Financing question

[pbro]

Has anyone used a nationwide lending company to get an rv loan? The lender I’m working with is asking for a copy of the invoice on a new travel trailer and the dealer doesn’t want to provide the invoice. Lender says it’s standard protocol with nationwide lending companies. At a stalemate.

[Kimber45]

invoice as in what you are paying? Or invoice as what the dealer paid for the unit?

[pbro]

What the dealer paid. Thought dealers had agreement with the rv companies to not disclose incoice pricing

[Oaklevel]

Originally Posted by pbro

Has anyone used a nationwide lending company to get an rv loan? The lender I’m working with is asking for a copy of the invoice on a new travel trailer and the dealer doesn’t want to provide the invoice. Lender says it’s standard protocol with nationwide lending companies. At a stalemate.

Not true of all we have used US Bank and Bank of the West both nationwide RV loan banks. They both just wanted the invoice of what we were paying.

[Kimber45]

Bank has no business knowing what the dealer paid. All they need to know is what you are paying and what the unit is worth incase you default. Ive never heard of anyone demanding a dealer invoice.

[270S]

Answer is easy -

Bank wants what you are paying (always too much).

Manufacturing cost $X
Dealer Invoice $2X
Dealer List $4x
Consumer Price $3x* - that way it seems like you are getting a steal instead of being Robbed!

*Unless it is a Newmar or Tiffin, then they make you believe you are getting an even better steal at $3.5X.

Just a bunch of Thieves - No LOL intended.

[Cabinfever97]

Originally Posted by 270S

Answer is easy -

Bank wants what you are paying (always too much).

Manufacturing cost $X
Dealer Invoice $2X
Dealer List $4x
Consumer Price $3x* - that way it seems like you are getting a steal instead of being Robbed!

*Unless it is a Newmar or Tiffin, then they make you believe you are getting an even better steal at $3.5X.

Just a bunch of Thieves - No LOL intended.

Not a bunch of thieves! They make a product. They price said product. The consumer decide if they want to buy the product. Capitalism!

[ependydad]

I experienced this with Alliant Credit Union. They wanted the dealer’s invoice from the manufacturer as they were only willing to go up to 90-110% of that (depending on interest rate).

The fellow I spoke with did say that this sometimes becomes a sticking point with some dealers. If the dealer wouldn’t provide it to me, they had a fax number the dealer could send it straight to Alliant.

I ultimately didn’t finance with them for other reasons. But, it’s not entirely unheard of.

[JasonSCarter]

I could see where this would be important to them. They don't want to finance a product that will be under water almost right out of the gate by way to much because if they would have to reprocess the unit for some reason from you, and try to sell it, they would lose money.

My salesman showed me the invoice on mine, and I didn't even need it. He just wanted me to be informed.

[BandJCarm]

Originally Posted by 270S

Answer is easy -

Bank wants what you are paying (always too much).

Manufacturing cost $X
Dealer Invoice $2X
Dealer List $4x
Consumer Price $3x* - that way it seems like you are getting a steal instead of being Robbed!

*Unless it is a Newmar or Tiffin, then they make you believe you are getting an even better steal at $3.5X.

Just a bunch of Thieves - No LOL intended.

Right on, Comrade! Every unit should be sold for what the manufacturing cost is!!! Only fair.............

[W5CI]

Never Finance, only buy what you can pay Cash for

[emjayuu]

The bank wants to know how much the dealer paid in order to have a true asses value of the unit. If the unit costs the dealer $20,000 and sells it to a chump for $60,000 the finance company will certainly decline the loan as it’s true capital collateral (ie resale value if a repossession has to occur) is only $20,000.

[str8t six]

my bank just needed to know the model of my camper and they looked it up in their system and told me what the value was. then they asked me how much i needed and said that they would loan up to the value plus %10 to cover any taxes and fees.

[cavie]

Originally Posted by pbro

Has anyone used a nationwide lending company to get an rv loan? The lender I’m working with is asking for a copy of the invoice on a new travel trailer and the dealer doesn’t want to provide the invoice. Lender says it’s standard protocol with nationwide lending companies. At a stalemate.

they don't want to be on the hook for more than it's worth.

[TitanMike]

Originally Posted by 270S

Answer is easy -

Bank wants what you are paying (always too much).

