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Buying an RV - The Dealer is Not the Enemy
Statistics show that the 80/20 rule applies to RV sales profits. That means that approximately 80% of all RVs sold will make a dealer an acceptable profit. How much is that? I can tell you it is measured in the thousands of dollars.?
I know... Ive been in the RV business for years and years.
How about the other 20%? Most of them will fall into the area of just under the acceptable range. But, they are still paying the dealer several thousand dollars in profit. Actually, only about 3% of RV sales made in 2004 were at a profit margin that would be considered totally unacceptable to the dealer. In other words, the customer won... and won BIG!
Yea, yea... As I said, Ive been in the business for years. Salesman, Manager... Owner. Trust me - Ive seen it all.
Why am I telling you this? Im really mad. As angry as I have ever been about anything. I get calls everyday from friends and clients who have been burned over and over again by fast buck Slick Willie salesmen selling a load of bull and using high pressure tactics.
There are just too many Big City Dealers anymore, who are tarnishing the heck out of the business my family and I have worked so hard to keep clean and simple. My sales people have always been taught to be courteous, helpful, and most of all professional. They return phone calls, they send thank you notes and they treat each and every customer with respect.
They also are taught two basic principles:
1. Make a reasonable profit. We have earned it and we deserve it. We have to pay the rent, utilities, salaries, commissions, etc. So by all means, make us a reasonable profit.
2. Sell RVs. Always try to make a reasonable profit, but if you cant... at least try to make some profit. A little of something is better than a whole lot of nothing.
Its really very easy to save a substantial amount on the purchase of your next RV. If, and only if you know exactly what to do.
Many people walk into a dealership with the impression that they are going into battle. They bristle with resistance as the salesman introduces himself, and begins the cat and mouse game of I can sell you... No you cant.
The salesman is asking qualifying questions, to hopefully keep from walking all over the lot and showing each and every RV. You are simply trying to see the different styles, options, colors, models, etc. It is a tug of war... But it doesnt have to result in all out war.
Obviously the dealer, as the individual or business that has shelled out literally millions of dollars to provide a good inventory of recreational vehicles, has the right to regulate the flow of potential customers through his doors. He also has the right to dictate what type of methods his sales people use.When people walk through the doors of the dealership, many salesman, like a cop in a bad movie, will subconsciously read you your RV Miranda Rights.
You have the right to remain ignorant. Anything you say can and will be used against you in the sales office. You have the right to speak to your spouse, and to have your spouse present during any negotiating. If you cannot afford an RV, one will be financed for you at 3% over buy rate.
This is the mentality of many, many RV dealers and sales people across the country. They will use any means possible to sell you an RV from their inventory, and their lot. They will use a multitude of tricks and strategies to help you buy on your first visit. They will give you reasons to buy NOW!?
You, as the consumer also have a set of rights that you should go over mentally as you walk through the doors of any dealership.?
1. You have the right to be knowledgeable. Anything you have learned can be used against the pressure tactics of any unscrupulous salesperson or greedy sales manager.
2. You have the right to take your time. Although you do have the right to know how to use urgency to your advantage.
3. You have the right to know the wholesale and retail book value of your trade in, as well as the RV you are buying.?
4. If you finance your RV, you have the right to choose your own source for RV Loans, and the best interest rate and terms possible.
5. If you choose to purchase an RV Warranty, you have the right to a fair price and a reputable company.
Clearly, the dealer is entitled to a some profit. Without it he could never survive. Many dealers make HUGE profits on the RVs they sell. Your job as a consumer, is to make sure that he pays the rent on the next buyer... Not you.?
You are your own worst enemy...
Most people never take the time and/or money to learn. They dont realize that when they walk into the dealership and sit down, they have taken a knife to a gun fight. Dealerships spend thousands of dollars training their sales people to make a good profit on each and every person they work with. Yet still, the vast majority of buyers never take the time to really learn how to buy an RV at little or no profit for the dealer.
Unfortunately there is very little good information out there on the subject of RV related SAVINGS! There are plenty of books on how to use your RV, fix your RV, and travel in your RV. There are even some books on the subject of buying an RV. But all of them combined provide very little real-world, down and dirty secrets.?
I have read every book that is available on the subject and find all of them very lacking in good advice. If you are only armed with the advice in these manuals, a good salesman will eat your lunch every time.?
Not only must you be able to buy your RV very near the dealers cost, you must be skilled in evaluating the quality, or lack of it, in the various makes and models you have to choose from.?
One important thing to consider is the issue of trade-in. Should you put forth the effort to sell your own RV before you purchase another one? Effort, is the key word. If you put in the effort, you deserve to keep the profits of your labors.?
If you trade in your RV, the dealer will be the one who puts forth the effort to sell your unit. He will be the one to make interest payments on it while it sits on his lot. He will incur the advertising expense, sales commissions, etc. He will also have to fix any defects or problems as well as providing a warranty on the unit for a minimum of 30 days. In other words, dont expect to get full retail for your trade-in. It doesnt happen... Ever.?
