Exposing High Pressure RV Sales Tactics

This week on the RV Podcast: 

• How to Deal with High Pressure RV Sales Tactics. We’ll interview a reputable dealer who exposes unethical tactics and tells you how you should respond to high pressure.
• RV Campgrounds in six states have been devastated by last week’s Hurricane Helene.
• With prices continuing to rise, many are asking, “How can anyone afford the RV lifestyle these days?” We have some advice in our Social Media Buzz segment.
• All this plus the RV News of the Week and your questions coming up in Episode #517 of the RV Podcast

You can watch the video version from our RV Lifestyle YouTube Channel by clicking the player below.

If you prefer an audio-only podcast, you can hear us through your favorite podcast app or listen now through the player below. Click the CC logo on the right side of the player, and you can follow along in a word-for-word transcript of the podcast as it plays.

The devastation from Hurricane Helene has been massive. Way over 100 have died, and that grim toll is rising as new bodies are still being found in the devastation.  

Hurricane Helene's Terrible Devastation

Several campgrounds were destroyed and many others suffered varying levels of damage, including flooding and fallen trees. At least one campground death was reported. Scores of campgrounds in the storm’s path were without power and it was unknown when electricity would be restored or when they could reopen.

We’re at our Loblolly Ridge RV property near Linden, TN, doing some property maintenance, trimming back weeds and invasive plants, and battling the fire ants. They got Mike. Mike got some spray and got them. There's a cease fire for now.

New RV Land for Sale

We have a new Property Development to tell you about. It’s called the Retreat at Paris Landing and we’re heading up this week to get our first look at it. It’s in Tennessee, northwest of up near the Kentucky Border on the stretch of the Tennessee River that is so big its called Kentucky Lake and the Land Between the Lakes area.

It features large acreage lots that start at $99,900 for 5 aces and come with private deeded lake access. They will be sold, first come, first served, starting October 19 and you can get info at RVLands.net.

The same company that developed the Woodlands, where we have our property, is behind this development. The property is geared for those looking for peace and quiet and privacy, located on a plateau above the lake. That lake, by the way, is renowned for fishing. There’s nearby shopping, restaurants and marinas.

If you buy here, this is your property, your way. You can build your dream home, a lake cottage, a bardominium or put your RV here. You can then camp whenever you want, as long as you want. It's your land. I’m told that several of the properties are cleared and RV-ready right now complete with electric. Utilities are available for all the lots. Tennessee Land and Lakes is the developer and they can arrange financing, help you find local contracts and make the buying process so easy. They are who we bought from and we have nothing but good things to say about them.

Again, we’re going down this week to see it. October 19 is the first date the lots will be offered to the public. You can book at time and learn more at RVLand.com

RV CONVERSATION OF THE WEEK

We regularly hear from members of our Facebook group and listeners like you about the pressure they feel to finance their new RV from dealers- even when they are paying cash. It is no secret that RV dealers – and car dealers for that matter – can make big money when you finance with them. But recently we have heard some stories about finance pressure techniques that are over the top.

What typically happens: A person will see the price on an RV or travel Trailer, agree to buy the travel trailer for that price, but then when they sit down with the paperwork, there is huge pressure to finance with the dealer – or see the price rise – even though there was nothing on the ticket saying that price was only for those who finance with them.

That happened to Tom:

“I had a case where it all went South once The deal was made” and deposit given. I put 2K down on an “out the door” 11k trailer and then when I was ready to pick it up they showed me a balance due of $13,600 …. They raised the price because I was paying cash. It was unbelievable.”

Sheri also had that happen…. She said they advertised a price, she loved the camper, but then the dealer told her if she didn’t finance it with them it would be $3K more than the advertised price.

But recently one story we heard took the cake. 

Talk about High Pressure RV Sales Tactics….

This also happened to Lori:

“I have been looking for a 17ft travel camper, 20ft overall. The particular camper I was interested in was a Forest River Ozark. ….this camper was used, a 2024. The dealer played a numbers game. The GM ‘threw in' a stabilizer hitch, sway bars, a septic hose, and half off the price and labor of a brake module. I came in with cash. It listed on their lot at $12999.

