MSRP BS? Buy new or used?

SprinklerMan wrote:

APT wrote:

SprinklerMan wrote:
The novelty of new wears off a lot quicker than the payments do .

While true, payments for a $12k 5yr loan vs. $18k 5yr loan. Still a payment if that is the route chosen to "pay". So does one want to pay payments on a 8 year old RV or a 5 year old RV (at end of term)?

Make 1 payment when you buy it . Use the rest of the money for camping food and fun .

So true.

We went to our hometown dealership last weekend to look at new trailers. When we asked whether they would meet or beat another dealers price, the salesman said they would consider it if the other dealer is relatively close. The salesman then went on to say that any warranty work would need to be done at the dealership that we purchased the trailer from. In other words, we can't buy the same trailer for cheaper from another dealer and have warranty work done at their shop. Is this universally true?

APT wrote:

SprinklerMan wrote:
The novelty of new wears off a lot quicker than the payments do .

While true, payments for a $12k 5yr loan vs. $18k 5yr loan. Still a payment if that is the route chosen to "pay". So does one want to pay payments on a 8 year old RV or a 5 year old RV (at end of term)?

Make 1 payment when you buy it . Use the rest of the money for camping food and fun .

In terms of buying new, the dealer's willingness to take a smaller profit increases as the trailer sits in inventory longer and longer. Dealers don't "buy" inventory outright. They have a "floor plan" which is a line of credit usually extended by the manufacturer. This line is like any loan, there are interest charges. Most floor plans offer zero interest for a certain period of time. With many cars (varies by model, season, etc.)the manufacturer gives at least 90 days of interest-free time. If the dealer can unload the vehicle in less than 90 days, they get to keep all the profit. If the inventory ages past the free-interest period, then the dealer is paying interest until it is sold.

Trailers are probably the same. I don't know for sure. I do know that manufacturers need to make new trailers 12 months a year and they can't afford to just stack this inventory up at the factory. So, if my guess is right, they give dealers the inventory interest-free until some time after the "season" starts. This gives the dealer an incentive to stock up early.

The dealer has no real investment in trailers during this time. If they can sell them early, so much the better (the credit line has limits, so if something new is introduced, they want some available credit so they can add the models). You can make the best deals on inventory that is just approaching or is past the time the dealer gets it free of interest.

I know I didn't get the lowest price for my TT, but the dealer has an excellent service department that has worked hard to make things right for me. It's worth the extra money to have that. After all, problems come up when you want to be using the TT. Having a dealer that makes sure you get back on the road quickly is worth a lot.

Great info folks. We went to a show this weekend and did some internet searches. Found pricing differences of up to $6000 on new, identical units in the under 23k range. Crazy stuff. 1/3 off "MSRP" price does seem to be a decent measuring stick. We are going to full time most of 2015 so a warranty, even if short, might be worth going new for us. We won't make our purchase until July-August of this year at the earliest.

SprinklerMan wrote:
The novelty of new wears off a lot quicker than the payments do .

While true, payments for a $12k 5yr loan vs. $18k 5yr loan. Still a payment if that is the route chosen to "pay". So does one want to pay payments on a 8 year old RV or a 5 year old RV (at end of term)?

Go for used , why? After you bring it home its a "used " trailer . The novelty of new wears off a lot quicker than the payments do .

The term MSRP, in most other industries, stands for Manufacturers Suggested Retail Price. In the RV world, that MSRP number is set by individual dealers. It is based on what the dealer actually pays for the unit, dealer installed options, shipping costs, and dealer mark up (profit margin). Some dealers are a little more greedy than others. Manufacturers have little to nothing to do with RV MSRP's.

You could see twenty trailers, all the same make / model / options, at twenty different dealers, with twenty different MSRP's, and they could vary by as much as 10 - 15 thousand dollars.

X2.
My wife was the book keeper for a Skyline RV/mobilehome dealer some years back. This particular dealer was a high volume dealer in the southwest. Due to their high volume they were offered a lower cost price per unit than "some" other dealers. No one but the dealer and his financial mgr knew the price the manufacturer cut for the dealer. Non of the sales people knew the actual cost the dealer had in the unit.

Oh sure the dealer and the manufacturer used the old at or below some type of invoice price gimmick such as factory invoice or dealers invoice or in some rare cases a MSRP number of some type. Folks like to hear their getting a 25-35 percent off a MSRP or some type of invoice price.

We always buy used units. Many RVs (not all) can loose 1/3 of their value the first couple of years

Amen to this. I look at various dealers on line for my particular trailer, Koala 21CS, even now. I've seen as much as 7-8K difference in each dealer's "MSRP" for this trailer. In other words, at some dealers, a 30% off "MSRP" would result in paying more for the same trailer that 25% off "MSRP" would at a different dealer.

The RV world is almost unregulated. If you do not do a lot of research before hand, the dealer can definitely gig you.

westend wrote:
There's nothing hard and fast about MSRP or dealer invoicing. You need to become your own horse trader.

I notice the advocates for buying new trailers always buy new so are assuming there will be problems with a used trailer. I would assume that a previous owner chose to do diligent maintenance to preserve the value and worked out any major issues during the warranty period. RV's are just like cars, they're only new until driven off the lot. After that, they're all used.

There's nothing hard and fast about MSRP or dealer invoicing. You need to become your own horse trader.

I notice the advocates for buying new trailers always buy new so are assuming there will be problems with a used trailer. I would assume that a previous owner chose to do diligent maintenance to preserve the value and worked out any major issues during the warranty period. RV's are just like cars, they're only new until driven off the lot. After that, they're all used.