Nascar24
Blackstone Valley, Massachusetts
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Hi
If a RV manufacturer has a posted MSRP ( yes some manufacturers do) you can figure that there was a 35%-42% mark up for the original dealer when it was sold new. So when "New" the dealer recieved this unit from the manufacturer he paid between $78K- $88k and typically would mark it up to meet is profit & overhead margins.
With all that said, it sounds like your dealing with a typicall salesman who's telling you anything to make you believe the price he's asking is what the MH is worth. He's on a fishing expedition and don't go for his trowling tactics!
I'd look up the actual loan value on the MH , with the major options and see what the number is, I bet that it is no where near what he's looking for. Remember its only worth what the market will bear and in today's market seems to be what people can borrow on a given unit and nothing more, especially whereas banks are so upside down in their own holdings.
As far as NADA values and how they are determined, it's mostly done through dealer reporting. Any good dealer will only report units that sold on the high end, so when there are less reports and with only high resale prices the values are definately skeewed in the upward directions. These reports are voulintary and it's in the large dealerships best interest to report in this manner because typically the are done on a regional basis then averaged.
Another approach is to do a little math and see what the pay-off would have been based on MSRP less 35%,( 25% discount+ 10% original down payment) less a amorotized payment would be X the number of months old it is, that will get you close to what the dealer has into it, unless they rolled some of the pay-off into the financing of a new MH.
IMHO if its a gas job it's probably worth in the neighborhood of $65K - S72K if the original MSRP was $135K, and you can certainly buy a new gas job maybe not as fancy for that and thats another leverage point you can consider when negotiating.
If it's a diesel you can try to use the same logic but I believe an entry level diesel's are still bringing near the $100K new.
* This post was
edited 08/19/08 06:17am by Nascar24 *
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Nascar24 A lengend in my own mind, A Scary thought in someone else's!
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kemdignam
FL
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How do I find the original loan value of the MH?
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Clay L
Sioux Falls, South Dakota
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Although NADA automotive prices are based on information from member dealers, that is apparently not true for RVs. Perhaps because it's a much smaller market.
See this THREAD for a discussion about the subject.
Clay (WA5NMR), Lee,(Wife) Codi, Brandi (Shelties) and Damncat (damn cat)
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kemdignam
FL
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This is really great information. Let me know if I understand this correctly:
MSRP told by dealer - $134,900
Their offer - $95,000
Looks like a really good deal, but...
If I run the NADA on the unit it has (with no options entered - only current miles):
Low Retail - $94,708
Average Retail - $114,103
Based on the article in the post above, the Average Retail is 33% higher than the 'wholesale' price, which means the dealer would probably have paid around $86k for the unit. It says that the majority of purchases, if I understand correctly are only about 5% above wholesale which would put the average sale price for this unit at $90k.
Is my math correct? I want the dealer to be able to make money in the sale, but I also feel like it is a buyers market right now.
Thank you so much for all of the information.
Karen
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WTTCS
freedom , U.S.A.
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If you buy anything at NADA prices, you are the loser. In some parts of the country NADA is 20percent too high and in some parts they are 40 percent to high. When someone mentions NADA and MSRP prices, grab your wallet, cause they are going to get it before u do.
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RVnTrout
Arkansas
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The only useful info the NADA book has is the "Used Trade-in" amount. That's the amount your bank or the dealers bank look at for financing. The loan value determines the approx resale value...the great unknown.
The "Suggested List" (original m.s.r.p) and "used retail" are the worthless numbers in the book. "Used retail" in the book is the same number you see as "avg retail" at nadaguides.com.
The loan values drop approx 5.5% on Sept 1st. That means the customer most likely would have to pay an additional $6,600 down to buy a coach that sells for $120k. That sux for the customer and the dealer.
If you're seriously interested in buying a used coach, I'd do so by 8/31/2008 if a higher down payment is a problem.
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kemdignam
FL
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Why do loan values drop 5.5% on Sept 1st? Why would a loan value drop without corresponding price drops?
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sawdust_128
NC
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kemdignam wrote:Why do loan values drop 5.5% on Sept 1st? Why would a loan value drop without corresponding price drops?
It is the end of vehicle year. Everything manufactured after that date has a vin number code that puts it to the next model year. Look up vin decoders, you will find many detailed explanations of the VIN coding system(s).
Sawdust_128
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butkus21
On Galveston Bay
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Joined: 02/22/2004
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If you really want to know the value of the rv, call your lending institution and ask for the "black book" price. Don't rely on NADA pricing alone.
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RVnTrout
Arkansas
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kemdignam wrote:Why do loan values drop 5.5% on Sept 1st? Why would a loan value drop without corresponding price drops?
The NADA book is updated 3 times a year. Loan values are good for four months. The current NADA book expires 8/31/2008. The new book will be good from 9/1/2008 till 12/31/2008.
To arrive at the 5.5% I randomly picked a 2006 Motor Home from the current book and figured the percentage of drop from the same coach in the Sept-Dec book. Like I said, it sux for the customer having to pay more down and for the dealer being limited to who he can sell the coach to since a higher down payment will be required. If the dealer took the coach in during Jan-April and hasn't sold it...he'll be dealing with two 5%ish loan value drops.
As for the black book post...a used RV MUST be in the NADA book for the dealer to get bank financing. That's what "your lending institution" will look at for financing.
For your 2nd question...if you go into nadaguides.com and write down the price you see today for "low retail" then check the same unit in Sept, you'll see a lower price. Everything goes lower but the dealers cost.
* This post was
edited 08/20/08 11:11am by RVnTrout *
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