Rate and terms, the monster of RV ownership

                                   

Looking to own your very own RV may be easier than anticipated. You've done your due diligence by doing your research and found an RV that suits your families situation, or found something within your budget. So you go to the dealership and you got the price for even lower than advertised. You enter the finance office and they run your credit and ask if you have 10 to 20% down and then.........?
Before I proceed, let me bring some things to your attention regarding purchasing high ticket items.
1. When your credit is run, your credit may take a small hit. RVs are know by creditors as a hard inquiry, or a Recreational Vehicle, which is not a needed item come under that hard inquiry label. So you have to be serious and mindful when proceeding. Just a small story regarding this I would like to share. In 2014, Me and the Wife went to a dealership to buy an RV we had our eye on. We backed out because the APR was ridiculously high. So, understanding as I do that you can inquire from the dealership all of the information they took down about you. So, I asked them and they accommodated me by sending me a letter saying I did not qualify to get the RV. I was stunned that since I did not buy from them they would pull something so malicious, which affected my credit. True story!
2. When buying a Recreational Vehicle they have a formula they use to pre-qualify a buyer. Sometimes it maybe your Fico score + Trade-in and other little systems they will use. Some dealerships work in the same way.
3. I would like to share what my buying experience was like and hopefully someone can benefit from my story. I noticed that when I would go to a dealership they would come to me with a ridiculous APR. If you are unfamiliar with this part of finances you can be a victim of unscrupulous salespersons. If you don't know your three credit scores or have a reasonable idea...simply put you're toast. You must know what your scores are if they pitch you something you feel is unfair where Rate and Terms are concerned.
4. Industry standard for the average buyer is from 6.5% - 8.9%. This was a reoccurring theme for me as I went to dealerships. Simply put they are looking for the unwitting, unknowing, and ignorant buyer. As I stated before, they may even try to sell you from the MSRP, which in turn may cost you from 30 to 50 thousand dollars because you were not familiar with the Industry.
5. Finally, what is a good Rate and Terms in the RV industry? Anything under 50 thousand dollars cannot be financed for 20 years, which is by the way the highest term the industry will allow. So, if you are attempting to purchase something 20 thousand dollars or less, in my experiences must be purchased in cash. I am sure some can finance you, but I've never come in contact with one. The other terms are 5, 10, and 15 years with 10 to 20% down. A good rate would be something just like a car. Many shouldn't go to a dealer until they've work on their credit score. Why? Because they will pretty much have their way with you in the finance office, even if you get the price you want. You should have a win/win, win in the price of the RV, and win in the finance office. I was offered under the 3% in the finance office when purchasing my RV. So, its out there. I even tried to do my own financing to have in hand to negotiate a better deal out the door. Unfortunately, the dealers get much, much, much lower rates than you could ever find on your own. Unless, you're in good with a bank that will do something special for you. Well, there you have it. This is probably one of the most comprehensive personal studies on this subject that I have ever shared, and you will ever read.
Always remember, "Investigate before you invest".
If you read this and offer feedback as to what Dealerships are best, I will give you my personal opinion based on my experiences. If you put into practice the concepts I mentioned, you will be less likely to be swindled.

