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.