How to figure out “Used” DP Coach Prices?

[HOM]

Here are four (4) American Heritage coaches and Four (4) Newmar Essex coaches that are currently on the market. They are all 45’ - all have the same drive-train and all are said to be in excellent shape. Here are the coaches;

2006 American Heritage bath & half - 4 slides - 50,600 miles $279,900
2006 American Heritage bath & half - 4 slides - 30,700 miles $209,900
2006 American Heritage bath & half - 4 slides - 32,000 miles $239,800
2006 American Heritage bath & half - 4 slides - 51,200 miles $341,800
NADA American Heritage NADA low price is $279,440

2006 45’ Newmar Essex bath & half - 4 slides - 52,000 miles $213,900
2006 45’ Newmar Essex bath & half - 4 slides - 30,000 miles $275,900
2006 45’ Newmar Essex bath & half - 4 slides - 18,000 miles $254,800
2006 45’ Newmar Essex bath & half - 4 slides - 33,800 miles $189,900
NADA Newmar Essex low price is $206,220

Why such $ differences? I understand that some may have satellite and other upgrades but how big a deal is that? A satellite is of no interest to me so if its tacked on to the price as far as I'm concerned its a negative.

A friend of mine bought a Jeep Rubicon and tricked it out with new tires, rims and you name it and he did it. When he goes to sell it he will very possibly not get a dime back for all he added. He knows that too but its what he wanted.

If you add a bunch of stuff to the base price of a motorhome, do you get it back or is it more like the Rubicon? An American Heritage is an American Heritage right? Sure you can hang things here and put things there but is it not still a American Heritage or a Newmar King Aire?

With above coaches the mileage doesn’t make a difference, not with a diesel. So what establishes such a difference in price as we see above because again, “it’s an American Heritage” or a Newmar King Aire!

So how do you figure out what price to start with when you’re negotiating to purchase a coach. Especially when one is so much more expensive from the other? I mean if the asking price is $209,900 and you offer $189,900 you’ve taken $20,000 off asking price. But if a like coach as shown above has an asking price of $341,800 and you offer $189,900 that's $152,000 difference. How do you reconcile something like that? How do you determine a fair and reasonable starting price? And a fair and reasonable asking price for that matter?

HJ

[HOM]

Hi Pat,

I agree with everything you said except for the research. You mentioned research three times but the right answer is you must research four times! 🙂 No problem Pat it was an easy mistake. 😉

You are so right about the research and the professional inspection. I couldn't imagine considering a coach without it!

After doing quite a bit of research myself I had hoped that coming to an idea of purchase price would get easier. But that does not seem to be the case. If you go to a place like,

http://www.pplmotorhomes.com/sold/diesel-motor-homes.htm

you see very quickly that so many asking prices are way off. PPL shows what they actually sold coaches for and they seem significantly lowing than most of the coach selling website out there.

Where do banks and finance companies loan on? Its my understanding its NADA, but most people here on the forum will tell you NADA is a poor barometer.

I'm curious Pat, new guy to new guy, have you had a similar experiences or is it just me?

HJ

[rgatijnet1]

PCarnathan wrote:
We’re going to be in the market for a used DP in the next six to eight months. We don’t want to go into debt so we’re saving our cash. I spend a great deal of time on this forum just learning and soaking up the knowledge. It seems to me that when buying a used DP the key is research. Then, more research. Then have the rig professionally inspected. Then some more research.

Pat in Menifee, CA

www.patcarnathan.com

Be ready with the cash, when the deal comes along, and don't be afraid of making a low offer for a quick sale.

[PCarnathan]

We’re going to be in the market for a used DP in the next six to eight months. We don’t want to go into debt so we’re saving our cash. I spend a great deal of time on this forum just learning and soaking up the knowledge. It seems to me that when buying a used DP the key is research. Then, more research. Then have the rig professionally inspected. Then some more research.

Pat in Menifee, CA

www.patcarnathan.com

[HOM]

Hey nemo45, What does the NADA give you for the $110? It must be a lot more than you see on line. I don't mind paying money I just want to know there's a value to the money spent!

[nemo45]

smlranger wrote:

HOM wrote:
Hi smlranger,

I wasn't comparing the Heritage to the Essex because you're right they do not match up. I was just using two very good coaches in the example.

