Dealership Mark-ups for Used Motor Homes

I have noticed that the trade in "value" is just a variable of the overall price of the total transaction, which includes the cost of the new unit.

I can give you one real world example that may help answer your question. We sold our 08 HR Vacationer XL to Lazy Days in Seffner for $62,500. I never saw a listing for it on their website because they told me that they wanted it on the lot for one of their big "RV shows". LD must have wholesaled the unit because six months later the RV showed up on a small Florida dealer's website and was listed for $69,900. About a month ago this listing was removed from that dealers website. It has not resurfaced at any other dealers so it must be in the hands of a new owner. If we make the conjecture that $69,900 was the starting point of the negotiations but not the sales price, our old RV spent two years on a dealers lot for a gross profit of less than $7400 based on asking price. Subtract the dealer's flooring costs, overhead, commissions, etc. and the net number is pretty small. Since we have no idea what the small dealer actually paid at wholesale, but a safe assumption is more than $62,500, the $7400 gross profit is being extremely generous.
Randy

Sorry, as with used Auto's, there is NO WAY you can calculate what any mark up is on used RV's. This is because YOU have no basis or ANY way to find out what the dealer paid or gave for trade in on that used RV. The ONLY thing you can do is research the RV you want and determine what a fair price you think it is worth to you. Doug

Effy wrote:
I can't see how that kind of blanket math is used. I imagine selling a trade really depends on what kind of deal was, or is to, be made. They will price it just like any other unit - competitive to what similar or same units are selling for. They can only charge what the market will bear. If the same unit is selling 25% less somewhere else, theirs will sit.

Isn't that what they said? :h

Dealerships will base there used units on original MSRP, which no one ever pays! that is why you can buy a used one for the same price as new, and then they wonder why the used ones sit for so long. I remember when the bunks houses first came out back in 07, they were going for around $60-70k. now they want the same amount! I can buy new for only $10-15k more!

I can't see how that kind of blanket math is used. I imagine selling a trade really depends on what kind of deal was, or is to, be made. They will price it just like any other unit - competitive to what similar or same units are selling for. They can only charge what the market will bear. If the same unit is selling 25% less somewhere else, theirs will sit.

RV dealers will mark up a used unit by whatever the traffic will bear. They need a larger markup on used product as there is no factory warranty. They will not typically markdown a used unit by 25% unless the asking price is outrageous.

Moisheh

You might check NADA.com, they have a RV section for price conparisons