Negotiation Process

[Pinikki36]

My husband and I are new to the RV buying process, but we do know "Do not buy sticker price!". If a 2014 Class A Motor Home is priced at $119,955, what could we expect to walk away with actually paying? What is the mark up on these things? We appreciate any advice on the negotiation process. TIA!

[JALLEN4]

I must admit, I never get tired of this topic. Internet experts who read an article written by a failed car salesman are totally convinced they can walk into a dealership and leave them quaking in their shoes. Guys whose lifetime experience of buying vehicles equals the dealers last week of sales, just know they are going to win the game.

They are trying to buy one of what the dealer has figured out how to own dozens of and has a multi-million dollar facility to keep them in. From experience, I can assure you these guys are thinking while your sleeping of new ways to sell you. Any ideas you read here, they have already seen twice...yesterday!

[vic46]

Effy wrote:

dondar wrote:
When dealing with a volume dealer the invoice is typically at around 70% of MSRP. What it doesn't show is the volume discounts and holdbacks that are paid by the manufacturer.

In you case 80-84K just get you in the ballpark of a decent deal.

I am not sure this is an entirely accurate statement. It really depends on the dealer, the manufacturer, and the model. Winnie for instance does not really discount much. But you can dig a lot deeper on a Thor for example. Not trying to start a Brand fight. The best way to find the sweespot for your make and model is to shop and ask dealers for their best price and compare what others have sold for. Period. It's not that complicated. Give me an hour and I will have 5 dealers in a local area come to the table with their best number. The last 3 Rv's I bought took me 2 days to seal the deal. But I knew my number going in, I knew who could get me that number and was pretty frank about my shopping to all dealers and who came in where. Just put it out there. It's not a game like some make it out to be. Find the best price, pit dealers against one another and pick one that works. You start bickering over a few hundred or even a grand it's simply not worth it. It can become a negative experience for everyone involved if you start too much back and forth over what at the end of the day means a few dollars amortized. Target your range, find a dealer you like that meets it and get it done.

The quote in my signature definitely does NOT apply to you. Well said, and thank you.

[Effy]

dondar wrote:
When dealing with a volume dealer the invoice is typically at around 70% of MSRP. What it doesn't show is the volume discounts and holdbacks that are paid by the manufacturer.

In you case 80-84K just get you in the ballpark of a decent deal.

I am not sure this is an entirely accurate statement. It really depends on the dealer, the manufacturer, and the model. Winnie for instance does not really discount much. But you can dig a lot deeper on a Thor for example. Not trying to start a Brand fight. The best way to find the sweespot for your make and model is to shop and ask dealers for their best price and compare what others have sold for. Period. It's not that complicated. Give me an hour and I will have 5 dealers in a local area come to the table with their best number. The last 3 Rv's I bought took me 2 days to seal the deal. But I knew my number going in, I knew who could get me that number and was pretty frank about my shopping to all dealers and who came in where. Just put it out there. It's not a game like some make it out to be. Find the best price, pit dealers against one another and pick one that works. You start bickering over a few hundred or even a grand it's simply not worth it. It can become a negative experience for everyone involved if you start too much back and forth over what at the end of the day means a few dollars amortized. Target your range, find a dealer you like that meets it and get it done.

[dondar]

When dealing with a volume dealer the invoice is typically at around 70% of MSRP. What it doesn't show is the volume discounts and holdbacks that are paid by the manufacturer.

In you case 80-84K just get you in the ballpark of a decent deal.

[Effy]

I think the wheels are about to fall off this and a few other threads.

[cKarlGo]

2bzy2c wrote:
When selling your used RV, so you offer a copy of your 1040 to the buyers?
So when then should dealers disclose their invoice?

A 1040 bears no relationship to an invoice in any way whatsoever. This analogy is so far off that you're not even comparing apples to oranges, you're comparing apples to rocks.

[2bzy2c]

When selling your used RV, so you offer a copy of your 1040 to the buyers?
So when then should dealers disclose their invoice?

[Effy]

Nomadac wrote:

Effy wrote:

Nomadac wrote:
Rather than how much below MSRP(Manufacturer Suggested Retail Price) you should expect to pay for a MH, what percentage of profit above Dealer Invoice do you think a Dealer should make?

If you were a dealer and had an investment of over $500K in your business, and overhead what is a fair profit after all expenses?

Explain.

That's all well and good if you knew invoice. Do you know or have access to these numbers? If not your basis point is MSRP

And what business is it yours to know what invoice is to determine what a seller should make as profit? Do know the invoice for everything you buy? If you owned a business would you want all of your customers to know what your costs or profit was for your business?

I am struggling to figure out what your point actually is. Are you an advocate for dealers? I'm sorry I am not following or you are being a bit obtuse. If any consumer did not do their level best to get the best deal possible, they either have a lot of money or they are irresponsable. no consumer is ever going to know what the dealer profit margin is. I'm sorry I just don't get your point. MSRP and historical data on sales of like models is really the only tangable numbers you have. Are you suggesting we take the dealers point of view into perspective?

Explain.

[cKarlGo]

Nomadac wrote:

Effy wrote:

Nomadac wrote:
Rather than how much below MSRP(Manufacturer Suggested Retail Price) you should expect to pay for a MH, what percentage of profit above Dealer Invoice do you think a Dealer should make?

