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Old 01-19-2016, 03:22 PM   #1
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Who set the trade-in values?

I am curious who it is that sets the trade in values for each unit.

I see some models lose 25-30% the first year, some (same brands) more than 50% , and it seems like it is all over the map.

Who is actually responsible for these numbers? Is it the banks, the manufacturers?
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Old 01-19-2016, 03:53 PM   #2
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NADA for one

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Old 01-19-2016, 04:48 PM   #3
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NADA for one

Yep, the dealers set the values.
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Old 01-19-2016, 05:00 PM   #4
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And trade-in values can be skewed by the price of the unit its traded for. One dealer may discount the new unit substantially and offer a much lower trade vs the dealer who gives a higher trade in allowance but doesn't discount the new unit. Some of the variation in trade-in value could just be how its written up. The same out the door price might have 2 very different trade-in values.


I car dealer I know told me he sometimes writes deals so that the selling price of the new vehicle is high NADA retail and he bumps up the value of the trade to offset that because it yields a higher "down payment" by the buyer in the bank's calculation when he is trying to get the deal financed.
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Old 01-19-2016, 05:08 PM   #5
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It also has a lot to do with market trends. If a particular model is a hot seller in the new and used market, you can generally get a little better trade in.
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Old 01-19-2016, 05:19 PM   #6
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Kind of depressing, I can see 30% but not over 50%.
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Old 01-19-2016, 05:30 PM   #7
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NADA protects their formula like its the Colonel's secret recipe.

I can tell you for a fact, one of our higher line units had a lower trade in value (per the NADA book) than the lower price unit after one year and its because they screwed up the numbers. They ended up fixing it in the next book....but they are not without their mistakes. Dealers typically know what a unit will get at auction and can normally catch that stuff, but not always.
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Old 01-19-2016, 06:20 PM   #8
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Basically the NADA the dealer uses is a rip off. They give you what it says its worth then turn around and sell your unit for 5 grand more. Later RJD
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Old 01-19-2016, 06:26 PM   #9
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Flippin numbers is all their doing!
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Old 01-19-2016, 06:36 PM   #10
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In the dealers defense, risk is expensive. They take on the risk of the unit not selling, they take the risk that it is not as nice as you say it is.

As with anything, sell it yourself and there are no worries, but if you want to trade it in...know that the next buyer will want it to be perfect and theres a good chance they have to put money into it to sell it. Also because you are not a dealer, if you sell it yourself whoever buys it will not want to pay you what its worth because they think they can get a "good deal" off you.

I'm not saying I agree with the system...just that it is the same way with cars too. In most cases they are not trying to rip anyone off...just cover their ices.
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Old 01-19-2016, 06:44 PM   #11
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That's why I have NEVER done a trade-in, RV or auto/truck.
It's a losing deal.
Have always sold them myself and got way more than any trade-in.
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Old 01-19-2016, 07:10 PM   #12
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Kind of depressing, I can see 30% but not over 50%.
A sharp buyer that is willing to shop the internet when buying new can usually get 30-35% off the "list price when buying. Others pay close to or what the dealer is asking. Trading it in a getting 50% of the new list price could easily happen when trading it in when it is a year old if the unit you are buying is heavily discounted...
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Old 01-19-2016, 07:12 PM   #13
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MSRP 2015 FR Vibe 268RKS. ~$33000 Trade value ~$15000

That's messed up.

My dealer told me it was the manufacturer who set these prices, that's why the initial question.

I just went and looked at same year for sale units. New is being advertised at less than used ones.

That sounds like a manufacturer discounting to me. Which in turn really screws up the used market.
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Old 01-19-2016, 07:19 PM   #14
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Except that one should easily be able to purchase that new for around $23,100 (30%off) or less with a little negotiating from the right dealer...
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Old 01-19-2016, 09:38 PM   #15
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If its any help....
I had a 2013 puma 5th wheel that we ordered in 2012 and took delivery in july of 2012. In may of 2013 we took it in for warranty work and it was hit by hail. I talked some numbers with one of the owners that i an friends with.

Msrp of our unit was $33-34k, we got the unit for $25k even with our b&w companion, so actually a little over $24k for our puma.
The wholesale price (or what they used for trade) for our, now 10 month old unit was $20k and that's what he would normally allow on a "cash" price type purchase (not inflated numbers to sound good). But since our unit had some light hail damage all over, he was going to discount it another $5k.
.....Recap....$10k loss in 10 months. Actually thats pretty reasonable, and heres why. Our insurance ended up saying we had over $19k in damage and they were going to total it. I asked to keep it, but they said they would give me market value and that i could retain it for 50% of market value.

In the end they said market was $25,300 , so i would have had to give about $12,600 to retain. So dealer actually would have payed more than i would have been able to keep it for.

I ended up letting it go, and after my deductible i ended up with a hitch that cost me $200. I was very blessed!!!
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Old 01-20-2016, 04:59 PM   #16
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When I bought my current fiver it was for 28% off of the MSRP. That was February 2015 in Houston Texas.
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Old 01-22-2016, 12:37 PM   #17
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I wanted to trade in my RV at a dealer and obtained the NADA value on-line. When I got to the dealer, he pulled out his NADA book and valued my RV at $35K less than I got on-line. When I asked why the difference, he stated that the on-line version is retail will his was wholesale. I eventually sold it privately and got a whole lot more for it that dealer was willing to give. Another point on trade-in is what you are buying. The higher the unit price, the higher the trade-in value. My personal recommendation, sell it yourself but don't overprice it. Look around and be in the ballpark.
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Old 01-22-2016, 01:21 PM   #18
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Most if not all RV dealers will advise you to sell your rig to see if you can get better than book price and they will even give you a range to look for. Sometimes its just more convenient to trade in and if the price difference is too much try and get them to add things to the deal and be prepared to walk a few times.
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Old 01-22-2016, 03:37 PM   #19
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In my experiences, I have not had much confidence in NADA pricing. The bankers refer to it and the dealers hang their hat on it. It is a behind the desk reference.

Last year, we decided to sell a boat via private seller. Research indicated that the NADA value was much lower than similar boats on the market. Even the dealers were advertising well over NADA. We sold the boat within a short time at 20 percent over "book". A competing buyer wanted to start a bidding war.The buyer was elated, the and second up was not happy. Both parties were aware of the NADA pricing, but they were also aware of the market and had been shopping for some time.

Condition and features are key. We detail everything we sell or trade, even if it is in great condition. On a trade, the less the dealer has to do, the more they are willing to negotiate. If you are trading, bring some comps so the dealer knows that you are savvy.

I would depend more on market conditions than on any price guides. This has proven true for me many times over the years. Use the NADA values as a guide, not a bible.
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Old 01-22-2016, 08:32 PM   #20
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If you sell private.
Don't forget the sales tax that you have to pay on the amount of the trade in when you buy the new unit.
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