“Out the door tax, title, tags, and the above included on paper of $13862. I said that was good. THEN, rather than stopping there, they literally were trying to push me to finance. They came up with a 10.24 percent interest (I have excellent credit), reasoning with me they were giving me a great deal, and financing was how they made their money. And they were giving me all the tow parts for the trailer for free. The GM said all he was asking was for me to make one huge payment on the loan with the cash I already had, and spread the payments out over the following six months so ‘we can make money, you scratch my back, I scratch yours.' Exact words.

“By the end of the day, the finance guy showed me the “great warranty package” of $1895 for 3 years and gap insurance of $1200, the total they wanted me to finance and play this seven month repayment game was $17,895, at 10.24%. I said no, I’ll pay cash and take my chances. They then told me the price would go up $3,000 if I paid cash, because of all the extras they were throwing in. Does this make sense to any of you? The finance guy told me the trailer already has depreciated 3K, and that was a factor causing the high interest rate.

“Are my intuitions correct? Shady dealer?”

Response from our community:

From Jessica: “WOW- Hearing those kind of dealer practices is not right. 10.24% interest is NOT a good interest rate. And there is no reason to put GAP insurance. (GAP insurance is to cover between the payoff and value when there is negative equity).

“Trailer you thought was going to be $12,999, $13862 with taxes/title/tags, is now $17,895 and you are paying 10.24% interest when you have the cash.”

Richard: “They did this to me, and then even pulled my credit for a loan application WITHOUT MY PERMISSION and knowing full well I was paying cash. Definitely make sure they don't get your social security number on any purchase agreement paperwork.”

Ron: “Every single company who offers you or pressures you to finance through them gets a % of the financing returned to them, sometimes adding thousands to their profit. That's the finance company's way of motivating the dealer to push their financing over all other finance companies or cash deals.

“Their tactic is to make a sweet deal up front, get you hooked and your hopes up, then pull the rug out from under you by guilting and suckering you for their financing, horribly expensive, often worthless extended warranty deals and false “freebies”! No matter how nice they seem, they view all buyers as sucker's. They laugh all the way to the bank as you happily drive away after getting raped!!”

One Solution: Buy from a private seller

Shanda bought from private seller : “ Saved us about $5k on the exact camper we fell in love with at the dealer!”….. Also Alan says no one is offended if your first offer is 10% below the asking price…. It is ok to negotiate.”

That is what Lindsay said: 

“As far as financing goes, stand your ground if you don't want to finance. They tried to pull that with us saying the $5,000 discount only applies if we financed with them. We were cash buyer and stood our ground and they gave us the $5,000 additional off without financing. These RVs are hard to sell, they are desperate to sell all the time.“

So what did Lori do, the person who was pressured to take that 10.24% finance offer with GAP insurance? She found a private seller. One owner. The seller maintained the unit, kept records, was clean, gave Lori her number to call if ever questions, great experiences. She said: “Private is the way to go.” 

To find out how common this tactic is and what a reputable dealer thinks, we interviewed Nick Schmidt of SunshineStateRVs in Gainsville, Florida:

A Reputable RV Dealer Explains the Problem

Here's an edited transcript:

Mike Wendland:

First, let me note Nick is not a sponsor. He's a friend. Jennifer and I have known Nick now for well over a decade. We always recommend him. Nick is honest. He's a man of integrity. And when I need a serious question answered about the RV industry, he's never held back.

So here's the question, Nick. We have shared some information that people have been posting on Facebook about what they perceive to be a lot of high pressure by dealers who are urging them now to finance 

Nick Schmidt:

Mike, thank you for the introduction. We are friends and I appreciate everything that you have done for me and us over the years. You know, it's been a great relationship. We are in Gainesville, Florida. All we sell are motorized Class Bs all the time.

So every industry is a little different when it comes to financing, when it comes to the dollar amounts that are being financed. But you know, there is definitely profit that is made when the customer walks in here, they buy an RV from us and they finance with us. And then they buy a warranty from us and then they buy a Coke in our Coke machine.

It's like every step along the way, there's a little bit of profit that is made for the dealer. What I tell people is shop your bank, shop our financing and see which one's better.

And then you make a choice for you personally because there is money to be made and most of the time, Mike, and I'm not exaggerating, 90% of the time they go and shop their bank and they shop us.
They say, know what, the rate at my bank might've been a half a point better, but I can go 20 year financing through the RV financing and less money down versus more money down and only 10 year financing through my bank. So people tend to use the financing that we offer, but there is profit made for the dealership. Is it a ton? Is it more than the RV? A lot?

