Used RV Dealer Negotiation

[KandT]

Any tips on how to negotiate with a dealer after I find an RV I am interested in?

I am interested in:

1). Determining a fair price for the RV (I looked at RV NADA but have heard that isn't as accurate as cars)
2). The best approach to take for negotiation
3). I don't have a trade.  Most dealers mark their equipment up so they can show you a better deal on the trade.  Any ideas on how to negotiate without a trade?
4). I don't need financing.  Most equipment dealers make money on financing but then lots of people cant get financing.  Is there an advantage to me making a cash offer and they can be done quickly with that end or do I let it drag on and then at the end say I will just pay cash.
5).  Humbly ask for any other ideas. 

The RV is in the $60-70K range and is on the Ford chassis.  It is a 2011.  I have heard that when buying new you can usually get 20% off pretty quickly.  When I take the manufacturer's suggested retail and multiply by 80% I get $105K.  Seems like it should have depreciated more than to $65K by now.  That is only about 40% depreciation in 8 years.

Thanks all!!

 

[SeilerBird]

What I would do is tell them exactly what I would be willing to pay for it in cash. When they turn you down then tell them that's ok, there is another one at another dealership that is cheaper and better and then try and leave. Odds are they will be calling you within five minutes with a better offer.

 

[Gary RV_Wizard]

There is no magical method. Shop around and develop a feel for what similar year/type/size RVs sell for. Selling prices are less than asking prices, of course, so apply some windage to advertised prices from dealers.  PPL Motorhomes, a consignment dealer for private sales, lists the actual selling prices for the RVs it has  handled, so that's one good data point.  NADA is helpful, but not a Bible of pricing as it is with cars.  An RV is more a house than a vehicle, so condition and popularity are major price factors.  At the end of the day, it is whatever it is worth to you. I'd be more concerned about getting the right size & layout of RV and prime condition than in squeezing the last dollar from the deal.

Dealer pricing allows for both trade & discount - they know that buyers love to see large numbers for both. It doesn't make any difference in the end - you offer what you feel the RV is worth to you, not some percentage of the asking price.


https://www.pplmotorhomes.com/sold-rvs

 

[Isaac-1]

As mentioned there is no one method, it also depends on the type of dealer, is this a unit they took in on trade, or one they bought at auction, or even a consignment sale. 

As to depreciation over the years, a lot has to do with condition and how it was maintained, buying a used RV is not like buying a used car, used RV's need careful inspection, particularly inspecting for signs of water leaks and hidden wood rot.

With a 7-8 year old car, you can look at mileage, obvious wear and tear (dents, dings, interior),  insure the oil has been changed regularly, and you are probably good.  Such methods DON'T necessarily work with RV's.  So a 2011 coach that is well maintained, stored under cover, etc. may well be worth the asking price, vs another one that was not maintained, stored outdoors, had roof seals fail, and was driven on salted roads in winter slush, ... may be on the verge of a trip to the junk yard.

 

[Koodog]

Do your research.
Check RVtrader and rvt.com. for similar models. PPL has already been suggested.
An informed buyer is a wise buyer.
As has already been said, it's worth whatever you're willing to pay.
Cash is king. Dealers make a bunch on financing and add ons. I personally don't buy from dealerships as I've found prices to be high and quality RV's to be low.
Happy shopping.

 

[Koodog]

What I would do is tell them exactly what I would be willing to pay for it in cash. When they turn you down then tell them that's ok, there is another one at another dealership that is cheaper and better and then try and leave. Odds are they will be calling you within five minutes with a better offer.

X2.
This actually happened to me. I flew into Oregon to look at several specific models I was looking for. I test drove one at a dealership and informed them that I flew in and was buying a MH to drive back in.
I made them an offer on one, which they said they could not accept. This was fine as there were 5 other dealerships to visit plus 3 private parties. They called me within an hour and said they would accept my offer. Too late for them. I had just purchased my MH from a private party which had fewer miles, was in much better shape and was $23K less.

 

[darsben]

What I would do is tell them exactly what I would be willing to pay for it in cash. When they turn you down then tell them that's ok, there is another one at another dealership that is cheaper and better and then try and leave. Odds are they will be calling you within five minutes with a better offer.

I am with SeilerBird.
I never negotiate.
Find what you want. Determine the MAX you are willing to pay (You should be doing this even if you negotiate). Go to the dealer with your name, address and phone number on a card just greet the salesman and tell him you are looking at units give him your first name if asked. Find the unit you want and thoroughly look it over ask the salesman to leave while you look the rig over. This will entail looking at the roof to make sure it is whole(check caulking) and getting on your knees and inspecting underneath, look thoroughly around for water leaks in the ceiling  and on walls etc for signs of water intrusion.  Check the date on the tires.  Now find the salesman and hand him the card. Say the following I am willing to pay $?*?*? OUT THE DOOR,THIS INCLUDES ALL FEES, TAXES,  DEALER ADD-ONS I am willing to give a deposit today and will pay the rest AFTER the rig passes MY PREDELIVERY INSPECTION. I will not dicker the answer is either yes or no. If no I intend to leave and go shopping at another dealer. DO WE UNDERSTAND EACH OTHER?
IF the offer is rejected then leave immediately. Do not listen to the salesman abba dabba and his offer to sit down and talk about it. Talking with the salesman WILL NEVER LOWER THE  PRICE.
If offer is accepted then when signing contract. A) make sure the bottom line price is as you stated. You do not care very much how they divide the price up, but the price you pay should be what you told the salesperson. Next give a small deposit about $500 ought to do it. B)Make sure the contract states in writing that you will pay the balance after the rig passes an inspection by you or your designee (Do not listen to the BS that the place does a thorough predelivery).  If it gets to the point where you are picking up the rig there are many checklists for predelivery. Do not pay untill all deficits are fixed CORRECTLY
Let us know how it goes and then we can tell you what to look for when doing your predelivery