If you were a dealer and had an investment of over $500K in your business, and overhead what is a fair profit after all expenses?

Explain.

That's all well and good if you knew invoice. Do you know or have access to these numbers? If not your basis point is MSRP

And what business is it yours to know what invoice is to determine what a seller should make as profit? Do know the invoice for everything you buy? If you owned a business would you want all of your customers to know what your costs or profit was for your business?

Automotive dealerships have been operating on exactly this model for decades.

[Nomadac]

Effy wrote:

Nomadac wrote:
Rather than how much below MSRP(Manufacturer Suggested Retail Price) you should expect to pay for a MH, what percentage of profit above Dealer Invoice do you think a Dealer should make?

If you were a dealer and had an investment of over $500K in your business, and overhead what is a fair profit after all expenses?

Explain.

That's all well and good if you knew invoice. Do you know or have access to these numbers? If not your basis point is MSRP

And what business is it yours to know what invoice is to determine what a seller should make as profit? Do know the invoice for everything you buy? If you owned a business would you want all of your customers to know what your costs or profit was for your business?

[Effy]

Nomadac wrote:
Rather than how much below MSRP(Manufacturer Suggested Retail Price) you should expect to pay for a MH, what percentage of profit above Dealer Invoice do you think a Dealer should make?

If you were a dealer and had an investment of over $500K in your business, and overhead what is a fair profit after all expenses?

Explain.

That's all well and good if you knew invoice. Do you know or have access to these numbers? If not your basis point is MSRP

[Nomadac]

gat75 wrote:

If I have time, I do somewhat the same thing on just about anything that cost more than several hundred dollars. I paid a 1000.00 less on an american-made Kellar brand dining table with 6 chairs.

First, found all dealers that sold this exact table that was in a 150 mile radius; (got this from Kellar's home page). Then gave each dealer a call, told them I had cash in hand to pick up this table unit. My only question to them is "what is my drive-out price." THEIR QUESTION TO ME WAS WHAT IS THE LOWEST PRICE YOU GOT SO FAR. I just laughed & told them I would give them that info after they gave me their price.

Took about 2 days for DW to get her beloved table; (had about 10 dealers that responded). Not one dealer told me to get lost, after all, they want to move their stock.

And you compare buying a table to buying a Motorhome? I doubt that a Furniture store has the investment or overhead that a RV dealer has to contend with, facility, equipment, Service and Parts operation and inventory, etc. More like apples to oranges.

Rather than how much below MSRP(Manufacturer Suggested Retail Price) you should expect to pay for a MH, what percentage of profit above Dealer Invoice do you think a Dealer should make?

If you were a dealer and had an investment of over $500K in your business, and overhead what is a fair profit after all expenses?

Explain your operating a business experience.

[charles]

I purchased a new Winnebago Vista 35F and the numbers are near to what you are looking at. I purchased the unit new at the end of September, 2011 and it was a 2011 model. The MSRP on the unit was $122,126.00 and I purchased it for $81,216.00, 33% off sticker. I had no trade so this is about as true a figure as you will find for a unit very similar to what you are looking at. The only addition to the out the door prices was sales tax and $35.50 title fee. They really try hard to get you to buy a extended warranty and also a extended tire warranty I did not buy either one. I hope this helps as the figures are accurate as of that date and are not speculation. Since you are in Ohio I'll go as far as telling you where I purchased it, General RV in Canton, Ohio. Keep in mind that if you wait until the new models come out,which are as early as July, the discounts are a little higher. I sold it last summer for $75,000.00 and went back to a Class B. It held it's value pretty well dropping only $6,000.00 in 2 model years, and I accepted the first offer I received, maybe I could have got more out of it but I was satisfied.

Good luck to you,

Nick

[Effy]

Ah the dance. I actually like it. Homework, and due diligence will get you your deal. Shop as many dealers as you can, whiddle down the best prices, check against RV direct or some other whoelsale outfit. One thing that is also a good idea is due diligence on dealers. Do some resrach on the dealers you have narrowed down. Some have downright deplorable reviews and BBB ratings and it's been reflected in after the sale rants on this forum. Not necessarily warranty work, but the entire process. You can get stung with extra fees, dealers who try and keep a deposit if you walk (ask me how I know about that one) dealers who don't pay off trades etc. The deal not only has to meet your budget but should be clean and painless if not enjoyable for everyone. A dealer getting a decent deal also greases the wheels down the road (pardon the double pun). Throw the net wide, whiddle down the deal and the dealer, find a number and a dealer that works, and seal it. At the end of the day a great deal with perks at a reputabale dealer that costs you a few grand (amortitized into a few dollars) might be worth a lot more than a screaming deal from a far away dealer who ends up making it a nightmare. it's not all about the dollar. Figure a range you want to pay on a coach (within a few grand) and pick the best dealer who can make it happen. You WILL need support post sale. most manufacturers make it easier to take it anywhere but a good dealer where you bought it adds a lot of positives if they help the post sale support too.

[crasster]

I never talk money at the dealer. I just ask for their card and tell them that I'm looking at another coach. If they insist, I insist and leave.

I do ALL of my negotiations over email and play dealers off each other. I've been flat out refused before though. 🙂