in 2008 to buyers who had factory orders pending and today is as bad or worse. Nobody imagined that big names like Fleetwood or Monaco or Country Coach could fold, but it happened.
__________________
Gary Brinck
Former owner of 2004 American Tradition and several other RVs
Home is in the Ocala Nat'l Forest near Ocala, FL
Summers in Black Mountain, NC
Gary RVRoamer is offline   Reply With Quote
Old 05-17-2020, 01:27 PM   #6
JC2
Senior Member
 
JC2's Avatar
 
Newmar Owners Club
Texas Boomers Club
Join Date: Dec 2003
Location: Mo/Texas
Posts: 3,518
I agree. Run, don't walk.


Quote:
Originally Posted by rk911 View Post
1. don't know, don't care. walk away. lot's of dealers out there.

2. yes. double yes. walk away. lot's of dealers out there.
__________________
2010 Newmar Dutch Aire DP 4304-Cummins ISL 425hp-Spartan MM Chassis-2013 Chev Equinox AWD-Ready Brute Elite Towing System-FMCA 402879-SKP 120487
JC2 is offline   Reply With Quote
Old 05-17-2020, 02:43 PM   #7
Member
 
Join Date: Oct 2019
Posts: 30
Thanks everyone so far, but is there anyone out there with experience ordering a new unit that can tell me if it is normal for a dealer to ask for a non-refundable deposit?

If so, does $20,000.00 seem high to you, or would you expect a lower amount?

By the way, there's no way I'm going to give them that much if I decide to go through with it. I'll get them down or walk. Just don't know what is reasonable.
nsail is offline   Reply With Quote
Old 05-17-2020, 03:08 PM   #8
Senior Member
 
Join Date: Jul 2018
Posts: 3,351
Quote:
Originally Posted by nsail View Post
Thanks everyone so far, but is there anyone out there with experience ordering a new unit that can tell me if it is normal for a dealer to ask for a non-refundable deposit?

If so, does $20,000.00 seem high to you, or would you expect a lower amount?

By the way, there's no way I'm going to give them that much if I decide to go through with it. I'll get them down or walk. Just don't know what is reasonable.
Yes, a non-refundable fee to place a custom order and hold the product for your purchase for a specific amount of time is normal. 5% is the minimum I've seen but 10% would not surprise.

What I suggest is that you request a written proposal that includes all fees, charges, assessments, etc that the dealer charges, is required by law to collect at the point/time of sale, etc. Kind of like HUD-1 in real estate closings. If you're concerned about the dealer or manufacturer going out of biz, consider using an escrow service to hold the deposit. It will complicate negotiations but if the dealer failed to perform under the contract, you'd get your money back.

Finally, if you're significantly concerned you should consult an attorney in the state in which the transaction will be made. Your rights vary depending on locale.

ps. like doing comparisons in real estate prices - throw out the least and most expensive and average the rest. If the deal still looks "too good" there is something else going on.
__________________
2005 Four Winds Majestic 23A
“To the world you may be one person; but to one person you may be the world.” - Dr Suess
Solo_RV_Guy is offline   Reply With Quote
Old 05-17-2020, 03:14 PM   #9
NXR
Senior Member
 
NXR's Avatar
 
Join Date: Mar 2019
Posts: 2,643
Quote:
Originally Posted by nsail View Post
Thanks everyone so far, but is there anyone out there with experience ordering a new unit that can tell me if it is normal for a dealer to ask for a non-refundable deposit?

If so, does $20,000.00 seem high to you, or would you expect a lower amount?

By the way, there's no way I'm going to give them that much if I decide to go through with it. I'll get them down or walk. Just don't know what is reasonable.
Without knowing the total price no one knows the percentage. We had to put down just under 3% on the new motorhome we ordered a year ago.

I'd take their written quote, which hopefully does not mention the non-refundable deposit amount, and shop it to your preferred dealer to see if they'll bargain. If nothing else, that dealer may know why this dealer needs a high down payment.

Rat
__________________
2020 Forest River Georgetown GT5 34H5
NXR is offline   Reply With Quote
Old 05-17-2020, 03:21 PM   #10
Member
 
Join Date: Mar 2020
Location: Anaheim, CA
Posts: 45
I would consider it if funds were held In an escrow account requiring both parties approval to disperse. Keeps everyone honest and should cover everyone's needs?
Busbreath is offline   Reply With Quote
Old 05-17-2020, 03:44 PM   #11
Senior Member
 
vsheetz's Avatar


 
Fleetwood Owners Club
Ford Super Duty Owner
Join Date: Jun 2012
Location: SoCal
Posts: 15,132
2. Does the deposit amount seems unreasonably high compared to the others?

You commented several others wanted $5k, but this one wants $20k. So I think this answers your question.

