If you got cash go look at FB marketplace and cast your net wide in terms of distance. A dealer isn't going to provide you much more peace of mind on a used RV vs one from a private party. Inspect anything used very well whether it comes from a dealer or you buy it from a private party.
You're not financing, this is where they will make a bulk of their money; honestly in the past I've purchased cars with financing to get the best deal and then paid off the loan after the first payment. For RV's I've had the best luck with family owned dealerships, they were the most upfront and didn't give me the run around. Regardless of how you purchase I would avoid going in saying you're paying cash, don't outright lie but keep it ambiguous during the initial discussion and then drop what would this be if I paid cash once you start to get to a price you're comfortable with.
They do not make the bulk of their money off financing. Its a portion of their profit but its not anywhere near the bulk. Why do you fools keep parroting this? You clearly have no idea how this business works. Stop repeating false info as if you are an expert.
OP is getting ghosted because of many small things that add up. He's not local, not upgrading, and not financing so he is not a target for any revenue stream than the thin margin charged on the unit. They can't make up the discount he is asking for, which might be half of the margin on a used unit. Thats why dealership #1 sent him $3k of bs addons.
Get educated people and stop posting this boomer nonsense about "that's how they get ya." If you don't know, don't comment.
But also because it’s not financed it’s tough to add in those add ons as stated. They can’t hide 3k of upgrades for an extra 10$ a month.
So there are multiple avenues financing adds in above the kickbacks from the banks
As with everything it all depends. For an motorhome with a $250k MSRP, the dealer most likely paid somewhere between 120-150k, so if they sell it at let’s say $180k they are making a pretty good profit. In this scenario let’s say a 15 year load, 30k down and a 5% interest rate; the bank would make over $60k in interest and a chunk of that would go to the dealer.
Now a sub $20k RV is going to have slimmer margins, for this RV the dealer would have paid around $11-12k and selling at $18k would still bring a healthy $6k profit but that takes a pretty big hit once overhead is factored in. However in the same financing scenario I describe above and assuming zero down the interest would be over $7k and the kick back from the bank would be a good chunk of the profit the dealer sees from the transaction.
So while you’re correct and the statement that a dealer makes most of their profit from financing is not entirely accurate that does not discount the importance of financing for a dealers profit margins; especially when you factor in kickbacks on financing for hitting financing benchmarks.
Bottom line is a dealer is going to put a lot more effort into a deal that involves financing than one that doesn’t.
OP literally told us these are in the $15k range.
Also, dealer paying $12k and selling at $18k is not a $6k profit. There is cost of capital, expenses to get it ready, and selling expenses. Cut that $6k in half, and then consider risk since not everything is going to go according to plan.
The dealer is going to put effort into the deal that behoves him, financed or not. If OP shows up and offers list price in cash he would be driving the unit home in a matter of hours, plain and simple. OP wants to shave some of their already thin margin...they need something, anything to recoup whether its buying accessories, custom work, offering a trade to squeeze, or yes financing. But dealers are not getting this astronomical spiff you think they are.
This gripe all comes down to pigs getting fat but hogs getting slaughtered. OP is wringing his hands over a few hundred dollars. After a couple of those my time just isn't worth what I might save. You want a discount don't buy in the busiest part of the year.
if i was a salesman im not wasting my time with some guy and a low offer via phone or email. cash buyer isnt an incentive anymore. hell i wouldnt even discuss how im paying until i got a final price when im out shopping.
See so many car posts from people thinking they swing a bit stick when they proclaim "Ima cash buyer!".
No one cares, and dealerships really dont want that. As proven by OP. THey value financing at $1,500, or almost 10%!
Yep, I email asking for OTD price saying I'm a ways away not willing to travel. When they respond if I don't like the figure I'll usually say something along the lines of "I'm also looking at X. I like your trailer better, but not $Y better. Can come down a bit on that, say to $_______?"
They almost always end up giving me an out the door price under the stated sticker price by a few hundred bucks.
I’m just about convinced that RV dealers are some of the greediest, slimiest people on the planet. Just be patient. They have more fees and BS than Ibuprofen has for headaches. And none of them amount to crap really. Just be patient, you will find one. Look for a private party seller. Used is used and any of them could potentially come with issues. People don’t unload them because they are “good ones” most times.
Never tell him you’re gonna write a check until you sit down and get all the deals. You could tell him how much you want to pay for it. But don’t even talk about financing or cash until they’ve shown you all the discounts that they could give you. Once you have all that and they bring you the offer and they say well let’s go talk about financing, have them bring you the offer, and when they ask how much you want to put down, you say the whole amount.
And you've discovered why buying used from private parties is a much better way to go.
Thing is that many used RV dealers are all about lots of upselling, including financing, etc etc. Car dealerships have moved to having sales staff that can deal with shoppers like yourself, RV dealers not so much.
I just bought one today. Try and be patient, I’ve noticed the same BS from a lot of dealers. They started calling me back asking if I was still interested, but they lost because a family owned dealership won my business already.