People ask me time and time again: When is the best time to buy an RV? My answer is always the same. Anytime... They then typically reply: No, I mean is Winter the best time? Or maybe at the RV Shows? What about the end of the month, Ive heard that is the best time of month...
The truth of the matter is this. RV dealers need to sell RVs all year long. Some sales make a lot, some sales make a little. Your job is to make sure you have the skills to play the game effectively.?
As long you armed with the proper tools, and by that I mean information and knowledge, you should be able to negotiate a deal that is fair to both individual and dealer. No matter what time of year, remember... Information is power. Use it to your advantage.
Do your homework. Research various models and dealer pricing. Leave your checkbook at home until you are ready to make an offer. Remember the value of the Internet and the ease of shopping it offers.
And remember... Be kind to your local RV dealer. He is the one most likely to be servicing and repairing your RV. A few dollars more - spent locally... Are wisely spent.
Get the Facts Before You Borrow: Payday Loan 101
In the current economic climate, alternative means of obtaining money to make ends meet are becoming increasingly necessary. Some alternatives include borrowing money from friends/relatives; cash advances from employers; pawning personal effects and payday loans. Also known as a check/cash advance loan or deferred deposit check loan, the payday loan is the most popular among these. As payday loans grown in popularity, more and more people want to know just what a payday loan is, and if it is the right solution for their situation.
SO, WHAT IS A PAYDAY LOAN?
A payday loan is an unsecured, short-term loan of anywhere from a few hundred dollars to as much as fifteen hundred dollars in some instances. A borrower generally secures the loan by post-dating a personal check for a specific amount of money to be posted against their account on their next pay period. Payday loans are designed to help out in situations when you need quick cash to cover an unexpected bill or an emergency situation until your cash comes through or is made available.
A payday loan is NOT a revolving line of credit. It is short-term and that is a key factor in this type of loan. The idea is to take out the loan to cover a small bump in the road or to smooth out any rough financial edges until your next payday. If you are thinking of the payday loan as way to repair a much bigger financial problem, the advice is to STOP! A payday loan can create bigger problems down the road when used as part of an overall troubled cash flow situation.
SO, WHAT IS A PAYDAY LOAN?
The most important thing to remember about payday loans is that they must be repaid on time in order to avoid paying insane fees that could potentially equal or surpass the amount of the loan itself! It is the renewing of the loan and failing to repay it on time that can create a major financial dilemma for the borrower.
Most loans have a repayment period of four to eighteen days depending upon the terms negotiated with the lender. The repayment schedule and the method of repayment is arranged at the time the loan is disbursed. More often than not, the borrower will agree to pay the loan in full with cash on or before the due date. Additionally, some lenders may opt to collect on the loan by depositing the borrowers post-dated check against his/her bank account on a mutually agreed upon date.
With payday loans, there is a fixed rate fee calculated into repayment on each loan disbursed. The average rate is $15.00 to $20.00 dollars per $100.00 dollars borrowed. Due to the nature of the quick turn-around time of payday loans, the annual percentage rate or (APR) is generally very high. It is not uncommon for the (APR) to be 100%, 200% or even as high as 400% in some cases.
If a borrower is unable to repay a loan at the scheduled time, the lending institution may agree to rollover the loan allowing more time for repayment. The drawback to rolling a loan over is that additional fees are added to your account. For example, if the fee to borrow $100.00 is $15.00 and the borrower rolled over the loan three times, then the new fee would be $60.00. That is the original $15.00 fee plus three times that fee itself added to each $100.00 borrowed.
WHAT ARE THE REQUIREMENTS FOR A PAYDAY LOAN?
Generally, the only major requirement for a payday loan is that you have a job. Your job is your assurance that you will be able to repay the loan. It is expected that you will be receiving a paycheck, and therefore, the money to cover the loan. Good credit isnt necessary or even required for the payday loan to be approved. The lending institution only wants to see that you are employed and have a steady income. In essence, your job is your collateral
Getting a payday loan is actually a simple procedure. You apply, and if approved, sign paperwork that indicates your promise to repay the loan on the lenders terms. Be sure to take the time to carefully read the terms of the loan and do not be afraid to ask questions about what those terms mean. Often, these kinds of contracts are written in a legalized, financial jargon that is not easily understood by the average consumer.
BORROWER BEWARE!
If you feel the lenders representative is not able to fully answer your questions, please say so! If the terms of the loan are not clear to you, do not take the loan until you fully understand them. Teachers always say that the only stupid question is the one you dont ask. This is true! Again, if you do not understand all the terms of the loan, do not sign paperwork until those terms have been fully explained to you. Otherwise, you are legally bound by those terms that could prove disastrous for you if you fail to act in accordance with the terms of the loan. We would like to think that everyone is above board, but not all lenders are. Unfortunately, there are unscrupulous lenders out there who intend to make a profit at your expense.
