Ordered a Trailer, When Does Dealer Pay Heartland?

Geodude

Well-known member
Hey All - Just curious if anyone knows anything about when a dealer places an order to Heartland for a trailer build. I'm wondering when the dealer has to pay Heartland for the unit they've ordered built?
 

danemayer

Well-known member
I don't know the answer, but if you're asking because the dealer wants you to pay up front, make sure you don't give them too much money, use a credit card so you have some recourse if the deal goes bad, and get it in writing that it's refundable.
 

Jim.Allison

Well-known member
Always read your contract, I put up 5k which was equal to the amount the mortgage company required for a down payment. My financing was arranged at the same time. Be sure that your interest rate will not increase before delivery, the interest is only guaranteed for a certain amount of time. So if your at 4%, when you order then when it comes time to sign its 5% there will be an argument. This happened to me and I balked, the finance manager backed off in a hurry. I actually had another 10 days to go on the financing agreement. Funny how that happens when you are signing papers. When that happens, look at your watch and tell them its time for lunch and you will be back after lunch to complete the signing process, read everything.

A dealer should not be using your down to give to Heartland, if he is then he is broke. He should have credit with Heartland and your down payment is part of your purchase.
 

Mburtsvt

Well-known member
Hey All - Just curious if anyone knows anything about when a dealer places an order to Heartland for a trailer build. I'm wondering when the dealer has to pay Heartland for the unit they've ordered built?

Hold on team - Dealer does NOT own the R.V.’s on their lot. Never have - never will. They are owned by a flooring company that finances the dealer inventory. If the dealer has a large enough “open to buy” they can place orders all day long for new product. If a unit sells then the customer writes the check OR the finance company pays the invoice on the RV to the dealer. The dealer pays the flooring company and a MDC, (manufacture delivery certificate) is retained by the flooring company, (if financed), or the customer to use as the document to register the RV. Most dealers will do the registration for you, for a fee of course.
 

Bob&Patty

Founders of SoCal Chapter
Unless the dealer pays for the unit in full.....the holding company own's the RV. Its the same as car dealers. The dealer pays interest each month or two on the money. Thats why a dealer want to sell you a "stock unit". He's paying for the "flooring" every month it sit on the lot. Just curious why the OP is asking this question....something does not smell right. What is his dealer asking for????
 

bob34787

Well-known member
Hold on team - Dealer does NOT own the R.V.’s on their lot. Never have - never will. They are owned by a flooring company that finances the dealer inventory. If the dealer has a large enough “open to buy” they can place orders all day long for new product. If a unit sells then the customer writes the check OR the finance company pays the invoice on the RV to the dealer. The dealer pays the flooring company and a MDC, (manufacture delivery certificate) is retained by the flooring company, (if financed), or the customer to use as the document to register the RV. Most dealers will do the registration for you, for a fee of course.
not all dealers floorplan , sorry to be the bearer of bad news
 

pegmikef

Well-known member
Hey All - Just curious if anyone knows anything about when a dealer places an order to Heartland for a trailer build. I'm wondering when the dealer has to pay Heartland for the unit they've ordered built?

I don't know about other dealers, but I have ordered two custom rigs (an Edge and my current custom Big Horn). On the Big Horn I ordered some costly options such as G614s, upgraded axles, slide toppers, queen bed (no charge for this, but might make it harder to sell), convection oven and some others that I don't remember. My dealer only required ten percent of our mutually agreed to price down to order each rig. My feeling is that if I didn't follow through then he is stuck with the rig that he might not have customized the way I requested. I thought ten percent was not out of line for earnest money. I don't think I would have given him more for something that does not yet exist and might be wrecked during transport.
 

Bohemian

Well-known member
I don't know the answer to this question, but the usual way is that a car dealer pays for the vehicle when it is shipped from the factory.

Usually, the dealership finances the cost, often the finance is available from the manufacturer. Finance source is up to the dealership. Financing is a dealers choice and optional. They may pay cash, or self finance.

Yes, a manufacturer can choose to deliver property to a retailer and have it sold on spec. That is, the manufacturer retains ownership until delivery to the customer. This is usual for items that are hard to sell and for which there is an unreliable market and have retailers which can not get the financing for inventory. Not the current state with RVs.
 

SeattleLion

Well-known member
I am not sure how the RV industry works, but generally floor plans pay for the rigs. In the car industry, often the floor plan is provided by the car manufacturer. That way, they can clear out inventory by just shipping it to the dealers without firm orders and then they don't charge interest for some times. Car manufacturers generally give dealers about 60 interest-free days before it starts to accrue. I suspect the RV industry is nothing like this since dealers carry so many manufacturers' products.
 

Geodude

Well-known member
Thanks all, for your input. The reason for asking is that we have a Bighorn on order. I paid $5K down on my credit card, the rest due on signing. I am holding my trade at home until it's time to pick up the new rig. As mentioned, I didn't want them holding my trade or my money until they could deliver the new trailer.

They estimated mid-January and as of last week it hadn't even been built yet. The dealer told me he pays for it when it crosses the border into Canada so the deal was at a 13% exchange rate. With recent world events and few unique things going on in Canada, the US dollar has been strengthening and the CDN dollar has been weakening (depending on your perspective). I just paid 26% for some US funds today, at a currency exchange place. The price of our new Bighorn is going to be several thousand dollars more expensive at this rate.

So this is why I wanted independent info as to when the dealer pays for the unit so that I'm not being taken for a ride.
 

SeattleLion

Well-known member
Thanks all, for your input. The reason for asking is that we have a Bighorn on order. I paid $5K down on my credit card, the rest due on signing. I am holding my trade at home until it's time to pick up the new rig. As mentioned, I didn't want them holding my trade or my money until they could deliver the new trailer.

They estimated mid-January and as of last week it hadn't even been built yet. The dealer told me he pays for it when it crosses the border into Canada so the deal was at a 13% exchange rate. With recent world events and few unique things going on in Canada, the US dollar has been strengthening and the CDN dollar has been weakening (depending on your perspective). I just paid 26% for some US funds today, at a currency exchange place. The price of our new Bighorn is going to be several thousand dollars more expensive at this rate.

So this is why I wanted independent info as to when the dealer pays for the unit so that I'm not being taken for a ride.

I used to do a lot of foreign currency business. The only way to protect yourself is to buy dollars ASAP. That locks in the exchange rate. Chances are that your mortgage company can execute the loan now at the current exchange rate and hold the funds in escrow for the dealer until he delivers. It means you will pay interest starting when they release the cash, but if you are concerned that the CDN will continue losing value, it might be a good path to try to pursue.
 

SeattleLion

Well-known member
or buy a currency hedge.

They usually come in large denominations and have buying and selling commissions attached. If the bank does much business with the US, it probably has a way to buy the USD in advance and hold the funds. Of course, I do wonder why the Canadian dealer isn't handling this risk instead of the customer. If there is an agreed price in CDN, then that should be the price. I know, I know, the dealer's contract probably has a weasel clause dumping the risk on the customer. Of course, you could always tell the dealer that you won't buy if the price goes up.
 

Geodude

Well-known member
It sounds to me like the dealer functions in USD, and it gets converted to CDN when a stock unit hits their lot. And on a special order like ours, the price in CDN must be seen as a variable they don't want to risk.
 
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