5er values???

[ACZL]

Went to the RV show in Hershey , PA over the w/e and spoke w/ a dealer who had a 5er we were interested in. He took our info and called us today w/ numbers. He says that our rig which will be 8 models years old had lost or worth about $20k less than what we paid for it!!!! To say the least, the numbers are toooo far apart.

Is this normal for RVs to lose that much value??

[B_O__Plenty]

mileshuff wrote:
It doesn't matter what a dealer offers for your trade. What matters is the bottom line for the new trailer minus your trade. $50000 for a new trailer minus say $15000 for your trade = $35000. Same as if they wanted $60000 for the new trailer but gave you $25000 for your trade. The difference is what matters. Should be able to get your new trailer at 25%-35% off MSRP (ask for MSRP options list), then a fair price for your trade. Dealers are not going to give anywheres near what you could sell it yourself for. However, in most states you will pay sales tax on the new trailer for the bottom line amount since you already paid sales tax on the old trailer when you bought it. Figure the tax savings for your trade when comparing it to what you may be able to sell it for yourself. If your trade is worth $15000 with state sales tax of 7% the savings would be $1050.

Very good advice! Exactly how I look at it. I always laugh when someone says what a high trade in they got, then you find out they paid full price for the new one. Big deal you still lost.


B.O.

[Dennis_M_M]

Our fiver was two years old and virtually unused when we bought it - paid 50% of MSRP.

RVs depreciate considerably in the first few years, that's why I never have financed an RV - or a car/truck. Should qualify that, I financed my my first new car in 1967.

[mustangglp]

When I brought my 9 year old trailer I offered two grand less then what they had it listed at. I felt bad when they had to come up with 1000$ More to get get the title from the bank! I think they wanted to get out from the payment's pretty bad.
I like to pay cash form my toys.
I don't drive brand new but I don't have worry about under water payment's.

[mark5w]

Sounds about right. It is 8 years old. Only other choice is to sell it yourself.

[thomasmnile]

When I first started on the RV "odyssey", I bought and read the "Idiot's Guide to RV'ing". In the chapter covering purchasing an RV, the author noted an RV purchased new will typically lose 40% of its value in the first 5 years of ownership. Don't know the supporting data behind the statement, but no question an RV is a depreciating asset. We traded an '05 HitchHiker LS last year on a new Jayco WhiteHawk. We received a trade allowance of 17K, about $4K below NADA "book". I was OK with it though since I didn't have the bother of attempting to sell our trade in myself.

[mileshuff]

It doesn't matter what a dealer offers for your trade. What matters is the bottom line for the new trailer minus your trade. $50000 for a new trailer minus say $15000 for your trade = $35000. Same as if they wanted $60000 for the new trailer but gave you $25000 for your trade. The difference is what matters. Should be able to get your new trailer at 25%-35% off MSRP (ask for MSRP options list), then a fair price for your trade. Dealers are not going to give anywheres near what you could sell it yourself for. However, in most states you will pay sales tax on the new trailer for the bottom line amount since you already paid sales tax on the old trailer when you bought it. Figure the tax savings for your trade when comparing it to what you may be able to sell it for yourself. If your trade is worth $15000 with state sales tax of 7% the savings would be $1050.

[goducks10]

No one ever said RV's were a good investment.

[Dayle1]

Go to NADA and find out for yourself. I don't know what options are on your rig, but NADA shows the CC Silverback Custom 33 LBHTS had a list price of $41,764 w/o options and gives average used price of $19.5K today. So, $20k drop is probably about right.

[TucsonJim]

Check it out on NADA to see if your dealer is totally off base.

NADA Values

[ken_white]

ACZL wrote:
Is this normal for RVs to lose that much value??

If you are talking to a dealer...

😞