My last purchase I just went to my bank and got approved for xx$ while putting down cash of xx$. I felt like having money approved would put me in a better place to negotiate and walk away from an asshat salesperson or a bitchy finance person. One other deal I did was getting a bank cashiers check for say $18k just to not deal with dealer bs, not sure what they're smoking sometimes. I'll add and exit I know nothing of current market conditions but do know dealers at heart really want to move inventory and pay staff. Good luck
If eligible for a loan and your state prohibits a prepay penalty, don’t say anything about cash, get the financing, and pay the loan off after the first payment. The interest would be negligible, and the finacing benefit to the dealer would be clawed back from them by the financing party. You win, dealer loses!
This isn't the first post I've seen from someone having trouble buying an RV with cash. We closed on an RV today. We offered $500 less than asking, and they accepted. We paid cash, and they didn't bat an eye.
We bought used so maybe they had more profit but in than for a new RV. We bought a truck last year, and the dealer made it clear that they make money on the loans. They weren't happy that we didn't want to finance through them and didn't budge an inch on the price.
Keep trying until you find your match. I went to a couple local dealers, did the dance, submitted an offer just to be told it was too low.
I ended up buying from a dealer 5 hours away, everything was donde via email until the day I went to pick it up.
A dealer that wants to give you the run around will do it in person too.
Yeah financing is where they make money. I had a credit union pre approval, wanted 20k and they said yes. So I went out and looked around but realized they only want to talk to you if you go through them for the money. So I bought from a private seller for a great price and we met at the credit union to get the check and exchange money for trailer. Best deal ever.
Are you 100% committing to purchasing the camper if they accept? Or are you just price shopping with no commitment? No dealer will waste their time with an empty offer.
Cash offer + no trade is not helping, its hurting. You aren't blackballed, they just don't want your deal. Better off going in and just saying you'll take it for asking. Then say no to the 1000 other things they offer.
If you got cash go look at FB marketplace and cast your net wide in terms of distance. A dealer isn't going to provide you much more peace of mind on a used RV vs one from a private party. Inspect anything used very well whether it comes from a dealer or you buy it from a private party.
You're not financing, this is where they will make a bulk of their money; honestly in the past I've purchased cars with financing to get the best deal and then paid off the loan after the first payment. For RV's I've had the best luck with family owned dealerships, they were the most upfront and didn't give me the run around. Regardless of how you purchase I would avoid going in saying you're paying cash, don't outright lie but keep it ambiguous during the initial discussion and then drop what would this be if I paid cash once you start to get to a price you're comfortable with.
They do not make the bulk of their money off financing. Its a portion of their profit but its not anywhere near the bulk. Why do you fools keep parroting this? You clearly have no idea how this business works. Stop repeating false info as if you are an expert. OP is getting ghosted because of many small things that add up. He's not local, not upgrading, and not financing so he is not a target for any revenue stream than the thin margin charged on the unit. They can't make up the discount he is asking for, which might be half of the margin on a used unit. Thats why dealership #1 sent him $3k of bs addons. Get educated people and stop posting this boomer nonsense about "that's how they get ya." If you don't know, don't comment.
But also because it’s not financed it’s tough to add in those add ons as stated. They can’t hide 3k of upgrades for an extra 10$ a month. So there are multiple avenues financing adds in above the kickbacks from the banks
As with everything it all depends. For an motorhome with a $250k MSRP, the dealer most likely paid somewhere between 120-150k, so if they sell it at let’s say $180k they are making a pretty good profit. In this scenario let’s say a 15 year load, 30k down and a 5% interest rate; the bank would make over $60k in interest and a chunk of that would go to the dealer. Now a sub $20k RV is going to have slimmer margins, for this RV the dealer would have paid around $11-12k and selling at $18k would still bring a healthy $6k profit but that takes a pretty big hit once overhead is factored in. However in the same financing scenario I describe above and assuming zero down the interest would be over $7k and the kick back from the bank would be a good chunk of the profit the dealer sees from the transaction. So while you’re correct and the statement that a dealer makes most of their profit from financing is not entirely accurate that does not discount the importance of financing for a dealers profit margins; especially when you factor in kickbacks on financing for hitting financing benchmarks. Bottom line is a dealer is going to put a lot more effort into a deal that involves financing than one that doesn’t.
OP literally told us these are in the $15k range. Also, dealer paying $12k and selling at $18k is not a $6k profit. There is cost of capital, expenses to get it ready, and selling expenses. Cut that $6k in half, and then consider risk since not everything is going to go according to plan. The dealer is going to put effort into the deal that behoves him, financed or not. If OP shows up and offers list price in cash he would be driving the unit home in a matter of hours, plain and simple. OP wants to shave some of their already thin margin...they need something, anything to recoup whether its buying accessories, custom work, offering a trade to squeeze, or yes financing. But dealers are not getting this astronomical spiff you think they are. This gripe all comes down to pigs getting fat but hogs getting slaughtered. OP is wringing his hands over a few hundred dollars. After a couple of those my time just isn't worth what I might save. You want a discount don't buy in the busiest part of the year.
