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TriumphGuy's avatar
TriumphGuy
Explorer
Aug 23, 2015

New vs used (from another angle - RV depreciation "gap")?

Hi folks,
Having been here so long I should know better than posting a new vs used question but hear me out. I haven't really been able to find a good answer to this one.
I think anyone who has been around the subject of buying and selling RVs knows a couple of these generalities by now:
1: Don't ever pay MSRP. 20-30% off (generally speaking) is common
2: RV NADA values are misleading. I've seen people add options where they shouldn't. On top of that what is also important to know is wholesale price, which we as consumers don't see, but low retail can be a guideline, with wholesale being some percentage below that. Some say 10-20%

Having said all that, one could calculate what a used coach of a certain year should go for based on what a new and similar model is now. Just remember that the new ones are more expensive now than they were back then but it can be helpful if you take the time to use depreciation tables (for example from RV Consumer Group).

So let's talk some numbers. For example, I'm looking at bunkhouses so as a convenient example:

2015 Georgetown 351TS from RV Direct:
http://rvdirect.com/stockmodels.php?stocknum=FLM5863
Just in case the link disappears, this is a $135k MSRP coach for $81k.

Contrast with this which is typical for what I see on RV Trader:

http://www.rvtrader.com/dealers/Campers-Inn-of-Mocksville-2940992/listing/2012-Forest-River-Rv-Georgetown-351DS-115209148
2012 351DS (only two slides) advertised for $70k. NADA low retail is $66k.

I don't see how these units can only lose about $15k depreciation in 5 years. What am I missing? Possibly:
- RV direct pricing is not what most people pay for their coaches
- NADA depreciation is based off of MSRP?

Looking at this example if I had a budget for a $66k coach it seems a better value to finance the extra and get a full warranty and a completely new unit.

Or the other side of the coin is that the 2012 coach can be bought for "much" less than $66k.

I'm wondering this because I'm finally getting a picture of my RV budget it's landing around the $60k mark. My first shot is to throw out some low offers at used units but if I don't get anywhere ... RV Direct looks terribly interesting.
  • I think it's very probable that the used unit on RVtrader for $70k was not bought from one of the high volume 'wholesale' RV places, like RVDirect, so your comparison won't work. You would do better to use local dealer prices for your starting point.

    I think this point is exactly right - "RV direct pricing is not what most people pay for their coaches". So you really can't use them.

    Many people pay too much and then want to get most of their cost back when they sell it. Getting 10-15% or even 20% off an RV price tag seems like a good deal - but it's not. I think many compare RV discounts with what they can get when buying a new car or truck. But RVs apparently are marked up way more then the average Ford F350.

    I bought from one of the high volume dealers - Holman in Batavia, Ohio, and I got over 35% off list on my 5er. So when I go to sell my rig sometime in the future, I expect to be able to both recoup a higher percentage of what I paid for it and also undercut the selling price of other sellers.
  • bucky wrote:
    I find that wholesale prices are not available online, but local libraries in this area at least have NADA books for those numbers. In the reference section.


    Thank you for this reminder - I'll be stopping by the library soon!

    willald wrote:
    ... I will say also, that if you're serious about getting one of these rigs, the full body paint is WELL worth the extra cost, for how much nicer it looks, and how it helps resale value in the long run. :)


    I agree 100%. In looking used I'm trying to stay with the full paint for just those reasons. And I am so tired of peeling, fading and cracking decals!

    GoPackGo wrote:
    I think it's very probable that the used unit on RVtrader for $70k was not bought from one of the high volume 'wholesale' RV places, like RVDirect, so your comparison won't work. You would do better to use local dealer prices for your starting point.



    I think this is true, although at some point it all has to come together. Or another way of saying it, someone is making money off of this deal. I suspect that dealers come off of wholesale only so much when trading in, and all dealers should have the same invoice on new. I guess what I'm postulating is that even if some make more margin than others on new (or used for that matter), at the end of the day when those rigs come back for trade they all would be playing from the same sheet of music.

    I'm going to attempt to make offers on RVs based on wholesale and see if I get anywhere. In short order I think I'll learn which models do and don't move and have to decide what is important.

    For example, when I was shopping for DW's car, we decided on a model which was somewhat popular and didn't really follow book values. There was every reason for it not to follow those values, as the cars were moving off of the lots in less than 30 days. I refused to pay retail so I waited for months, and contemplated shopping a different model. However I'm a bit stubborn (and really wanted to get her what she wanted), and ended up connecting with a private party who sold his to me for just above trade-in.

    Now, I have no idea what the wholesale prices were and what dealers were paying at auction for these cars; but at least for the ones taking them in on trade, they were scoring some $. Even with the retail market on "fire", the guy I was buying from could only get "book" trade on his and sold it to me instead. Win/win.

    So I'm hoping I can make that magic happen again on our next RV...

    At the end of the day you do your homework, go out on the market and try to do your best deal on what you're looking for.

    Great discussion anyway. Beats some of these "fast and furious" car forums I visit from time to time.

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