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Security Deposit Needs to be paid before Credit is run. Is this normal?


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I have been looking for a TT for a little over a month now.  I am going to pay 1/2 and finance the other 1/2.  I have been to 2 National RV dealers in the central Florida area, which is where I live.  After spending hours looking at TT's, picking one out, going back in the office and negotiating a price, I am then told that the security deposit needs to be paid before they can run my credit.  Has anyone else been told this?  Is this a normal practice for RV dealers?  I just bought a $55,000 truck and they never required a security deposit before they ran my credit.

I told both dealers they were crazy and I walked out.  Today the dealer told me that is how they tie my name to the VIN number when they send it to the banks.  Am I crazy or are they?

Edited by rollindowntheroad
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My suggestion is to run, not walk, away from these dealers.  What they're trying to do is hold you hostage to your deposit when they can't or won't produce the financing they promised.  They'll come tell you that "we couldn't get you to quality for that really low interest rate we talked about, but you won't mind this one will you?  It will only cost a few hundred dollars more per month! " 😂😂

If they have your money they will "slow roll" ever giving it back to you if you want to kill the deal.  "Oh, the manager has to sign off on  all refunds and he's away on a 3-month vacation!"

Edited by docj
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I would also walk away. If they decide they want your business they will come to you based on my past experiences. One dealer let us get only as far as opening the door out of their showroom before chasing us down to say they accepted our terms. Another called the next day to say they were able to finance our purchase after all. Another time we had secured our own financing up front but didn't tell them that until after they made their offer; when we told him we had a better offer they dropped their interest rate a lot in order to secure our purchase through them. You just need to let them realize a purchase on your terms is better than no sale at all.

Linda

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Many car dealers will run your credit before they begin negotiations to make sure you are a qualified buyer, but they don’t require a deposit. I would imaging a RV dealer could do the same, absent the deposit. Also remember the selling dealer (car and RV) makes a commission on the financing and extended warranty. If you go get your own financing they don’t make as much so they want to lock you in by making you give them a deposit. 

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18 hours ago, Twotoes said:

Get your own financing thru your bank or credit union. Get pre-approved and then go shopping for your vehicle and or trailer. 

 

17 hours ago, SWharton said:

I would still secure your own financing up front. The interest rate will probably be less and the term might be better, especially if you are putting 50% down.

This is what I've done when purchasing and has been a successful way to get a good rate either at the credit union or the dealer's finance department as they try to beat the credit union's rate to get my business.

34 minutes ago, LindaH said:

We've never made a deposit on an RV -- or any vehicle -- until such time as we actually purchased it. 

same here

     Spot

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On 8/4/2019 at 12:28 PM, Twotoes said:

Get your own financing thru your bank or credit union. Get pre-approved and then go shopping for your vehicle and or trailer. 

Normal method - whether new or used - ( bonus: with better interest rate).

BTW - there is no fee involved for a/the dealer to run a credit report.

.

 

 

Edited by Pappy Yokum
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It was not a fee that they were charging me to run my credit.  They wanted a security deposit down on an RV before they ran my credit.  I had never heard such a thing, but it seems that they all follow the same rule.  I went to another RV dealer on Sunday, found one I liked.  Talked price back in the office and the sales woman said same thing to me, "We need a security deposit put down before we run your credit."  I got up and walked out.  She text me on Monday and said they would be more than happy to again run my credit with a security deposit.  I responded with a not very nice answer.  She kept persisting and said she could talk with her manager to see if they could do it without the security deposit.  I finally stopped responding to her.

Edited by rollindowntheroad
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2 hours ago, rollindowntheroad said:

They wanted a security deposit down on an RV before they ran my credit.

I have not heard of that either but it may be that they want something to insurer that there is a sale before spending the money to do a credit check. Pam used to be a bank loan officer (a long time ago) and she had to have a completed loan application with customer's signature before she got a credit report. Even then there were legal requirements about who could get your credit report and when they could do so. In this day of new privacy laws and of banking regulations, it may be that there is some sort of requirement that the dealer is trying to comply with. If the dealer's financing is backed by a bank they must comply with Regulation Z of the Truth in Lending Act. No matter who the actual lender is, they must still comply with the Fair Credit Reporting Act. In addition, nearly all states have additional laws governing credtit reporting and lending. If you are serious about buying the particular RV that dealer is offering, I would ask them to explain to you the need for a deposit, ask what regulation requires it, and will they give written assurance that you will get that money back if you should choose not to complete the transaction. You might be dealing with honest businessmen who would serve you well. 

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