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Old 10-07-2019, 03:15 AM   #21
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Cash back credit cards

Sitesee and Duskmg,

You have done this with success at a dealership buying a new trailer? I was always under the impression that dealerships won't let you make a large payment with a credit card without charging an additional percentage penalty.

If you are going to buy cash and they will let you do it, I would agree that using a point/cash back card for as much of the purchase as possible would be a great idea. Then just pay it off immediately and get the points/cash back as an additional bonus.

Thanks
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Old 10-07-2019, 05:30 AM   #22
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I used my double points Capitol One Visa to make a $5,000 deposit on my current Interstate last year, the remainder of which I financed through a Credit Union at a very low rate.

I use this credit card for most expenses, and pay it off in full every month.

If you have adequate monthly income to make a payment, why not use someone else’s money rather than pulling large sums from your savings/investments?

My two cents.

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Old 10-07-2019, 06:36 AM   #23
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Couple of thoughts

First if you can get a greater return on the cash then you pay in interest, assuming you will invest the cash, it is better to finance.

When negotiating comparing prices between dealerships gives the most leverage. I go on line print out the specials and bring them in to the dealership with me. I will offer to pay cash or finance if they meet my price as long as there are no penalties or fees for early payment of the loan.

Many years ago a friend who sold cars told me to consider how long it takes to earn the money when negotiating price. I always try to be polite and friendly to the seller but am never afraid to ask for a lower price or show them they are charging more then a competitor.

Steve
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Old 10-07-2019, 02:01 PM   #24
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You may be able to negotiate a better price IF you finance. KIckback's such an ugly word but many dealers do get incentives for financing through preferred lenders and may be in a better position to come further down on the price. Both methods of purchasing have their benefits.

Whether you finance or pay cash, some lenders as well as insurors may have exclusionary language in their financing agreements and/or insurance policies regarding using a recreational vehicle as a residence. Check with both depending on your circumstances.
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Old 10-08-2019, 10:49 AM   #25
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Quote:
Originally Posted by Rumple View Post
Sitesee and Duskmg,

You have done this with success at a dealership buying a new trailer? I was always under the impression that dealerships won't let you make a large payment with a credit card without charging an additional percentage penalty.

If you are going to buy cash and they will let you do it, I would agree that using a point/cash back card for as much of the purchase as possible would be a great idea. Then just pay it off immediately and get the points/cash back as an additional bonus.

Thanks
Hi

Yes, there are dealers that will let you do this. In our case, they put a limit on the amount ( $20K ??).

Bob
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Old Yesterday, 10:47 AM   #26
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Hello all,

Newbie here. Tomorrow we are going to look at Airstream trailers at our local dealer. My question is from a negotiation standpoint. We're capable of doing cash, but don't mind financing if the incentives are better. In your experience, is it better to negotiate as a cash buyer or go the financing route? Do they tend to offer better incentives one way or the other?

Thanks
The dealer and the bank would rather you finance because of the huge "interest" funds they make!
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Old Yesterday, 11:16 AM   #27
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I'd pay for it, and if you later want to get a loan, you might consider a below 3% loan against one of your cars or truck as opposed to what I believe would be a higher rate on the trailer.
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Old Yesterday, 11:30 AM   #28
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Excellent all-around advice!
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Old Yesterday, 11:44 AM   #29
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It really doesn't make the dealer much difference either way, because he'll have the case probably the same day the deal is done regardless if you give him green or a two party check.
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Old Yesterday, 12:06 PM   #30
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I tell you something more important than cash versus financing. That is dealer. I’ve noticed that airstream buyers think they gotta buy local. The smart move is to check all over country for a competitive price.

In my case, I ignored the dealer in Albuquerque because his price wasn’t competitive. In 2005, I ordered a new unit in Fontana, CA. Due to CA taxing, I inspected the new unit in Fontana and paid $250 for the trailer to be driven over the border into NV. I saved about $5000 everything considered, dealing outside my area. My wife and I then started on our first camping trip from Las Vegas.

We used that trailer for 9 years. Warranty work was at the Albuquerque dealer. No problems there!

We don’t camp anymore but occasionally I get these emails from the forum and comment because of our fond Airstream memories.
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Old Yesterday, 12:36 PM   #31
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Quote:
Originally Posted by Rumple View Post
Hello all,

Newbie here. Tomorrow we are going to look at Airstream trailers at our local dealer. My question is from a negotiation standpoint. We're capable of doing cash, but don't mind financing if the incentives are better. In your experience, is it better to negotiate as a cash buyer or go the financing route? Do they tend to offer better incentives one way or the other?

