How inflated are NADA pre-owned values?

[Wiscampsin]

DW and I are considering privately selling our 2013 Sabre 34REQS-6. I looked at NADA and clicked on the factory installed options I could. Some like solid surface counter tops, Beauflor flooring, 6000lb axles, etc were not listed. Still it came up with a average retail value of $45,930. I know NADA is only a guide. I checked RVTrader and they came up with $44,608 with no options selection. I googled and found values from 26,900 to 41,775 across the country. I don't want to look like an idiot when listing it. Knowing its only worth what people are willing to pay back to my original question, just how inflated are NADA and RVT values?

[MtnGuy]

On the list of options, do not include anything that came standard on the trailer. Furnace, fridge, things like that. If there was an upgrade, then yes, check that. Any options above the base model can be checked.

[AquaMan]

It's better to get an idea of what similar units are selling for off of different sites, rvtrader, craigslist, etc. I found that NADA was off and I could almost buy a new unit compared to what they had listed for my 3yr old 5er. They were also just slightly lower than what I paid new. When I saw that, I didn't put much faith in it.

[MtnGuy]

Originally Posted by AquaMan

It's better to get an idea of what similar units are selling for off of different sites, rvtrader, craigslist, etc. I found that NADA was off and I could almost buy a new unit compared to what they had listed for my 3yr old 5er. They were also just slightly lower than what I paid new. When I saw that, I didn't put much faith in it.

Agreed.

I plan on using the NADA price as a guide. I will probably price about $1000 lower, then advertise it as "$1000 below NADA"....what a sales pitch !!

[Wiscampsin]

Originally Posted by MtnGuy

On the list of options, do not include anything that came standard on the trailer. Furnace, fridge, things like that. If there was an upgrade, then yes, check that. Any options above the base model can be checked.

That's exactly what I did, only checked the options that weren't standard items.
Still confused on how it came up so high.

[Bowhnter]

The buyers will probably be looking at the other end (trade value) for making offers.

When I just worked out our trade it was no where near the NADA high end value.

[PenJoe]

Our experience when selling several large items, including a slide-in, car, and boat, is that the NADA book has been low. AquaMan has a great suggestion. Check craislist.org, RV Trader, etc-and don't ignore the dealer's prices. If your unit is in excellent condition, you should get a good price. Something priced too low is likely a scammer.

We have had the best luck selling on Craigslist.org. The key to success is having your item looking as good as it can. Polish the outside and detail the inside. Take as many pictures as you can post, and write a very detailed description-very detailed description. Our view of this has been, if we show interest, it purveys to the buyer. The buyer will take the time to read a "book", but will quickly move past the one sentence ad.

I would suggest pricing it a couple thousand over what you are willing to take-people like to negotiate. I would not refer to NADA, but I would have NADA and comps handy when showing. The question would be, "If your selling below NADA, what's wrong with it or why do you have to sell low?" Never use OBO.

When showing, they have the info in the ad. If they didn't bring it with them, have one handy for them when they walk through. Aside from demonstrating special features such as slides, let them loose to look without interruption-people resist being shadowed by someone trying to oversell. Tell them they are free to look around and you will be outside in case they have questions. When they have taken a look, ask them if they have any questions. You may bring up a few key points they may have missed, buy again, don't try to oversell.

You may get an offer that it tempting, but lower than you would like. Counter with a thousand more than your target price and see where it takes you. If they walk away, you may still have them on the hook once they think it over. Be polite, but don't be afraid to say, "We appreciate your offer, but we have to pass". Time and again we have had people try to talk us down. At times we have said to a customer, that the next people through the door will pay the price. This is not a lie, they do.

Case in point. Last year we sold a 3 yr old boat with very low hours. We took the time to thoroughly detail, removed a noticeable scratch and buffed it out. It was showroom condition. We priced it $7,000 over NADA because that was the market. One couple looked at it and gave an offer lower than we expected, but $3,000 higher than NADA. They walked away. Another buyer from across the state came, looked at the boat and we agreed on a price of $5,000 over NADA. While writing the receipt, the previous lookers called back. We advised that we were writing the receipt. They asked if we would take the full price and we said that we had agreed with the buyer on price and would honor it. Both parties were aware of the NADA figures.

We have sold two other large items in the past 2 days on craigslist. One of the items within 5 hours of posting. One party lives 35 miles away and the other rented a trailer and drove 147 miles (one-way). The craigslist competition was stiff on both items available much closer to them. So why did they come? Lengthy description, and a lot of pictures. Do not exaggerate the condition.

Other tricks that work. High ticket items require three things: key search descriptors; time to touch the right party; and keeping the ad up front. Once you have posted the ad, do a site search on any words you think people would search for. Those words have to be in your ad for it to key in. For instance, "Yard tractor", "Riding Mower", and "Riding tractor" will not yield the same search results. If all three are in the body of your ad, any of those 3 searches will yield your ad. Finally, keep your ad up front. Every Friday, we delete the ad, then immediately re-post it. This keeps the ad at the top when people have more time to search. It also eliminates the time stamp of a stale ad. By delete/re-post, your ad appears once and will not be flagged as an over-post.

One other subscriber to this blog took this advice and posted a slide-in on craigslist. Within a month, they posted a thank you and said they sold the camper.

[Mr Havercamp]

Take the "low retail" number from online NADA, and subtract about 10 to 15%. That is what you can expect to get selling privately. That is if you want to sell it without screwing around in a reasonable amount of time.

