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DallasSteve

Texas

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Joined: 05/28/2015

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Posted: 01/02/20 05:00pm Link  |  Quote  |  Print  |  Notify Moderator

I'm planning to buy a new RV in March. Yes, I know they depreciate like crazy, but I've window shopped the used market and I don't see any that's what I want at a reasonable price and I don't want to get into the used RV inspection dance, either. I have the cash, but my plan has been to finance initially and then pay off the loan in a month or two. Interest would not be tax deductible for me and I don't think I'll get a 29% return in the market again next year. So I don't want to keep the loan.

The reason I want to get a loan to start with, is because I like the idea that a bank or some other business has "skin in the game" with me. What I mean by that is "How do I know if I give the dealer my cash for the RV they will actually deliver the RV? I don't have much trust for any RV dealer and I don't know what paperwork to look for. A company in the business of putting their money out to finance these purchases almost certainly knows what to look for.

So what are your opinions/suggestions about a plan like this? I know I will loose a little money by doing a loan, but I consider that to be like title insurance if I was buying a home. It's something I'm willing to pay for. And as a related question, What are typical prepayment penalties or terms on RV loans?





mich800

Pontiac, MI

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Posted: 01/02/20 05:04pm Link  |  Quote  |  Print  |  Notify Moderator

The only one with skin in the game after the loan if funded is you. There are reasons to finance but I would not use the bank aiding you in the transaction as one of them.

T18skyguy

Eugene, OR

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Posted: 01/02/20 05:12pm Link  |  Quote  |  Print  |  Notify Moderator

I would first talk to the bank. We have some bankers on this site might give you good advice. If the bank loans you the money, I would expect a hefty pre-payment penalty. They don't like to go to all that work for nothing. I would just go to a well established dealer, make a deal on the rig. Tell them that's the out the door price so they on't stack fee's on top.Buy it off the lot is what I mean. Then come back with a cashiers check and you'll have your RV. If it's a long standing reputable dealer, there shouldn't be a problem.


Retired Anesthetist. LTP. Pilot with mechanic/inspection ratings. Between rigs right now.. Wife and daughter. Four cats which we must obey.

rk911

DuPage County

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Posted: 01/02/20 05:13pm Link  |  Quote  |  Print  |  Notify Moderator

you select an RV from the dealer’s lot or place an order for the factory and put down a modest deposit ( not in cash!), making it refundable if, upon delivery, there is something major wrong. the deposit amount will be noted on the sales agreement. upon delivery you do an inspection and then pay the balance. not in cash, check, bank check, etc. get a receipt or make sure your payment is noted on the sales agreement. you pay, dealer hands you the keys. the bank will not get involved in this process.


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DallasSteve

Texas

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Posted: 01/02/20 05:58pm Link  |  Quote  |  Print  |  Notify Moderator

T18skyguy wrote:

I would first talk to the bank. We have some bankers on this site might give you good advice. If the bank loans you the money, I would expect a hefty pre-payment penalty. They don't like to go to all that work for nothing. I would just go to a well established dealer, make a deal on the rig. Tell them that's the out the door price so they on't stack fee's on top.Buy it off the lot is what I mean. Then come back with a cashiers check and you'll have your RV. If it's a long standing reputable dealer, there shouldn't be a problem.

"Shouldn't"

I agree. I shouldn't have a problem. In the unlikely event that I give them $30,000, $40,000, or more, and oops, they file bankruptcy or decide to take early retirement with my funds, who here will reimburse me? It suddenly got quiet.

Maybe what I need to do is investigate some kind of escrow agent (a bank or lawyer) and I pay that fee to have my peace of mind.

mich800

Pontiac, MI

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Posted: 01/02/20 06:27pm Link  |  Quote  |  Print  |  Notify Moderator

DallasSteve wrote:

T18skyguy wrote:

I would first talk to the bank. We have some bankers on this site might give you good advice. If the bank loans you the money, I would expect a hefty pre-payment penalty. They don't like to go to all that work for nothing. I would just go to a well established dealer, make a deal on the rig. Tell them that's the out the door price so they on't stack fee's on top.Buy it off the lot is what I mean. Then come back with a cashiers check and you'll have your RV. If it's a long standing reputable dealer, there shouldn't be a problem.

