It would appear the purchasing of MHs has reverted to the old system which many of us used to upgrade our coaches. This, of course, was the ridiculous trade in value given to satisfy the payoff in exchange for paying at or close to MSRP.
However, a friend of mine tried to play this game 18 months ago and was told the finance companies no longer looked the other way. he had to come up with a check for his upside balance on his trade.
Has the policy changed or was it just the dealer my friend dealt with?
As to this buyer, look over carefully any contract if you decide to buy. Obviously they will present you a contract with an OTD figure of 115117. They are charging you with a huge sales tax figure based on full MSRP. By juggling the sales price and your trade value, they can still come up with the same OTD price but pocket several hundred in "sales tax". If they do that, you know there's still room to negotiate.
I'd negotiate them right into the pokey.....That's TAX FRAUD.!!!!
....IF you have an upside down House/Car/RV, better hope you don't have a total loss due to accident, YOU will be left holding the 10's of thousands that are not paid due to the uposide down part of the value.
..Unless you have gap insurance to cover that difference.
If you anticipate being upside down on a loan, gap insurance is not a bad idea (although its much, much better to put enough $$ down or hold off on 'upgrades' long enough to avoid getting in any 'upside down' situation in the first place).
Try to sell your unit for $40,000.00 and then go buy the new one for 75% of msrp or 120,000.00, even if you only got $30,000.00 for your old one by adding $10,000.00 to pay it off your cost comes to $130,000.00. Even if you sold it for $20,000.00, your still better off.
...$159,999 MSRP -dealer would not come off same since I was trading in.
- 50,000 Trade In (I thought the trade was more than fair)...
He is just playing with numbers. He can say he's not coming of the $160k msrp and giving you $50k for your old rig, or, he'll come down to $150k msrp and give you $40k for yours, or he'll come down to $140k msrp and give you $30k for yours...it's all the same.
I don't think one person that posted here is a Breeze owner. They are a in-demand model and you likely will never get the sort of reduction in MSRP that is seen on a larger coach. As for waiting until the camping season is over, then you just lost the use and enjoyment of the product for a whole season. If I was happy with what deal I had worked out, I would go for it. Someone will always say you paid to much or that they paid less, or you should have one this or that. If you want some good advice, go to the tiffinrvnetwork.com and see if any actual owners will share their discount. Not sure they will, but at least you'll have some discussion with actual owners. You'll also have a source of information on the Breeze. Good Luck...enjoy!
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The way this should be analyzed is as follows. Your 2006 Lazy Daze is actually worth between $25,000-$30,000 wholesale to the dealer. When he gives you a $50,000 allowance, he is in reality discounting the new coach $20,000-$25,000. That would be 12.5-15.6% discount from MSRP if he is using the real MSRP. I could be off as much as $5,000 but that changes the big picture very little.
Since you owe $40,000 on the trade, if he gave you a discount on the new coach and showed real value for the trade, you would have negative equity and no lender is going to finance it without a substantial cash down payment or additional security. Even showing the numbers as he is, it would be likely the lender will ask for more equity in the deal to make the loan.
There are basically two ways to improve your position. You could shop other dealers and possibly find one that has a relatively small percentage of a better price on a coach you want. The other would be to attempt to sell your present unit for what you owe on it.
There is one thing you should contemplate. If you make this deal as is or even if you improve it by $10,000, you are going to be in a serious minus equity position for a very long time. A ten year loan will yield some very healthy payments and most will be tempted to finance for 15-20 years to make the payment manageable. On a 15 year loan, you will still owe close to $80,000 or more seven and a half years from now. You really should look at an amortization chart for the financing contemplated and study it closely.
they're inflating the trade in value to show equity in it, old shell game...go to your bank or credit union & look up the true wholesale value, that should give the OP a better starting point...just my $.02..
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Call them back and tell them a relative or whoever is buying your current unit from you and now you no longer have a trade in.
Tell them you are getting 3 quotes on the rig you want and will take everything into consideration including location and service.
..you can always re introduce your trade into the deal because your sale fell apart....and re negotiate....at least you'll know what the real numbers are...not inflated retails that mean nothing.
We complain about lying salesmen, but it is OK for us to lie to a salesman? Just saying.
Yes...because that is the only way you'll ever get the truth...and I'm a dealer. I have no problem working the deal anyway the customer wants too. If all dealers were like that you wouldn't have to introduce the trade later. I give people full option of trading it to me and they know the real ACV (actual cash value) or sell it themselves.
No need to lie to anyone--just tell them you'd like their best quote without considering a trade. No lying involved!