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Old 04-04-2010, 03:59 AM   #1
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Reno , Nevada
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In a Bind...

Hello all,
I'm in a sort of a bind and would like any advice/help I can get...
I'm looking to "upgrade" out of my current Class A motorhome/Jeep combo into an AS/big truck combo. Problem is I still owe quite a lot on my old RV and I know I'll take it in the shorts trying to sell it...I've actually had it advertised for awhile with no nibbles. I went in to an AS dealer today and their "deal" was to take my RV as a trade-in for a 2010 27FB, but raised the MRSP by about $5000 (I still owe $15000 on RV). To me, this appears that they're "giving" me about $10000 for RV, which is what I was actually hoping to get for it. Am I being a completely gullible idiot here??? I'm not in an immediate hurry to get rid of RV, but the sooner the better. Thanks for any input!!


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Old 04-04-2010, 08:07 AM   #2
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Not all that clear to me...

Your looking in the right direction, Julie. A trade in, or trade of some sort, appears to be your best route. I do not mess with new Airstreams, but from conversations here I see major discounts being offered by various dealers. Check into those. You may find that the discounts may override the change in MSRP your dealer is offering. By the way....what are your tow vehicle plans? Your Jeep is probably to small. Another avenue....start looking at the used market and trades there. Many folks got in over their heads....or situations changed...and a trade out will be their best route too. Good luck....welcome to the Forums.

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Old 04-04-2010, 08:25 AM   #3
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How about a description and a few pictures posted here. You may get some ideas back from that.
2004 Excursion 4x4
1991 34 ft. Excella +220,000 miles, new laminated flooring, new upholstery, new 3200 lbs axles

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Old 04-04-2010, 08:26 AM   #4
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If things work there like they do here, you will only pay tax on the difference, thus saving tax on the $10,000 trade-in allowance.

One reason to do a trade, if the numbers make sense.

Just make sure that the trade-in allowance isn't just a disguised discount that you could get anywhere WITHOUT giving up your Class A rig...
If it's to be, it's up to me.
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Old 04-04-2010, 11:32 AM   #5
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It's an old car-bidness trick called "overtrading". Give the pigeon what he feels his trade-in is worth, then inflate the selling price (if it hasn't been already inflated). As for taxes, in VA you pay based on the purchase price, not on the difference. Also, if you live in a personal property state then you will pay higher taxes every year.

If you are financing, then there may be some fraud involved; the financing contract requires everyone to declare all the facts (that the trade and the new rig are priced fairly.)

It's easy to get lost in a transaction like this. The only way to get your feet on the ground, so to speak, is to find out what the cash price is for the new rig and work from there. For goodness sake - don't fall in love with the deal. All the chips are stacked against you and if you have stars in your eyes then you are easy pickings.

Somebody, please, point me to the road.

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Old 04-04-2010, 12:29 PM   #6
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The question is how much will you owe when you get done trading and buying your new tow vehicle. If you will owe more than you do now, it is probably not a deal you should make.
A dealer hopes to make money both ways on a trade--selling the new vehicle at or near m.s.r.p. and getting the trade vehicle as cheaply as possible. A lien and the loan on the trade vehicle ties up more of the dealer's money, effectively reducing the value of the trade as the dealer will want to recoup the cost of his money when the trade is sold.
If you have only 10k equity in your motorhome, there is no way you can come out on the deal. You are better off keeping and using your motorhome or waiting for a cash buyer willing to pay enough to satisfy the loan and give you a satisfactory amount of money.
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Old 04-04-2010, 12:40 PM   #7
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Originally Posted by julieibach View Post
...To me, this appears that they're "giving" me about $10000 for RV...
giving you something?

not likely.

bumping the a/s price to OVER msrp, is a huge deal.

1. most buy at a DISCOUNT from msrp, so OVER is a lot more than 5K$

2. u will be WAY UPSIDE DOWN once the a/s payments start and that will only get WORSE with time.

sell the moho for whatever and take the loss (or gain)...

then shop streams.

negotiate for the stream DOWN from msrp, not UP.

and if the finances are right, wait, save and go at it again later.

all of the true things that i am about to tell you are shameless lies. l.b.j.

we are here on earth to fart around. don't let anybody tell you any different. k.v.
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Old 04-05-2010, 01:01 PM   #8
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Thanks everyone!! You have been SO helpful...I called the dealer today and said I thought I bought off more than I could chew and am not sure if this is the right time for me. He said they had a buyer for my RV and would be willing to drop the price in addition to taking the RV off my hands if I finance through them. Funny, how that happens, huh?? I'm going to let them "stew" on it another day or so and see what develops. Again thanks and I'll keep ya posted!
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Old 04-07-2010, 06:18 AM   #9
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holland , Pennsylvania
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the thing that matters most is the amount of money you need in addition to your trade.if the dealer overstates the equity with the lender he could be putting himself on recourse if the deal becomes a repo.most dealers will not go down that path.the dealer earns a finance reserve from the lender when you finance thru them,which is the difference between their buy rate from the lender and what they mark the rate up to you.on big ticket items this can be substantial $ overallowance on your trade in is treated as a reduction of the sales price when the dealer records the transaction.lenders want to see true equity on loan applications in order to evaluate the deal.acv (actual cash value) is what the lender will go buy on your trade.that is why most dealers will ask for additional money down from the customer.
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Old 04-07-2010, 06:48 AM   #10
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Miamisburg , Ohio
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A word of caution, you stated:

"to taking the RV off my hands if I finance through them". Financing through a dealer allows them to control the interest rate of the loan! A common practice is for the bank to rebate to the dealer a percentage of the interest rate you payed, increasing the profit to the dealer.

For instance, the dealer has an arraingment with the bank to make loans for the bank for 10% interest. If they charge the customer 12%, the bank returns the 2% diffference to the dealer, they add it to the profit on the sale of the unit and raise the 'gross profit' of the transaction. 2% over 10 years on a $75000.00 RV is a boat load of money in their pocket.

Many dealers make as much or more money on the transaction by financing, insuring it as they do on the sale / trade itself.
Accident credit life insurance is another 'profit center' for them they will push you to buy (and you should avoid like the plague)

You are much better off arrainging the financing on your own or at least talking to a credit union or frendly bank officer about the terms the dealer offers before signing the papers. This could save you many thousands over the term of the loan.

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