Sound like a good deal?

[scarecrow56]

I have been offered to buy a new 2019 Coachmen Freedom Express Select 24SE for $20,000+$1250 tax+$799 dealers prep fee+$200 tags and registration= $22,250 out the door. I think its a good deal although I don't like the dealer prep fee. I am also nervous about a $1000 deposit that, if I don't like the interest rate, they will keep. The deposit is refundable at the sale but they take it before they run my financing. Is this a standard practice in the industry? I have only bought 1 other camper in my life and that was 20 years ago. Also they're talking about no money down, no payments for 90 days. They're saying the payment will be between $219 and $239 a month on a 144 month note which I thought was kinda high but I don't know how to figure in an interest rate. Wadda ya think? This is at Giant Recreation World in Palm Bay Florida. Thanks

[badsix]

I'm no finance guru. but in my younger years if I had to finance something I would get the payments low. then make double or triple payments when ever I could. the if hard times came around I could still make the low payment. I was usually able to pay the thing off quite quickly and save on the interest.
Jay D.

[midnightsadie]

do as others have said, from what I read there all good advice. dealer prep thats a rip off. time is on your side do some home work.

[winnietrey]

scarecrow56 wrote:
My credit score is 785 however I'm self employed and show a low income so wouldn't that keep me from getting a loan at a bank? Also, yes I would keep the trailer for 12 years or more. My last one I kept for 20 years. Im also looking at it as a second home when I retire in 2-3 years.

,


Yeah, you are kind of in a tough spot. The interest, the dealer wants Is pretty high. But remember he/she is not going to carry the paper. They will make a % on it, and sell the loan. And they are putting you in a higher risk category (good credit, but low income)

Kind of, it is, what it is, and credit union may not be willing to help you, and a bank may not offer a much better rate. Given your income

My humble opinion try online , call around see what you can do

[scarecrow56]

My credit score is 785 however I'm self employed and show a low income so wouldn't that keep me from getting a loan at a bank? Also, yes I would keep the trailer for 12 years or more. My last one I kept for 20 years. Im also looking at it as a second home when I retire in 2-3 years.

[winnietrey]

google amortization schedule, you can do the math from there. The interest rate looks to me , based on your numbers to be 8% plus. Seems high to me, unless your credit rating is lees than stellar

[Lynnmor]

A quick search, and I found that the price is about right, but the dealer is slimy. Take your business to a better place.

[Gdetrailer]

Can't help you on the price, but..

That is a 12 yr loan on a RV which is a depreciating asset, it loses a LOT of value quickly and yet you will be paying for yrs on it when it has nearly zero value.

For example to get in the middle of their estimate a $22K loan for 12 yrs at 5.25% gives $206 per month P & I, you will pay $7,699 in interest making your total cost to buy $29,699!

Are you planning to own THIS RV for a minimum of 12yrs?

If not, better get a shorter loan or make some HUGE payments towards the PRINCIPLE of the loan to pay the loan off very early.

You might be able to get a bit better deal on the loan if you shop around.. I have never used a car dealer loan for vehicles, always shopped my local banks.

NEVER, EVER buy into the low payment thing, RV dealers like auto dealers love upsell you to the next more costly rig by enticing you with the "Low Payment", they simply do that by setting you up with a longer loan term which in the end you pay much more in interest.

Knowledge IS power, you can figure out how interest costs you with online Amortization calculators..

HERE is just one of many and if you dig around you can find some which allow you to calculate the effect of making extra payments toward the Principle of the loan (Principle is the amount of money that you borrowed which has not been paid back).

[Boon_Docker]

That is an interest rate of 8% amounting to $12,000 interest.

[CFerguson]

Never dealer finance. As said, Credit Union is best.

Take your trailer specifics and compare on the multitude of websites on the web. Contact other dealers asking for their OTD price. Most will get back to you ime.

Personaly, I don't care what they call various charges, I am only interested in the final number. I tell them that too in case it helps their books somewhow. No skin off my nose if they call it "customer screw fee" so long as the price is the same.

[outdoorlovers]

Run, the other way

[Huntindog]

scarecrow56 wrote:
I have been offered to buy a new 2019 Coachmen Freedom Express Select 24SE for $20,000+$1250 tax+$799 dealers prep fee+$200 tags and registration= $22,250 out the door. I think its a good deal although I don't like the dealer prep fee. I am also nervous about a $1000 deposit that, if I don't like the interest rate, they will keep. The deposit is refundable at the sale but they take it before they run my financing. Is this a standard practice in the industry? I have only bought 1 other camper in my life and that was 20 years ago. Also they're talking about no money down, no payments for 90 days. They're saying the payment will be between $219 and $239 a month on a 144 month note which I thought was kinda high but I don't know how to figure in an interest rate. Wadda ya think? This is at Giant Recreation World in Palm Bay Florida. Thanks

I have no idea of the value of that, or any other unit. You need someone that will have a vested interest in the unit in your corner.

Get your own financing at your bank, or better yet credit union. They WILL know that units value, and will not let you overpay.

Just off of the top of my head.... This deal sounds sketchy to me.

[Lwiddis]

Find your own financing that doesn’t chance forfeiture. Running your credit should be without charge. I’d be wary of this dealer.

144 months (twelve years) at $219 per month is $33k.