                                       RV Experiences, Camping Vehicles, and what to watch out for



I just came home from an awesome RV experience. There I saw very expensive RVs from the Hundred thousands up to the Millions of dollars. Where was this you may ask? It was the NAARVA Eastern Region gathering in Eustice, Florida at the Southern Palms RV Resort. I had the opportunity to meet people of means, and living in their dream, as well as living out their dream. Great interaction, as well as awesome connections.
However, there were people there selling RVs, which is not a bad thing, but as I always say...Investigate before you invest. By investigating I mean going online and comparing the price of a  vehicle presented to you by a dealer/dealership. I met a couple from Macon, Georgia and they told me the vehicle they purchased was under One Hundred Thousand dollars, but they had to travel about Seven Hundred miles to find it, but the same RV was selling for One Hundred Fifty Thousand dollars in their home town. Doing your homework is so vital, or you could be swindled out of more than Fifty Thousand dollars. I won't mention the deanship which was there selling RVs, but they seemed a hostile towards those who had knowledge about the RV industry. By this one example you can see that there can be those that prey on those that may not know how to proceed in purchasing big ticket items. Where I live in South Florida it normally takes me about two weeks to look for and purchase a car. I would peruse the internet, newspaper, go to dealerships and talk to dealers over the phone. We all must realize that the dealerships have a right to make money, so don't expect them to do your homework for you.
Actually owning an RV is easier than you think, selecting one is good, but when you hit the finance office the games begin. What is a good rate for RVs? What is the least amount of years can you finance for, and what is the most? Should I get a warranty when I buy? This is important if you want to finance your RV. If you come with the entire amount of the vehicle you can get a huge discount and some awesome perks. In my next blog I will talk about RATE AND TERMS.

Daily Brew with the Brewtons Vlog #1

The process of owning an RV

As I drive along the Highways, Interstates, and cities there is a reoccurring theme that I see while driving my RV, and that is admiration, fascination, staring, pointing and smiling faces. That definitely is a tiny bit of positivity experienced by simply driving my motorhome. I see that there are people that want to own their own motorhome.
I was introduced to the lifestyle by a wonderful couple in the ministry. They wined us and dined us showing us pictures of the inside of their RV and told us of the awesome trips and interactions they had been experiencing. After the wining and dining they left us with one thing......Do your homework! They never gave us any education on what it would take to go to a dealership or private owner, and what we would need in order to close the deal on our dream motorhome. So, that left me with the task of going to dealerships, looking on the side of the road, going on Craiglist, or checking on the internet to see if someone was simply trying to get rid of the RV because they were either fed up with RV payments, death of a family member, or someone just looking to sell their RV.
Doing your homework means:
1. Finding financing
2. Having a down payment
3. Finding honesty in the seller
4. Finding honesty in the dealer
5. Finding your RV
6. Understand that the RV industry is a haggling business
I will go over each point.
1. Finding financing- While I was looking for my RV I knew I could negotiate a better deal if I already had the money up front. You can get an awesome deal it you've already went to an institution, or have the money in hand. Personally, I went to my mortgage company first, and much to my surprise they had the highest rate. You must know what industry standard is in order to know if you've been offered a good rate. I will talk about that in another blog.
2. So, you think you see something that you want to purchase. Unless you have enough to buy the RV outright, you will have to get financing. Along with financing a down payment is required in 99% of the financing cases. (Note) you actually would want to put a down payment on an RV because they depreciate at a rate of about 15% a year from what I've read during my studies, coupled if you want to trade it in after or during the first year. RVs are considered a risk by bankers, and if you were to have any financial issues your RV would be the first thing they would go after. Bankers scrutinize purchasers hard due to that fact. I will go more in debt in a later blog.
3 & 4. Unfortunately, sellers and dealers know things about the vehicle that may not be shared with the buyer. This adds a totally different dynamic to looking at RVs. I can't refer any one dealership to a potential buyer where the salesperson may not be upfront concerning the particular RV. When purchasing my RV I used an independant company to do a pre inspection to attempt to find any thing the seller/dealer maybe trying to side step you on. I will reveal the company if given permission.
5. Finding your specific RV can be a tedious process. Why? Because there are so many RV to choose from. But you should be looking for the one that you have went on the internet, or researched out for your family not allowing a person trying to make a sale dissuade you.
6. This may be one of the most important points I will make. THIS IS A HAGGLING BUSINESS, so be prepared to give an offer after you've been pitched, unless you agree and know it is much lower than what you saw it on the internet, or private sales. Lastly on this point....NEVER, NEVER, EVER buy the MSRP. If you don't know what you are doing you could lose tens of thousands of dollars. Just like a car has book you can look in to determine what the price is at that time, so do RVs. As I always say, "Investigate before you invest".