Leftovers

[Fred and Nit]

I've often wondered "What happens to all the leftover model year coaches?"  I see a few previous year coaches with reduced prices, but very few two and three year old (new) ones.  They can"t possible have all been sold.  Same goes for cars and trucks.  Where do these vehicles go?      ???

 

[Tom]

I assume they eventually get sold. The longer they sit unsold, the more incentive for the dealer &/or manufacturer to offer a better deal.

 

[Gary RV_Wizard]

There aren't all that many leftovers in the first place. The manufacturers don't pre-build or keep any inventory at the factory - every coach built is ordered by a dealer somewhere. And the dealers have a lot of incentive to move the rigs on their lots - the carrying costs are far to high to have them sit around indefinitely. 

 

[John From Detroit]

Motor homes are normally built to order, there is no "Stock" to speak of.  Only the displays the dealer has.

So there are not many "last year's models" cause the only way that would happen is 1: Display and 2: Someone defaults before delivery

(I sent my monthly payment this morning)

 

[BruceinFL]

I bought a "new" 2004 model fifth wheel (actually manufactured in summer 2003) in early 2005. The model I got was virtually the same as the 2005 model with only minor differences. I bought it as a new RV with a full new RV warranty and at a substantially lower price than what I would have paid for the 2005 model.

 

[Clay L]

There aren't all that many leftovers in the first place. The manufacturers don't pre-build or keep any inventory at the factory - every coach built is ordered by a dealer somewhere.

Gary while your statement is basically accurate, please note that Winnebago does build some inventory - as much as 20% at certain times (as when sales are down). They build them with a popular load of options and a dealer can get rapid delivery if he accepts one of them.

That's what we were told in Sep when we visited the factory.

 

[Tom]

Clay,

That comment would appear to be supported by the recent experience of a friend. His dealer volunteered the fact that Winnebago was offering $25K incentives to buyers so dealers could move the leftovers. Yes, he bought and received the additional discount.

 

[blueblood]

Actually most manufacturers do build inventory if for no other reason than to level production and get long lead time components on order. A daily build rate is set and orders for supplies are put into motion. What the manufacturer hopes is that he can replace the dummy build order with a firm customer order before it ever goes into line. If he has good forecasting information it works; if he doesn't he can get the top brass fired as was the case with the relatively new CEO at Fleetwood who failed to cut back soon enough, inventories bloated and the company failed on its loan commitments thus triggering a lot of financial negatives.

A relatively new (2003) is the RV auction where both new and used RV's are sold. Kruse International of Auburn, IN ran the first one in October 2003. Dealers wanting to move stock do the same as car dealers i.e.take them to auction. An even more recent and unique kind  of development is the wholesale auction of RV's  being run by the Penn. Recreation Vehicle and Campground  Association.

 

[Albslb2]

Having formally been in the auto and rv sales as a salesman and later a sales Mgr., ?there are always leftover models in each brand. Now whether it be at the dealers or at the factory, they are there. ?It all depends on the dealer as to how he wants to handle it. Some dealers would not tell you about the extra discount or maybe give you a lesser one. Yet again their may be perhaps as many as 2,3 or 4 more discounts that he could be getting. You'll never know cause he's going to get as much from you as possible. ?Throughout the year dealers are given incentives to sell various vehicles. Some pass it on others do not, yet may place a spiff on one as an incentive for the salesmen to sell and push a given unit. ?So much goes into the pricings of vehicles, it's unbelievable. ?Heck some vehicles can be sold at a dealers actual initial costs and they can pay commissions and yet make a very healthy profit. it's all how much the dealer is willing to take compared to how much you are willing to spend or somewhere in between. A good deal is not always the cheapest nor the highest. ?A good deal results in if you and the dealer are satisfied at the end result and you are Happy with the unit. ? If ?one individual pays ?$300 to 500 more than the other and is happy with his or her unit and would recommend the dealer, the service and the performance of the unit, he got a good deal. ?But on the other hand if the guy buying to lesser price is dissatisfied and despises the unit, the dealer and/or the service, then he got a bad deal. ?Sometimes the dealer, the service, the unit, and/or the individual may be at fault, sometimes it's the combination. ?All have a variety of ways to look at things. ?Heck I even saw many people bringing others along with them to pick out a unit. Now what the heck is the tagalong going to pick out, something that you like or something that he or she likes. ?Don't make sense to me and it's ok to get an opinion, but the final opinion is up to you. After all who is going to use and pay for this unit , you or them?  Sometimes you can't always ger or buy exactly what you want, whether it be due to availability, color, equipment, price ?or whatever. Too many variances to have a set pattern for doing business. ?That's why, get opinions, look, price, decide and then go for what you decide on and the heck with what others think, cause the only one you have to satisfy is you and you alone. ?Hope I didn't confuse anyone but only my opinion from both sides of the sale, Well 3 sides, cause I'm a buyer too. ?Good Luck and Happy Motoring.

