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Author Topic: Downsizing...need pricing advice  (Read 1770 times)

Mc2guy

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Downsizing...need pricing advice
« on: August 24, 2010, 10:25:39 AM »
This topic came up in another thread, but I felt it warranted a new one.  It seems life, as it always seems to, has changed our plans a bit.  The Mc2guy family is growing again (yeah!), and pops (me) is now in a full time executive MBA program at Georgetown University (Hoya Saxa!!!).

Unfortunately, the combination of events and corresponding time and financial implications, has us considering a downgrade from our Sightseer 35J to something more cost and time friendly, like a pop-up or small hybrid trailer.  Frankly, I really don't want to pay for depreciation on the Winnie knowing I won't be using it much for the next few years.
 
Recognizing the discussion of RV sales and pricing has been has been a very active one lately, I thought I would solicit the advice of the forum on a) process, and b) pricing.

First, the process. 
I have sold a ton of cars and am very familiar with private sales, but this seems a bit different.  We have an outstanding note on the RV, so obviously there is going to be a title issue to deal with.  My thought is that the buyer will send the funds directly to the Lien holder (a recognized national lender), and the lien holder will release the title upon fulfillment of the loan.  How can I make a buyer feel comfortable with this process since the title may take a few weeks to arrive?  I would be fine with an escrow company or any other arrangement, but I'm more concerned about making a legit buyer comfortable with the process.  I am interested in your suggestions.

Second, the price. 
I am not naive enough to believe that I will be getting dealer retail for my 2009 unit.  I have priced it using NADA Used LOW Retail.  The ONLY options I have added (even though I have added a ton of extras) is the in-motion satellite I had installed last year.  Keep in mind, the unit is in "like-new" condition, with basically zero wear and tear on the interior or exterior.  The low retail price is a full $18k less than the average retail price.   Any thoughts on this approach.  Is this price a fair starting point? Notable additions that I have NOT priced would be (6.5" Integrated Magellan GPS, Brake Controller, Upgraded 32" LCD, additional 22" LCD/DVD in rear, 4-corner ride-rite air springs).

I will probably be listing in the next few weeks.  Fortunately, we are comfortable financially, so this is not a short-sale, nor do we have to dump it immediately for any liquidity reasons.  We can be patient, but I would like to move it within the next few months.

Anyway, thanks in advance.

Christian, Jenn, Holden, Emerson, and Fletcher
2015 Forest River Sunseeker 3170DS
2008 Winnebago Sightseer 35J (SOLD)

BernieD

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Re: Downsizing...need pricing advice
« Reply #1 on: August 24, 2010, 10:41:25 AM »
Christian

Take a look at the NADA values for 1,2 and 3 year older models and see what the depreciation would approximate. You have already seen the biggest depreciation hit and, with the RV market seemingly coming back a bit, it might be less costly to hang on for a while.
Bernie & Marlene Dobrin
Home is Goodyear, AZ
Missing our Travel Supreme

Mc2guy

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Re: Downsizing...need pricing advice
« Reply #2 on: August 24, 2010, 10:50:11 AM »
Christian

Take a look at the NADA values for 1,2 and 3 year older models and see what the depreciation would approximate. You have already seen the biggest depreciation hit and, with the RV market seemingly coming back a bit, it might be less costly to hang on for a while.

I guess it all depends on the market today vs. tomorrow.  I would like to see what kind of response I see today and we can always pull it off the market and sit on it for a while.  The simple fact is it is not going to be used AT ALL for at least two more years, and I can't justify the depreciation (or finance charges) for that period, even with the shallower slope of depreciation during that period.

Also, I am not so confident that the RV market is in a sustained comeback.  Unemployment and foreclosures are trending up, and if that trend continues...who knows.
Christian, Jenn, Holden, Emerson, and Fletcher
2015 Forest River Sunseeker 3170DS
2008 Winnebago Sightseer 35J (SOLD)

FrontrangeRVer

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Re: Downsizing...need pricing advice
« Reply #3 on: August 24, 2010, 11:38:04 AM »
Christian....you have absolutely priced it right!   

On the subject to paying for depreciation.....you will pay for it for paying your payments monthly or selling it and paying for it now......Personally, I would keep the unit and pay the payments.   :)  If you have no intention of RVing for "two years", why even buy another type RV then? 

I have bought/sold motorhomes, cars, and motorcycles on Ebay, and use lots of pictures, and a non-refundable deposits many times.  When you hold a note, the buyer might want to go down to the bank with you in person and pay off the loan, and then the title will come to the seller in about 2-3 weeks.  You can then sign it and send to the buyer.  There will need to be some trust on both the seller and buyer side, and that is all in the transaction....let them know up front how this works.  I'm not a big believer in Escrow companies, but if the buyer would be more comfortable using them, I would be willing to assign one to the transaction.

There is no easy way to get the title other than pay off your note (in person is always better and more comfortable to the buyer) and wait for it to arrive.
« Last Edit: August 24, 2010, 11:41:05 AM by FrontrangeRVer »
2015 Winnebago Forza 34T
2 toads, depending on purpose:
2012 Jeep Wrangler Rubicon
2005 Hyundai Elantra

Mc2guy

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Re: Downsizing...need pricing advice
« Reply #4 on: August 24, 2010, 12:18:55 PM »
Christian....you have absolutely priced it right!   
Good, glad to hear that I'm on the right track
On the subject to paying for depreciation.....you will pay for it for paying your payments monthly or selling it and paying for it now......Personally, I would keep the unit and pay the payments.   :)  If you have no intention of RVing for "two years", why even buy another type RV then? 
I probably won't buy anything for at least a year or two, and then it will likely be smaller.  I would like something my wife can drive/tow and operate on her own if needed.  She's not comfortable with this one (despite two years of training).  "Paying" for depreciation will not occur if I sell it.  I have already paid for the depreciation to this point, but once the asset has sold at today's value, future depreciation is on the new owner.  Further, finance charges on the debt are a "sunk" cost and I'll never get that back by holding on to it.

I have bought/sold motorhomes, cars, and motorcycles on Ebay, and use lots of pictures, and a non-refundable deposits many times.  When you hold a note, the buyer might want to go down to the bank with you in person and pay off the loan, and then the title will come to the seller in about 2-3 weeks.  You can then sign it and send to the buyer.  There will need to be some trust on both the seller and buyer side, and that is all in the transaction....let them know up front how this works.  I'm not a big believer in Escrow companies, but if the buyer would be more comfortable using them, I would be willing to assign one to the transaction.

What are the transaction costs on Ebay like?  The note is held by USAA, a large, non-profit, well capitalized and respected bank; however, they do not have local branches.  The transaction will have to be done via electronic transfer or mail.  Of course, they are very helpful and can be on the phone to walk someone through the process or speak directly with the buyers bank.  They are great to work with.   I hope that escrow isn't necessary, but I'm willing to do what will make folks comfortable.

There is no easy way to get the title other than pay off your note (in person is always better and more comfortable to the buyer) and wait for it to arrive.
Christian, Jenn, Holden, Emerson, and Fletcher
2015 Forest River Sunseeker 3170DS
2008 Winnebago Sightseer 35J (SOLD)

 

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