Dealer pricing way over NADA!

[Brett_K]

The good news is we are shopping for our first TT. The problem is dealer pricing on used rvs is hard to figure. I found a really nice 2005 Terry 260 bhs. The dealer has it discounted to 11,999 from 14. NADA is 8500 low retail to 10500 high retail. My credit union will finance 90% of NADA low retail, which is what I figure to be a solid target price. Am I wrong? I feel a bit delusional expecting the dealer to come down another 40% off theirdis ounted winter price to the price I think I should pay. I am good at negotiating cars but I'm not used to seeing prices this inflated.

[Brett_K]

We went shopping today. Ugh! Everything used was really used. Dents, decals falling off, stained carpets, and dried/cracked tires. We checked out a 28ft 2012 Shadow Cruiser. Decent shape but there was a dent on the side plastic. Asking price was 26k. We left! I think I will start searching more for private party sales where there are less games.

[rvhippo]

mich800 wrote:
Devils advocate. If it is always the dealer trying to screw someone, where does the high NADA come from if no one is purchasing for this imaginary average high value.

There are people paying high NADA.

Some are trading in, and the dealer is inflating the new price so he can give the buyer a higher trade in value.

Some are buying at this price because the dealer can provide financing that a bank won't.

Some are paying way, way too much. These people get seriously, seriously underwater on their unit. You can see these people when they try to sell their unit in a couple of years and their used price is much higher than what the wholesale-dealerships will sell you a new unit for.

[Mickeyfan0805]

When we searched used, in 2010, we found the same thing. The used units were so overpriced that we simply couldn't justify going used. We were looking at Hybrids and ended up buying new from a 'wholesaler' for only $3,000 more than the best deal we could manage on 6-8 year old units (we negotiated three at three different dealers).

[2008Wildcat]

The dealers can play the same game as all of us consumers.

Ask whatever you want, and let the next guy figure out what it is really worth.

I guess no one here ever wanted more money for their trade in than it was really worth? How about private sales? No one ever start higher than it was worth to get what it is really worth?

[SprinklerMan]

The NADA information comes from ............the dealers themselves . Nada doesnt get info from private party sales , they dont get it from DMV . The dealers give them the info. Now do you think that the dealers are 100% honest ? Nada is a guide and in my opinion , the "low" price is overpriced , the "high" is a joke

[mich800]

Devils advocate. If it is always the dealer trying to screw someone, where does the high NADA come from if no one is purchasing for this imaginary average high value.

[Huntindog]

You gotta understand the game. The dealer likely took it in on trade. And gave the previous owner a lot on paper for it. which was made up for on the inflated price of the new TT he bought. This made the previous owner feel really good.
Now the dealer is doing the same thing with the used TT. He is expecting someone to come in towing a real clunker, and expecting a fortune for it. So this TT is marked up so that he can do this,,,, even if he has to pay someone to haul off the clunker.

Never do trade ins. Real money talks loud. If you are paying cash,,, the dealer will be much inclined to discount the TT a lot.

This goes for buying new as well.

I have always sold my old one myself. I price them well, and the first person that looks at it has always been the buyer. Last time I had backup offers. I can sell my old ones for good prices, because I bought them at good prices.

I paid 15,500 OTD for my 2001 Wilderness new. Most dealers were in the 26-30K range for them. Ten years later most dealers were selling that TT for 15,000!! I priced mine at 9,500.00 on Craigs list and took the first call 15 minutes later. The next day he was the new owner and I had to tell two other people that they missed out.

[RonWSl]

Not unusual for a dealer to artifically inlfate a price then "discount" it, with the "discount price" still often being more then the FMV of the item. Depending on the condition I wouldn't pay more then the mid-range of the NADA. Odds are the dealer picked it up for about 75% of low NADA retail. Money talks and.... . Make an offer at the $8500 price and he may take it - be prepared to walk away. More RV's for sale then RV buyers.

[Judy_D]

Yep I hear you , I just decided to keep our trailer. We had it for sale with intent to trade for a new one. There offer was way to low , and there new model was over priced. Ours is paid for and nothing wrong with it so we will just keep it. and best of all no payments. My sugestion is to keep looking, maybe even private sales instead of a dealer. Good luck
Judy D

[OhhWell]

Your credit union's policy to fund 90% of low NADA is to protect themselves through collateral value of the TT. It doesn't mean that is a guideline on what you should expect to pay. They expect that you will put some of your own money down on the deal as well.

With that said, it wouldn't be a bad place to start negotiations.

[Bob_Landry]

Bottom line, you are looking at a 9 year old trailer that probably wasn't the top of the line model when new. High NADA would have to be for a trailer in like new condition including all appliances, not a blemish anywhere, and then you still have 9 year old appliances if they haven't been changed out. $2500 above high book is not a discount. The dealer paid to much for it as a trade in. That's his problem. For that much money you can do a lot better with a newer trailer.
There's nothing here that make this dal look like it;s in your favor, but if you early think this is the trailer for you, I would have an independent that doesn't have a dog in the hunt do an inspection/appraisal and believe what he tells you. A lot of buyers get burned on love at first sight deals and this dealer has ben in the game lot longer than you have. Proceed with care.

[rvhippo]

Don't pay more than low NADA. There are too many used units out there. Just wait for the right one. Low NADA should be your upper limit.

Dealers will overprice so they can give you a huge discount so you feel good about the sale. Start negotiating below low NADA and set your limit at low NADA. Unless there is some special reason you must have that exact unit, there is no reason to pay more than low NADA.

Low NADA is a fair price - you get a decent (not great) deal and the dealer (if he's a professional) makes a decent profit. It's a fair deal and fair price. Both sides win. Anything over low NADA is not a fair deal.

[beemerphile1]

Keep in mind that the seller never establishes the purchase price. The seller can ask whatever they want, but only the buyer determines the purchase price.

If you don't like the price and can't negotiate to an acceptable price, move on. There are tens of thousands of RVs for sale on any given day.

[kzspree320]

BTPO1 wrote:

Bill & Kate wrote:
Never hurts to ask. Use the same techniques that you have been successful with negotiating for cars - it's basically the same thing. There are so many factors that the dealer may or may not have built into his price, but you can be sure there is plenty of wiggle room. Make an offer to get things started, and see where it goes .... you can always just walk and look elsewhere ....

x2

X3. They normally expect you to negotiate. Offer $8,500 to start the ball rolling if that's what you want to do. They will generally counter, etc. You can quit at any point before a deal and walk away when at your maximum. Remember, they will rarely sell it for below what THEY believe they can get by waiting a few weeks. It's still early in the camping season. Good luck.