randco wrote: Dealer has a used vehicle on his lot with a price on it for $150,000.
That asking price is purely subjective and may or may not have anything to do with its worth. You must know what exactly they are asking $150,000 for and what the true value may actually be. In any normal circumstance, even in today's market, the dealer is not going to be stupid enough to ask $150,000 for something he actually is willing to sell for $75,000. That only serves to run people off. In today's climate the dealer is actually more likely to offer units at a lower asking price in order to attract traffic. You cannot sell unless you have lookers.
The book value shown to consumers tends to be 15% higher then 'market'.
IMO!
Jim@HiTek Have shop, will travel! Visit my travel & RV repair blog site.
1994 Fleetwood Bounder
Cummins Diesel, 190HP, 36.5'
Black Rock Lava Park, Nevada
There was another thread that talked about taking low NADA price and cutting that in half......well, as I said in that thread GOOD LUCK! Let me be clear about one thing....if you are looking at a coach that is 10-12 yrs old that might work. BUT, if you are looking at a coach that is one or two years old it certainly is not FAIR nor is it REASONABLE. Case in point, My '06 Vectra bought new in '07 has a low NADA number of $177K (be sure to read what "low retail" means. That being the case if you took 10% off that number and then cut it in half that would mean your offer would be around 79K.....Good luck with trying that method on a one or two year old coach.
Do your homework, look at many coaches, drive them, check out the floor plans, get prices from various sources (there are alot of coaches out there for sale) and then make your best offer. Most salespeople are not stupid and if you are making a 10% less 50% offer they will certainly know you are not a serious buyer and will treat you accordingly.
Jim , MJ & Spirit of Sambuca Bear
2006 Winnebago Vectra
Jeep Liberty Toad
Yes, I agree. That's why the posters that said "offer them half" seemed to far from reality.
I have been trying to utiize all of the tools you mentioned.
If NADA less 20% or 30% off of Low retail is a place to start then so be it.
I am guessing but, I think if a dealership has a posted price of something near Low retail,they probably have about 25% wiggle room under Low retail, if they want to make any profit on the sale.
The book value shown to consumers tends to be 15% higher then 'market'.
IMO!
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That number is not entirely accurate. The guide published by the NADA is a theoretical depreciation schedule with little or no actual real time market input. Anyone can order the same guide as the dealer and there are not two different ones actually in print.
There are so few motorhomes produced and ultimately sold that unlike cars and trucks, there are no transactional analysis available. Easily an entire year could go by without a single sale of a particular year and model of motorhome taking place. At any given time a particular model listed could be over or under valued by the book.
A dealers evaluation of any used motorhome is highly subjective and can vary widely from dealer to dealer. It is much closer to an art than a science. Often the book value is quoted by an appraiser simply to give him something tangible to justify his decision. He is usually equally likely to be wrong as right. Much of his decision will be made based on previous experience and what he feels he can sell the unit at retail for.
randco wrote: Yes, I agree. That's why the posters that said "offer them half" seemed to far from reality.
If NADA less 20% or 30% off of Low retail is a place to start then so be it.
Until you start making offers, it's all conjecture. I grew-up with a guy that rushed into a Lincoln-Mercury dealership to buy a new De Tomaso Pantera in the early 1970s. He offered them over MSRP to insure he could buy the car he wanted. Some people have no idea of what comparable-pricing is, and for them, they haven't done their homework yet in my view. Get on the Internet, then get on the phone and find out what will work and what will not work in pricing. Not making offers insures you will probably pay too much for any given rig. Dealers realize everyone wants to feel like they got a deal, even if they didn't. That's why offers are so important to begin the negotiating process.
I sold a 32 year old vintage motorcycle through Craigslist last week. I paid $1,900.00 for it 14 months ago. I sold it for $2,980.00. I had asked $3,150.00 for it, and had agreed to $3,000.00 in cash with the buyer over the phone. He only had $2,980.00 with him in cash when he arrived to see the bike. He asked if I would take $2,980.00? I answered, "yes." I counted the cash, signed the title, and we loaded the bike into his pick up. You have to give a little, especially when you are selling, to try and make the customer feel good about the deal.
* This post was
edited 07/18/08 02:04pm by Skid Row Joe *
JALLEN4 wrote: A dealers evaluation of any used motorhome is highly subjective and can vary widely from dealer to dealer. It is much closer to an art than a science.
If this is true, how do we, the consumer know what a reasonable price is?
Skid Row Joe wrote: Get on the Internet, then get on the phone and find out what will work and what will not work in pricing. Not making offers insures you will probably pay too much for any given rig. Dealers realize everyone wants to feel like they got a deal, even if they didn't. That's why offers are so important to begin the negotiating process.
The problem is that I am trying to put a "stake in the sand." When I look on the internet I can get a zillion diffenent prices for the same vehicle. Everyone wants a different margin. I'm sure that if I were financing a vehicle the bank would tell me a vehicle is only worth "x" number of dollars. I'm not saying that the NADA is the bible, but I hope that it is something I can somewhat rely on. If additional tweaking is necessary than I will adjust when I make an offer.
randco wrote: If this is true, how do we, the consumer know what a reasonable price is?
The only way as a retail customer is to comparative shop, and ask a lot of questions from different professionals in the business, then weigh these things out in your own mind. This is not always easy to do on used units. Especially since the unit you may want at the better price is located hundreds or thousands of miles away. Buying anything with the input of professionals in the business of selling that particular type of unit you want, is crucial to learn market pricing on that type of unit.
Rick, if your not in a hurry I'd wait until this winter when sales or slow and the light bills have to be paid! This will be the best winter in years to buy with the economy down and people cutting back on there expenses. The pickings will be ripe with all the inventory in this upcoming winter market. John
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