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Old 02-24-2024, 02:02 PM   #1
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Financing vs. Cash

I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash--in our case, about $10,000. One salesperson told me we could finance, make 8 payments, then pay off. Anyone have thoughts/experiences on this dilemma? And also do you find it's better to do a trade in or to sell privately our old (2019 2801 Winnebago) travel trailer?
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Old 02-24-2024, 02:17 PM   #2
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Seems like...

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Originally Posted by seredni View Post
I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash--in our case, about $10,000. One salesperson told me we could finance, make 8 payments, then pay off. Anyone have thoughts/experiences on this dilemma? And also do you find it's better to do a trade in or to sell privately our old (2019 2801 Winnebago) travel trailer?
Seems like you can always to better with private sale.
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Old 02-24-2024, 02:23 PM   #3
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Originally Posted by seredni View Post
I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash--in our case, about $10,000. One salesperson told me we could finance, make 8 payments, then pay off. Anyone have thoughts/experiences on this dilemma? And also do you find it's better to do a trade in or to sell privately our old (2019 2801 Winnebago) travel trailer?
Are you sure the finance contract states you need to make 8 payments? What I would guess is the contract states you can prepay the whole amount at any time with no penalty. The dealer may be saying, untruthfully, that you need to make 8 payments, because that is the point in time that the dealer will earn the kickback from the bank. I would ask to see the actual loan contract form and fine print.

I believe you will do better with a private sale of your old unit. If you trade, you will be essentially by paying the dealer for the service of reselling the old unit for you. They need to make a profit on the resale, so you’ll be the one to take a hit on it.

I’ve never financed a toy or vehicle, and it’s extremely rare that I trade. If you want to pay cash without getting ripped off, look for different dealers, or buy used in a private sale.
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Old 02-24-2024, 02:29 PM   #4
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Are you sure the finance contract states you need to make 8 payments? What I would guess is the contract states you can prepay the whole amount at anytime with no penalty. The dealer may be saying, untruthfully, that you need to make 8 payments, because that is the point in time that the dealer will earn the kickback from the bank. I would ask to see the actual loan contract form and fine print.

I believe you will do better with a private sale of your old unit. If you trade, you will be essentially by paying the dealer for the service of reselling the old unit for you. They need to make a profit on the resale.
And, by the way, you don't have to tell the dealer what you're looking for, or why. Just read the contract and pay off the loan immediately.

In fact, even if he won't let you see the contract, you can pay off the loan immediately and see what happens.
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Old 02-24-2024, 02:29 PM   #5
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I always use my own pre-approved financing over the dealer's financing. I get better rates and a better out-the-door price because it's just like cash for the dealer.
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Old 02-24-2024, 03:01 PM   #6
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I always use my own pre-approved financing over the dealer's financing. I get better rates and a better out-the-door price because it's just like cash for the dealer.
I agree. Don't use dealer financing. Get a private bank loan and shop around for the best-interest deal. And sell outright to an individual don't trade. Remember, the dealer's job is to make money. And that money is most likely to come out of your pocket.

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Old 02-24-2024, 03:11 PM   #7
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Originally Posted by seredni View Post
I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash--in our case, about $10,000. One salesperson told me we could finance, make 8 payments, then pay off. Anyone have thoughts/experiences on this dilemma? And also do you find it's better to do a trade in or to sell privately our old (2019 2801 Winnebago) travel trailer?
"I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash..."

Are they saying that the sales price is $10K lower if you pay cash?

How many years are they talking about in terms of the financing?

What is the loan rate?
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Old 02-24-2024, 03:36 PM   #8
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"I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash..."

Are they saying that the sales price is $10K lower if you pay cash?

How many years are they talking about in terms of the financing?

What is the loan rate?
... And don't forget that 9 times out of 10 the dealer is going to get kick-back $'s for processing that loan application. My dealer prefers customers who get their own financing. He gets his money faster, and he isn't assigned RECOURSE in the case of a REPO.
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Old 02-24-2024, 03:39 PM   #9
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Realize the dealer is probably not going to make $10,000 off the finance referral. Maybe they make a thou or two; I don’t know. The point of the outrageous $10k price difference is to strongly sway you towards financing, so they can make a little more from the sale.

If a dealer really wants to sell the unit, they won’t apply the cash “penalty”.
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Old 02-24-2024, 03:52 PM   #10
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Originally Posted by seredni View Post
I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash--in our case, about $10,000. One salesperson told me we could finance, make 8 payments, then pay off. Anyone have thoughts/experiences on this dilemma? And also do you find it's better to do a trade in or to sell privately our old (2019 2801 Winnebago) travel trailer?
"...both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash..."


Financing through them?
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Old 02-24-2024, 04:06 PM   #11
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Originally Posted by seredni View Post
I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash--in our case, about $10,000. One salesperson told me we could finance, make 8 payments, then pay off. Anyone have thoughts/experiences on this dilemma? And also do you find it's better to do a trade in or to sell privately our old (2019 2801 Winnebago) travel trailer?
Make sure that the contract doesn’t include any sort of pre-payoff penalty. Then you can pay it off with a loan from a bank or credit union that likely offers a lower rate loan.