Manufacturing cost $X
Dealer Invoice $2X
Dealer List $4x
Consumer Price $3x* - that way it seems like you are getting a steal instead of being Robbed!

*Unless it is a Newmar or Tiffin, then they make you believe you are getting an even better steal at $3.5X.

Just a bunch of Thieves - No LOL intended.

You left out the part where:

Dealer buys or rents the property they do business on.

Dealer pays for business license, permits, fees, employees, payroll taxes, etc,

Dealer pays interest on his inventory financing.

Dealer pays income tax on what's left over which often is in the realm of 10%-15% of Gross Sales. (after all the expenses)

The real thieves are the taxing agencies that take a huge cut without doing any of the work.

BTW, your insurance company will want a copy of the invoice showing what YOU paid for the unit so they don't end up insuring more than what you paid.

[Iwannacamp]

I think valid points have been made.

I think the finance company can use MSRP to decide the approximate dealer costs. They know the average overhead.

One thing not mentioned in the discussion is depreciation(not directly). The depreciation is the “reason” they need to know the value. All the finance companies use several things to decide on the loan. Mostly the value of the product and your credit history. Got money in the bank?? they will be very nice to you. Broke?? better get a good deal. YMMV

[TitanMike]

Originally Posted by Iwannacamp

All the finance companies use several things to decide on the loan. Mostly the value of the product and your credit history. Got money in the bank?? they will be very nice to you. Broke?? better get a good deal. YMMV

Not necessarily. Lenders will do just like Dealers and try to get all they can out of you. Also beware of financing offers presented by the Dealer. Dealers have a short list of finance institutions they do business with and they often give incentives to the Dealer based on the annual amount of contracts they place with them.

When the Dealer I bought my trailer from came back with a financing offer supposedly the best interest rate they could get I told them to take another look at my credit score and go back for a better deal. If that was the best they could do then I was going to tear up the deal and walk. By the end of the day I had an offer that was a full 20% lower (and exactly what I exxpected to begin with).

If you have a credit score that is well over 800 (and only a few points short of the max 850) you really do have some leverage with lenders. As everyone is aware (or should be) interest rates are based on how comfortable the lender feels that they will get repaid. People with good credit need to exercise this power they've earned by paying bills on time, etc. Otherwise lenders will just let the excess interest they charge fall to their bottom line.

BTW, in some cases one might get a good deal by negotiating as if they are planning on financing with the Dealer's favorite lender. When it comes time to sign the papers just write a check (if you can). Any "incentive" they might have counted on from the lender is hard for them to add back when you turn it into a cash deal.

[BandJCarm]

Originally Posted by W5CI

Never Finance, only buy what you can pay Cash for

Why use your money when you can use someone elses?????? LOL

If you want to pay cash, finance it to the hilt, then pay it off. You might get a free toaster.........or excellent credit.

[TitanMike]

Originally Posted by BandJCarm

Why use your money when you can use someone elses?????? LOL

This only makes sense if the interest rate on your purchase contract is ZERO.

Otherwise you may be using someone else's money but you're paying for the privilege. If the money you could be using to pay off the contract is invested in a high yield (more than the interest rate on the loan) investment that's a whole different animal.

Another of my favorites is "I'm buying Xxxxxx because I need the deduction".

Let's see, it's a good deal to spend $50,000 (just to grab a number) and save maybe 20% of that on my tax bill? Sounds like a good deal to someone I'm sure. If you are a business and are using a Section 179 deduction, then it's a whole different game.

[The_Rhino]

Originally Posted by W5CI

Never Finance, only buy what you can pay Cash for

We financed our TV & TT because wanted to spend time camping with our kids while they are young vs. waiting until they get busy w/high school & college life... To offset the financing costs we buy mildly used vs. new... IMO others lose more to depreciation than we do to financing... In additional to 2 incomes my DW & I both own our own businesses so we can make lump payments anytime we want... It's more important for us to not be cash-strapped...

We bought a 2 year-old Ram 2500 CC for $14K @ 3.74% & a mildly used TT for $20K @ 5.74%... Together they cost less than a new truck... We paid-off the Ram quickly & make extra payments on the TT during non-camping & non-holiday months... In the meantime it's only $180/month so I never have to worry if we can make the payment - especially when we are on vacation, etc...