Not that it probably matters now, but I would have questioned the price drop. The dealer dropped the price to accommodate the desired monthly payment amount if a lower interest rate were available. Obviously the dealer had some wiggle room in the price and was still able to make a profit. Ideally, the buyer may have saved some money by obtaining the lower sale price and then looking for a loan with a lower interest rate.
Sometimes buyers accept a monthly payment because it fits their current budget. However, they fail to recognize what the total cost is at the end of the loan. Not sure what the starting or ending sell price was, but I put together an example reflecting assumptions to give you an idea of pricing. In the example, the starting price was $20.0K then dropped to $15.0K. Loan duration remained constant at 8yrs/96 mos. Interest rate is 14.95%; then 6.75% to show comparison.
SAMPLE COSTING FOR RV PURCHASE
Purchase Interst Term Monthly Total Interest Paid
Price Rate Pmt Repayment Paid on Loan
$20,000.00 14.95% 8 yrs $358.33 $34,399.68 $14,399.68
$20,000.00 6.75% 8 yrs $270.19 $25,938.24 $ 5,938.24
$15,000.00 14.95% 8 yrs $268.75 $25,800.00 $10,800.00
