Finding a best deal formula for trade and buying

darsben wrote:
Time value of money comes into play making the trade worth less to the dealer at this time.

How will you figure that into the equation?

That's the thing, you can't estimate that. I just finished Strategic Accounting for my MBA and I saw many formulas that tried to assign present value versus future returns.

I don't think it can be done here.

No such chance and if you are trying to upgrade and hope not to take it in the shorts, good luck. Whether you paid cash or financed your current rig, trading it in will always be a losing proposition although the dealer can make you think you got a good deal, at least that's what he is shooting for. Choose your next RV carefully to reduce the chance of repeating this scenario. Enjoy your new TT!!!

There is no formula, the price you pay is situational to the dealer on any particular day.
The dealer is trying to feed his family and he will want to profit on both the new sale and the sale of your old rig.
Use the K*I*S*S* method.
Sell yours and buy the rig you are looking at on a clean deal


Higher priced rigs of a certain type have a larger % of markup so the dealer can dicker more. The conventional thinking around here is that on a Motor home you should get about 30% off on a clean trade.
If you are looking for a higher number on your trade than is reasonable then the difference between what it is worth to the dealer versus your expectations for trade on your rig has to come out of the 30%.
The easiest way to avoid problems is to not trade but sell it yourself. The value of your rig to the dealer depends on how fast he thinks he can move your old rig and for what price. An example would be trading in a POP UP in November in the Northern U.S. The dealer will figure he has to hold it all winter or wholesale off to another dealer. Time value of money comes into play making the trade worth less to the dealer at this time.

How will you figure that into the equation?

In all my years buying cars and campers (and I've bought quite a few cars especially), I've only had 1 dealer who presented me with a "sales" history that included recent final selling price, and trade-ins. Even so, I thought the numbers were fudged and told that dealer I didn't care to look at his data because I did my own research...

Yep, you are insane if you think any dealer is going to give you that type of info.