need to understand how finance calculation work
We want to buy a fifth wheel, and we need to trade a travel trailer that has no equity. Is there a step i can follow so i dont get taken advantage of or tricked into a bad deal?
Forum Discussion
In addition to the above, some other thoughts:
First, realize going in that RV sales people are like lawyers, all they want to do is separate you from as much of your money as they can - period. Don't be fooled by the friendly smiles, idle chit chat or free beverages.
On average, 30% off list price is a good target to try and work towards. Try starting the negotiating price with that figure in mind and don't waiver. Even when you get to a comfortable number, try and see if they can throw in an extra or two at no extra cost, a factory option, something the dealer can install and/or some free camping nights somewhere. (DW loves to do this sort of thing.)
Before talking to dealers, if you haven't already, do your due diligence and go on the internet and learn everything you can about specific models you are interested in. Not only prices, but quality, known issues (from forums), features, weights & capacities, etc.
Don't let a salesperson upsell you to a fancier and more expensive unit and don't let them tell you that there is better quality and features in another brand and model. Even if the price isn't much higher, their profit margin could be higher.
Take your time. Don't plan on coming to an agreed upon price at the first visit. Hum and hah and tell them you will think about it and then go home. Resist the temptation to put your money down right away because you are so excited and want it really bad. Do more homework on the pricing on the internet and arm yourself with info. and figures. Go back maybe say, a week later and play the price with them some more and keep asking them if the price is the best that they can do. Again, tell them you will think about it some more and go home. Then go back and have a last go and dropping the price some more. Make them an offer on the low side, tell them that's what you think the price should be and be prepared to walk out. Try bluffing if needed and say you're still not happy with the price.
If you would be buying a unit on the dealer's lot, see exactly what option upgrades it may have. You don't want to be sucked into paying for something that you don't really need or want. If you've done your homework, you should have a sense of what various options are worth. If ordering a unit from the factory with options, negotiate the price of each option individually. Don't let them bundle them into one price. If you buy off the lot and it doesn't have something you want, consider buying items from the internet and either installing yourself or at another shop.
Don't buy an extended warranty. Not really worth it. There's a few brands with a 2 year full factory warranty like Jayco and KZ. I think Heartland does too IIRC.
Lots of good advice on the 'net if you google "how to negotiate RV purchase" like these for example:
purchase advice
more purchase advice Like the guy in the vid, you want to be in the driver's seat by making the offer on the low side and working up from that.
Also, research the dealer. Some dealers have terrible warranty/repair service and it can takes weeks and weeks to get things fixed by the time they inspect what needs to be done, get factory authorization, order parts and then schedule the work into their busy schedule. Not good during the camping season. BTDT. Some dealers are top notch and get you in and out in the same day or 2 days, like our current one. A crappy dealer can make your RV purchase a nightmare afterwards.
You won't get the best of deals trading in something you have now. They'll just look up the blue book value. Better to sell yourself but the downside is that it can a long time and there's the hassle factor. Negotiate the purchase of the new TT separately from the used one, but have a separate price for the used one in hand. If you haven't yet, get your TT on the market pdq.
Otherwise, around now is not the best time of year to get a better price IMO. People are starting to think about camping with the better weather on it's way and demand is increasing. Earlier this year or the end of camping season would be better. A 2013 model may have a better price but if you buy one, it's already a year older in terms of depreciation and blue book value. Something to consider if you ever decide to sell it in next few years for any reason. (BTDT)
First, realize going in that RV sales people are like lawyers, all they want to do is separate you from as much of your money as they can - period. Don't be fooled by the friendly smiles, idle chit chat or free beverages.
On average, 30% off list price is a good target to try and work towards. Try starting the negotiating price with that figure in mind and don't waiver. Even when you get to a comfortable number, try and see if they can throw in an extra or two at no extra cost, a factory option, something the dealer can install and/or some free camping nights somewhere. (DW loves to do this sort of thing.)
Before talking to dealers, if you haven't already, do your due diligence and go on the internet and learn everything you can about specific models you are interested in. Not only prices, but quality, known issues (from forums), features, weights & capacities, etc.
Don't let a salesperson upsell you to a fancier and more expensive unit and don't let them tell you that there is better quality and features in another brand and model. Even if the price isn't much higher, their profit margin could be higher.
Take your time. Don't plan on coming to an agreed upon price at the first visit. Hum and hah and tell them you will think about it and then go home. Resist the temptation to put your money down right away because you are so excited and want it really bad. Do more homework on the pricing on the internet and arm yourself with info. and figures. Go back maybe say, a week later and play the price with them some more and keep asking them if the price is the best that they can do. Again, tell them you will think about it some more and go home. Then go back and have a last go and dropping the price some more. Make them an offer on the low side, tell them that's what you think the price should be and be prepared to walk out. Try bluffing if needed and say you're still not happy with the price.
If you would be buying a unit on the dealer's lot, see exactly what option upgrades it may have. You don't want to be sucked into paying for something that you don't really need or want. If you've done your homework, you should have a sense of what various options are worth. If ordering a unit from the factory with options, negotiate the price of each option individually. Don't let them bundle them into one price. If you buy off the lot and it doesn't have something you want, consider buying items from the internet and either installing yourself or at another shop.
Don't buy an extended warranty. Not really worth it. There's a few brands with a 2 year full factory warranty like Jayco and KZ. I think Heartland does too IIRC.
Lots of good advice on the 'net if you google "how to negotiate RV purchase" like these for example:
purchase advice
more purchase advice Like the guy in the vid, you want to be in the driver's seat by making the offer on the low side and working up from that.
Also, research the dealer. Some dealers have terrible warranty/repair service and it can takes weeks and weeks to get things fixed by the time they inspect what needs to be done, get factory authorization, order parts and then schedule the work into their busy schedule. Not good during the camping season. BTDT. Some dealers are top notch and get you in and out in the same day or 2 days, like our current one. A crappy dealer can make your RV purchase a nightmare afterwards.
You won't get the best of deals trading in something you have now. They'll just look up the blue book value. Better to sell yourself but the downside is that it can a long time and there's the hassle factor. Negotiate the purchase of the new TT separately from the used one, but have a separate price for the used one in hand. If you haven't yet, get your TT on the market pdq.
Otherwise, around now is not the best time of year to get a better price IMO. People are starting to think about camping with the better weather on it's way and demand is increasing. Earlier this year or the end of camping season would be better. A 2013 model may have a better price but if you buy one, it's already a year older in terms of depreciation and blue book value. Something to consider if you ever decide to sell it in next few years for any reason. (BTDT)
