Dealer Negotiation & markup question

The only way to find the real price limit is to test it.

If you fall in love with a particular unit, you've already lost.

If you are willing to walk away start lower than the NADA low and see what their response is. Don't worry about offending the dealer (a common tactic is to get upset with you). Have an upper limit in mind before starting. If you don't get it below that limit walk away. Be polite and let them know if they change their mind, to contact you but you will be looking elsewhere in the mean time.

Every time this topic starts you get the two basic answers. Read a book and ask a banker. The books are written by and for the dealers and the only thing a banker knows is what he reads in a book. If either source knew what they were actually worth, they would be out making real money buying and selling them.

Here are some basic realities. They are worth exactly what a willing buyer will pay a willing seller. There is no substitute for a pretty nearly perfect used unit and the right ones are worth far more than you might think. Opposite, cheap is no substitute for quality and there is no cheaper price one should pay for a poor condition unit. Never negotiate "out-the-door" price. You can't negotiate taxes. Negotiate the price you are paying for the unit, argue about any other fees charged and then figure the tax.

Never let yourself get in a hurry to buy. Look at enough of them and you will discover what you really want and better yet...you will know when you find your bargain. There is no standard for pricing used units nor a negotiating formula. You will find some way over priced and others seem to be cheap at full retail. It is all dependent on what you can find when shopping enough units. Most important, buy quality! No amount of saving when buying is going to pay for fixing junk.

IMHO, since I worked in quite a few manufacturing companies (none of which are RV related), typical markup out the door of the factory is that the cost to build is 45% of the sales price, and 55% is the gross profit.

Everyone in the supply chain then adds their profit, so they can stay in business. Mainly these are the distributors and the retail sales.

IF I WERE TO BUY NEW, I think I would go to the factory, take the tour, and make the deal there for the most perfect setup.

HOWEVER, to buy used, that is not the option. Spend lotsa time looking the best floor plan that will work for you and within your budget.

NOTE: If you are familiar with the popular perfume OBSESSION, which sells for well over $100 retail, the total invested cost at the dock of the factory, including packaging, advertising, et al, is a whopping $8.00.

If you’re on Facebook and haven’t already, check out the FB page "RV Pricing and Values" before deciding and buying. Be sure and read the Pinned Post before asking questions! David may be able to help you save some $$$.

A trusted loan officer has told me that most banks will loan up to the average retail value given in the NADA guide for your area. Tells me that is what the vehicle is worth and anything more is giving money away. Anything less is money in your pocket. Make the first offer at low retail and negotiate up from there, but never go higher than average retail. Dealer will have all kinds of reasons why you should pay more. The simple response is that my bank says it is only worth average retail and these issues with the vehicle (which you provide) bring the value down from there. It's an RV - there is always issues.

look every where for a rv about the same set up,see what there selling for ,try google craigs list rv trader. and don,t tell them your paying cash. keep that till you have there out the door price. then get up and start for the door , knock a few grand off that price. and as your leaving tell them to give you a call, when they meet your price, as you have others to look at. nothing makes me feel better than to see a salesmen,s face as he is about to loose a commsion check.

If you can find the original MSRP of whatever vehicle you are looking at (NADA might be right) and figure that 25% to 30% off that could have, or should have been what the original owner paid for it when new. Depreciation per year is a guess (lots of different ideas on that).

I think most Class Cs in the age and size you are looking should sell for somewhere in the 40s and 50s. Of course condition plays a big part in what they're worth. I paid about 60 for mine new. It might be worth mid 40s now ?

As for NADA values my MH was almost 2 years old before their value for it got down to what I had paid for it when new.

If buying used from a dealer, please be aware that some dealers will list everything they can as an "extra cost option", even if the manufacturer lists it as "standard equipment"! One of the dealers here is known for doing that. Once I realized it, I have never returned to his establishment.

Dealer didn’t pay $45 for it. Offer $45 OTD and be ready to walk.

So, asking $60k. NADA says $55k high end, $45k low end. Sells for closer to $55k??