Thanks
Bought a 2019 flying cloud 30rb queen bed from north trail rv in ft Myers and it didn’t make a difference to them with cash or finance.
Our plans have changed and we are selling. For $79,999.
hmw1958@gmail.com
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Old Yesterday, 01:59 PM   #32
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As mentioned earlier, it probably doesn't matter since the lender is not likely affiliated with the dealership (unlike automobiles etc). Negotiate the price first. Without going into a lot of detail, consider this from a reliable source: the end of *any* given month is the best time to capture a good price on existing inventory.
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Old Yesterday, 02:05 PM   #33
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tax deduction

You might to check with your tax professional. I believe the recent changes to the tax laws no longer allow towable RV's interest as a second home deduction.
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Old Yesterday, 02:41 PM   #34
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There is no such thing as a 0% loan. You pay for it somehow. And you still have to carry full insurance on something you finance.

And check out what happens to the rate if you make a late payment. No thanks, I’ll pay cash.
Your point is accurate as can be - what is interesing is that over the past several years, auto mfgs have chosen the path of burying the cost of credit into the sale price, and then providing "low cost" loans on the now inflated price vehicles. This temporary stop gap to improve profits is backfiring as the retail price for vehicles is quickly approaching untouchable and no, amortizing a new car for 8 years is an awful decision given the average consumer propensity to want a new vehicle every few years.

It is no different then appliances sellers that would offer 90 days same as cash finance deals, or something along those lines. The dealer has simply prepaid the interest and then buried it in the cost of the goods they are selling their customer.

Getting off point for a moment:

RVs haven't gotten to that point yet but the point is still valid. Dealers don't really care with the exception of you paying cash eliminates:
A: Finance kick back from finance company for selling their loan product
B: If they were applicable to AS: Credit cards - 3-4% is the cost of a credit card transaction and paying cash obviously eliminates that fee. Dealers would rarely pass the savings along although many furniture dealers will pass along a discount for cash deals as furniture and appliances stores are notorious for baking the cost of finance into the sale price and then selling the product as 0% / same as cash finance deals.

So: Cash or credit - if you choose credit, don't do it for a term longer then 60 months.
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Old Yesterday, 03:16 PM   #35
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Regarding term on your RV, I would go as long a term as you can with a good rate, when we bought in July the rate was almost identical from 5 to 15 years. If you do the long term and pay at the 5 year rate cost of money is the same, if you have other cash needs and want to pay less you can. Most loans have no prepayment penalties so it can be a win win. But you have to pay the higher amount if want to minimize interest.

You can also borrow $ now, and prepay the whole loan in a few months to optimize cash flow and taxes .. you accountant will know for sure if that’s your concern.
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Old Yesterday, 04:22 PM   #36
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There are 3 parts to the purchase of a car (or AS):
1. Price (Don't let the salesman tell you they need the manager's approval on a sale price, they don't.)
2. Financing (Shop your own bank or FCU for a loan first and you're a cash buyer.)
3. Trade In (They sold it to you for retail and will buy it back for wholesale. A good deal for you?)
1. Price. With the internet, the days of being buffaloed by a salesman are over. You should walk in knowing what a good deal is or is not.
Be prepared to walk away. There's always another one.
2. Financing. Sadly, banks do a kickback to dealers because they bring a lot of business. So I can get a better rate from the dealer using my bank, than I can by going directly to my bank. Seems wrong, but it's today's business.
Dealers today don't want cash buyers.
3. Trade. Unless you want to throw away money never trade in. With RV Trader online, (Or Airstream classified) it's easy to sell outright. May take some time, but it works. The dealer won't even give you wholesale, he'll give you his secret black book lowball auction price.
Now maybe the unit you want is such a good deal you can justify the auction price. Like finding the Picasso in a garage sale. But it's rare.

I'm a huge believer in being debt free.
However, there are times you might consider a loan. If you can make use of the tax deduction on interest. If that's still available. If you can beat the standard deduction, go for it, but keep enough reserve to pay off the loan if things change.
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Old Yesterday, 04:44 PM   #37
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Since I just bought a new Flying Cloud, let me chime in.

1. We were able to pay cash for the first time. Nice not to have a payment.
2. If you finance, you are going to be upside down on the loan for a long, long time--I can't remember the exact numbers, but something like 75 % of the term of the loan. Which means if anything happens (accident, trade in, sale) you're going to eat a whole lot of that loan.
3. I understand the idea that you want to pay a little every month because you want to preserve capital, because I lived with that theory for so long. If you can afford it, pay cash, because even if the interest rate is low, it's still increasing your cost.
4. We bought a new AS because of some peculiar circumstances. But I've almost never bought a new car. Never bought a new house. Don't buy new mandolins or guitars. It's always a bad idea to buy new, or to buy too old. In my opinion.
5. I never follow my own advice. That's why I'm so wise. (Wisdom is just another word for "Lots'a mistakes.")
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