Financing an RV

I would say you need to take your trade out of the equation and UP your down payment. That is the only thing that will make this deal work in your favor.

This is a losing deal for you for sure. I agree with many who have spelled it out more in detail already.

IMO if you havnt signed...walk away...fast.

FloridaKash wrote:
I am workign with a dealer on trying to find the right RV but do not understand how this Trade Difference line works. This is the quote they worked up. The trade in is for an SUV we have that has 17.5K on the loan and is about $5K upside down.

Vehicle Price - $74,547.00
Options - N/A
Retail Discount - $9,657.00
Customer Price - $64,890.00
Trade Allowance - $18,000
Trade Difference - $46,890

Estimates Payment Option
$6,000 Down - 180 Months - APR 5.99% - Payment $524.33

When I go to a finance calculator a $524.33 payment at these terms is $62,135.62 financed. How did they possibly get to that number using the data I am providing?

As another reply stated, you should see a discount from MSRP between 25%-30%.

I have also read that trailers decrease in value about $5,000 a year. Financing something that goes down in value so rapidly is a tough game to play.

You are 5k upside down trade and 6k down payment. Looks like the down covers the trade in and you are just financing the RV.

RV is 64k and you say the finance works out to 62k so it is in the ball park... even a little low.

Where is the tax and title?

bikendan wrote:
doing a trade-in, is ALWAYS a losing game for the customer.
that's why i refuse to do it and always sell my vehicles/RV's myself.
then i don't have that handicap during negotiations.

YEP! And to add further, if you have to finance an RV, you would be best to not do that. Quality, well maintained RV's are available on the aftermarket by the hundreds at huge discounts. 3-5 year old units have usually been shaken down and repaired optimally. Macabre as it may sound, seeking out elderly widows/widowers may be your best bet. Due diligence is necessary, but it's likely that even the least savvy can spot the scammers who prey on this market.

When, not IF, I die, I would hope that someone else could benefit from my meticulous maintenance and care and buy our home for these past 4 years (another FT rig for 10 before that). That's how we bought this one. Her deceased husband had not only taken care but improved many things extant. We offered her 25% more than she was asking, which was 50% below market value in excellent shape. She knew that we would take care of THEIR previous home and refused to take more.

She asked us to keep in touch. We did frequently until we were informed of her death 2 years ago.

We have taken good care of her legacy.

I know, I veered from the thread here, but not really. There are many other alternatives to "financing". Look at them before you put yourselves in debt.

Thanks for the posts everyone. This is for a used unit. I'll clarify with the sales person. Yes, it appears he is doing the "meet your payment" gimmick.

doing a trade-in, is ALWAYS a losing game for the customer.
that's why i refuse to do it and always sell my vehicles/RV's myself.
then i don't have that handicap during negotiations.

wildtoad wrote:
Yep they are giving you 18,000 for your SUV, but lending you an additional $17,500 to pay it off. So at the end of the day, you get $500 for your vehicle towards the new RV. Add that back in and you get the payment they stated.

Agree on he above, plus there might be "Other" fees they are not showing to close the sale (Shipping, PDI, admin), that will closes gaps on the numbers they sent you.

Looks like their trying the classic, what payment do you want; a little over $500 a month I can get you in that vehicle.

If vehicle price is MSRP and you are only getting $9,657 off, that is only 13%, when most RV's sell for 25-30% off MSRP. Do some searching on that model and prices througout US.

Trades muddy the situation......

As noted, ask dealer for clarification.

Good luck!

Markiemark

Yep they are giving you 18,000 for your SUV, but lending you an additional $17,500 to pay it off. So at the end of the day, you get $500 for your vehicle towards the new RV. Add that back in and you get the payment they stated.

.

I would ask them for a explanation if you have questions. What we guess, it might be will not help you much, good luck.