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monkey44

Cape Cod, MA and Central Fla

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Posted: 01/02/20 08:32pm Link  |  Quote  |  Print  |  Notify Moderator

If you are uncomfortable with dealer having your money - pay an attorney a few hundred bucks to do your transaction. He will make sure you have title and title is legal and all fees are up front in writing so you know. Worth it ... Attorney releases funds to dealer and title to you once you are satisfied with PDI and get the keys.


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JimR 1

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Posted: 01/02/20 08:46pm Link  |  Quote  |  Print  |  Notify Moderator

monkey44 wrote:

If you are uncomfortable with dealer having your money - pay an attorney a few hundred bucks to do your transaction. He will make sure you have title and title is legal and all fees are up front in writing so you know. Worth it ... Attorney releases funds to dealer and title to you once you are satisfied with PDI and get the keys.


I ditto this one too.

Also on a loan there are many traps I.E. the "rule of 78"

The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in paying off their loan.

There are others.

Cash is king

JimR

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Posted: 01/02/20 08:55pm Link  |  Quote  |  Print  |  Notify Moderator

I also tend to believe you are overthinking the problem. If you don't trust your dealer, you really shouldn't be buying from him. He IS the guy you will be going to for warranty work.

Ask around re the dealer's rep. That's one of the reasons we bought where we did on our first RV.

ryoung

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Posted: 01/02/20 09:00pm Link  |  Quote  |  Print  |  Notify Moderator

Quote:

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.


I think you are being a little anal about paying cash, since you stated you have never paid cash for a car or rv before.

As for myself, I have never in my life financed a car or rv; always paid cash.

As long as you have the proper paper work completed; bill of sale, title and registration applications, pdi inspection, manufacturers warranty's, etc. Give them a personal check or bank check. Then drive or pull it off the lot.

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Mbiviano

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Posted: 01/02/20 09:05pm Link  |  Quote  |  Print  |  Notify Moderator

As far as a prepayment penalty, I would not expect (or accept) one unless there are strings attached with a reduced interest rate and then pretty minimal months to wait and payoff. As others have mentioned, find a reputable dealer and focus on the PDI.

Also if you have a trust and want the Rv named under the trust, that gets tricky sometimes with financing, so extra steps to take afterwards.

Re: rule of 78 mentioned previously, don’t believe you’d run into that on an RV loan as they are typically 10-15 years and should be simple interest loans.

* This post was edited 01/02/20 09:21pm by Mbiviano *


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T18skyguy

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Posted: 01/02/20 09:07pm 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.

Steve, one thing to think about, is these established dealers have either taken out loans for their inventory, or have purchased them outright. Either way, they need your money to stay in business. Visit established dealerships only, and take possession as soon as you hand over the money. The only real trouble I've seen in this area is consignment sales, but that's another story. Don


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guidry

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Posted: 01/03/20 04:41am Link  |  Quote  |  Print  |  Notify Moderator

What protection do you think a bank will provide you!? They only know you who will be on the hook once you sign their finance agreement. They probably won’t care what happens to the dealership once they have you financed for the loan. If you think the bank will help you if the dealer goes bankrupt, you’ve got a lot more research to do! As many others have said, use a credit card for a deposit and do a thorough PDI before giving any other money. Other dealers can do any warranty work if needed. And you’re better off doing any minor repairs yourself. Good luck

wildtoad

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Posted: 01/03/20 05:36am Link  |  Quote  |  Print  |  Notify Moderator

I chose to finance 4 years ago as I could a) afford the payment from normal cash flow, and b) I could earn more from keeping assets invested than the cost of the loan. In either case the final papers and checks aren’t (should not be) signed until you take delivery.


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schlep1967

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Posted: 01/03/20 05:37am Link  |  Quote  |  Print  |  Notify Moderator

About the only reason to take out a loan when you really don't need one is to keep your credit active. Yes, not using your credit or having no recent credit history is as bad or worse than having bad credit.

Buying new for cash is really no different than buying used for cash. You pay and leave with the paperwork and the vehicle. The dealer sends the signed title to the state and you get the new title in the mail a few weeks later. As long as you are dealing with an established dealer with a large inventory, you should have nothing to worry about.

Look around the lot and add up the dollar amount for the new inventory sitting on the property. If there are 20 5th-wheels sitting there he is likely sitting on a million dollars in debt just for those. Your $40,000 worth of business is important to him. He has a payment to make also.


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Dave H M

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Posted: 01/03/20 05:41am Link  |  Quote  |  Print  |  Notify Moderator

[emoticon] I just had a thought come to mind. This reminds me of the ole saying, "pole vaulting over mouse t*rds. [emoticon]

We wrote a check for the last two RV's and did the same on a new set of wheels for the DW yesterday.

However we would never pay for something in full till we can give it a whirl and kick the tires.

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