We once purchased a car and needed the loan. When I asked the finance person about a pre-payment penalty, he said it did have one. When I said I wasn’t interested, he reached into his desk drawer and pulled out a different loan agreement that did not have the penalty.

As to trade-ins, you’ll always get more $$ selling on your own. But if you don’t want the hassle and are willing to take the hit on your wallet, then go for the trade-in.

P.S. There’s an RV dealer in Albuquerque who advertises that you must finance a loan through them to purchase a vehicle to get the advertised price. Seems pretty sleazy to me. As a result, no purchase for us.
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Old 02-24-2024, 04:10 PM   #12
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Originally Posted by Notch15 View Post
"I've talked to two dealers, both of whom say there is a huge price difference if we finance (2024 2608bs) versus pay in cash..."

Are they saying that the sales price is $10K lower if you pay cash?

How many years are they talking about in terms of the financing?

What is the loan rate?
I believe the OP is saying the price is 10,000 dollars higher. What sellers and manufacturers have found is that they can make huge profits by being a bank. In this case it seems like the dealer "pigishly" wants to be a bank whether or not you finance it or not.

Personally, I would stay away from dealerships like this. Buyers are best off financially if they buy a late model used RV.

Regarding the posters who advised buying on credit and them immediately paying off the loan, I would not heed their advice unless I thoroughly read the sales agreement first and maybe even consult a lawyer if the purchase price was big enough. Some States may also have consumer protection laws that may come into play here.
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Old 02-24-2024, 04:14 PM   #13
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I always use my own pre-approved financing over the dealer's financing. I get better rates and a better out-the-door price because it's just like cash for the dealer.
And if pre-approved outside financing is just like cash for those dealers in post #1, won’t they be charging the $10,000 price premium?
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Old 02-24-2024, 04:27 PM   #14
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I've only financed luxuries when there are zero fees/interest to me. Man, the Camping World guy tried hard to get me to finance, telling me I'd save money and all. Ignored his fast talk and said I'd write a check. He was very disappointed when I wouldn't budge. So was the guy who did the final paperwork and pushed all this extended warranty crap. They REALLY don't like it when you don't buy all the add on crap they want to sell you.
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Old 02-24-2024, 04:34 PM   #15
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Cash is no longer king. Been that way for awhile.
Anyone who signs a loan contract with a pre-pay penalty gets what they deserve.
Even ag equipment is this way (discount for using their financing). We go with their financing and after the paperwork clears, we either pay it off cash or refinance with a financing of our own choice if it works out better. And it usually does.
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Old 02-24-2024, 05:24 PM   #16
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Sounds like one of the financing scams used by dealers like RV Wholesalers.
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Old 02-24-2024, 10:52 PM   #17
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Thank you for these great replies. We agree that the financing price is not acceptable.

Another note: any thoughts on buying new vs a fully loaded 2022? Any tips or things to look for for this model (2608bs). The only difference I can tell is carpet instead of vinyl under dinette and theatre seats. Don’t like carpet as we have two long haired big dogs. But doesn’t have to be a deal breaker.
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Old 02-25-2024, 06:26 AM   #18
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Thank you for these great replies. We agree that the financing price is not acceptable.

Another note: any thoughts on buying new vs a fully loaded 2022? Any tips or things to look for for this model (2608bs). The only difference I can tell is carpet instead of vinyl under dinette and theatre seats. Don’t like carpet as we have two long haired big dogs. But doesn’t have to be a deal breaker.

With the way prices have been dropping I don't know why anyone shopping would buy a 2022, which may have been sitting on a dealers lot since 2021 having folks trample through it, and possibly an RV show or two under its belt, and not go new.


I took possession of a new 2024 Flagstaff Super Light the beginning of November 2023. Since then I have seen advertised prices on my model drop roughly 8% from what I was seeing and negotiating against last August and September. With the current state of the economy and Interest rates they have to do something to move product.
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Old 02-25-2024, 08:04 AM   #19
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This practice is illegal in some states. Texas is one. Another thing to consider- this is an example of why it’s hard to compare pricing between states- some have almost no regulations and allow all sorts of scammy things to go on while others are very strict about what dealers can do and have significant licensing fees and such. Insurance rates also vary significantly in different regions.
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Old 02-25-2024, 09:56 AM   #20
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Thank you for these great replies. We agree that the financing price is not acceptable.

Another note: any thoughts on buying new vs a fully loaded 2022? Any tips or things to look for for this model (2608bs). The only difference I can tell is carpet instead of vinyl under dinette and theatre seats. Don’t like carpet as we have two long haired big dogs. But doesn’t have to be a deal breaker.
Not sure about this particular model but the reason FR went away from carpeting in some of these places is because they stopped using plywood subfloors that separated and rotted from water leaks because of poor sealing. They're now using a poly marine board subfloor with a vinyl covering, especially if in a slide. It will still likely leak but the floor won't rot! �� Something to look for.
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