Everybody wants to get a discount especially on big ticket items like RVs. The problem is you just don’t know where to look to find the best RV discounts. Sometimes with all the advertising the big RV dealers do, it seems like they have great deals. But if you are willing to do a little digging, you can get an RV discount from $10,000 to $50,000. In fact I have found many deals that I could buy and turn around and sell for $30,000 less than bluebook! So I’ll teach you how to find these RV deals. There are 4 different places where you can find discount RV sales.
First Way to Get a Discount RV: Buy at RV Auction
The most popular RV auction online is Ebay. If you want to bid at an Ebay auction it is very important to learn how to bid on Ebay. On eBay, RVs that sell typically sell for 20-50% below market value. There are other auctions around like police auctions, IRS, bank auction and may more. There are a lot of dealers (especially right now with the economy) that will sell a lot of their inventory at an auction price just to get rid of it. Also banks will sell their repo RVs at an auction so they can get the biggest number of sales for their advertising dollars.
When buying discount RVs at auction there are a few considerations. You need to make sure that you have a clause in your buying statement that you have a right to inspect the RV before buying. You may need to give the seller a size-able deposit to take the RV for inspection, or else take the buyer with you. NEVER buy an RV without the opportunity to do a full inspection. Some people know enough about RVs and cars that they can do their own inspection, but others may need to take it to an RV repair shop for an inspection. This will cost you around $1000, but well worth the money.
Second way to get an RV discount: Buy a Bank RV Repo – Directly From the Lender
If you can work out a deal with a lender before the RV goes to auction, you can usually get yourself an awesome deal. Banks are not in the business of selling RVs or boats, or cars or whatever else they may have repossessed. In fact these things are making business bad. Many times they will practically give the RVs away just to get them off their books and allow more money for them to lend. (Banks can only lend up to a certain percentage of their cash on hand. Repoed items are deducted from whatever their cash on hand is, so it lowers the amount of money they can lend by 10 times. They really want to get rid of these RVs so they can get back to doing their business – lending money!)
The first person you want to contact is the bank you have your RV loan with (or maybe just your car). You probably already have a relationship with your bank – so see if they lend on RVs. If they do, talk to their loan officer about RV repos. At first they may say, “we only sell our RV repos through…”. But as you build up a relationship with them and they know you are looking for an RV, they will feed you information – and eventually you will find that they can sell you an RV repo at a great price.
If you don’t know your banker, or don’t have a small bank, the place to go is credit unions. Most credit unions will lend on RVs and will have some inventory. Again, go in as talk to the loan officer about the Repos. If they are not willing to give you that info right away, you may consider opening an account with them just for an excuse to go to that bank and build a relationship with the loan officer. Then as you build that relationship – you’ll get inside information and be able to get that deal of a lifetime. You can look at is as opening up a $50,000 savings account (cause that’s how much you’ll be saving on the RV you buy).
Last, if you want to get really aggressive you can contact sub-prime lenders like American General Finance, they are likely to have a lot of inventory on their books. But you will have to go through a lot of red tape.
Third way to get a discount RV: Buy in Preforeclosure
This is a great market to look for. You will find these deals from people who aren’t able to make payments anymore, or who are on the edge. There are many different reasons a person is in pre-foreclosure: loss/change of job and divorce are the most common reasons someone would go into pre-foreclosure.
In order to get financed for an RV you have to have pretty good credit. Most lenders require a credit score of 720 or better. Many people with good credit scores value their good credit and will pay whatever it takes to not ruin their credit. Usually when they are in this situation they don’t have cash lying around to pay the difference (or they probably wouldn’t be in the situation) but their credit is good and they can take a personal loan out from their local bank for however much they need. So don’t worry if they don’t have the money to pay the difference of what you want to buy it for vs what they owe, perhaps you can suggest a personal loan if they don’t think they can take your offer. Often times they will take an offer just because they are desperate.
When people are selling an RV they go through different stages. When they first put their RV on the market, they usually think it is worth $X and they think it will sell quickly. The longer the RV sits on the market without selling the less interest it will usually get – and the less the owner thinks it’s really worth. So sometimes if you make an offer that is low initially the owner won’t take it, but follow up in a few weeks and they will usually take that offer.
Fourth way to get an RV discount: How to Find a Good Deal FSBO
A for sale by owner doesn’t have to be desperate, or in pre-foreclosure to be a don’t wanter & therefore selling their RV for a great bargain. I’ve met people who are selling for many different reasons. Some common reasons people sell RV discounts is : Their spouse died, and using their RV reminds them of their spouse so they don’t want to use it. They needed it while their house was being built – now their house is built and they don’t use it. They have medical problems and can no longer camp/drive. They don’t like it – they really wanted a boat (or a Class A when they have a Class B) etc.
Often times because these people are selling for emotional reasons, they just want to get rid of it. They don’t need to get the most money out of it they can, they just want something for it (nobody likes to give things away).
You can find these sellers in your local newspaper. However don’t look in today’s paper, look in last month’s paper & see if they have sold their RV yet. You can look up the value using NADA to determine if it is worth your while to pursue and whether or not it really is a good discount RV.