No, but there's just like anything, I have to have a separate employee in an office who is generating that paperwork and who is kind of, you know, organizing that deal between the customer and the bank. So I got to be able to pay him.

And so there there has to be some money made there to pay for the extra employee who's handling it. And that's just, you know, I mean, we need profit to stay in business, right? Just like, you know, your sponsors, your channel that are great. And, know, you make a little money when people buy from them off of your code. And we make a little money when we recommend business to the bank. We make it from the bank.

Mike Wendland
But the pressure to finance at the dealer rather than pay cash, that's what people seem to object to.

Nick Schmidt
Yeah, and obviously, there's a lot of pressure. mean, you get pressured into buying gap insurance that you don't need and buying tire and wheel protection, ceramic tint and buying 10 year long extended warranties and buying, you get pressured in buying everything.

They just want to sell, sell, sell. And I think it's dead wrong. Personally, I think it's a dead wrong. You'll never hear an employee of Sunshine State RVs doing that anyway.

I hear it all the time. People are like, do you have a better price if we finance? Like, no, I want to help you. If you need financing, I'll do it. If you pay cash, we'll do that. There's no difference. It's just wrong. It's just something that dealers are using to make extra money on the customers and they're trying to make as much money as they can, which like I said, the profits not bad. Just, you know, it just has to be reasonable about it. And if you're offering a service, people don't mind paying a profit. If you're trying to take advantage of somebody, that's where that's where it kind of gets a little hairy.

Mike Wendland :
So advice for people as they go to buy it on an RV? This is the time of year where everybody's picking out what they want and getting ready to they're they're serious this time of year. What advice do you have when they get into their shop it around?

Nick Schmidt:
So personally, if I'm going to go finance a car, I'm calling my bank and I'm saying, hey, if I'm going to finance this brand new car, what's my interest rate going to be and what's down payment, whatever it is. And then if I want to go to the car dealership, say, hey, what, you know, what's the interest rate that you guys can offer me? It's 2% for my bank. Can you do 2% also?

Great. I'll go through you or I'll go through them. I don't care, but I know what my rate is, my recommendation. And I tell everybody that sits at my desk across from me for the last 20 years, I tell them the same thing.

Go try your bank, I would always call your bank first, find out how long they're gonna finance it, will they go 20 years, will they only go 15, will they go 10? Find out what interest rate and what down payment. Once you find those three things out, then you walk into the dealership and you say, hey, I want this RV and I'm open to financing with you. then you tell them, let me know my payment, let me know my down payment and how many years I'm gonna be making that payment for.

If there's any prepayment penalties would be a big question as well. So then you go through those things and then you know what your banks can offer you, then you find out what the RV dealerships can offer, and then you make a decision based upon what's best for you. A higher interest rate and a lower down payment may be what you need to get the deal done. A higher, a more number of years, you know, so everybody's in a different situation.

Mike Wendland:
This conversation on our social media that started this was somebody who wanted to pay cash for an RV that they picked out on the lot and the dealer made a really good deal on it. And when the dealer said, you got to finance it or the deals off the table, this person's saying, what do I do? Dealer says, I can finance it. He gets his commission. Then I can make one big payoff at the end. They just felt sleazy with that.

Nick Schmidt:
Yeah, I mean, how are they going to treat you the whole rest of the time that you own the RV. The whole rest of the time you own the RV? Are they going to treat you to where they want to squeeze every nickel and dime out of you like they try to do when you're buying it?

What other fees are they sneaking in there? It's like if they're so money hungry and profit driven, are they sneaking other fees in? You don't know.

Is there a prepayment penalty they're not telling you about? So then you go make that one payment and you're like, there's a $5,000 prepayment penalty. You never really know because if they're doing that to try to convince you to give them some extra profit, I mean, you never know what else they're doing, if that makes sense.

Personally, I would go somewhere else. I would say, hey, if I can get this deal in one place, I can definitely get it another and my cash has to be good somewhere.

Mike Wendland:
There you go.

Thank you, Nick, so much for giving us the sanity of this thing. Thank you for the way you do business and not being afraid to call out some of these other people in this industry that aren't as ethical.

SOCIAL MEDIA BUZZ – Wendy Bowyer

Wendy Bowyer reports on the hot issues most talked about this past week on social media and our RV Lifestyle Community group.

