There are various channels you can use for motorhome financing. While some of them are credible, others are scammers posing as legitimate lenders in an attempt to scam you of your hard-earned money.
It’s so easy to fall victim to these scammers if you have little experience with RV financing.
However, the good news is that there are ways to protect yourself from these scams, one of which is by learning to identify them earlier on.
What are the signs of a potential RV scam?
1. Guaranteed Approval
There are various types of lenders, each one having their requirements for borrowers to fulfill.
And while one lender’s requirements may differ from another’s, one thing they all have in common is that they would never approve a loan if the borrower doesn’t qualify for it.
Lenders usually review the credit history of their customers before deciding whether or not they qualify for a loan. And so, if you come across a lender who guarantees your loan without reviewing your credit report, that in itself is a major red flag.
2. Pressured to Commit
Fraudulent lenders are fond of using all sorts of methods to increase urgency and pressurize borrowers into accepting their loan offers.
For instance, they could lie that there are other interested buyers, or that the RV you’re interested in is a unique model.
Whenever you notice that a lender is too eager to get you to close a deal with them, you should always be on your guard. Chances are that the dealership is a scam.
3. Requesting Sensitive and Unnecessary Information
Another way to know a lender is fraudulent is when they ask you to provide any kind of information that has no role in the financing of a motorhome.
Many fraudsters often ask for sensitive information, including confidential information unrelated to the transaction.
No matter what excuse a lender gives you, you should never provide them with such personal information if ever they ask you to.
How to Avoid RV Scams
There are several ways to protect yourself from RV scams, but the two most effective methods are:
· Research Intensively
Before you accept a loan offer from any lender, always do thorough research on the type, brand, and model of the RV you’re interested in.
You should also refer to the NADA RV Price Guide, as this will give you an idea of how much you should plan to invest in the financing of your desired RV. When you know the price range and specifications of an RV, scammers will have a hard time trying to trick you.
· Compare Between Lenders
The prices of legitimate dealers may not be the same, but they are usually in close range to one another.
Therefore, if you compare various dealers and discover that one of them is offering you a price that’s much higher or much lower than the price other dealers are offering, you should avoid this lender and consider other options to be on the safe side.
If you’re planning on financing a motorhome, simply do your research and compare between lenders to ensure that the lender you’ll end up choosing is as credible as they say they are.
With intensive research and adequate information, you should be able to sniff out and avoid even the most convincing RV scams out there today.