Is better to have cash or trade in?
When purchasing a new trailer is it better to have some cash to put down or have a trade in? Thank you Happy Camping
Forum Discussion
Depends on:
1. How good you are with math
2. How reasonable you are with pricing
3. How desperate you are to roll over negative equity to a new unit.
Reality is there is no difference in a trade or buying outright if you have basic math skills. You know the price you want to pay, you know what you want from your trade and simple math nets a result.
Now trades tend to complicate things because these unit prices drop like a rock and people tend to do the 10, 15 or 20 year loan thing so end up owing more than they'd like to admit.
That is why RV trader is full of 1 and 2 year old rigs for the same or similar price as you can buy them brand new if you know how to wheel and deal / shop outside your home area.
Many people have inflated values set in their minds and inflated notes attached to a depreciating asset. Dealers will always give you less for your trade than they'll sell it for, RVs can be easy or difficult to sell on your own depending on what you have and demand for them. We've sold 3 on our own without issue but sometimes it can drag a little and sometimes they can go fast. Just depends, but we were always realistic with our pricing which helps. We've also traded and got a good deal because it was a unit they could turn around fast and we didn't want to deal with it as private sellers. Sure we got a little less but not much less so it ended up being a good deal for everyone involved. At the time I'd rather it sit on the dealers lot than on mine.
Just depends on what you want and your expectations.
Dealer doesn't care, he can sell it to you with no money down and for longer than you should probably finance it.
1. How good you are with math
2. How reasonable you are with pricing
3. How desperate you are to roll over negative equity to a new unit.
Reality is there is no difference in a trade or buying outright if you have basic math skills. You know the price you want to pay, you know what you want from your trade and simple math nets a result.
Now trades tend to complicate things because these unit prices drop like a rock and people tend to do the 10, 15 or 20 year loan thing so end up owing more than they'd like to admit.
That is why RV trader is full of 1 and 2 year old rigs for the same or similar price as you can buy them brand new if you know how to wheel and deal / shop outside your home area.
Many people have inflated values set in their minds and inflated notes attached to a depreciating asset. Dealers will always give you less for your trade than they'll sell it for, RVs can be easy or difficult to sell on your own depending on what you have and demand for them. We've sold 3 on our own without issue but sometimes it can drag a little and sometimes they can go fast. Just depends, but we were always realistic with our pricing which helps. We've also traded and got a good deal because it was a unit they could turn around fast and we didn't want to deal with it as private sellers. Sure we got a little less but not much less so it ended up being a good deal for everyone involved. At the time I'd rather it sit on the dealers lot than on mine.
Just depends on what you want and your expectations.
Dealer doesn't care, he can sell it to you with no money down and for longer than you should probably finance it.