In the RVLifestyle Community's Brands & Models Space Bunky & Renee wrote they are thinking of selling everything and just RVing while they can. Bunky and Renee asked for any advice.

Thomas and Heather said they are doing a LOT of research and believe there is no “one way” to do it because there are too many individual variables. But for them, being debt free is the most important thing, so choosing a rig that will not force them to go into debt, and then learning and getting educated on maintenance and repairs is key.

Michael urged them to NOT sell everything – whatever they do – and find a way to try it for a while before totally committing to make sure they like it because, “Once that house is gone it could be hard to get back.”

One of our full timers suggested they figure out their fulltime vision and use that to anchor figuring out what rig and plan works best. He also urged them to be mentally prepared to adjust and change because no matter how much you plan, you can't plan for everything and need to be ready to adapt and adjust.

Also in our Community's General Discussions Space Albert said he and his wife recently retired, are new to RVing, and looking for a couples travel trailer under 30 feet, and asked for suggestions.

Lots of recommendations here. A couple people recommended Airstreams, saying they are made well, easy to tow, and have everything you need.

Dallas and Donna said they've been full time for the past 5 years in a 2020 Lance Model 1995. The rig is 25 feet from the front of the hitch to the ladder, has large 45 gallon tanks, and they camped in the winter at negative 8 degrees with no issues.

And Gary said he and his wife have enjoyed their Grand Design Imagine for four years. It is 26 feet hitch to bumper, with everything accessible with the slide in.

Then over in our RVLifestyle Facebook Group, Shelby said she was lucky enough to retire early, and is thinking about going full time, but doesn't know if it is in her budget. She asks: “How does everyone afford this lifestyle? I usually spend $100-$200 a night at a campground. That’s not doable all the time. I’d appreciate any tips you all might have.”

Well this sparked a huge conversation – we're talking more than 700 comments.

Many people said WHERE are you camping that costs that much?

It turns out Shelby was camping near popular destinations, such as Gatlinburg, Tennessee where she paid $150 a night, Myrtle Beach State Park $100 a night, North Carolina mountains $150 a night, and she said the cheapest she found was in West Virginia at $50 a night.

And while many said these costs are high, they are normal in some parts of the country.

Kristen said in Delaware and Maryland Sun Outdoors is buying up many campgrounds and jacking up the rates. During peak season it is easily more than $200 a night to camp.

Many said it is the same in California, where Lori said all the camping around her is $80-$200 with most well over $100 a night.

And in Florida, Brittani said she is happy if the cost is “only” $100 a night because so many are now $150-170 per night.

But there are places and ways to camp for less.

Some suggested Work Camping, staying in less expensive parts of the country, and avoiding the resorts and instead camping at state parks, Corps of Engineer campgrounds, National Forests, BLM land, etc. to keep costs down.

But many said the first thing Shelby needs to do is stop thinking of RVing as a vacation.

Said Len: $100 a night is a vacation budget. That mindset will be the first thing that will need to be adjusted if you want to go full time.

Great advice!

RV QUESTIONS OF THE WEEK

QUESTION: Is it true that if your RV is older than 10 yrs old that you can’t park it in a lot of parks? -Gray

ANSWER: Yes, it is. Though in our experience, it is only enforced when the RV is in poor condition, has lots of obvious defects, and looks to be on its last legs.

The RV Parks have that rule so they can exclude rigs that, in their mind, would reflect poorly on the appearance of the park.

We have heard of some who require would-be renters to send a photo of the RV if it's older than 10 years for approval.

Some resorts don't allow campervans or Class B RVs, no matter the condition. Others are for Class A motorcoaches only. 

But generally speaking, at most campgrounds, if your RV is well-maintained, clean, and in good mechanical good condition, you should be fine at most parks. 

QUESTION: Jennifer, what do you use for a vacuum cleaner in your RV? It always looks so clean and sparkling and I’ve heard you talk about vacuuming it before and after trips. – Megan

ANSWER: We use a Shark cordless vacuum we bought from Amazon. In fact, we like it so much we have bought two of them. It is a full height vacuum and it can be easily turned into a hand held one. 

It is great at vacuuming up sand, dirt, mud and Bo hair! 

The unit we have is the Shark IX141 Pet Cordless Stick Vacuum and it comes with lots of attachments. As I recall, we paid something like $130 or so for it.