gcosio
dallas
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Joined: 12/14/2021
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Hello Team and members of this fabulous club, we are a new family wanting to start a life as a Camper in an RV Trailer.
Today I found an offer for a 2019 MALLARD M185.
I am in the process with the Dealer to buy it but I would like to have advice on what points to clarify in the finalization for example.
Would it be good to buy a guarantee of $ 2000 that lasts at least 7 years?
It would be good to buy GAP insurance of $ 795
They are offering me a loan for 140 months at 6% interest is fair or where you can apply for a better interest with a credit of 720.
Please someone give me the best advice to avoid putting my feet in the mud. Thanks
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MitchF150
Puyallup, WA
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Joined: 07/13/2002
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I'm paying 4.5% on a 72 month loan for a 2019 Rockwood. I bought it brand new in 2019 gong thru my local Credit Union.
My credit score was/is in the 800+ range. ![[emoticon]](https://forums.trailerlife.com/sharedcontent/cfb/images/smile.gif "smile")
Used RV's generally have a slightly higher rate, but it's all up to the bank when you apply and your credit score from what I understand.
I'm more than 1/2 way thru the loan and the balance. Plan to pay off early too, with extra balance payments when I can.
I passed on the extra 'warranty' and not sure what GAP insurance is so can't comment on that.
140 months is just over 11 years, so you'll be paying alot in interest for the first half of the loan.. I hesitated at 72 months myself... But, knew I was going to keep this rig for at least that long anyway, and if I can make the extra payments anyway, it'll be paid off early anyway.
This probably won't be your 'forever RV', so gotta take that into consideration too.. Don't want to be upside down on that loan if you want or need a bigger one as the family grows sooner than the loan is less than the current value of the rig at that time.
If anything, put the $2,000 away for your self and hold it if anything 'major' happens to the rig.. At least you know you just didn't give your dealers sales person a bigger Christmas bonus!
Just my experience and opinion on the deal.. Good luck! Mitch
![[image]](https://i.imgur.com/XG8H0uzm.jpg?1)
2013 F150 XLT 4x4 SuperCab Max Tow Egoboost 3.73 gears #7700 GVWR #1920 payload. 2019 Rockwood Mini Lite 2511S.
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gcosio
dallas
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Thank you very much Mich, so you recommend me not to give downpayment and it is better to pay more monthly and a less time of the loan. Really what you tell me is that the family grows faster and the loan will still be very large and the rv will not have that value.
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Skibane
San Antonio, TX
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Joined: 11/09/2005
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I would suggest not buying either an extended warranty or "gap" insurance.
Both of those items cost much more than they typically pay out in claims, which is why dealers love to sell them: They are a huge source of extra profit for the dealer.
Nobody sells "warranties" or "insurance" out of the goodness of their heart.
They sell them to make money - and the only way they can make money is by selling them for more than they're likely to pay out.
In other words, they only way they can win on the deal is for you to lose.
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gcosio
dallas
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Thanks for your suggestion Skibane, today I will go to the dealer and demand that they withdraw all the guarantees included since we really throw money away and when you remove a claim they respond with many excuses and in fine print. I am looking at the closing doc and they are including a charge for Inapection of propane and battery in addition to another cleaning charge totaling $ 1000. They really are Machiavellian they buy them at the Dealer.
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Grit dog
Black Diamond, WA
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Joined: 05/06/2013
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How about you ask them for a big can of spam to go with the deal?
Suckers!!
2016 Ram 2500, MotorOps.ca EFIlive tuned, 5” turbo back, 6" lift on 37s
2017 Heartland Torque T29 - Sold.
Couple of Arctic Fox TCs - Sold
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MitchF150
Puyallup, WA
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Hi. No, put as much down as you can afford to put. (pass on the other add on things)
That's what helps keep the payments lower for a shorter loan term. With my trade and $5,000 cash down payment, I only had to borrow some $17,000 when it was all taxed and out the door.
I only owe less than $8,000 now, so if I had to sell it for whatever reason, or insurance claim, I can easily pay off the loan and still have $$ left over.. But, not looking to do either anytime soon!
Good luck! Mitch
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way2roll
Wilmington NC
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Dealers get kickbacks and profit for selling extended warranties which is why they push so hard to sell them. You can get an aftermarket warranty if you really wanted for much less. Some swear by them but most feel that if you put the money you would spend on a warranty in the bank to handle issues as they arise, you'll be ahead of the game. As far as rates, you can shop around but dealers are usually good at shopping loans. And paying for PDI - dealer inspection is ridiculous - especially $1k on a TT. They should be required by law to inspect it before they can sell it. And cleaning - isn't that sales 101. Tell them it's clean enough. I don't like the cleaning chemicals rv dealers use anyway. I'd rather use my own.
2023 FR Sunseeker 2400B MBS
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Yosemite Sam1
Under the pines.
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Joined: 03/28/2018
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Good choice. Malllard is a good brand (almost bought that myself).
Negotiate to an interest rate of 5% or lower (hope your credit score is excellent).
No to warranties and gap. Your RV is fairly new and hope you had a walk-through with someone outside of their sales team and more of your knowledgeable trusted friend.
I also hope you are handy -- otherwise, YouTube is your friend in your maintenance, small repairs, operations, etc. needs..
Good luck and happy trails.
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Rick Jay
Greater Springfield area, MA
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Joined: 02/02/2003
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Welcome to the Forums!!!
gcosio wrote:we are a new family wanting to start a life as a Camper in an RV Trailer.
Question or two, if I may...
Does this mean you're a family looking to live full-time in an RV? Or just periodically use it to camp in for vacaction? If you're thinking of full-time, you need to RETHINK this idea NOW.
Also, it appears that your knowledge about RV's is very limited. If so, I would STRONGLY suggest you spend some time on these forums reading and asking questions BEFORE you put down ANY money. Most RV salespeople will tell you anything to make a sale, and if you don't know they're BS'ing you, you'll probably make an improper decision. And if you're planning on full-timing it, then you should know that the majority of RVs ARE NOT designed to withstand the wear and tear of 24/7/365 use.
Lastly, as far as "gap" insurance goes, my personal philosophy is to always put enough down on a purchase so that you are covered should there be total loss. Usually, a 20-25% down payment will cover this for most purchases. In all these years, I've never needed gap insurance, but I know there are people financing way more than they should and then end up being "upside down" in a loan on a totaled vehicle. Not a good situation.
Good Luck,
~Rick
2005 Georgie Boy Cruise Master 3625 DS on a Workhorse W-22
Rick, Gail, 1 girl (26-Angel since 2008), 1 girl (21), 2 boys (22 & 19).
2001 Honda Odyssey, Demco Aluminator tow bar & tow plate, SMI Silent Partner brake controller.
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