RV Bankruptcy - Lost Deposits & Trailers

[chemgear]

Probably going to hear a lot more of things like this in Alberta.

http://calgary.ctvnews.ca/r-v-dealer...sits-1.2818868

R.V. dealership’s bankruptcy separates customers from their trailers, deposits

“I tried phoning the dealership and the number was disconnected,” said Roseneder. “You kind of hit the panic button.”

“AMIVC said ‘Oh, yeah, they went into bankruptcy yesterday’,” said Roseneder. He was directed to AMVIC’s website and was told he wouldn’t be able to get his trailer.

Presently, Roseneder is out his $10,000 down payment on the trailer that, with financing, carried a final price tag of just under $33,000.

“The email from the trustee that I received basically outlines that people that maybe made an offer on a unit that haven’t completed the financing paperwork but secured it with a deposit are going to become unsecured creditors listed in the bankruptcy,” said Roseneder. “They’re going to lose their deposit.”

[pylon]

Originally Posted by chemgear

Probably going to hear a lot more of things like this in Alberta.

http://calgary.ctvnews.ca/r-v-dealer...sits-1.2818868

R.V. dealership’s bankruptcy separates customers from their trailers, deposits

“I tried phoning the dealership and the number was disconnected,” said Roseneder. “You kind of hit the panic button.”

“AMIVC said ‘Oh, yeah, they went into bankruptcy yesterday’,” said Roseneder. He was directed to AMVIC’s website and was told he wouldn’t be able to get his trailer.

Presently, Roseneder is out his $10,000 down payment on the trailer that, with financing, carried a final price tag of just under $33,000.

“The email from the trustee that I received basically outlines that people that maybe made an offer on a unit that haven’t completed the financing paperwork but secured it with a deposit are going to become unsecured creditors listed in the bankruptcy,” said Roseneder. “They’re going to lose their deposit.”

LOL. Good luck with that trustee. Call your CC company, file a dispute, get a refund. Pretty easy when the Bankruptcy is all over the news. There isn't any he said she said here.

[taco.vidal]

Originally Posted by pylon

LOL. Good luck with that trustee. Call your CC company, file a dispute, get a refund. Pretty easy when the Bankruptcy is all over the news. There isn't any he said she said here.

Unless people put down cash. I dont know how RV sales work but car dealers will only take a small amount of payment via credit card to avoid fees. I could see any significant deposits being cash. Dont you work in car sales and worked in RV sales? How big are deposits usually and how much will dealers take via credit card?

[pylon]

Originally Posted by taco.vidal

Unless people put down cash. I dont know how RV sales work but car dealers will only take a small amount of payment via credit card to avoid fees. I could see any significant deposits being cash. Dont you work in car sales and worked in RV sales? How big are deposits usually and how much will dealers take via credit card?

I work in auto sales, and we encourage people to make deposits on CC. You would be insane not to for this exact reason.

However, I see where the problem is probably lying here. They were offering free winter storage, so this guy put money down, completed the loan, and owns the trailer. He is storing it on their lot, and now the trustee is keeping it. My guess is, the inventory hasn't been paid for by the dealer, and is on their operating line of credit (called a floorplan in the car industry) thus the trustee is seizing it. That would be my best guess, as I do not know those facts for certain.

However, I have heard a lot about this from some people in the industry, and it's ugly. Unfortunately I can't elaborate on any of it, but I feel for anyone that got burned.

[afc wimbledon]

I looked at RVs years ago, the salesmen were the shystiest bunch of mofos I ever met, they made the time share guys in Puerta Vallerta look like saints in comparison.

[Top Shelf]

I heard about this place going under a few days ago. Does anyone know what will happen to the used inventory? Sold to auction perhaps?

[DownInFlames]

Originally Posted by afc wimbledon

I looked at RVs years ago, the salesmen were the shystiest bunch of mofos I ever met, they made the time share guys in Puerta Vallerta look like saints in comparison.

[Table 5]

My dad and I were at this dealership a few days before this went down. The mood there seemed pretty cheery at the time...kind of makes me think the sales staff had no clue this was coming.

My dad did end up buying a trailer....but from another dealer, thankfully.

[Calgary14]

Was Sunridge RV at the RV show a few weeks ago? It would be pretty shady if they were and sold trailers knowing there was a good chance they'd be going under soon

[Derek Sutton]

There will also be problems for those who simply stored their RVs at this dealership. Basically they will have to prove their ownership to the creditor, and the creditor will have to release the RV to them, who knows how long this could take, what a mess....

[Slava]

Originally Posted by Derek Sutton

There will also be problems for those who simply stored their RVs at this dealership. Basically they will have to prove their ownership to the creditor, and the creditor will have to release the RV to them, who knows how long this could take, what a mess....

Wouldn't it just take registration and a lien check? Doesn't seem that convoluted really.

[Kjesse]

Originally Posted by Slava

Wouldn't it just take registration and a lien check? Doesn't seem that convoluted really.

I'd think so, or at least, make sure the paperwork is in order -- if you handed over a cheque for only storage you should be OK.

The pylon example is far more concerning for those whom it happens to... the bank owns it by a security agreement registered against the title, you as a consumer pay the dealership and accept the "free winter storage" and don't understand to insist on registrations and.... all of a sudden, a few months later you have a fight on your hands. Awful.

[CorsiHockeyLeague]

The trustee should have a pretty good idea, right off the bat, of what property is part of the estate and what the security situation is. If the dealership doesn't own your RV, you shouldn't have an issue. The problem is the dealership maintained title because the balance of the purchase price wasn't paid off.

Originally Posted by pylon

LOL. Good luck with that trustee. Call your CC company, file a dispute, get a refund. Pretty easy when the Bankruptcy is all over the news. There isn't any he said she said here.

This is a bankruptcy. It's a legal proceeding governed by the BIA or CCAA. If you try to skirt the process, you're going to end up in court.

[Kjesse]

Originally Posted by CorsiHockeyLeague

This is a bankruptcy. It's a legal proceeding governed by the BIA or CCAA. If you try to skirt the process, you're going to end up in court.

pylon's advice is superior, by far.

[Jason14h]

Won't they want people that have agreed to the financing to take the rv and pay the remainder as a better bankruptcy asset then liquidating a ton of rvs?

[Hockeyguy15]

Will there be any sales on the accessories they have in stock?

Feel bad for those who get screwed over on the RV side though.

[dino7c]

In this economy I'm not sure why anyone would buy and RV at a dealership anyway...so many awesome private sale deals out there

[pylon]

Originally Posted by Table 5

My dad and I were at this dealership a few days before this went down. The mood there seemed pretty cheery at the time...kind of makes me think the sales staff had no clue this was coming.

My dad did end up buying a trailer....but from another dealer, thankfully.

I can say this much. Nobody on staff saw it coming. So any sales people that took deposits were not knowingly doing anything wrong.

[Street Pharmacist]

Originally Posted by dino7c

In this economy I'm not sure why anyone would buy and RV at a dealership anyway...so many awesome private sale deals out there

Mortgage type financing

[CorsiHockeyLeague]

... Which you can get just going to a bank, since that's where the dealership loans are coming from anyway.