Buyer beware

Hubby and I have near-perfect credit scores (824 & 832 out of 840, respectively, and have for years. When we refinanced our house a few years ago, our mortgage lender recommended we cut back our credit limits to decrease our liability. It's dependent upon your credit to debt ratio.

According to Dave Ramsey, my financial advisor, several things are certain, high credit scores are a sign of being in debt for a long time, and on keeping it around. At least that is how it is read by the scoring agencies. High credit scores are an indication that there is debt, including revolving debt, and payments are made on-time. That's all it means. It does not mean that you have a great net worth, nor does it mean that you will pay what you owe. All it means is that you are making your monthly payments, and that you are a good candidate to acquire even more debt.

The place you want to be is debt free. That way, you don't have to borrow money for things you don't have the money to pay cash for. Then, it doesn't matter what your credit score is, or if you even have one. Dave Ramsey paid cash for his $5 Million dollar new home, and his credit score is zero. He is worth approx. $50 Million dollars, employs 400 hundred people, and has a paid for office building worth $15 Million give or take. Think about that one. He does not borrow money, nor does he have a credit card.

We spent an afternoon at Mike Thompson's when looking for our first trailer intending to pay cash. We found what we wanted and informed the salesperson we would have to think it over and would call him when we had cash in hand. I called two weeks later when we had the cash freed up and I was informed they didn't have that particular model on their lot but he would check another lot. I gave him my cell number and six years later I am still waiting for his call back. Needless to say that weekend we went to a smaller dealer, looked at what they had to offer and drove off with our trailer that day. We kept that trailer for 5 years and just purchased our 2nd trailer from the same dealer paying cash again.

The best thing you can do to a dealer who treats you in a manner you do not like is show him your backside walking out the door. and, it appears you did that.

However as someone up-thread said. They pulled your credit report and it appears they felt they did not wish to do business with you... So.. They did not.

Was their evaluation fair? Well, since it YOUR credit rating, I have no clue, nor do I want a clue. So, I can not say.

SUKISHORT wrote:
I went to Mike Thompson's RV in Colton, Ca. to buy a new Travel Trailer. I had spoken with a person that I was told was a manager two weeks ago, and explained my complete sitution, money, trade-in, downpayment, credit score, everything. We had to wait until today to go back, but I have talked to this person over the phone during the last two weeks. She told me to bring my trailer and she would get me a "fantastic" deal. My wife and I completely unloaded our trailer and took it down. I was shuffled off to another sales person, by the "manager" I spoke with eariler. Our information was taken, and then we were told, by the sales person because the finance manager couldn't stop eating his lunch to talk to us, that our credit score would need to be 100 pts higher (to the exccelent range 750+) and we would need to pay off our current TT because he couldn't role it into the loan. Also a 50% down payment would be good. I think it was 50% because we were never told what the price of the TT would be. The MSPR that was listed is the highest in the Nation, I looked, and they didn't seem to want to give any discount, even with the nationial average of 30% being a norm. I feel the treatment I receeived was very rude and uncalled for. I warn anyone going there to be prepared for a rude awakening.

You learned a whole bunch of valuable lessons!

Starting with - *NEVER* attempt to "deal" over the phone!!..:S

Then there's...
1. Number one - and MOST important - if you plan to finance your purchase....GET YOUR OWN FINANCING! Credit Union, Bank, etc.

If your CU or bank won't finance you for whatever reason - better keep what you have!
Otherwise - you're a prime candidate for..."BOHICA"..:(
(The dealer gets a percentage of the financing charges from the lender he uses)

2. Number two - Sell your trade-in yourself!
A trade-in is a set-up to be worked over on the purchase price!

Really simple, basic "UPs and DOWNs" at *ANY* dealer!
Value of your trade "UP" = price of new RV "UP"..:(
Price of new RV "DOWN" = trade-in value "DOWN"..:(

Obviously, those "UPs and DOWNs" only benefit the dealer -:(- and BTW, most often your trade will go to an auction.
Plus - the dealer will be be using MSRP for "negotiating"..:(

Mike Thompson is a volume dealer, in the number one camping (and vehicle) sales area in the country. Good weather all year round.
Thirteen million people in just the LA & OC counties - which doesn't include Riverside, San Bernardino and Ventura.

Area is chock full of "gotta have it NOW" walk-ins - MT has a huge inventory to make 'em happy.

MT hires lots of folks, male and female (on commission) that may have never owned an RV in their life! Trailer sales is where they begin their "careers".

If you've ever been to the Pomona "RV show" (or any of the MT sponsored RV "shows") - you are guaranteed to find salespersons who know WAY *less* than you. Some may be hired just for the events, to talk the talk and move you on to to "the closer".
One time I had to show a salesperson where HIS brochures were.
(He admitted it was his first day on the job).

You will find that the sales pitch is WAY less intense, if you (as a "looker") don't have your DW with you. Tell 'em you will go over the floor plans in the brochure/s and bring her back the next day.
Some dealers (at Pomona) even want you to sign-in in order to get a brochure. You are now "Charles Roast" (just call me "Chuck") at whatever address comes to mind.

