Fed Cuts Rates: Will RV Rates Follow?
The Fed cut rates 1/2 percent this morning in an effort to keep the stock market bubble growing. I'm negotiating a new RV loan to close in 10 days and the dealer quoted me 5.49% last week. I haven't...
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Dealers make a yield spread which is full payment for the difference in interest rate over the life of the loan. Often making as much or more on the interest spread than the units markup.
Example..... dealer writes up a sales contract for you to pay so much for the price of the unit at a set rate of interest. Then when the time is ripe to bundle several loans to sell to the lender, making it more attractive, the dealer negotiates a lower interest rate causing what is called a yield spread or additional profit on each of the loan contracts. That yield spread is paid in full to the dealer for each of the loan contracts. another way of making money and also easier for you to make a deal all in one.
Example..... dealer writes up a sales contract for you to pay so much for the price of the unit at a set rate of interest. Then when the time is ripe to bundle several loans to sell to the lender, making it more attractive, the dealer negotiates a lower interest rate causing what is called a yield spread or additional profit on each of the loan contracts. That yield spread is paid in full to the dealer for each of the loan contracts. another way of making money and also easier for you to make a deal all in one.
