Looking at buying our first TT - been reading where folks say to make on offer of 25% below MSRP on new trailers. What is the mark-up on new trailers and what about that 25% below MSPR offer. Any info appreciated.
I've read many times that markup can be between 30% to 10% discount. It all depends on the "availability and demand" of that TT year/brand/model in one's specific buying area.
And, one's final buying prices also depends on time of year (demand influence), if TT already has existing discounts (like seasonal discounts), if you plan to trade your existing TT with a new purchase, included options, etc. etc. All these items "influence" your final asking price - compared to the TT's listed "suggested selling price".
BTW: Include all the options your need for your TT, then start asking about final price. And, also leverage your custom "bundled package" discount influence as well. In other words, take suggested selling price but include these many expensive "optional / needed supply" items as well. Always focus on final "customer Out-The-Door" price. This is what one always tries to lower.
Try starting at 35% and see what happens. I'm looking at a trailer now and the dealer I went to said $23,000, I've been shopping around and have found the exact trailer advertised for $16,900 without even trying to bargain yet.
I am not sure what the exact mark up is, but it must be substantial. Dealers very often sell between 25% and 33% below MSRP depending on inventory, make, etc. But I would say that 25% is a minimum and a very good deal on some units. Now, given those discounts, they are still making money, so you know the markup is more than that. Someone else may have more particulars on hold-backs, and margins. In my own experience (2 TT's, some people will chime in with more experience), the first one I got at 36% off MSRP (dead of winter, end of a month, good sales rep who needed that last sale); and my second I got 32.8% off MSRP after a lot of leg work.
2007 Holiday Rambler Aluma-Lite 8310S
2010 Ford F-150 5.4L Lariat Crew Cab 3.55 Rear, Tow Package, Integrated Trailer Brake Controller.
Me and My Better Half, with 3 Kido's
2nd RV and loving it!!!
The question to answer first is how to define what is the true MSRP. Every dealer has a different number. Our TT ranged from 23,500 to 31,750 MSRP for the same unit across board. We paid much, much less than the lower figure and the dealer still made money. Ask to see the dealer invoice, you will be amazed at the mark up.
I have made my best deals by getting the salesman (commision) out of the way, dealing with an owner if possible, and by ordering a unit as opposed to taking the one on the lot.
Find a floorplan that you like. Look at several brands that have that floorplan. Do your research here and on other sites. Check Rvwholesalers and rvdirect to get an idea of what a good deal is.
Negotiate the base price of the unit and try to get added options at cost. The middle of winter is a slow time for many dealerships and they will sell new old stock much cheaper than they would have last spring.
Don't get too caught up in getting the best deal... just find one you like and a dealership you like make an offer your comfortable with....
Once you make the deal QUIT looking at prices because you will find one that is cheaper five minutes after you sign the deal.
The dealer I bought mine from I have got to know well,,when we bought our unit he was just starting and hungry,, what he did was laid out his invoice on what he paid for it plus frt. that's what I paid and he still does it that way,,,, He said its possible to do it because his manufacture gives him a 2,700.00 kick back so a 28,969.00 msrp,,, invoice 19,952.00 = $9000.00 mark up,,,, plus a 2700.00 kick back his cost 17252.00 he makes 15% minus prep time 1/2 a day,LP,battery & box,install hitch # brakes and the walk through 1/2 a day. This is for a cash sale no trade in.....He also gives me cost on any RV parts for a year,elct. jack 125.00, tire covers 40.00, ac cover 20.00, And he gets a A+ on sevice.
* This post was
edited 08/25/07 09:58am by trailer folks *