Is novice RV buyer being “taken” by dealer? Your input requested

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A reader named Esther Jenkins posted this on our RV Buying Advice Facebook group. We believe she (and other RVers) would appreciate your comments. We suspect what she is expressing here is a concern shared by others when buying an RV from a dealership.

Esther wrote:
“I’m looking to buy my first RV. The dealer is asking for a $500 non-refundable deposit (called it a deposit, not a down payment), despite my not financing. They are telling me they do three days of pre-sale testing to check for leaks and to make sure all the systems work, etc., but won’t start without the deposit. Is that normal when buying from a dealer?

“I thought I’d read posts in the past about people going to a dealer and taking a unit home that day. Also, I was previously given advice that I shouldn’t pay any money until after they fix anything that was discovered during the PDI. I think I’ve been reading too many horror stories on the internet, because now I’m worried they are trying to take advantage of my naïveté in this situation despite getting a good review about them from one of you. I also expect them to try to sell me stuff I don’t need or charge me too much for things I do, so am taking an experienced RV owner with me. I think I’m just being paranoid because of spending so much.”

What do you think? Please leave a comment.

##RVT931

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Joseph Hannon

My deposit experience when RV shopping brand new in order to get the best deal in my situation preferring to shop at local as possible. I did give this place a $500 deposit thinking here is where I would purchase. Shopping locally at a dealer we found one we liked and I showed them the quote from the dealer I had made the deposit with. They said they’d match it. I then called the dealer I made the deposit with and told them what occurred and could I get my deposit returned. They informed me that a “deposit” is just that (in Texas) and they had not processed my deposit yet and said that they would not now that I’ve found one locally that I liked. Because of this transaction I will likely buy my next RV from this dealer. They are https://www.rvlandtx.com/
RV Land
23401 Interstate 35
Kyle, TX 78640
Toll Free: (888) 435-0789
Phone: (512) 234-6978
Fax: (512) 597-0815

Bill

Walk away, with confidence. The dealer is feeding you a line. If they are honest dealers, they will reconsider their position and present you with an honest deal. Otherwise, there are other dealers who are anxious to provide you with an honest and fair deal.

Bull

The important part of the $500 deposit for 3 days of inspection may be linked to the financing of the unit. Many states have laws giving a period of time concerning the acceptance or rejection of a financing agreement. In the state in which I live it is 3 days for an installment loan such as a mortgage, vehicle loan or as in this situation an RV loan. The buyer has 3 days to review the loan agreement and can withdraw completely from said agreement without recourse.

Possibly another slimy RV dealer sales scam to keep a customer from knowing and potentially exercising their legal rights concerning a finance contract.

john sweeney

The dealer has a responsibility to ENSURE that the unit he delivers is in top condition; failures to do so should entitle the buyer to redress

Ken kuelske

Esther should pull the rug from that deal. If she caves, dealer will gouge her for sure.

Steve

Sounds highly suspicious, they should be checking the unit out as standard practice for no additional fee. Sounds like a dealer I had talked to that added $850.00 to the price of the used RV for a “thorough survey”.

DPHooper

Do not follow through here.
We lost a $3000.00 dollar deposit to largest dealer in Texas , Alvarado. They Did Not tell us the so called deposit was Nonrefundable. We assumed it was since it was called a Deposit. Find a dealer who is honest and upfront.

Linda

We jumped out there and bought new for our first RV – mistake. While we lived it, it just wasn’t what we wanted after using it for a year. If I had it to do over again, I would definitely buy used, would take a seasoned RVer with me to help out, would require seller to have everything available when looking at the unit (power, propane, room for slides to extend/retract, water…). Find a list online of things to check and mark them off as you go along.
You have received lots of wise advise here about running from the non-refundable deposit as well. Best of luck to you.

Vanha Pieru

RIP OFF RIP OFF

Will

When I worked in sales at an RV dealership all of our deposits were refundable. By putting a deposit down that in essence made that coach unavailable for sale to others. You would then receive a call from finance to confirm your financing or intent to buy and then your rig would go through the PDI process. It was not unusual for customers to have multiple refundable deposits at multiple dealerships so it was challenging to take them seriously until they committed to our finance manager. Still, many customers wouldn’t show or call to say they changed their mind. It’s ok to change your mind of course but show some respect, please.

If this is a new rig being purchased our dealership simply didn’t have time to completely fix all the garbage that was sent from the manufacturers before making them available for sale. Most manufacturers send out poorly assembled coaches to their dealer and expect them to fix them up. One well known Class A manufacturer sent us $425K coach with 38 issues that took over 6 months to prep. The issues were so bad they were easily recognizable by anyone.

If this is a preowned unit, dealers are partly dependent upon the previous owner who most likely lied about how great the condition was of their trade in. You’d be amused at all the surprises we found on these nearly perfect coaches. Anything older than 10 years was sold “as is” except checking for propane leaks and electrical issues. We disclosed to all prospective buyers the issues we found before we repaired preowned units and if they didn’t want the rig, no sale, no problem. Yes, we did cancel sales because of the amount of work needed to get some coaches ready for sale. Those rigs were then wholesaled.

