Predatory lending schemes
abound in RV sales and financing. For instance, just one
percentage point difference in your loan can increase your
total loan by thousands of dollars!
Many dealers offer to arrange your loan for you. It's no
wonder, either, because what they don't tell you is that
most of the time the bank or finance company gives them a
secret kickback for sending them the loan. That kickback
is usually directly pegged to the interest rate on the loan
and --- guess what --- who do you think picks the interest
rate? Nope—not the bank. It's often the RV dealer!
In other words, the size of their kickback depends on the
size of your interest rate. No wonder they are so eager to
set up financing for you!
To find out if your dealer gets a kickback, just ask them
"How much is your dealer reserve?" That's what
they usually call it—"dealer reserve" money.
The mere fact that you know the phrase will make them worry
a little about what else you might know.
The best way to protect yourself is to check with your local
bank and find out what interest rate you can get on your
own. Make sure the RV dealer can beat that rate by at least
half a percentage point.
It doesn't just happen with RV's, either. To learn more
about Home Mortgage Fraud, click this link: Home
Mortgage Fraud.