Plus the King Aire and London Aire where not built in 2006.

HJ

Actually, Newmar did make the London Aire in '06. The then co owner of IRV2.com bought one and had it at their national rally in Branson, MO. At that time I believe the London Aire was their top of the line coach. They dropped the LA (until 2015) when they added the King Aire.

Another good source is Motorhome Specialists RV (MHSRV) they usually price their used units around wholesale. The only way to find out the wholesale price is to purchase the NADA dealers guide. Its around $110 but it could save you thousands. I used the internet version. When I bought my Gulf Stream they had a 10 day free trial on it, so I looked up all the coaches I was interested in and my trade and recorded all that information before I started dealing. I believe the now only have a 24hr. free trial. We ended up buying ours from MHSRV in Alvarado TX after much negotiation.

[deandec]

Dealers may inflate the asking price to accommodate upside down trade-in allowances.

Owners match the price to their upside down mortgages.

Some sellers actually price the rig at a price to get it sold.

[thgoodman]

2x on what Gemert said. A valid price for anything is one that a willing seller and a willing buyer agree on and make the transaction. The PPL lists fit that model. The buying guides (NADA, Kelley, etc) use a formula to establish a value. I don't know what the formula is but they are not based on recent sales.

[HOM]

Thanks everyone,

smlranger you are right of course! They did build the London Aire in 2006. What threw me off is the brochure archives area of Newmar does not show a brochure for the 2006 London Aire so I assumed it wasn't available. Thanks for the correction!

All of you have given some great information and I thank you for it. As you can guess, I'm trying to get my head around the negotiation aspect of coach shopping. Non of us want to pay more than a coach is worth!

HJ

[rgatijnet1]

As mentioned, these are all 8 years old. That means that the furniture, more specifically the mattresses are 8 years old. Personally I would not want a used mattress and I may yank out all carpet and furniture if there are any odors from pets, etc.
Look closely underneath the rig for evidence of any corrosion from road salt. If the underside is rusty, there is a good chance that the radiator MAY be corroded and on it's last legs. This can be several thousand to replace.
An 8 year old coach could have low mileage, yet the interior and systems could be well worn from full time use, or rough usage when parked.
There can be many reasons why the price varies so much on a coach. Determine what is important to you and move forward. Use the internet to find similar coaches and what they SOLD for. A search of eBay can give you the actual price that a similar coach SOLD for, which is usually considerably less than what the seller was asking. The actual SOLD price is the true value, not NADA or a seller's asking price.

[Dale_Traveling]

I think Nutinelse2do described probably the biggest mistake sellers make setting a price along with attempting to recoup the cost of upgrades. I look at upgrades as curb appear. I'm not going to pay a premium for them but they will get my attention when comparing potential rigs I maybe interested in.

For a potential buyer your best option is to set a budget and stick to it. When the coach you like shows up be prepared to get on a plane and travel if necessary. Spending $1000 to save $10,000 maybe in your best interests.

[smlranger]

HOM wrote:
Hi smlranger,

I wasn't comparing the Heritage to the Essex because you're right they do not match up. I was just using two very good coaches in the example.

Plus the King Aire and London Aire where not built in 2006.

HJ

Actually, Newmar did make the London Aire in '06. The then co owner of IRV2.com bought one and had it at their national rally in Branson, MO. At that time I believe the London Aire was their top of the line coach. They dropped the LA (until 2015) when they added the King Aire.

[gemert]

I would also try PPL list of sold coaches. They list the price of everything they have sold in the last couple of years. This can also give you an idea along with NADA low retail of what you should pay. Link below.
http://www.pplmotorhomes.com/sold/soldmenu.htm

[J-Rooster]

Go to demartini RV dot com if you don't like the price you make a counter offer!

[Stanmawyer]

HOM,
I found the same thing when shopping, and upon inspection, found no correlation between the price and desirability of same model, similar mileage coaches. Note that some dealers...Lazy Days and Tom Johnson in particular seem to ask more. I assume this is to allow them more wiggle room when taking a trade in coach. I find the NADA book almost always placing higher values on high end coaches than what you will see in the marketplace.