 

[Tom]

Thanks for sharing the dealer's perspective on the sale.

Hope I didn't confuse anyone

Not me. Your message was very clear.

 

[blueblood]

Thanks for sharing the dealer's perspective on the sale.

Not me. Your message was very clear.

In my experience, the description works on brand new current year vehicles whether a car, truck RV, etc.

In fact, I bought a carThursday night. The salesperson, who works solely to get health insurance and thus is willing to forego the hard sell to gain high commission,  said that the dealer gives the salemen $200 even if the deal is a breakeven. How do you make money doing that  ??? ???  He's got a new 10 million dollar facility to pay for and lots of overhead. It's the advertising set asides, dealer holdbacks, etc.  it would seem.

 

[Tom]

Leo

I think it's public knowledge that, in the auto industry, there are always large dealer kickbacks/holdbacks. As you say, a dealership couldn't survive on no-profit deals.

 

[blueblood]

Leo

I think it's public knowledge that, in the auto industry, there are always large dealer kickbacks/holdbacks. As you say, a dealership couldn't survive on no-profit deals.

Yes and to reiterate its no different with RV dealers.

I was President of Teledyne Monarch Rubber in 90's and a Tier 1 supplier to all US automotive companies. As such I got an inside look at what a real dealer invoice contained. I hadn't seen one since I left until this deal on Thursday. The pricing right now is nuts -in favor of consumer. October sales were off around 25 % after employee pricing buying binge. So, last Tuesday and right up until Friday cash discounts were going higher and higher. I had a call from a GMC dealer on Thursday offering me a new 06 Yukon for $13,000 off MSRP if I'd buy it this weekend. The Chrysler guy combined a bunch of stuff and gave me 15%+  below a valid invoice (it included all the holdbacks, etc).

 

[Albslb2]

All a bunch of malarkey about the new discounts.  Those are all come on.  If you can buy a 40K auto at the end of the year of the year, for 26K you can buy it at the beginning for the same or very near. The vehicle costs the dealer the same.  The rebates to the dealer and the bonus packages to the dealer all depend on the factory allowance top dealers for selling X numbers of vehicles.  I sold vehicles under ACTUAL invoice, that the public never sees, and made plenty of money for the dealer.  These factory discounts that just ceased  All BULL.  We bought on 01 Lincoln Town Car MSRP 49K for 37K less the 5K discount at the time less 3K for demo listing however it wasn't used as such Less 3500 for employee discount, Via Sister-in-Law. The dealer still made money.  The factory wasn't giving any thing on the last factory discounts  You could have gotten that much knocked of the price any time of the year  That's all just wording.  I never trade a vehicle.  Always buy out right.  Sell my old unit and barder, barder, barder. When you trade all units traded to the dealer is at Wholesale or less. No 2 cars exactly alike are worth the same value. Sometimes you are far better off buying a used unit, with all the bugs removed, and for much less $. Again, look at what you can buy a 1 or 2 year old unit in comparison with a new unit.  An example a used Lincoln  is 5 times the car a new Ford or GM product is and less $, yet on the open road you can get 15 to 18 mpg on them. But then that is your choice  and no one Else's.  It all depends on the dealer his used stock as well as his new stock. If he has 1 or 2 units similar to yours and they aren't selling, run like hades cause yours is worthless to you.  Why would he want to sink bucks into a unit that isn't selling.  Besides his assessment of your vehicle is only his opinion. A Dealer near us (25 miles)  will sell you a Ford #49 over invoice and be thrilled.  However is that the TRUE INVOICE, I bet not.  So you'll never know, just shop until you feel you have the right deal and you are happy and go from there.  OH I never deal with a so called salesman, they are only order takers and have no authority. I do have that knowledge of knowing who is who and they know me so that helps me but unfortunately not others.  Also sometimes dealers will even sell for less if you finance. I've done that and then paid it off in a month or so with no penalty.  You've got to watch your peas and Q's there too.  If the DEALER knows you have the CASH--Boy does that talk......  Again hope I haven't confused anyone and sincerely hope it helps you in selecting your dream vehicle. Remember no one can satisfy you but you.  And price isn't always the answer, but it sure as heck helps. Happy shopping and motoring with lots of luck.

 

[Albslb2]

Sorry for taking up all your time. I'll stay off the soap-box now. And of course this is only my Opinion and everyone has to do things their way.  If we all did things the same, they'd find another way to deal.  Agian good luck and happy motoring, but if you should see an RVer broken down on the side of the road it sure wouldn't hurt to stop and see if assistance is needed. Maybe it just takes a phone call.  Besides if might be me and I sure hope it's none of us.

 

[Tom]

Sorry for taking up all your time. I'll stay off the soap-box now.

LOL not a problem. It's actually quite entertaining and informative. One suggestion - why not split your single long paragraph into several shorter ones. That would sure make it easier to read (for me at least).

Off my soapbox now  ;D