 

[Gary RV_Wizard]

Your feet are your best bargaining tool. If you don't get the price you want, walk away.

 

[SpencerPJ]

You can always raise your price, but you can never ask for more off after you've agreed.  I low-ball Dealers, don't care if it insults them, I have checkbook in front pocket. Start off 40% off, split it and settle at 20% off.  Ask to see what they gave on the trade... They'll never show that, but let them know, you know, that they all are still making money. The last days of month, seems manager bonus is tied to monthly sales goals.  Private sellers, I treat much more humane, but still, do your homework and know your walking price.  It's like going to Kohls without a coupon, who does that  .  Good luck  )

 

[Isaac-1]

When I was shopping for my current coach, I found it very difficult to work with dealers at a distance when I was interested in a specific brand and model.    The salesman would often try to do bait and switch tactics, when I called about a specific advertised model, they also would gather NO additional information than was listed in the ad.  For example at one point I was interested in a used coach that was for sale at a major Florida dealer (about a thousand miles away), and I wanted to get them to measure the exact height of the coach as I needed to clear an existing roll up door for my storage shed.  I called 5 times over the course of a week and spoke to 3 different salespeople, and could not get anyone to measure the actual height on the coach.  I could possibly understand them not wanting to  go out and measure it is it was during the middle of the summer in Florida, but this was in October. 

I ended up buying my current coach, which was also in Florida from a private seller 2 weeks later.

 

[Koodog]

When I was shopping for my current coach, I found it very difficult to work with dealers at a distance when I was interested in a specific brand and model.    The salesman would often try to do bait and switch tactics, when I called about a specific advertised model, they also would gather NO additional information than was listed in the ad.  For example at one point I was interested in a used coach that was for sale at a major Florida dealer (about a thousand miles away), and I wanted to get them to measure the exact height of the coach as I needed to clear an existing roll up door for my storage shed.  I called 5 times over the course of a week and spoke to 3 different salespeople, and could not get anyone to measure the actual height on the coach.  I could possibly understand them not wanting to  go out and measure it is it was during the middle of the summer in Florida, but this was in October. 

I ended up buying my current coach, which was also in Florida from a private seller 2 weeks later.

Interesting...
I had the exact same thing happen with PPL on a motorhome.

 

[Gary RV_Wizard]

It's odd but RV sales people rarely seem interested enough to put in some extra work to win a sale. Especially over the phone. They will run around in circles on the sales lot, plying you with coffee and water and maybe lunch, but call or email to get some specifics and you get a run-around or ignored altogether.  I actually had a sales guy call me and ask if I was still interested when I was still waiting on him to get me some further info!  Very low professional standards, in my opinion.

 

[Isaac-1]

I suspect that the problem is that RV salespeople much prefer to sell to uninformed buyers, those people that only look at the color of the upholstery, as it is so much easier than dealing with the people that ask the hard questions like, does it have the optional larger gas tank, or what is the chassis GVWR...

 

[Roy M]

I worked as a commission salesman for a few years so I empathize with them. I simply couldn't spend time chatting on the phone when I had people on the floor with their wallet in hand. 90% of the calls were a waste of my time, bored tire kickers or shopping around for the lowest price and free delivery. If you want me to take you seriously come in and we can talk.

 

[ennored]

As seemingly "bad" as NADA is, if it was taken in on trade, it's what the dealer used. I'd take 80-90% of NADA low retail as what the dealer has in it. The difference between that and $65K ought to be the bounds to your negotiations.

Random 2011 NADA valuation example attached. Original MSRP $132,500, low retail, $48,700. Dealer would probably offer about $40,000 on a trade. Since average retail is $58,650, I could see them asking $65,000 for it.

 

[Isaac-1]

Roy, and this is part of the problem, someone that is shopping for a particular hard to find unit, does not want to buy a plane ticket and fly half way across the country in order to use a measuring tape for 30 seconds.

 

[Gary RV_Wizard]

I'm sympathetic about the tire kickers, but that's the vehicle sales business.  You have to talk to a lot of potentials to actually make a sale, whether walk-ins or phone/online.  You get bargain hunters both ways.  Further, if the RV sales guy has hot buyers on the lot, he is not taking phones calls - he's out there with them. They are at their desk when they need buyers.

Figuring out who is serious and who is tire kicking is the bane of every sales person. Successful ones figure it out and the rest move on to some other career.