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Old 03-18-2020, 06:30 AM   #1
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Good time to buy yet?

We’ve been wanting to upgrade from our TT to a MH. Rates are at near zero, but RV loan rates don’t seem to be tracking the Fed rate yet.

I’m considering taking advantage of the temporary economic situation and making a low offer on a bunkhouse class c at a local dealer and insisting part of the deal that the finance rate is dirt cheap. Problem is banks aren’t in line with the Fed yet.

Someone I know who works at the dealership said they’re not desperate to sell yet because they’re waiting to see if RV sales stay somewhat stable since people won’t want to fly.

Thoughts? How long until loan rates sync with the Fed?
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Old 03-18-2020, 06:33 AM   #2
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The fed rate is "short term", which means credit cards, autos, etc. If you buy a rv that is over 120 month financing it is considered "long term", so those rates will probably not budge much at all.
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Old 03-18-2020, 06:35 AM   #3
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also just because the fed lowers rates to the banks, banks don't always pass that along to the consumer. Sometimes they do but not always.
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Old 03-18-2020, 06:36 AM   #4
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from a financier, sorry to bust your bubble.
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Old 03-18-2020, 06:39 AM   #5
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Our economy here in Southern NV is about to be destroyed because the governor just ordered all businesses shut down. I would imagine the dealers would be willing to make a sale and bring in some money and banks would have to lower their rates simply from supply and demand.
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Old 03-18-2020, 07:29 AM   #6
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there is no such thing as supply and demand in the banking industry. Banks are there to make money, not sell merchandise.
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Old 03-18-2020, 08:19 AM   #7
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They sell financing. If no one is buying RVs and financing them there is no demand for thier product. I would have to think they would be forced to reduce the rates to encourage people to lend from them.
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Old 03-18-2020, 08:52 AM   #8
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RV's are the last thing consumers buy in a down economy.
Wait a bit longer for the economy to go into a recession, then buy the dream rig.
Boats and motorcycles are in the same "boat" as RV's.
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Old 03-18-2020, 09:25 AM   #9
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RV's are the last thing consumers buy in a down economy.
Wait a bit longer for the economy to go into a recession, then buy the dream rig.
Boats and motorcycles are in the same "boat" as RV's.
I predict that there will be a lot of nearly new, low mileage units on the market if the economy doesn't bounce back soon.
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Old 03-18-2020, 09:51 AM   #10
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I predict that there will be a lot of nearly new, low mileage units on the market if the economy doesn't bounce back soon.
Same thing happened with Harley Davidson in 2009, dealers had a lot of like new, low mile bikes on the sales floor.
I asked sales where they came from, "repos" was the reply.
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Old 03-18-2020, 10:19 AM   #11
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At least Repo is one thing I don't have to worry about, Paid cash for my toy hauler last summer.
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Old 03-18-2020, 10:32 AM   #12
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I’m considering taking advantage of the temporary economic situation and making a low offer on a bunkhouse class c at a local dealer and insisting part of the deal that the finance rate is dirt cheap.
Can't hurt to make the offer. Either they'll meet your terms or not.

Leave your phone number if the deal doesn't meet your needs. You'll find out how desperate they are to sell by the number of phone calls you get in the future.
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Old 03-18-2020, 01:16 PM   #13
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Fed rates don't always change the lending rates from banks, sometimes they just make more money for themselves - having said that the market may force the banks lower.....
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Old 03-18-2020, 01:17 PM   #14
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RV's are the last thing consumers buy in a down economy.
Wait a bit longer for the economy to go into a recession, then buy the dream rig.
Boats and motorcycles are in the same "boat" as RV's.
If all non-essential businesses are closed you won't even be able to look at them.

If I was ready to buy I would start visiting the dealers when open with the intent not to buy right away. Figure out what rig you want, leave name and number. A negotiating tactic is to express interest in two rigs of modest difference in price. Tell them you like the expensive one but can't quite afford the cheaper one right now. Do your homework on prices. They first let you know the cheaper one has dropped to your range. Of course, you don't want that one anyway so you beg off. Eventually, they'll come back with lower price on the one you want, if they are desperate enough.

My brother attended professional negotiating classes some years ago for his job. The two item approach is common, but you need to appropriately wishy-washy and unsure of what you really want. I really like this one but can only afford that one. You have to play the game right. The old I'll pay this much right now for cash, or I walk doesn't get their lowest price. If they quickly agree you could have gotten it for less. Wish I was actually good at this.
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Old 03-18-2020, 01:18 PM   #15
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I would think a minimum of 30 days from now, which will give time to monitor conditions. This is just for pricing, not financing. As @Matheny9 mentioned earlier, loan rates for RVs are *not* going to fall to the Fed Funds Rate.

The other thing to take into account is... if 'discretionary' travel is being discouraged now, how long until RV travel is specifically discouraged / prohibited, under the guise of 'mobile petri dishes', et al?

There was a discussion yesterday about state / nat'l parks closing or having service disrupted. I'm now wondering if private parks will be requested to shut down soon.

If that happens, you'll find some truly awesome discounts on RVs, but won't really be able to take them anywhere, for a while.
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Old 03-18-2020, 01:22 PM   #16
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Any home equity you can use? Those rates will track the Fed a lot more closely than consumer loans. Dealers will be hungry for cash and making deals on their on the lot inventory when the business slows down. NOT yet. Give it till Memorial Day.
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Old 03-18-2020, 01:25 PM   #17
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Originally Posted by Matheny9 View Post
The fed rate is "short term", which means credit cards, autos, etc. If you buy a rv that is over 120 month financing it is considered "long term", so those rates will probably not budge much at all.
Yup, folks are thinking that a 0% fed rate means zero % financing rate.

You may want to explain that in a bit more detail.
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Old 03-18-2020, 01:30 PM   #18
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[QUOTE=jwfrede;2289382]If all non-essential businesses are closed you won't even be able to look at them.

I was told by someone at the dealer they are remaining open. They’re considered essential because some people live out of RVs and need to be able to buy parts and get serviced. Hopefully they’ll remain open.
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Old 03-18-2020, 01:36 PM   #19
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There's a former auto salesman on youtube named Kevin Hunter that goes through how to negotiate price for a car. For example, when you are going to finance get the price before you agree to finance deal, you never tell how much per month, etc. This is because there is a lot of things they can do on the financing like higher interest rate for lower car price, etc. A lot of good advice on what not to say, how to act, etc.

I'll be rewatching these before next purchase, plus searching for more.
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Old 03-18-2020, 01:44 PM   #20
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Fed rates don't always change the lending rates from banks, sometimes they just make more money for themselves - having said that the market may force the banks lower.....
That only works when they have people lined up out the door trying to borrow money.

In an economic downturn people take money out of banks and money to lend is short. That's when more money is needed to be put into circulation and the fed lowers the rate.
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