Lemonis not worried about tariffs. Why? Long-term loans

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    By Chuck Woodbury
    EDITOR
    We asked RVtravel.com readers last week who had bought their RVs at Camping World what they thought of the experience. It was no surprise to me that nearly half of those who responded (48 percent to be exact), said they regretted buying there.

    Any successful businessman will tell you they’d go broke if that’s the way their customers felt. But somehow Camping World can pull off such a pathetic level of customer satisfaction.

    My main beef with Camping World is how it strong-arms its RV buyers into financing their new RVs for 15 to 20 years. What this does is put these buyers in a terrible pickle a few years down the road when they want to sell their RV: To do so, they’ll need to bring their checkbook to pay the difference of the significantly depreciated RV from how much they can sell it for. They may need to write a check for $10,000, $20,000, $30,00 or far more.

    Camping World CEO Marcus Lemonis knows this, but as far as I can tell, doesn’t care. He cares about pleasing his shareholders and padding his own pocketbook, not those RVers who get suckered into the long-term loans, most of them on cheap RVs which aren’t meant to last very long to begin with. Many are basically assembled with staples, glue and the cheapest components the manufacturers can buy – usually from China. In the industry, these RVs are referred to as “stick and tin” models.


    Marcus Lemons appeared on CNBC two weeks ago to talk about the RV industry and Camping World. He was asked if increased tariffs might put a damper on sales. He explains in this 45-second excerpt (recorded at a low bandwidth for viewers with data limits). Pay attention to his very casual reference to 180- and 240-month loans. 

    See the full interview here.

     

     

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    theresa
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    theresa

    my two cents – lousy and very expensive service – gave them two tries and was disappointed X 2… then I heard that this turd also made know that if you’re a conservative or Trump supporter not to come near Camping world… SOLD!

    Cary
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    Cary

    Hear Hear!

    Years ago, whenever I went to Albuquerque (our state’s “big city”), I would make a point to stop at Camping World. No longer. I’ll never set foot in one again.

    Kelly R
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    Kelly R

    We have been debt free for many years. We have only financed our two houses and a couple of many cars. Our purchase of our Class B four years ago was the most we have ever financed. We had shopped for years prior to retirement and knew what we wanted. We were ready to purchase and our insurance company wanted $950 every 6 months for insurance and our credit union wanted 17% on a loan. That stopped the deal right there . We talked with the RV dealership and they hooked us up with a finance company and an insurance… Read more »

    Eric Kaminsky
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    Eric Kaminsky

    I have never purchased an RV at Camping World nor am I particularly a fan of Camping World or any other dealer, big or small. (From what I know of him, I do not like Marcus Lemonis.) But with well over 30 years as an RVer and having owned three motorhomes, along with over 40 years as a practicing attorney, I feel qualified to put my two cents in. The use of long term loans to finance an RV is not unique to Camping World. Without such loans the RV industry could not exist. To say people should pay cash… Read more »

    D Daniel
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    D Daniel

    The banks are the ones offering the long term and no money down financing loans. Camping World nor any other RV dealer are self financing these purchases. Why single out a dealer when the entire industry uses the same banks?

    Bob Hyatt
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    Bob Hyatt

    Nah. Camping world is getting kickbacks on the interest collected on these loans. They have a vested interest in trying to maximize the interest you pay. We paid cash for our new Tiffin. The local dealer (we did not buy from them) kept pressuring us to finance for 7 months and then pay it off. Told them no. They told us the final price would be higher if we paid cash. I told them “no it won’t.” Sales manager asked “how are you going to do that?” I said “like this” and got up and walked away..

    MovingOnWithMargo
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    MovingOnWithMargo

    Chuck, the only thing we can do right now is continue educating the mass public. We can save a few from falling into the debt trap by encouraging them to buy used rigs instead of new, pay cash instead of credit, but when billion-dollar quarters push past the perimeters of morality, there is no recourse, as I see it. Currently, the moral of the citizens of the USA is very low. Trying to escape depression is stimulating a lot of risk-takers who eventually walk away from the debt. The loss of credit may then save their lives as “cash only”… Read more »

    Mike
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    Mike

    Im sure I’ll get skewered for this. But, what Marcus said is, in fact, true. I don’t blame him for folks who take financing for 180-240 months. The consumer should make his/her own educated choice and accept consequences accordingly. I get that dealers paint the rosy picture to entice the consumer, but in the end, the consumer has a choice. This is different than predatory lending practices (my opinion).

    Jeff
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    Jeff

    NEVER BUY AN RV FROM CAMPING WORLD! SIMPLE AS THAT!

    LOOK, BUT NEVER BUY, YOU WILL BE SORRY.

    Tommy Molnar
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    Tommy Molnar

    Why is he imitating a back-window bobblehead?