Now if you want to try and get top dollar which is not the "Average retail" (You're not getting that forget about it) but falls somewhere between low and average, be prepared to probably wait awhile for that right buyer to happen along, and no telling how long that is going to take. It could take quite awhile and while your waiting remember those NADA numbers change often and they never go up. Time is money.

A dealer will get that middle number easily because he can offer some BS limited warranty or throw in some trinkets. People think they are safer with a dealer, which we all know not to be the case.

Rough trade or wholesale value, take the low retail and subtract 35%.

These are investments that the return always will be in brackets.

[Sharps45120]

We just listed our 5th wheel and I thought the NADA was exceedingly high. It is a 2013 Chaparral, and with all of the options checked off, the retail was $50k. A more realistic price was the $35k it gave without all of the options, and that is the number I set as my asking price.

[pinkstonj]

Good Question and replies.

[bikendan]

Where many make the mistake, is to add value for things that come "standard".
Like the a/c, microwave, entertainment center, oven, water heater, tv, awning and so on.

Those items are always in most RVs, but sometimes are in "packages" that are actually standard. So they don't add "option" value.

[BusyRetirees]

Ha. That's a good one. NADA overpricing. Under pricing is more like it. As far as I'm concerned, they do not have a clue about RVs and base their prices like they would a car or truck. As previously stated in the threads, check RV Trader, Craigs list, Kijiji and local prices for your model and price it appropriately. That's what I did and sold my Class A for thousands above the NADA price.

[silverback 35ts]

Pricing new or used have always been and will always been VERY regional, so if two brands came up with a very similar price thats whats it's worth.
You also need to realize that different models will have different resell values?
Hope this helps Happy Camping

[Wiscampsin]

Thanks all for the help and insight.

[SilverbackMel]

Being very familiar with books such as BLACK BOOK or NADA, just remember they are GUIDES....bankers use them as a tool to establish loan risk along with YOUR PERSONAL CREDIT HISTORY! They ARE REGIONAL IN NATURE.
You can use these tools as well as SOLD experiences you can find. ASKING PRICE IS NOT THE "SOLD" PRICE.

[gandb26]

Excellent advice Pen Joe!

[scotrvmarine]

NADA derives it's numbers from what we dealers submit to them quarterly. Year make model and the sold dollar value. Clicking any options (real options) throws the value off. The options tend to help the unit sell but no one wants to pay for the options on a used RV. The trade in number is slightly higher than what a dealer can buy the trailer for at a dealer only auction. The retail number is the average of the reported sold values for that particular trailer on a dealers lot with a warranty, state inspection and repairs to put it in proper condition. This means some sold for less and some sold for more.

[friendofacatahoula]

When we started searching for a new TT last year, several of the dealers we spoke with said they use NADA pricing for trade in values, using the wholesale price and then retail at the average retail price. We are in Canada so they would take the US price and convert it. A few of them sight unseen told me what they would give us for our trailer based on NADA for a trade in.

From there we searched around for used trailers for awhile then this year decided to throw ours up for sale to purchase a new one. I used the NADA retail and sold it within 4 hours. Sure as mentioned pricing can be regional but I do find for us, with the conversion and our crappy dollar to work in our favor so I would believe their pricing to be on par South of the border as an average.

[SilverbackMel]

CONDITION; CONDITION; CONDITION!

If any dealer EVER gives you WAY MORE than you expect, sight unseen,
It only means you are paying on the new side. THINK ABOUT IT. They have overhead and profit to maintain to stay in business.

A traded unit well maintained is going to re sell FASTER than an uncared for unit. Dealers know the drill.

The KEY is not to undervalue what you have and pay top dollar on the new side.

Having bought many cars over 50 years and been in that business, I often paid MORE for a clean, non damaged, no recalls unit. Very few disappointments, lots of enjoyment!

[PenJoe]

Originally Posted by scotrvmarine

NADA derives it's numbers from what we dealers submit to them quarterly. Year make model and the sold dollar value. Clicking any options (real options) throws the value off. The options tend to help the unit sell but no one wants to pay for the options on a used RV. The trade in number is slightly higher than what a dealer can buy the trailer for at a dealer only auction. The retail number is the average of the reported sold values for that particular trailer on a dealers lot with a warranty, state inspection and repairs to put it in proper condition. This means some sold for less and some sold for more.

I understand that NADA has to have some standard to set prices. However, they are continuously looking at stale numbers. And, can the dealers skew the numbers? That's the numbers they will be using for trades.

In SW Florida, I checked the NADA before selling a boat. The numbers were very low considering the condition of what we were selling. So, Internet sites were compared to include dealer offerings. The vast majority of like items were well above NADA. We sold the boat $5,000 over NADA figures and two parties wanted it very much. Both competing buyers were aware of the NADA figures. Yes, area is a factor, but that was taken into account.

We sold a Lance slide-in camper in Wisconsin and went through the same process of setting price. That unit sold well above NADA.

As a rookie real estate agent, my first comps were for the court, so I was very careful. Over a year later, the power of attorney contacted me and said they were listing the property. But they were suspect of my comps compared to two other real estate companies. Double checked and verified with the broker, I stayed with my figures. I thought I had lost the listing. But then I got a call that they were going to take the chance.

First day on the market, two buyers looking at the same time, and two cash offers. But one was a full price plus. The home sold. At closing, I asked the POA how I compared with the other two. The POA was very happy that she cleared more money after taking out agent and closing fees than the other two were going to list it for. We were initially working of the same comps.The other agents wanted a low ball and quick sale approach. I wanted the best price for the seller and the buyers were still very happy. You have to think outside the box.