Note that there are NEVER multiple dealers of the same brand at Pomona - verboten! (no competition permitted).

Yes, MT always has a trailer serving as an "auxiliary office" on the trailer lot/s - salespersons hang out there, eat lunch, drink coffee, etc.

MT *IS* a good place to go *LOOK* at all types of RVs - 'cause they have lots of 'em. Lots of salespeople too.
Note: Key word = "LOOK".

MSRP - the higher the MSRP, the better deal they can offer..:S

It's up to you to know prices - helps a lot to shop prices anywhere *outside* of the LA area - probably the most expensive in the country!
Internet will get you all over the USA - for lots better "bottom lines". (Get it in writing. Now you have a great starting point to continue shopping locally)

Speaking of bottom lines.....here it is:
If a salesperson's mouth is moving - look for a forked tongue, LOL!
(That's an attempt at being polite/humorous and not using the term "lie" or "lying").

~

Crowe wrote:
Actually, canceling cards and lowering credit limits will lower your credit score. One of the big components of the score is your debt to available credit ratio. Canceled cards and declining limits is a big red flag and a big score buster. Also important is how long your accounts have been active. Start canceling ones you have had open a long time and your score goes down.

Have to disagree. Hubby and I have near-perfect credit scores (824 & 832 out of 840, respectively, and have for years. When we refinanced our house a few years ago, our mortgage lender recommended we cut back our credit limits to decrease our liability. It's dependent upon your credit to debt ratio.

Not to be offensive but having a high credit score and understanding how credit scores are established are not necessarily the same. On a long term outlook, closing existing accounts that have zero balances can produce incremental increases in score. Closing accounts when it is common to carry balances on some accounts will produce the opposite results.

Raising your credit score by a 100 points is not going to happen on a sixty or ninety day basis. There are a number of items considered in a FICO score, many of which are undisclosed. There are numerous sources on-line where credit scores and how they are calculated are discussed. Makes for very interesting reading.

Be prepared to walk away if the deal is not to your satisfaction. Sometime this works in your favor and they may call you to offer a better deal and sometime it doesn't work this way but you win on both options. You don't need someone to take advantage of you.

Sukishort, your eating story brings back memories. Eleven years ago when we had started to fulltime we stopped near lunch time at the Thompson location you stated. We eased in to the stealership along side the gate and walked between some RV's. All the sharks' golf carts were parked close to the "office". We were looking at Alfas and they had one with a different floor plan that we hadn't seen and we wanted a "look-see". When we got along side the fiver the door was closed but there were people inside, so we thought someone was looking at it and maybe dealing. We just moved over to a couple of other RV's while waiting for the people to move on. They were still inside after quite a while, so I went back over and opened a storage bay of the Alfa. Ah, that got some action. The door swung open and a guy (salesman) poked his head out and said "we will be out of here in a couple of minutes". I was looking in the door as he spoke. Turns out it was a group salespeople eating lunch,, watching TV, and the worst thing, smoking in the new rig! We were gone like last years snow. They do have quite a resume.

Actually, cancelling cards and lowering credit limits will lower your credit score. One of the big components of the score is your debt to available credit ratio. Cancelled cards and declining limits is a big red flag and a big score buster. Also important is how long your accounts have been active. Start cancelling ones you have had open a long time and your score goes down.

Have to disagree. Hubby and I have near-perfect credit scores (824 & 832 out of 840, respectively, and have for years. When we refinanced our house a few years ago, our mortgage lender recommended we cut back our credit limits to decrease our liability. It's dependent upon your credit to debt ratio.

Crowe wrote:
Making a deal on the phone? Can I sell you some property in FL on the phone? :-)

Not to insult the OP, but Lauren is absolutely correct. NEVER tip your hand about ANYTHING prior to speaking in person. There's too many unknowns. Get everything in writing. And NEVER tell a salesperson how much per month you are willing to pay. They will make the numbers come out to what you want but you most likely will get hosed. You can increase your credit rating by reducing your debt, cancelling credit cards (in writing) if you have multiple cards and by decreasing your card's credit limits (in writing). That said, call around or go to other dealer's websites and see if they have the same trailer and go talk. Shopping around usually pays off. And you are correct, their treatment of you was very unprofessional.

Actually, cancelling cards and lowering credit limits will lower your credit score. One of the big components of the score is your debt to available credit ratio. Cancelled cards and declining limits is a big red flag and a big score buster. Also important is how long your accounts have been active. Start cancelling ones you have had open a long time and your score goes down.

B's Bunch wrote:

Dog Folks wrote:

Lauren wrote:
Lots of good info here IMHO. We are on our 5th trailer. And it is almost like buying a new car. You either take the discount on the new one and sell what you have yourself (much better financially if you can find a buyer)or you take the trade-in. Making a deal on the phone? Can I sell you some property in FL on the phone? :-)

Is that property waterfront? :B

These days maybe Is that property underwater:E

In the 60's a massive amount of vacant land was sold near where I lived. The developer would fly poeple in for the weekend, house them, feed them and then pressure them to buy land to be used for a home in the future when "retired".

Much of it has been purchased back by the state and feds to help restore the Everglades and re flooded, so yes, it is underwater!