"Shouldn't"

I agree. I shouldn't have a problem. In the unlikely event that I give them $30,000, $40,000, or more, and oops, they file bankruptcy or decide to take early retirement with my funds, who here will reimburse me? It suddenly got quiet.

Maybe what I need to do is investigate some kind of escrow agent (a bank or lawyer) and I pay that fee to have my peace of mind.


In what scenario would you hand over $30-40k or something other than a deposit without driving off the lot concurrently to the transaction?

DallasSteve

Texas

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Posted: 01/02/20 06:32pm Link  |  Quote  |  Print  |  Notify Moderator

mich800 wrote:

DallasSteve wrote:

T18skyguy wrote:

I would first talk to the bank. We have some bankers on this site might give you good advice. If the bank loans you the money, I would expect a hefty pre-payment penalty. They don't like to go to all that work for nothing. I would just go to a well established dealer, make a deal on the rig. Tell them that's the out the door price so they on't stack fee's on top.Buy it off the lot is what I mean. Then come back with a cashiers check and you'll have your RV. If it's a long standing reputable dealer, there shouldn't be a problem.

"Shouldn't"

I agree. I shouldn't have a problem. In the unlikely event that I give them $30,000, $40,000, or more, and oops, they file bankruptcy or decide to take early retirement with my funds, who here will reimburse me? It suddenly got quiet.

Maybe what I need to do is investigate some kind of escrow agent (a bank or lawyer) and I pay that fee to have my peace of mind.


In what scenario would you hand over $30-40k or something other than a deposit without driving off the lot concurrently to the transaction?

mich

I don't know. I've never paid cash for a car or RV before. It "shouldn't" be a problem, but when we're talking about a significant portion of my life's savings "shouldn't" isn't acceptable to me.

BB_TX

McKinney, Texas

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Posted: 01/02/20 06:35pm Link  |  Quote  |  Print  |  Notify Moderator

When we bought our 5er we did a PDI and then we wrote a check for the full amount and towed it home.

rk911

DuPage County

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Posted: 01/02/20 06:35pm Link  |  Quote  |  Print  |  Notify Moderator

DallasSteve wrote:

T18skyguy wrote:

I would first talk to the bank. We have some bankers on this site might give you good advice. If the bank loans you the money, I would expect a hefty pre-payment penalty. They don't like to go to all that work for nothing. I would just go to a well established dealer, make a deal on the rig. Tell them that's the out the door price so they on't stack fee's on top.Buy it off the lot is what I mean. Then come back with a cashiers check and you'll have your RV. If it's a long standing reputable dealer, there shouldn't be a problem.

"Shouldn't"

I agree. I shouldn't have a problem. In the unlikely event that I give them $30,000, $40,000, or more, and oops, they file bankruptcy or decide to take early retirement with my funds, who here will reimburse me? It suddenly got quiet.

Maybe what I need to do is investigate some kind of escrow agent (a bank or lawyer) and I pay that fee to have my peace of mind.


you're overthinking this. we've paid cash for cars since 1990 and we paid cash for our current MH.

apart from a down payment (if you're ordering from the factory) you're not handing them one red cent until they prep the vehicle, you have inspected it, and provide you with a bill of sale, completed sales agreement, registration, etc. and a set of keys. once all that is done, they have your money, you have an RV with paperwork with a matching VIN or serial number you're good to go.

there are some things you can do pre-sale to help ensure you're dealing with a reputable dealer:

- check with the local Better Business Bureau or online at https://www.bbb.org/.

- check the dealer for complaints at your state's attorney general's office.

- check for a business license. how long have they been in business? using the name? at that location?

- see if your insurance agent can provide insight. same with your bank.

- go online and search for reviews. name the dealer here and on irv2.com. might be members who know the dealer.

- i'd avoid tiny dealers with a trailer for an office operating on a small asphalt or gravel lot with a half-dozen RVs.

- trust your gut and the hairs on the back of your neck.

good luck.

ScottG

Bothell Wa.

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Posted: 01/02/20 06:36pm Link  |  Quote  |  Print  |  Notify Moderator

mich800 wrote:

The only one with skin in the game after the loan if funded is you. There are reasons to finance but I would not use the bank aiding you in the transaction as one of them.


X2. If anyone is to get skrewed, it's you. Even if you get totally scammed and are the victim of fraud, you still owe the bank in full.


Scott, Grace and Wesly
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