RV Loan
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Thursday April 24, 2014

In an effort to keep our customers informed about RV financing I thought some issues should be brought to your attention. This information can save you money and will help you to understand the loan process. It will alert you to some major issues you should be aware of.

 

  1. NEVER, never fill out an automated “instant approval”, “automated approvals”, “5 minute approvals”, “30 minute approvals” type of application.

    Why not, it's pretty simple, you should not be comfortable applying blindly! You need to ask “how many times will your company pull my credit score and lower it with each pull”? If you do not ask they will do it as many times as they like, because you have given them the right to do so; Without speaking with someone you will never know!

    We are required by the banks to pull your credit one time to make sure you have good credit, then we send your application to the bank with the lowest rate, that is most likely to approve your deal. They will pull your credit again, either from one bureau or a tri merge. THAT IS ALL WE PULL; The only exception (and it is an exception) is, rarely we will have to pull it at two different banks for competing rates for you. So, the most your credit will be pulled is one from us and two banks, to get you the lowest current rates.

    Without talking with anyone, how will you know what the fees are? Find out what their fees are. Make sure there are none that are hidden under ‘other costs’. You may be surprised with a bill for an extremely high loan processing fee a month or more after the loan is finished.


  1. Another gimmick is "get money back when you finance with us". Ever wonder who's money that is? Ever wonder who is paying the interest IF you actually do get money back (You, of course)? Do you wonder if the bank involved actually knows of this money back scheme? Just some thoughts for you to ponder.

  1. A number of dealers are claiming to be RV financing companies, when in fact they are RV dealerships with regular F&I departments. They usually have to charge much, much more for the loan rates, because that’s how the dealership makes additional profits. We are actually getting calls, and hearing complaints, from people who have applied through them. These people are always very upset to find their credit score has dropped by many, many points. This is a common dealership tactic, that the dealership uses to make more money by “shot gunning” your application to as many banks as they can sign up with. By the way, they will generally try to switch you to buy one of their RV's if they get an approval for you. Another thing they are doing is saying “you’re approved”; We just need a few more things to lock up the deal, when in fact they do not in actuality have a real approval for you!!!! They are just pulling your credit score, and if they see that you have good credit they assume you will be approved depending on the deal you are applying for, while actually knowing nothing about your complete credit profile...only your score.


  1. I personally know of many retired people who have great credit scores, but get turned down because they do not have enough disposable income to afford a new motor home or other luxury item. Your credit score is not the total answer...your complete credit profile is.


  1. Real RV financing companies, not the dealers, are signed up with many or all of the major banks in the U.S., as well as many local and regional ones. By working with these major banks we are able to offer you the true service we are known for. We speak with the banks daily, and therefore we know without pulling your credit 10 times who is buying deals today and who has the best rates for you today.


  1. Another issue people have been asking us about, is the online surveys. We had our tech department look at a couple of them, and found them to be very questionable. They seem to lead back to an RV dealership. You really just never know. You must be careful, and use good common sense when looking at these supposed surveys, which could not be real surveys. If you

    • Actually read them
    • Give them some thought
    • Take your time, do your homework
    • And think through these “surveys”
    You will figure out they are not true, and are just a scam to make you apply.


  1. Testimonials. Always check for how real they are:

    • Do they have last names, or just a first name?
    • If you ask to contact them will they provide a contact number for you
    With our company, if you would like to talk to a real customer that has actually done business with us, we will put you in contact with them. They are happy to recommend our services.


  1. You remember this old saying: If it's too good to be true, it usually is? Enter the low, very low financing rates now being pushed by some of the large RV dealers nationwide. When a dealer offers rates that are less than the current Prime Rate , there is some catch involved. Read the fine print and COMPARE PRICES. The dealers using this technique are selling the RV's for MUCH MORE money than you could by the same rig elsewhere, and they are using the extra profits to buy down the rate at the financing bank. The big problem with this is that you are paying and financing much, much, more than the rig is worth. When you are ready to trade, or sell the RV, you will have to dig into your savings to get rid of it, because you will be “upside down” in its value. Unfortunately, we have people each and every week calling us about this situation, and asking how to get out of the problem. The only real answer is cash to pay down the balance. Many people who finance with the dealers, who use this very low rate as a come-on method, are thousands and thousands of dollars upside down. On average, with $125,000 amount to finance through one of these programs, AFTER a down payment has been made, the customer is usually over $30,000 upside down. DON’T LET THIS HAPPEN TO YOU. Do you homework, and shop and shop.


  1. We are always available by phone for any questions you may have, don't be bashful, call us toll free at 888-929-4424 . We are here to help you with any your RV financing or refinancing needs.

Charlies Davis, 
CEO RVFinancing.com
Charles Davis
CEO, RVFinancing.com