Buying from a dealer

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Ov1guy

Member
Joined
Aug 22, 2017
Posts
5
I am interested in a new trailer. If I was buying used, I could go to NADA to get some values. How can I determine values for a new RV? On new cars, I can find out how much a car cost the dealer, tranportation costs, etc. Then I can make offfers from there. How do I figure out what to offer for a new RV?
 
I use a National Dealer Search via RV Trader, and Google Search to find pricing. I am looking at a new 2018 Dynamax that is listed at 364K, the dealer dropped the price to 266K without even a discussion. Also I ask for the Build Sheet, and the MSRP Sheet, which will give you an idea of where the dealer wants to be. I expect to be a bit lower than what the dealer offered, it's just numbers until you write the check... :)

The Motor Home I have now was discounted 28%, my first coach was discounted 40% but it had sat on the dealer's lot for a bit more than 900 days.
 
To compare prices on new, try looking at RVT and RV Trader. Both sites list new. Be aware that if you are trading, there's a good chance that a certain dealer may give you a higher price than others. Then there's their add on fees. The bottom line is you need to look at the "out the door" price when all the secret math is complete. Don't fall for extended warranties, upholstery protection, exterior protection, etc. There just isn't enough costly items on a trailer to necessitate the need of an extended warranty, the interior protection is no better than spraying it yourself with Scotchgard, and the exterior is probably no more than a spray-on wax.
 
Thanks guys. What I see when I look at Dealer ads for new RV's is a rediculously high MRP and then the dealer's asking price at about two-thirds the MRP. But I know the dealer's asking price has a good profit margin in it. I want to know what it is. It is out there to be had for autos; I can find out almost to the exact amount how much a dealer paid for a new car. But I see nothing on the internet to help with RV dealers. Can I expect to get 20% more off the Dealer's asking price? 15%? Help.
 
So you find out the dealer's cost. Then what? They have no obligation to sell it to you just because you know what that figure is. How much over their cost (what they paid plus the markup they need to run the business) are you going to offer?
 
I don't see where knowing the dealer cost helps much, since there is no well-established margin that dealers use to cover their expenses and make a profit. They probably pay somewhere around 60%-65% of the MSRP, if the figures you are looking at are an actual Manufacturer price. Since Rvs don't have a federally mandated "window sticker", the price list you see at the dealer lot may be fabricated by the dealer and include add-ons and fees of his own choice.

Experience has shown that RV dealers typically offer to deal at something like 12-14% below the real MSRP, often terming that price a "RV show special" or "today only" discount price.  However, you may be able to negotiate discounts as deep as 20-30%, depending on a host of factors, e.g. the dealer's sales volume that month, seasonal demands, manufacturer incentives at bigger RV shows,  etc. Smaller dealers sometimes have cash flow problems that push them to make deals simply to get some money in the bank or reduce their floor plan costs. It's a highly variable situation and not at all like the car dealer market.

Make sure you compare based on out-the-door pricing, with all delivery & prep fees included. Some dealers quote lowball prices but add back fees for every little thing needed to actually complete the sale paperwork and make delivery. Those can add thousands to the bottom line.
 
Butch54 and Gary,
Thx for your comments. It was asked what knowing the dealer's cost would do for me. It is a way to figure out how much he will sell for. The last new cars I bought, I was able to determine the dealer's cost, how much the transportation fees were and what factory incentives, if any, were available to him. With that number and with the date of the purchase I could refine it more by taking the prime rate and doing the math to estimate how much the dealer has been paying in interest on his loan on this particular vehicle. The salesman needs to make at least a couple hundred bucks to maybe a 1000, depending. So now I know what the dealer has into the car and have taken care of the saleman. So now I would make a guess at what the minimum amount of profit the dealer will accept. As you mentioned, later in the year they are more willing to drop their profit. In the fall, when the new models are just around the corner, I have secured cars and trucks for as little as $200 dealer profit. This is probably not new to you. But the information on what the dealer paid is the starting point and it is available on the internet for cars and trucks. I cannot find this information for RVs.  I was asking if some of you know where to find this information.
 
Don't kid yourself, dealer holdbacks are not reflected in published nor are special allowances made for particular dealers. The difference can be several percent and to quote one dealer friend of mine "my mother doesn't get that".

Ernie
 
The financial parameters of a car dealership are pretty well known and the "invoice price" can be determined, but that is not the case for RVs. And as Ernie says, car dealers can often sell at or near invoice and still make a few thousand because of things like holdbacks, marketing incentives, and kickbacks for reaching sales goals or model targets.

Higher volume RV sales outlets act somewhat like car dealers in that they strive to make volume sales daily and cover their monthly overhead that way, but smaller dealers generally require a larger mark-up to meet expenses. If you only sell a rig or two each week, or maybe even each month, you cannot take a really steep discount unless they have some other revenue to make up for it.

In any case, you can make some estimates and by all means should be an educated buyer, but don't be surprised if some dealers play hardball.  Be prepared to shop nationally, or at least regionally, if the lowest possible price is your main goal.
 
Quite frankly and I don't mean to offend anyone but the dealer's financial information is none of our business. If you find something you like look for something comparable at other dealers keeping in mind the factors Gary mentioned then make an offer. All they can do is counter, if you can't meet somewhere then start walking. I used to have people tell me they knew what we paid here's an extra hunnert bucks. I told them to p**s off so politely they actually looked forward to the trip. ;D
 
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