"This price is conditioned on..."

[Oliver2017]

Anyone find that paying cash for their RV meant paying a higher sales price? I am looking at Class B vans on a popular RV dealer site and often I see the note that the price is conditioned on the buyer arranging financing through them.

[avanti]

Originally Posted by Oliver2017

Anyone find that paying cash for their RV meant paying a higher sales price? I am looking at Class B vans on a popular RV dealer site and often I see the note that the price is conditioned on the buyer arranging financing through them.

Of course. Financing is a huge profit generator for all vehicle retailers. Only thing better is selling extended warranties.

[mloganusda]

Go ahead and finance and a month later pay off the bank.

MLogan
23D Trend
Smyrna, TN

[Phoebe3]

Originally Posted by mloganusda

Go ahead and finance and a month later pay off the bank.

Just check the contract to make sure there isn't a pre-payment penalty.

But I would guess that if it was a choice of seling to you for the lower price or NOT selling to you at all, they would figure out an "exception" to the financing policy...

[booster]

Originally Posted by mloganusda

Go ahead and finance and a month later pay off the bank.

MLogan
23D Trend
Smyrna, TN

Prepayment penalties are very common in those types of situations, and usually very well hidden in the contract fine print. Salesmen will also have not problem in telling you there is no early pay penalty, when there is, so be very careful.

[Mat Mobile]

Originally Posted by Oliver2017

conditioned on the buyer arranging financing through them.

It might only have to do with using their financing vs. using your own personnal bank. So I would definately try to get a better price when paying cash!

But whether that's the main focus of the fine print or not, all of the above comments apply too.

[sportbiker]

I was a sales manager for ten years, Ive never heard of that. My advice is to finance it and pay it off, as long as the % rate isn't to extreme, don't listen to the sales guy or finance guy( very unfortunate as i was always honest) ask for a blank contract sit down and read the back of it. the beginning of the fine print will always be in bold letters, lawyers fixed that for buyers years ago. that being said I've never seen a loan with a pre pay penalty.
If anybody ever needs auto finance advice you can PM me.

[silex840]

Slippery sales people. All it takes is one bad seed to ruin it for the rest and forever have a stereotype in that profession. I say always deal with a reputable dealership where there reputation precedes them. If the case, it’s worth the slightly higher price IMO.

[sportbiker]

My family and friends use me when buying a vehicle,I research exactly what is wanted, and I know the exact price I want to pay(this includes factory finance rate and trade value) when I walk into a dealer, I tell the salesperson up front kindly what I expect, and its a one shot deal.Ive always have left feeling ahead of the game
some tips
If they ask to make a copy of your D.L. or take your trade in keys so your vehicle can be inspected, I tell them I want these items back ASAP. Its rare tactic, but annoying.

[cruising7388]

Originally Posted by sportbiker

I was a sales manager for ten years, Ive never heard of that. My advice is to finance it and pay it off, as long as the % rate isn't to extreme, don't listen to the sales guy or finance guy( very unfortunate as i was always honest) ask for a blank contract sit down and read the back of it. the beginning of the fine print will always be in bold letters, lawyers fixed that for buyers years ago. that being said I've never seen a loan with a pre pay penalty.
If anybody ever needs auto finance advice you can PM me.

I dimly recall that not all these loans are structured the same way with respect to interest. I think some loans were structured to use average balance but other loans used something called the Rule of 78 the result being that even well into the load period, if you paid it off, your previous payments were directed mostly toward interest and when paying off the loan you had to come up with close to the original principal. Can you clarify this?

[InterBlog]

Originally Posted by Oliver2017

Anyone find that paying cash for their RV meant paying a higher sales price? ...

Not an RV, but the same thing happened to my husband when he attempted to buy my engagement ring (not as large an investment as an RV, but still substantial). He was absolutely livid and walked out on a deal that he was about to close, just to make the point that financially responsible people who pay in full after they have diligently saved up their money should NOT be the ones getting penalized.

Of course, it's a lot easier to buy diamonds than Class Bs. He was able to find another source who offered the same payment terms either way (cash or finance), but if you find a particular Class B that appeals to you, you might be forced to accept the seller's terms.

[sportbiker]

I’ve never heard of that, I only used banks or factory financing, fixed rate and no pre pay penalty. Like all rules it varies state to state, I’m in Fl, and reading the info on a finance sheet is extremely clear. Rule 78, I’ve got something new to research now.

[Phoebe3]

I performed a nationwide search using RVTrader and RVT.com. I called the three lowest-priced dealers (after researching their reviews to make sure they weren't going to lie to me). Once I had their cash prices (which in two cases was actually lower than the advertised internet price), I made a spreadsheet and calculated the travel cost (in our case it was airfare) and added that to the purchase price to figure the best deal. If the state you are buying from charges more sales tax than your home state, you should add that, too.

Then I agreed to purchase the RV at the specified price and sent the dealer $2,000 to hold it. I was ready to forfeit that $2,000 if I didn't like the RV (we had not seen the Crossfit in person before buying one). But if the reason I didn't buy was because of a defect or damage, or if they suddenly upped the price, I would expect the deposit back. If you can, put the deposit on a credit card, then if the dealership tries anything shady, you can dispute the charge.

