Price increase

rblake39 · 10-09-2015, 04:11 PM

Hi all. We are planning on buying a Columbus 377MB from a dealer that is very highly regarded on this site. Very long story short we will be paying cash but will not be prepared to do so for another couple of weeks. The dealer gave us a price today and said there is going to be a price increase come Monday. Not sure if anyone here would know but is this for real or just a salesman ploy to make us commit today? I'm not sure who is on these sites that may know if anyone. Thanks.

dan-nickie · 10-09-2015, 04:14 PM

Don't be pressured.
Go back to them when you are ready and request the same deal or walk.

schrederman · 10-09-2015, 04:16 PM

I would tell the dealer that the agreed-to price is what you're willing to pay, and not a penny more. They'll cave because they want to make the sale. That's always been my experience, anyway... They'll do anything and say anything to make you jump. Salespeople don't generally like me. I wear that like a badge of honor.

Oakman · 10-09-2015, 04:17 PM

IMO, it's a salesman ploy and I'd rethink buying from that dealer. Also I don't know of any dealer that is highly regarded on this forum.

schrederman · 10-09-2015, 04:21 PM

Quote:

Originally Posted by Oakman

IMO, it's a salesman ploy and I'd rethink buying from that dealer. Also I don't know of any dealer that is highly regarded on this forum.

I got a good laugh out of that last sentence...

rblake39 · 10-09-2015, 04:22 PM

You guys are quick. Thanks. And there is one dealer on the dealer review section that gets almost all positives. Especially for their service. Its the main reason we are in New Jersey and buying from then and having it shipped to Florida.

BooBoo23 · 10-09-2015, 04:47 PM

If it is RVW I would ask to talk to Mr Durnell, he is the owner and explain you want to purchase from him and it will be a few days to get you hands on the money. See if they would accept a deposit to hold the order. I'd be almost certain he will accept the order for the price you were given today. If the RV you want is in their inventory it won't make any difference but if you have to order it there could be a legitimate reason. A little story, I used to be a regional sales manager for a large truck body manufacturer. They wouldn't tell dealers about price increases until just a few days before the effective date. I asked the plant manager why they didn't give the dealers a chance to close an order before a price increase. Get this, his answer was, "if we did that we may be covered up with orders". I told him "well we certainly don't want that to happen".

rblake39 · 10-09-2015, 04:56 PM

Yes. It is RVW. And I have heard a lot of good things about Mr. Durnell. We can put a deposit on it to order it but if we do, and we cant come up with the money for some reason, we don't want to lose the deposit.

BooBoo23 · 10-09-2015, 05:24 PM

I guess it would depend on how much deposit they would want. Production costs won't take an immediate jump on Monday and having worked in sales for manufacturers for many years some of them will accept an order at the old price for a product within a reasonable time of a price increase after the effective date (7-10 days). They recognize that the cost of a price increase may make the difference between an order or a loss. I would say a call directly to Dave would be in order to see where they stand.

rsdata · 10-09-2015, 05:30 PM

Quote:

We can put a deposit on it to order it but if we do, and we cant come up with the money for some reason, we don't want to lose the deposit.

a deposit is also called good faith money...

If you do not uphold your end of the deal then YES you do lose the deposit... otherwise what is the point in making a deposit???

Witch Doctor · 10-09-2015, 05:38 PM

Quote:

Originally Posted by rblake39

Yes. It is RVW. And I have heard a lot of good things about Mr. Durnell. We can put a deposit on it to order it but if we do, and we cant come up with the money for some reason, we don't want to lose the deposit.

IF you are ordering it from the factory they might have raised the price nobody on here knows. On that if he orders the unit for you and it starts production for you and you back out you might lose it. I would sit and talk to him about your options.....Good Luck. How much of an increase did he say, that should also be in your equation?...Hope you can work it out..

Pbalmer65 · 10-09-2015, 11:40 PM

FYI. If the unit is on his lot already he did not pay any more. I would speak to his boss. Now if you were to order it that could be the case.

Any camping will do. :-)

Goukcats · 10-15-2015, 01:22 PM

When I ordered our Columbus I asked the dealer to give us a written guarantee that if the RV did not meet our full expectations, we would receive a full deposit refund. The owner was glad to oblige with his signature.

rblake39 · 10-15-2015, 01:47 PM

Thanks all. I don't expect to get the deposit back if they order it from the factory. Then its on them to sell it to someone else. Which is why I haven't done that already. But Goukcats, which dealer was that?