It has been noted by the NAACP and the Department of Defense that payday loan offices have strategically opened offices near military bases and in socio-economically disenfranchised areas where the demographic is largely African American and Hispanic. Many reputable financial institutions, consumer groups, and civil organizations are doing all they can to shut down payday loan offices, but their efforts to date have been largely unsuccessful.
BORROW IF YOU NEED TO, BUT BE SMART ABOUT IT!
With the often strict guidelines used by reputable lenders, many people are getting caught up in the cycle of payday loans because of their immediate benefits. When emergencies occur and cash is needed, payday loan companies offer fast, hassle free cash. More often than not, most have no minimum credit requirements and do not perform background checks. In most cases, all that is needed to secure a payday loan is a recent pay stub and proof of a checking account. In these regards, payday loans and cash advances do offer consumers financial options in emergencies. On the other hand, more and more people are getting caught up in this vicious cycle of borrowing which can lead to financial ruin. This is not good, especially considering that the loan was probably taken out to avert a financial disaster in the first place. With pros and cons like these, it would seem that the best advice would be to borrow if you absolutely must, but do so with extreme caution.
Being proactive is probably the best strategy or, as conventional wisdom holds, an ounce of prevention is better than a pound of cure. Take an honest look at your family finances and come up with creative ways to not have to borrow. Consider trimming the fat out of your budget, pledging to save a little money from each paycheck, and reducing credit card and revolving debt.
A little effort on your part can make a huge difference not only in your financial situation, but in your quality of life as well. Nevertheless, if you must take out a payday loan, remember the following key points:
- Payday loans are NOT revolving lines of credit
- Repay your loan on time!
- Do not plan on rolling your loan over. Plan, instead, to pay it off
- The only stupid question is the one you dont ask
- Payday loans have terms & conditions of repayment. Know and abide by them
- Payday loans can ruin your finances and jeopardize your job if you are not careful
- An ounce of prevention is better than a pound of cure
Being Informed About Debt Consolidation Loans is the First Step Towards a Best Deal.
Though online loans brought in convenience to borrowers, trusting a particular lender for his services was made far more difficult. Having to deal with a virtual person through ones computer left little of personal bonding between lenders and borrowers.
This rightly applies to Debt consolidation loans. Personal advice becomes important on several occasions. For instance, before selling a particular debt consolidation loan, the borrower needs to be assured that this is the best option that can be used with his kind of circumstances (every individual feels that his is the case that is unique, though it may not be true in most of the cases). Before online debt consolidation loans came into the scene, it was the banker or his representative who would deal with customer queries. Now, borrowers have to depend on magazines and independent financial advisors.
While magazines and journals are a very good source of information, they provide generalised information, and not information that suits the particular set of circumstances. Independent financial advisors are also not able to fill in the space of the personal advisor. They charge certain fees for their services. In addition, they are not easily available.
Lenders must be requested to clear your doubts regarding Debt consolidation loans before accepting it. Most lenders have employed experts from the field of finance to deal with customer queries. Having a clear concept of how a debt consolidation loan improves your financial condition will be the basic step in the loan process. With debts already making your life difficult, a bad deal debt consolidation loan will be a double whammy for you.
Consequently, a proper groundwork must precede any decision on debt consolidation loans. The easiest method of gaining information about debt consolidation loan from several loan providers is through debt consolidation loan quote. One has to simply fill in the quote form, and quotes by several lenders appear in a minimal time of an hour. Loan quote gives information about the rate of interest, term of repayment and other important terms of the debt consolidation loan. The method suffers from two drawbacks:? The loan quote does not list all costs that are later added to the debt consolidation loan.? The loan provider does not promise to lend for debt consolidation on similar terms.
However, loan quote is good to get an idea of terms on which debt consolidation loan is offered. As mentioned above, a borrower cannot demand debt consolidation loan on terms mentioned in loan quote, unless there is a clause stating otherwise.
Debt consolidation loans are offered for a range of periods. The period forms the term of repayment of the debt consolidation loans. Though paying through monthly instalments is an age-old method, it has not lost its importance. Having to pay only a part of the total cost every month is relatively easier. Additionally the repayable debt lessens with every repayment. Another method of repayment, termed as the interest only method, also lessens the monthly repayments but the final amount repayable at the end of the term is very high. This is because only interest is repayable monthly.
The use of debt consolidation loans must be made sparingly. Many a times, borrowers begin using debt consolidation loans as a pretext for spending more. Lenders do not approve of a frequent use of debt consolidation loans. Failure to pay debt consolidation loan will start repossession proceedings to recover the unpaid amount. Therefore, debt consolidation loans must be used with caution. Tendency to spend more than what one brings as revenue must be curbed. If necessary new sources of income must be devised to meet the excess expenditure. Above all, debts must be catered to immediately after it has been incurred. Immediate decision must be made about the method of dealing with the debt by taking into consideration the size of debts and ones own capability to meet the debt. Only if needs be, debt consolidation loan must be resorted to.
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