The dealer picked us up at the airport and drove us to the dealership. We looked the unit over, performed a test drive, liked it and wrote a personal check for the agreed price minus the deposit (NO dealer prep fees!). Worked out well, but I was mentally ready to walk at every stage, if that had been necessary.

You are buying a van to travel in. Might as well travel home from the dealership. If your local dealer thinks s/he can hold you over a barrel because you won't drive to get a better deal, they're dreaming.

[ponti33602]

Originally Posted by Phoebe3

I performed a nationwide search using RVTrader and RVT.com. I called the three lowest-priced dealers (after researching their reviews to make sure they weren't going to lie to me). Once I had their cash prices (which in two cases was actually lower than the advertised internet price), I made a spreadsheet and calculated the travel cost (in our case it was airfare) and added that to the purchase price to figure the best deal. If the state you are buying from charges more sales tax than your home state, you should add that, too.

Then I agreed to purchase the RV at the specified price and sent the dealer $2,000 to hold it. I was ready to forfeit that $2,000 if I didn't like the RV (we had not seen the Crossfit in person before buying one). But if the reason I didn't buy was because of a defect or damage, or if they suddenly upped the price, I would expect the deposit back. If you can, put the deposit on a credit card, then if the dealership tries anything shady, you can dispute the charge.

The dealer picked us up at the airport and drove us to the dealership. We looked the unit over, performed a test drive, liked it and wrote a personal check for the agreed price minus the deposit (NO dealer prep fees!). Worked out well, but I was mentally ready to walk at every stage, if that had been necessary.

You are buying a van to travel in. Might as well travel home from the dealership. If your local dealer thinks s/he can hold you over a barrel because you won't drive to get a better deal, they're dreaming.

We did a very similar process. The 1,100 drive from NJ to FL was the best thing for us......I had never driven a van before and was quite comfortable by the time I got it home to Tampa. Much better than a 40 mile drive to my near-by dealer that didn't have what we wanted and wasn't really interested in allowing us to order.......tried to move their in stock inventory....I get that but it took me elsewhere.

[Mfturner]

I did a very similar thing with the current RV as well, had a great experience. But as you say, I think the important part of not being taken advantage of is to be prepared to walk. I don't take it personally, and I've had salesmen chase me into the parking lot last minute to make the deal on my terms. But generally I've had more good experiences than bad, all three out of state vehicle purchases went well.

[dhectorg]

Originally Posted by Oliver2017

Anyone find that paying cash for their RV meant paying a higher sales price? I am looking at Class B vans on a popular RV dealer site and often I see the note that the price is conditioned on the buyer arranging financing through them.

I've heard this too and it strikes me as absurd. Just goes to show how much power the financial industry has over all aspects of commerce and life, in general. Nothing makes sense in this economy anymore. In any case, if I decide to buy off the lot, I will pay cash and I absolutely refuse to pay more than average, even if that means traveling a distance to buy. However, when it comes down to it, I'll probably wind up commissioning a custom build.

[ponti33602]

Originally Posted by dhectorg

I've heard this too and it strikes me as absurd. Just goes to show how much power the financial industry has over all aspects of commerce and life, in general. Nothing makes sense in this economy anymore. In any case, if I decide to buy off the lot, I will pay cash and I absolutely refuse to pay more than average, even if that means traveling a distance to buy. However, when it comes down to it, I'll probably wind up commissioning a custom build.

In my experience I wasn't seeing where no financing would be more $$. I did expect my local dealer to match the price on an order and was surprised they didn't. Cash deal, no carrying costs, all done on the phone.....would have been another sale but "no dice".

So my local guy who always orders "propane" wouldn't take my money for the same price as a guy who was 1,200 miles away with one on his lot.

FYI - the dealer we bought it from would have charged only ~$500 more to order one so my wife almost did that for the color she wanted but in the end we took what they had (Charcoal).

[InterBlog]

Originally Posted by Phoebe3

... If the state you are buying from charges more sales tax than your home state, you should add that, too......

That must be a new vehicle purchase thing (?).

We bought ours in Tennessee (from a flipper who resided in Mississippi and who had himself titled it in Mississippi - he didn't jump the title, in other words) and paid sales tax in Texas, upon titling it here. But ours was pre-owned. It never occurred to me that a new vehicle might have to be taxed, titled, and licensed in its state of origin. And then the buyer goes through the process all over again upon returning home? Yikes. What a pain.

[ponti33602]

Originally Posted by InterBlog

That must be a new vehicle purchase thing (?).

We bought ours in Tennessee (from a flipper who resided in Mississippi and who had himself titled it in Mississippi - he didn't jump the title, in other words) and paid sales tax in Texas, upon titling it here. But ours was pre-owned. It never occurred to me that a new vehicle might have to be taxed, titled, and licensed in its state of origin. And then the buyer goes through the process all over again upon returning home? Yikes. What a pain.

We only paid sales tax in FL and not in NJ even though they have a tax. I believe it is in the state where you are obtaining title or at least what I was told and did.

[avanti]

Every state is subtly different, but as I understand it, the general pattern is that the state of residence will credit any tax you may have been required to pay to the state of sale. So, you end up paying whichever amount is larger, but you are not double-taxed.