Mark_Harrington · 10-15-2015, 02:08 PM

First, remember that even with a price increase from the mfg, the dealership has already purchased the vehicle. They are responsible for the payment to the mfg at the price in place at the time of purchase (delivery to them). Secondly, remember that even if the price increased that would only affect units that are being ordered from the factory after the increase date. Many mfgs will have a grace period for orders that are in the works. In other industries, many mfgs even offer special incentives to purchase quantities before the price increase takes effect. Third, even if the unit needed to be ordered after Monday, the dealer will still have the ability to honor the previously quoted price. Its not likely the price will increase by thousands of dollars... Salesmen always need immediate action as they know that once you leave the dealership you may find the product cheaper elsewhere or if the same price buy it for convenience at the last place you look. Your answer though is very simple, if you want to purchase the specific unit and know you will have the money within 3 weeks, have the dealer do the deal on Sunday, write an option contract with simple interest terms and you can convert to a better loan, pay cash anything that suits you while getting the price and unit you want. Simple interest loans generally have no prepayment penalty. In fact, I'd argue you will get a better overall deal by financing then paying cash as soon as you know where to send the payment. Reason? Dealers sell the loan for usually 1-3% of the loan amount but there's a catch, the loan has to remain in place for 30 days for them to get the origination fee....

So how does that help you? Every dealer knows there is a minimum profit margin they expect on each unit. Drive your hardest bargain, focus on cost of unit not monthly payment. Keep driving the price down until the dealer has left almost all the profit on the RV on the table thinking they can make it up in loan origination fees. Let them quote 7.5% interest, but insist on getting the unit for 30% off or whatever threshold of pain the dealer is willing to endure. I would think a 30% margin is about there...

nomad297 · 10-15-2015, 02:11 PM

The OP is Ordering His RV!

B and B · 10-15-2015, 02:18 PM

Quote:

Originally Posted by Mark_Harrington

First, remember that even with a price increase from the mfg, the dealership has already purchased the vehicle. They are responsible for the payment to the mfg at the price in place at the time of purchase (delivery to them). Secondly, remember that even if the price increased that would only affect units that are being ordered from the factory after the increase date. Many mfgs will have a grace period for orders that are in the works. In other industries, many mfgs even offer special incentives to purchase quantities before the price increase takes effect. Third, even if the unit needed to be ordered after Monday, the dealer will still have the ability to honor the previously quoted price. Its not likely the price will increase by thousands of dollars... Salesmen always need immediate action as they know that once you leave the dealership you may find the product cheaper elsewhere or if the same price buy it for convenience at the last place you look. Your answer though is very simple, if you want to purchase the specific unit and know you will have the money within 3 weeks, have the dealer do the deal on Sunday, write an option contract with simple interest terms and you can convert to a better loan, pay cash anything that suits you while getting the price and unit you want. Simple interest loans generally have no prepayment penalty. In fact, I'd argue you will get a better overall deal by financing then paying cash as soon as you know where to send the payment. Reason? Dealers sell the loan for usually 1-3% of the loan amount but there's a catch, the loan has to remain in place for 30 days for them to get the origination fee....

So how does that help you? Every dealer knows there is a minimum profit margin they expect on each unit. Drive your hardest bargain, focus on cost of unit not monthly payment. Keep driving the price down until the dealer has left almost all the profit on the RV on the table thinking they can make it up in loan origination fees. Let them quote 7.5% interest, but insist on getting the unit for 30% off or whatever threshold of pain the dealer is willing to endure. I would think a 30% margin is about there...

I was quoted a savings of 4 k by financing, even though being from Canada they cannot even do that.

Goukcats · 10-19-2015, 10:43 AM

rblake39, sorry for the delayed response. We purchased our C-320 @ Bluegrass RV in Lexington, KY. They were great to work with on the purchase & their service techs are good. Their PDI was also great. Overall I consider this to be a good dealer. Several owners have purchased from RV Wholesalers & are pleased with their process. I have noticed one person will praise a dealer & someone else will share a terrible experience with the same dealer. I try to be realistic in my expectations & inspect what I expect. Good luck & happy trails.

jacknife · 12-04-2015, 11:09 PM

Tjat trl was sold to dealer for x dollars . The price increase should only effect future trls.

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