Tell the $20k guy, you will do $5k as that amount is aligned to what several others wanted. Then stop talking. Don't respond to anything they say in justification... hold to the $5k.
__________________
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 05-17-2020, 11:22 PM   #12
Senior Member
 
BobGed's Avatar
 
Tiffin Owners Club
Freightliner Owners Club
Join Date: Oct 2008
Location: Land of the Washoe Zephyr
Posts: 3,139
According to your "About Me" page, if still accurate, is that you're located in northern California, and I think I might know the dealer you're referring to if it's also located in CA. I'm located in Carson City, NV, and should be within a few hundred miles from you.

I purchased a new custom ordered 2009 Tiffin coach from a local dealer, and then a custom ordered 2017 from an out of state dealer over 2,000 miles from me. The following is what I learned, and some suggestions I would like to pass on, so take them for what they might be worth.

One thing you do need to know up front is the quality control at Tiffin's factory for the most part is extremely lacking. This was true with my 2009 and again with my 2017.

On the purchase of my 2009 coach I received a 22% discount and I put down a $5,000 deposit. Upon delivery there were numerous deficiencies that needed to be corrected. The coach spent a total of nine weeks at the dealer where they tried to diagnose the problems, and then have to wait to receive parts from Red Bay, AL. If they got the diagnosis wrong, which they often did, then the process would start all over again.

I subsequently found out that Tiffin was setting up some existing third party RV repair facilities as certified Tiffin service centers that would handle warranty repairs and bill Tiffin. The big difference is these facilities had more qualified technicians to diagnose the problems. Yes there was still a wait for parts, but at least they got it right the first time.

So lesson one for me was not to take my coach to any dealer, but rather to one of the certified centers. The good news being there are quite a few of them located on the west coast, with two of them within less than 200 miles of you.

When it came time to purchase our 2017 coach, and with the above in mind, I was simply after the best deal I could find. I sent a quote request to the following dealers, commonly known as "The Big Three":

Davis Motorhomes, Memphis, TN
Sherman RV, Sherman, MS
Bankston RV, Huntsville, AL

All of them were pretty close but I wound up going with Davis at a 29% discount with a $5,000 deposit.

Since I suspected there would be some issues with the coach I planned my trip to include a stop at Red Bay (approximately an additional 165 miles), and I'm glad I did. There were multiple items that needed attention by their experienced techs, and new parts which being in Red Bay made them readily available.

So the bottom line is I would suggest sending a quote request to one or all of the above dealers and compare them to what you have received. And of course I would further suggest, should you decide to purchase from one of them, to plan a trip to Red Bay.

In any case, good luck on your purchase.
__________________
Bob, Sherron & Kinsey (Goldendoodle)
2017 Tiffin Phaeton 40QBH
2014 Jeep Cherokee Limited
BobGed is online now   Reply With Quote
Old 05-17-2020, 11:26 PM   #13
Senior Member
 
vsheetz's Avatar


 
Fleetwood Owners Club
Ford Super Duty Owner
Join Date: Jun 2012
Location: SoCal
Posts: 15,132
Good advice. Imho.
__________________
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 05-17-2020, 11:32 PM   #14
Senior Member
 
Arch Hoagland's Avatar
 
Monaco Owners Club
Workhorse Chassis Owner
Join Date: Aug 2002
Location: Clovis, CA, USA
Posts: 10,964
With our financial world in total chaos right now I wouldn't put a $10 deposit down on it.

A LOT of companies are going to go belly up, none are immune so to speak.

Assume for a minute they have the unit on the lot, you buy it and next week the flamix goes bad. Good luck trying to get anything repaired right now.

I suggest waiting a few months and see what happens. And don't believe ANYTHING the sales department is saying right now. They are in dire straights.
__________________
2004 Monaco La Palma 36DBD, W22, 8.1, 7.1 MPG
2000 LEXUS RX300 FWD 22MPG 4020 LBS
Of all the things I've lost in life I miss my mind the most.
Arch Hoagland is online now   Reply With Quote
Reply



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
Non-refundable deposit Joe11 RV'ing Humor & Crazy but True Stories 1 10-01-2018 07:01 AM
May be leaving non-refundable deposit tomorrow! Help with Advice? MP1 Monaco Owner's Forum 86 08-04-2018 06:35 PM
Money down refundable or non-refundable? jk70 Travel Trailer Discussion 5 03-17-2018 10:32 PM
How much of a deposit on an order? Canuck53 Newmar Owner's Forum 13 06-09-2017 06:33 AM
Non refundable deposit without seeing contract? gingery56 iRV2.com General Discussion 24 05-14-2016 08:38 PM


All times are GMT -6. The time now is 11:41 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.