Getting closer to buying. Is there a catch to dealer financing or should one go thru the bank. Should the decision just be based on interest rate or is there other factors we should consider..getting closer to being a real owner..thanks
If you finance thru a dealer, be sure to ask to see the actual approval from the bank that has accepted your application. Many times you can be approved for a rate from the bank the dealer has found but the dealer can "mark" up the rate. It's one of the ways dealer make their money. Example: let's say the bank (the one the dealer has found) says that you are approved at 5.25%. The dealer can come back to you and say they got you approved at 7.25%. They have just marked your rate up. But, if you ask to see the actual approval from the bank, you might be able to negotiate the rate the dealer gave you. Keep in mind that not all dealerships partake in this practice. It is totally legal, it's just not something the dealerships like consumers to know. I am telling you this because I work at bank that does rv loans (alot of them).
I hope this helps to some degree. If you have any questions about anything I just told you, please feel free to ask.
THanks for help. I had a feeling there could be an angle in there somewhere, so will watch closely. I did check rvdirect, but didn't have any of the rv's I've looked at listed. I also was concerned about the after sales service. Is this a valid concern?
This is what RV Direct says about service.....Looks like they set you up for service but who knows. I had a cousin that bought a Class A from them and he flew to Florida to pick it up. Says he had no problems so far and that was several years ago.
How Do I Get Service ?
Thatâ€™s the best part of our on-line buying. Because your order is placed by an authorized dealer, your vehicle will be registered with the factory as sold to you originally. By registering with the factory, you can obtain factory authorized service in any one of the hundreds of authorized dealer / service centers across the country. To find the location of the closest factory authorized service center, you can call the factory direct and they will put you in touch with dealer / service center closest to you.
Whatâ€™s more, if you take the advantage of our discount prices on extended service plans, youâ€™ll be able to obtain service at anyone of over 2000 locations nationally. In that case, the service center does not have to be factory authorized. All the service center has to do is call the 24 hour 800 number of the Extended Service Plan Company, notify them of your problem, obtain authorization and payment and youâ€™re on your way. We strongly recommend Extended Service Plans. For most types of RVs, you can obtain a 7 year Service Plan for approximately $10-$12 more per month on your monthly payment. If you do not purchase an extended warranty and need to locate the closest factory authorized repair facility weâ€™ve listed all the direct factory contacts youâ€™ll need.
Hey Turnip42, sounds like you work for them. How much kick back do you get on each deal you convence people to purchase? If I'm wrong, sorry about that, but it sure looks like it to me. After all, you kept saying "our", "we", "we've".....??? :disapprove:
Glad to be of some help. I just feel if you're going to spend any kind of money, any kind of advice might help (even if you don't use it :laugh: ) I think you will make a better choice by being a consumer who did their research before purchasing.
I hope you find your rig soon, and enjoy it for many years to come. Good luck and happy rig hunting :laugh:
I never said any "our", "we", "we've"..That was their site and I copied and pasted it. If you will read the first paragraph/sentence I said "This is what RV Direct says about service".
Dealers always get a cut of the interest paid by the buyer when you get financing through them. Just how much does vary. But that doesn't always mean that the dealer won't have the lowest interest rate. When we purchased our present motorhome, the dealer told us we could shop around, but that the bank they used would beat the best offer that I could show to them by .5% and they did so. But we also had an excellent credit rating. Shop the financing just as you would any other product. But be aware that the dealers sometimes give a better price to those how finance through them, because of the participation in the interest.
I just want to clarify I am not saying not to finance thru a dealer. I'm just saying to beware that the dealer can "mark up" the rate they get from the bank. I have seen instances where the dealer offers a rate that is actually lower than the bank(s).
As with any loan, your credit history plays a big part of the rate and sometimes the terms.
If you haven't done so already, I would take a look at your credit report. Under the "Fair and Accurate Credit Transactions Act" mandated by Congress last year, you are now able to receive free copies of your credit report (once a year). This service is being rolled out by states. I have a listing of the states thus far that have been rolled out already, I can email you them if you would like. Here is the website to request a credit report:www.annualcreditreport.com or you can call by phone at 877-322-8228
I don't know about RVs, but watch out for a common car financing scam. The dealer sets you up to buy a car and finance it, you sign the sales agreement, and then, oh darn, you don't qualify for that financing, you have to take this other (more expensive) financing, or go out and frantically try to find your own financing (because you have already contracted to buy the car).
HI, I applied for financing thru the dealer and on my own and got a better rate and term length than the way I was going. It is important to shop around and ask alot of questions. If there is a sale to be made a dealer will be pleased to help you. Ask 2 or 3 as we did and compare stories. The truth is bound to come out. Good luck in your search. Hope to see you on the road soon.