RV Bankruptcy - Lost Deposits & Trailers

[ranchlandsselling]

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

I haven't seen as much as I thought there would be.

[Resolute 14]

Originally Posted by 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?

IANAL, but bankruptcy trustees are generally interested in only one thing: getting as much money now as they can to pay off as much of the outstanding debt as possible. They aren't in the business of managing a business, which is what maintaining outstanding financing plans would entail. From the trustees POV, getting 50% of the RV's value today at an auction is better than getting 100% of its value over the next 5-7 years.

[CorsiHockeyLeague]

It depends if a company's going through a BIA or CCAA process. Under a BIA process you basically just sell everything you can, create a big pool of cash and divvy it up. Under a CCAA process, the goal is to have the entity come out as a viable business on the other side, usually owned by someone new.

This is an RV dealership with inventory; I assume it's just a regular BIA process. So they'll sell everything they can, then pay off as many of the secured creditors as the resulting proceeds allow.

[Top Shelf]

Originally Posted by CorsiHockeyLeague

It depends if a company's going through a BIA or CCAA process. Under a BIA process you basically just sell everything you can, create a big pool of cash and divvy it up. Under a CCAA process, the goal is to have the entity come out as a viable business on the other side, usually owned by someone new.

This is an RV dealership with inventory; I assume it's just a regular BIA process. So they'll sell everything they can, then pay off as many of the secured creditors as the resulting proceeds allow.

Any idea how they will sell inventory?

[CorsiHockeyLeague]

Not sure. I think they have pretty wide latitude to do as they see fit.

[bizaro86]

Originally Posted by Resolute 14

IANAL, but bankruptcy trustees are generally interested in only one thing: getting as much money now as they can to pay off as much of the outstanding debt as possible. They aren't in the business of managing a business, which is what maintaining outstanding financing plans would entail. From the trustees POV, getting 50% of the RV's value today at an auction is better than getting 100% of its value over the next 5-7 years.

On the other hand, a bunch of performing loans is probably a more easily saleable asset than a bunch of trailers, especially in the current economy. It shouldn't be hard to find one buyer for the batch of loans at a smaller discount than trying to liquidate all the trailers.

[Table 5]

Originally Posted by ranchlandsselling

I haven't seen as much as I thought there would be.

Considering the people who tend to buy these things, the older and retired, I'm not that surprised. Chances are these people aren't as financially dependant on the economy these days compared to your average 30-something engineer.

I do imagine we'll see an influx of BMWs and MB's on the market though!

[Weitz]

I thought people knew never to put a deposit on anything. Cars/RVs/ATVs/anything.

[CedarMeter]

Originally Posted by DownInFlames

Haha, forgot about that episode, classic!

[Fuzz]

I believe that was the first episode aired.

[RougeUnderoos]

Originally Posted by Fuzz

I believe that was the first episode aired.

Not quite! It was episode seven of the first season. Bonus news (that I learned when looking this up) -- Albert Brooks is the voice of the RV salesman "Cowboy Bob".

[Sliver]

Originally Posted by Weitz

I thought people knew never to put a deposit on anything. Cars/RVs/ATVs/anything.

What do you mean? You need a deposit on everything. I wouldn't sell anybody anything without a deposit.

[Fuzz]

Originally Posted by RougeUnderoos

Not quite! It was episode seven of the first season. Bonus news (that I learned when looking this up) -- Albert Brooks is the voice of the RV salesman "Cowboy Bob".

Interesting... I could swear I remember reading about it in the paper, and getting excited to watch it, then seeing this as the first episode. I wonder if that's how it aired in Canada?

[Weitz]

Originally Posted by Sliver

What do you mean? You need a deposit on everything. I wouldn't sell anybody anything without a deposit.

Why would I put a deposit down on something? If I am going to buy I buy, if not I don't.

[Slava]

Originally Posted by Weitz

Why would I put a deposit down on something? If I am going to buy I buy, if not I don't.

I see your point here, but when I last bought a vehicle I basically only buy used and I want to think about it for a while. So I put a deposit down at a dealership on what I thought was exactly what I was after. Worst case I was out like $500, but then I could think about it and not be under pressure to impulse buy. I don't do this kind of thing that often, so I guess putting the deposit down and risking that the dealership would go bankrupt seemed like a small worry.

[Minnie]

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.

They did not know. Showed up to work and locked gates, etc. This dealership has a very poor reputation around here, both as an employer and a business. Given everything that has been said about them in the 2 years we've lived in the area, I'm not entirely surprised that it went belly up. Feel bad for the employees though, getting effed over.

[CorsiHockeyLeague]

Originally Posted by Slava

I see your point here, but when I last bought a vehicle I basically only buy used and I want to think about it for a while. So I put a deposit down at a dealership on what I thought was exactly what I was after. Worst case I was out like $500, but then I could think about it and not be under pressure to impulse buy.

You shouldn't even be out $500. The dealership should give you the deposit back, if it's a reputable one. Most do. I almost bought a Honda Pilot, put $1000 down, changed my mind after thinking on it a couple of days, went and got the $ back and bought something else.

Also with Sliver's rule how did he manage to buy a house?

[Slava]

Originally Posted by CorsiHockeyLeague

You shouldn't even be out $500. The dealership should give you the deposit back, if it's a reputable one. Most do. I almost bought a Honda Pilot, put $1000 down, changed my mind after thinking on it a couple of days, went and got the $ back and bought something else.

Also with Sliver's rule how did he manage to buy a house?

Right, but what I meant was in this situation where the dealership goes bankrupt. I know that if I had decided not to buy the vehicle in question at that point they were prepared to give me back the deposit. I don't even think that I considered that a possibility to be honest.

[Sliver]

Originally Posted by Weitz

Why would I put a deposit down on something? If I am going to buy I buy, if not I don't.

Have you ever had anything made custom? No business owner with half a brain would ever begin working for you without a deposit.

I've sold probably 30 used cars over the years. Most people don't show up with your asking price in cash. You take a deposit while they sort out their finances. And if you're buying a used car, you do the same thing. New car likewise.

I just don't see how an adult could get through life doing normal adult things without ever having to lay down a deposit. Who would even take you seriously with that attitude? Have you ever rented a home? Damage deposit. Have you ever bought a home? Deposit.

It's not like people asking for deposits are trying to rip you off. They're reasonable.

[CorsiHockeyLeague]

Originally Posted by Slava

Right, but what I meant was in this situation where the dealership goes bankrupt. I know that if I had decided not to buy the vehicle in question at that point they were prepared to give me back the deposit. I don't even think that I considered that a possibility to be honest.

Oh, I see what you mean. Yeah, the dealership going bankrupt in between me putting down a deposit and either closing or backing out seems like such a remote risk that I wouldn't even consider it either.