Most of my career was spent selling multi-million dollar solutions. My goal in the RV sales business was to treat everyone with respect, be professional and in a manor I’d want to be treated and to reform RV sales people in general. I wasn’t always treated the same way by customers but after the experiences I had with RV sales types I didn’t hold it against them. As a sales professional, when you’re honest you never have to remember what you said to a prospective client. Many of the RV sales people I worked with quickly adapted this philosophy. Not all unfortunately.

Nobody can make you buy something you don’t want! If it’s not the right one walk. If it is buy. Make sure you love not like the floor plan. Tell your sales person exactly what you are looking for and again if they don’t have it, walk. If they don’t show you what you asked for, walk. If you have 8 must haves and they can show you something with 7 and in budget, it’s probably worth your time to see the rig. I actually sent people to other dealerships who had exactly what some potential customers wanted. Of course, I didn’t tell my GM!!!

Do your homework and be prepared.

Good luck.

robert

Run don’t walk as fast as you can away from this dealer. A few years ago we were shopping for a A at one of the large dealers and they had 2 units that we liked so we asked for the best price on each so as to compare. We were told that they couldn’t do that, we would have to pick the one we wanted before they could give us a price. Of course we walked out and have never stepped foot into any of there dealerships since.

TIM

The dealer won’t prepare the RV until they have a sales contract. A contract isn’t valid until you put earnest money on the RV. Every car, truck, and RV I have ever purchased has been the same.

The deposit is refundable if the vehicle is not as represented. Most dealers allow a refund for any reason.

rollin

Hi Esther ~ I’ve only purchased two RVs new (a fifth wheel and a travel trailer) so am no expert.

“Dealer Prep” is normal for a new unit, and visits will be ongoing FOR A WHILE until all the bugs get worked out…….but a non-refundable deposit for fixing defects that should not exist to begin with?

I wouldn’t even go back to that dealer, nor call. When they call you, just tell them their competitor got your biz,

Just head for another dealership and see if you don’t receive better treatment.

bounder

If the $500 deposit is non-refundable, walk away. Same for “documentation fees” walk away. There’s over 250,000 assorted used RV’s for sale on any given week in this country. As a buyer, you have more power than you think.

Capt Jim

The only real bargaining tool you have is your presence. If you are not willing to get up and walk out, you are no longer negotiating, you are buying. By the time you get home your phone will be ringing.

SwedenTexas

Do your homework, read what quality RV’s are out there, talk to RV owners.
I bought a Grand Design 5th wheel, very little problems, dealer got work done
quickly. Highly recommend Grand Design units.

Eric Kaminsky

A non-refundable deposit is not either normal or necessary. The RV should have been “tested” before the dealer put it out to sell. I would run, not walk, away from the dealer. Also, have someone with RV experience go with you to look at the RVs. A novice is at the mercy of the dealer. Take your time. Go on the internet and find out what others are asking for the same or similar RVs. If it is a used RV insist that you be able to take it For an inspection at a place of your choosing. Ask for a guarantee. Do not buy repair insurance unless you have a chance to completely review what the dealer is trying to sell you. And be careful. Often the cost of the insurance is whatever the dealer can convince you to pay. And there are many loopholes that allow the insurance company to refuse to pay for repairs. Do not expect the insurance to give the same protection as one gets when one buys a new car from a franchised dealer. Remember that the RV industry is still the Wild West and the caution “buyer beware” is alive and well.

TravelingMan

Your instincts are spot on…

Remember that everything that is life is negotiable.

If the dealer won’t do anything unless you put money down, that to me is a red flag. On their side though, if you don’t put anything down, he may get stuck with something that he has to try and resale.

I would propose a service that is an escrow. You agree to terms with the vendor. It’s signed by a contract. Money is held in escrow (NOT by a dealer) and he makes the order. AS LONG AS everything is to the terms, he receives his funds from escrow. IF NOT, you are not on the hook for a bad product.

This should be acceptable to the dealer if he is an honest dealer. If not agreeable, I would move on.

As far as “extra’s”, you have the right to say no to all of them. In fact, if you are set on taking no extra’s, then simply stating so up front should suffice. If not, again, walk. No…run…But you may want to see what is offered and then shop that item of interest at other locations. You might find something useful that you had not thought about.

Since this is your first RV….Be sure to confirm you are buying your first RV the first time. NOT the third time. If you have made this decision in hast, back up and go to RV shows to see what else is out there. Ask yourself if the floor plan is right. How long do you intend to keep this unit? Some THINK they will like this only to find out later that it’s not really right for them. Then, you have to put it out there in a market that is saturated with used units. How long will it take to sell one? Remember that the last several years, there has been a flood of new RV’s sold. That means soon, there will be a flood of used RV’s hitting the market. It will happen just as soon as those that bought figure out how much it costs them to own one; they get tired of paying storage rent; they find out that they can’t use it that often because they have to work; they find out that they have to have a reservation 1 year in advance. Just the tip of the iceberg of reasons to sell. The big one is when they find out how much maintenance these things require and how long they will be in the shop at a time (like 3 months or more).

We get the excitement of a new unit. But just a suggestion, you may want to opt for a less expensive slightly used unit. You can save at least 50% or more. Especially when the gates open up…

Jesse Crouse

The unit should come already with a PDI completed and what if any problems were noted and FIXED with NO PAYMENT of any kind till you sign the papers. RUN as fast as you can and report this dealer to a state agency for consumer fraud.

John No

RUN, don’t walk, away from this dealership!!