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 > Determining Fair Market Value For A Used Motorhome

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JohnnyT

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Posted: 04/13/05 11:56am Link  |  Print  |  Notify Moderator

There are a great many on the forum that have either bought or sold a used motorhomes... I would invite you to add your insights based on your experiences.

Trying to figure out what the fair market value is for a used motorhome is difficult to do but there are sources of information to help you along. cwdavis did a great deal of research in preparation to buying their used motor. The information is summarized in this cwdavis thread which also contains links to the supporting data and analysis. While not a quick read I urge you to take the time to digest the information…

If you want to get the best deal buying a motorhome, or realizing the market value for one you are selling then you will need to invest some time to gain the proper insights.

Variables affecting value
The age and condition, the popularity of the manufacturer, the features and options. The number of comparable units in the market, and the motivation of the seller.

Information Sources.

NADA Online Guide (Free)
NADA Appraisal Guide (Fee $105)

These guides will give you everything from wholesale trade to the MSRP when new. While helpful, all the numbers reflect an assessment of those values and not a condensation and summary of actual reported prices.. Basically they are derived using expected percentage ratio's. However the Appraisal Guide is what dealers, bankers, and insurance agents/adjusters will use as a reference point.

Used prices

Trade in value
The best place to determine this is the NADA Appraisal guide (Fee $105) which will give some insight into the starting point for the dealer.. Using value listed in the appraisal guide the dealer will evaluate your coach and factoring what the expense will be to get it ready to retail, including the cost associated with marketing, interest expense and expected time to turn the unit over. If the unit is such that the dealer does not feel they will sell in a reasonable time near market price then they will be looking at wholesale and subtracting the costs associated with turning the unit over. In all cases you should expect that the dealer will be looking to make a profit on the traded in motorhome. If you are offered a trade in value significantly above NADA wholesale: chances are good that the price on the new unit you are buying will have been raised commensurately.

Setting a value for selling
There are two issues, what price to list for, and what is the market value that you should have a reasonable expectation of getting.. There are a host of online selling services . Spending some time to see what comparable coaches are listed for will give you a good sounding on where to set the asking price . Try to find coaches that are a close match to yours in terms of mileage, floor plans, options, and condition. I would also look at the NADA on line site. My reading of the two numbers that are shown "average retail" and "Low Retail: Is that Average retail is akin to MSRP and "Low Retail" is basically the discounted market price that includes a margin over the NADA Guide’s wholesale price .

Setting an asking price on the low end of the range of comparably priced units will give you less room for the inevitable negotiations but it should generate more responses to your ad. If you set your asking price too high you do have more room to negotiate but you will generate less calls

Determining how much to pay
The are a multitude of subjective concepts at work here.. The motivation of the buyer, the popularity of the particular motorhome, and the numbers of comparable units on the market... There is nothing that is going to establish a finite price in the end since its what a person is willing to pay and what a seller is willing to sell for.. If I were in the market for a used coach I would start with the NADA low retail price and adjust upward or downward.. Upward for a coach in high demand that is a perfect match to your requirements I would take into account those options and features that you want enough to pay for and not include those that are not a match. We are talking about your valuation so if there are option you do not care enough about that ought to be reflected in what you offer.. I would discount downward for any excessive wear or items in need of repair or replacement...

Final thoughts and suggestions
There are some very good detailed analysis including data collected in the cwdavis thread that is worth the time to read and ponder whether you are trying to set a value for purchase of for selling.

Here are some very good suggestions on where and how to sell your coach. Best Way to Sell Your Motorhome
Here is a thread that will offer some pointers as you start your shopping.Buying A Used Motorhome Here are Some Thoughts For First Time Buyers
I think it would also be helpful for buyers to also read through the thread about selling.

JohnnyT

JohnnyT

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Posted: 04/13/05 11:58am Link  |  Print  |  Notify Moderator

I want to give cwdavis a speacial thanks for taking the time and effort to post the results of his research, and also for inputting to the post above.

JohnnyT

ckjfam

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Posted: 04/13/05 12:15pm Link  |  Print  |  Notify Moderator

Thanks for the info as usual. One of the frustrating parts of ownership is getting rid of the old rig while taking the smallest hit.


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ckjfam

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Posted: 04/13/05 12:16pm Link  |  Print  |  Notify Moderator

You should set up a permanent thread with this post.

hasbeen

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Posted: 04/13/05 12:24pm Link  |  Print  |  Notify Moderator

Something is only worth what someones willing to pay, dictated by economic conditions. If interest rates were 12%,there would less of a financing market but buyers with cash will get a super deal.

I feel that NADA guides, the free one, list a pretty decent range under good market conditions for buyers & sellers.

Condition, features etc will determine coach's value but that is taken into consideration in NADA.

We have sold both our coaches that were two years old at NADA average retail or just slightly under without any problem at all. We could have held out for more $$ but my objective is to sell it not play dealer. Also if the buyer wants to bring the magnifying glass then we need to sell it at high retail.

It once once said " You Can Be Land Poor"

Fishinghat

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Posted: 04/13/05 12:32pm Link  |  Print  |  Notify Moderator

JohnnyT, cwdavis did an outstanding job, as did you, in researching and then reporting the findings. Awesome! Thanks!


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Ivylog

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Posted: 04/13/05 04:15pm Link  |  Print  |  Notify Moderator

Having read cwdavis's post on values several months ago and I use NADA low retail without any options as a good price for a well kept DP. I agree with ckjfam that this should be a permanent post. Johnny T, where do you find the time to do all of this for us? Thank you for a well run forum!


This post is my opinion (free advice). It is not intended to influence anyone's judgment nor do I advocate anyone do what I propose.

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gonesouth

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Posted: 04/13/05 06:22pm Link  |  Print  |  Notify Moderator

Ditto! The work that JohnnyT and Bill Davis do for this forum is simply amazing. My hat is off to both of you. If either of you is ever in Nova Scotia, stop by for a free meal and place to park. I owe you way more than that.


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JohnnyT

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Posted: 04/14/05 10:48am Link  |  Print  |  Notify Moderator

This post will not become a standalone sticky, however a link to it has been placed in the Moderators Corner.

If any of you have suggestion relative to how to improve the content of the post they would be appreciated.

JohnnyT

ronjwil

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Posted: 01/21/06 10:34am Link  |  Print  |  Notify Moderator

Johnny T,

I'm in Warwick. Any recommendations on where to start shopping for a used RV. Campers Barn in Kingston is the only good size place i know of. Thanks
Ron

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