Trade-ins... when did things change?

[pacificnw]

So I am in the market for a new MH and I have a 10 year old MH that I thought might be of some interest to dealers selling new MHs. Not so. When did this change? Did I miss something?

Here are some parameters... NADA retail valuations on my MH range from low 28k to average 32k. Reasonably, or so I thought, an RV place could sell my unit for a minimum of 30k. Its in nice shape.

I have spoken to 3 dealers and not one has suggested a trade in value north of 18k. One said maybe 12k. Another said no one is lending money for a 10 year old MH. Are they stupid or simply lying?

In my estimation they would serve their potential clients better if they simply said... "we don't want your trade in."

Am I wrong? And when did all this change?

[rockhillmanor]

NADA is a joke. Used to give you a general idea what your RV was worth but not anymore IMHO not even close.

Its what the market will bare.
Look at your local paper and see what an RV in your age range is selling for. I think you will be mildly surprised it is not what you think your RV is worth.

Go to Escapees forum and see what they are selling for there. $10,000 to $15,000 is what you will end up getting, if you are lucky, if you sell it your self. Because most buyers will have to come up with cash because they don't give loans on 10 year old RV's.

WHERE you are selling it will also determine the selling price.

I bought winter home in Florida and brought my MH and Toad with and planned on selling both in Florida. WHAT A MISTAKE!

Inventory and it just being Florida my MH and Toad where worth $40,000 LESS than what I could have sold them both for up North. 😞

Everyone sells their RV after moving down here and the number of people retiring from RV'ing here just floods the market with RV's for sale. AND for the Toad? Cars are soooo dang cheap down here it didn't matter if I had all the towing equip on it, I took a BIG bath on selling the toad down here.

So where you are does matter. NADA does not take that reality into consideration.

[stew47]

Go to escapees.com get on their classified and list it. Seems like rvs move pretty quickly. You don’t have to pay to be a member to use their forum.

[Ductape]

^^ This.

If I was running a business I wouldn't be paying any more for this trade. Unless I had a buyer already lined up and waiting, it's a crapshoot. Could end up taking up space on the lot for a year.

More likely a dealer in new units will shuffle this off to the auction right away.

[bobkatmsu]

zb39 wrote:

pacificnw wrote:
I am not seeking 30k for a trade-in. Like any reasonable owner I am seeking a fair valuation so that I know what its worth. That way one can see how much room there is between what it could potentially be sold for and what the dealer is offering. Profit is what keeps dealers in business. Fair pricing is what keep customers coming back. I am sorry but a 12k to 15k profit is gouging.

That 12 to 15 is gross profit not net profit, huge difference. If you think that a business can stay in business with less than 50% gross profits, you would be wrong. You should see what the gross profit is on women clothing. 500 % is the norm. Yes I have been in business for the last 27 years, I'm the owner not an employee. If they offered you 18 that was a serious offer.

Thank you zb39 from one business owner to another. Incredible how people have no idea how difficult it is to make money in a business.

[winnietrey]

I agree best way to do it is sell it yourself, but trade in value is a pretty meaningless number, in many ways. As consumers we tend to look at what they gave us for trade in, for example in this case, say the OP gets 30K, The consumer might say wow, I got retail for my trade in, I did really well, rather than the 18K, which another dealer offered. It is feel good thing, for the buyer. What folks sometimes don't get is the dealer will just add that on to the price of the new one, so in the end, you end up the same or worse off.

The other thing the dealer is looking at is finance, if they sell the loan, they get a part of it. Usually at a higher interest then you can do on your own

So, as buyers we have to look at the total package, to decide, if we want to buy, not just one of the three values, that make the total deal.

[Bill_Satellite]

A trade can still make more sense than a private sale depending upon how your State calculates sales tax. Many States deduct the trade-in value from the tax due so you only pay tax on the difference, but if you sell out right you owe tax on the full value of the new to you RV.

[zb39]

pacificnw wrote:
I am not seeking 30k for a trade-in. Like any reasonable owner I am seeking a fair valuation so that I know what its worth. That way one can see how much room there is between what it could potentially be sold for and what the dealer is offering. Profit is what keeps dealers in business. Fair pricing is what keep customers coming back. I am sorry but a 12k to 15k profit is gouging.

That 12 to 15 is gross profit not net profit, huge difference. If you think that a business can stay in business with less than 50% gross profits, you would be wrong. You should see what the gross profit is on women clothing. 500 % is the norm. Yes I have been in business for the last 27 years, I'm the owner not an employee. If they offered you 18 that was a serious offer.

[kenwautoone]

You never did mention the make and model of your unit....umm?

[wa8yxm]

Trade in values are like wages.

The More money the OWNERS of the business get, the More they want. so they cut worker wages and raise the cost of the product... One pair of shoes selling for over 200 dollars only costs the company five bucks.

Likewise trade ins. The more greedy the boss gets the lower your trade in's value.

[tderonne]

I'm seeing $21,100 for low retail on a 2006 Hurricane 31D. Wholesale is a bit less than 90% of that, a bit over $18,000. Seems like the dealer is right where they ought to be.

2006 Four Winds Hurricane 31D NADA value

[LadyRVer]

I just had a dealer offer me 6,500 for a 2013 Dodge Ram, 2500 HD LB CC truck with 5.7 Hemi..... On his website he has a 2013 truck, about the same for 24,900. No, there is nothing wrong with my truck. Unreal trade-in figures.

[bobkatmsu]

One of the problems with NADA or Kelly is that is just a guide, maybe a starting point. It is not what your RV is worth. Your RV is worth what someone is willing to pay for it.
If you are planning on buying another used coach, a trade-in would be the last option I would consider. If you sell it yourself you will make considerably more than on a trade, plus now you have 100's of coaches to choose from compared to just the few the dealer has on his lot. You have other dealers, or individuals selling their coach. Find the private seller that is highly motivated to sell and you will be able to negotiate a much better price. I recently purchased a coach from a very motivated private seller and paid at least $20,000 less than a dealer's "best price" was on a comparable coach.
Is it a hassle, as previous people have said, absolutely, but between selling my coach my self and purchasing from a private seller, I figured I saved $25,30,000 over going through a dealer. Well worth the hassle.

[DallasSteve]

pacificnw wrote:
I am not seeking 30k for a trade-in. Like any reasonable owner I am seeking a fair valuation so that I know what its worth. That way one can see how much room there is between what it could potentially be sold for and what the dealer is offering. Profit is what keeps dealers in business. Fair pricing is what keep customers coming back. I am sorry but a 12k to 15k profit is gouging.

Paying $1K for a cell phone is gouging, but people wait in long lines to be gouged.

[ScottG]

I traded in my 13 y/o TT and they mentioned it was harder for people to get financing on something like that.
Didn't affect the trade in value though.

[pacificnw]

I am not seeking 30k for a trade-in. Like any reasonable owner I am seeking a fair valuation so that I know what its worth. That way one can see how much room there is between what it could potentially be sold for and what the dealer is offering. Profit is what keeps dealers in business. Fair pricing is what keep customers coming back. I am sorry but a 12k to 15k profit is gouging.