Is this normal?

I arranged financing through my credit union before shopping. When we decided on a TT, they asked about financing. I told them I had financing from my credit union but with a rate which was 2% below what the CU actually offered. They came back with financing through Bank of America at 2% less than what I told them.

I went with the dealer financing and paid it off in 3 years by increasing the amount paid each month.

Marine By Choice wrote:
It is a way to keep you coming back to them rather than the other dealer. If you give them $200 initially you are less apt to walk away from it.
Sounds unscrupulous to me, but it is a way to keep you dealing with them.
I would walk away, but that is just me.

ditto....its psychological. Once you give someone money in a sale, you are less likely to walk away because you are "committed". Doesn't always work but it works enough for sales people to do it.

rblake39 wrote:
Thanks for all the posts guys.

Helpful bunch of folks here.

Good luck to you. Let us know when you get your new camper.

Just tell the dealers that at this time it is a CASH deal and they do not need to be concerned with credit.

Ken

Thanks for all the posts guys.

2oldman wrote:
Why would you be applying for financing at the dealer's?

I usually do. However, the finance terms are part of the deal I negotiate along with price of trailer, trade in and any fees the dealer tries to add. If I can negotiate the deal I want then why go to some other bank?

The $200 is for the paramedics to come revive you after you see the APR on that loan.

I think you get the picture from the answers above. That dealer wants to get as much money out of your pocket as possible, as soon as possible, by whatever shady means they can.

RoyB wrote:
This is where I love to deal with the CREDIT UNIONs for financing.

My credit union stopped RV and boat loans during the great recession.
Dealer financing was better rate and terms even when they did offer.
Rate and term is what matters... not who writes the paper.

RoyB wrote:
This is where I love to deal with the CREDIT UNIONs for financing. I already know up front how much I can spend for the purchase of things... It has all been pre-approved...

I find what I want and let them deal with the CREDIT UNION to get their payoff check.

Roy Ken

Anmacc2 wrote:
I would never, never, never finance through a dealer! Shop your financing like you would shop for any other major purchase product. When you deal with the dealer get your final, out the door price, then make your decision. There are too many ways and opportunities for the dealer to hide costs in the financing. A good finance institution would not let you overpay significantly because they want to protect their investment.

It is possible to do both. I got the final price from our dealer, and then I let them talk to my credit union (which I had already checked with) with that price.

The interest rate my CU came back with amazed the dealer - it was lower than their posted rates (even with discounts), and lower than the dealer finance guy was told they could do. This was on an ordered unit.

It helps to know your credit score up front and keep it good.