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Dealer Finance

Did you know... an installment loan can increase your borrowing power and your credit score?

Did you know... the banks may frown upon using your line of credit for large purchases like RV's and cars? And consolidation loans are viewed as higher risk - the banks see it as not managing credit.

The goal of our Business Office is to work hard to help you make the best financial decisions, giving you as much information, options and advice to keep your payments comfortable while giving you all the available options to pay your loan out quickly - saving you money on interest and building equity in you RV as soon as possible.

Here's what the Banks say: The following is taken from actual RBC lender credit information

- Do you really want to pay for your RV loan for over 40 years?

- Do you really want your house as collateral on a vehicle purchase?

- Do you really want to use your "Emergency" fund for a non-emergency and have little room when a true need arises?

- Do you realize that having an installment loan on your credit bureau can actually help increase your credit score where a maxed out line of credit can potentially work against you if you require a loan in the future?

  1. Ready Realizable Security: A line of credit at prime requires an asset for security that is of equal or greater value than the amount of your credit line. Most people use their home, so if you default the bank will seize your home.
  2. Applying Your Payments: If you miss a payment, the bank can allocate your payment to any loan, under any agreement.
  3. Late Payments: If your payments is not made by the due date, the bank may debit any of your accounts with them to make the payment.
  4. Default: If you default on your credit line the bank can:
    - Sue you for what you owe them
    - Take possession of the property pledged as security
    - Appoint a receiver to administer your property
  5. Default of any loan: Default of any loan, credit account or security agreement is considered default on all agreements. In that case all amounts owing to the bank under all loans and credit agreements will be made payable immediately.
  6. Total Balance Due: A line of credit is a demand loan, the bank can require the total balance of your credit line paid back if:
    - You fail to pay an installment on time
    - You fail to pay when asked, any amount the bank is entitled to charge you for making repairs, maintaining insurance or clearing claims against the property
    - You break any promise, under any agreement, you die, become insolvent, bankrupt or have a marital breakdown
    - Your property is lost, stolen, destroyed or substantially damaged or seized in any legal proceedings
    - Your property reduces in value to a level the bank considers unacceptable
    - Anything else happens that the bank believes endangers the property or your ability to pay in any way
  7. Any Events: If any of the events described under the "Total Balance Due" section occur the bank will have no further obligation to honor any cheques you have written
  8. Changing your limit: The bank can reduce your credit limit at any time, without telling you in advance, with or without terminating your agreement.
  9. Terminating the Agreement: If the agreement is terminated for any reason, you are not relieved of any obligations under the agreement existing at the time of the termination until they have been satisfied
  10. Security Agreement Ends: For secured loans or credit accounts, when the banks interest in the property ends, you will pay a fee for the preparation and execution of a discharge plus provincial registration fee. Recently there have been many changes in the credit and banking industries, many banks are reducing the amount available on lines of credit, reducing credit balances and calling in loans. Financing at a branch can be risky at times if you do not have funds available to payout demand loans.

Dealer finance loans can not be reduced and can not be called in, and the only security is the equipment on the contract so other personal property is not at risk at any time.

  
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Click for the BBB Business Review of this Recreational Vehicles - Dealers in Red Deer AB