Bob D
Freelance writer, photographer, and seminar instructor, RV Lifestyle, Green RVer columnist, nature and the outdoors
What does a vehicle (RV) buyer need to know about financing to obtain the best package?
I am writing an article on choosing and financing a recreational vehicle (RV) and have some specific questions to ask of a finance professional who can provide short, concise answers I can quote in the article. (1) Which comes first, the vehicle purchase or the financing?, (2) Will a buyer obtain a better deal from an independent financial company rather than through the vehicle dealer? (3) Are there hazards choosing an online financial company rather than an established "'name brand" financial institution? Thanks.
Answers (1)
Bob,
Try talking to someone at a medium-sized bank or a larger credit union in your readership's geographic area. Credit unions specialize in this type of retail lending, but pick a CU big enough to do at least 15 RV loans a year. When you find the bank or CU person who you think might answer these questions, it's fine to ask them "off the record" how many RV loans that financial institution does on average each year. If you've found a good one, he or she will be honest with you, including if the local RV dealers generally offer better financing.
My background is in bank and credit union marketing, so I'm inclined to answer your questions myself. You'd do better, however, to ask someone who actually makes the loans in today's changing economy. But here goes:
(1) Pre-approval for a specific dollar amount is always best to do first. This way the customer knows how much he can spend and is less likely to get in over his head--without any promise of financing. This can be done informally with a loan officer. The customer should have already looked at enough RVs to know about what he wants.
(2) My personal experience is that dealers will shop around for the best rate and terms for their RV purchasers. The dealer wants to make the sale, too, but recognizes that it won't happen unless financing is arranged. Dealers usually have a repertoire of banks, credit unions and their own financing programs from which to draw--not necessarily in that order! The dealer will know which local financial institutions regularly give RV loans, and which ones have that week's best loan rates. Some loan officers even contact dealerships when the rates are attractive and the bank wants vehicle loans.
(3) You already know the answer to this one! Your last question is a leading one. Yes, there are hazards. So when in doubt, don't. Too much is at stake to gamble with an unknown, virtual finance company.
You didn't say anything about your audience. Are they old or middle-aged? First-time buyers or affluent RVers taking it to the next level in luxury? Either way, you'll have the answers they need.
Best wishes,
Lori