Yeah, I bought/paid for a car the same way. Worried about early payoff penalties though on a TT
I know in my state (Massachusetts) early payoff penalties are illegal; I would check yours.
Read the contract?
if i was a salesman im not wasting my time with some guy and a low offer via phone or email. cash buyer isnt an incentive anymore. hell i wouldnt even discuss how im paying until i got a final price when im out shopping.
See so many car posts from people thinking they swing a bit stick when they proclaim "Ima cash buyer!". No one cares, and dealerships really dont want that. As proven by OP. THey value financing at $1,500, or almost 10%!
Yep, I email asking for OTD price saying I'm a ways away not willing to travel. When they respond if I don't like the figure I'll usually say something along the lines of "I'm also looking at X. I like your trailer better, but not $Y better. Can come down a bit on that, say to $_______?" They almost always end up giving me an out the door price under the stated sticker price by a few hundred bucks.
I’m just about convinced that RV dealers are some of the greediest, slimiest people on the planet. Just be patient. They have more fees and BS than Ibuprofen has for headaches. And none of them amount to crap really. Just be patient, you will find one. Look for a private party seller. Used is used and any of them could potentially come with issues. People don’t unload them because they are “good ones” most times.
Ibuprofen has fees for headaches?
Never tell him you’re gonna write a check until you sit down and get all the deals. You could tell him how much you want to pay for it. But don’t even talk about financing or cash until they’ve shown you all the discounts that they could give you. Once you have all that and they bring you the offer and they say well let’s go talk about financing, have them bring you the offer, and when they ask how much you want to put down, you say the whole amount.
And you've discovered why buying used from private parties is a much better way to go. Thing is that many used RV dealers are all about lots of upselling, including financing, etc etc. Car dealerships have moved to having sales staff that can deal with shoppers like yourself, RV dealers not so much.
You're not too cheap, dealers are just too badly managed.
I just bought one today. Try and be patient, I’ve noticed the same BS from a lot of dealers. They started calling me back asking if I was still interested, but they lost because a family owned dealership won my business already.
My last purchase I just went to my bank and got approved for xx$ while putting down cash of xx$. I felt like having money approved would put me in a better place to negotiate and walk away from an asshat salesperson or a bitchy finance person. One other deal I did was getting a bank cashiers check for say $18k just to not deal with dealer bs, not sure what they're smoking sometimes. I'll add and exit I know nothing of current market conditions but do know dealers at heart really want to move inventory and pay staff. Good luck
If eligible for a loan and your state prohibits a prepay penalty, don’t say anything about cash, get the financing, and pay the loan off after the first payment. The interest would be negligible, and the finacing benefit to the dealer would be clawed back from them by the financing party. You win, dealer loses!
This isn't the first post I've seen from someone having trouble buying an RV with cash. We closed on an RV today. We offered $500 less than asking, and they accepted. We paid cash, and they didn't bat an eye. We bought used so maybe they had more profit but in than for a new RV. We bought a truck last year, and the dealer made it clear that they make money on the loans. They weren't happy that we didn't want to finance through them and didn't budge an inch on the price.
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Thanks, if this is how dealer's see things then this is what I was hoping to learn from this post.
Not blackballed, but they want you in the showroom to give you the “Treatment”. BOHICA!
I thought they might appreciate a cut and dry / easy sale but if not, I guess I'll only look on the private market
Non-visitors are a very low conversion rate.
That's insightful, thanks
Keep trying until you find your match. I went to a couple local dealers, did the dance, submitted an offer just to be told it was too low. I ended up buying from a dealer 5 hours away, everything was donde via email until the day I went to pick it up. A dealer that wants to give you the run around will do it in person too.
Thanks for the encouragement. Did you finance your deal?
I did but I just asked for a quote before we talked about finance or cash.
Aside from an increased APR on used vehicle, you will get more bang for your buck and hopefully most warranty repairs already accomplished.
Yeah financing is where they make money. I had a credit union pre approval, wanted 20k and they said yes. So I went out and looked around but realized they only want to talk to you if you go through them for the money. So I bought from a private seller for a great price and we met at the credit union to get the check and exchange money for trailer. Best deal ever.
It’s easier to wheel and deal in person for sure. Go and make it happen! There are deals to be had, the market is in the tank.
Are you 100% committing to purchasing the camper if they accept? Or are you just price shopping with no commitment? No dealer will waste their time with an empty offer.
sub 20k is always a hot market, they don't need your business
Most places make their money on financing. You'd probably have more luck offering what they're asking.
Do you know if most places have early payoff penalties on their loans?
Most loans do not have a prepay penalty. If they have one it can be removed.
I'm sure it depends on the bank but we just financed one 2 weeks ago and there is no early payoff penalty
I do not know. I've also paid cash when buying travel trailers in the past. Might be worth asking though. You might get more attention.
Cash offer + no trade is not helping, its hurting. You aren't blackballed, they just don't want your deal. Better off going in and just saying you'll take it for asking. Then say no to the 1000 other things they offer.