NADA Retail vs Trade Value Disconnect

[Jeeper44]

It seems to me that there is no correlation between NADA values when it comes to retail vs trade in value.


I was looking at trading my 2019 XLR Boost 36DSX13 fifth wheel for a class A motor home as my needs have changed and I really don't need a toy hauler any more. I currently have it listed for $39k privately, as the NADA average retail on it currently is about $45k, and the few that are for sale on the various RV sites are selling right around that price. I'm not even looking at the MSRP of $54k because I know that's not realistic.


Today I called the dealer that had the Class A I was looking at to see what they would offer on trade. He supposedly looked up my camper in NADA trade in values and came back and said it was $26k, so the most he could offer me was $24k. I understand that trade in will be less than retail, but almost a 53% discount (using NADAs own numbers) seems a bit excessive. Even using the value guides posted on here stating you should expect a 21% loss as soon as you take it off the lot would still be $10k higher than what the dealer quoted.


Dealerships need to make money, I get that point. But just based on real numbers out there, this dealer stood to make about a $15k profit on that trade if I was stupid enough to take that deal. Needless to say, I'll continue to try and sell it privately and look for another dealership to buy my Class A from.

[bikendan]

The NADA guide is often mis-used, by the dealer and the consumer.
What's often done incorrectly, is adding value for things that are standard or part of a "forced option package".
For example, a 13.5k a/c is a forced option and doesn't add value. But the true optional 15k a/c does add extra value.
The RV Industry has many "forced option packages" that don't increase the RV's value on NADA. It's included in the base price.

[Cabinfever97]

Any item is only worth what you can get someone to pay. When we upgraded 3 years ago the dealer would give us 10K for our TT. He told us he would rather we sell it. Since we ordered our new TT we had the time. We got very lucky and found a buyer the first weekend and it was February. We sold it for 13, was listed for 13.5. Our TT was 5 years old. I see your is a 2019, the newer the bigger the hit when trading.

[Jeeper44]

Originally Posted by bikendan

The NADA guide is often mis-used, by the dealer and the consumer.
What's often done incorrectly, is adding value for things that are standard or part of a "forced option package".
For example, a 13.5k a/c is a forced option and doesn't add value. But the true optional 15k a/c does add extra value.
The RV Industry has many "forced option packages" that don't increase the RV's value on NADA. It's included in the base price.

I understand that and in my case I was using numbers with the only option being a 5.5kw generator and the fueling station. I didn't go with the other options my particular unit has, such as the upgraded 15k A/C, the power bunk, the arctic weather package, etc. The base average retail value for my camper is $41,500. Adding the generator options brings the total up a couple thousand more. Had the dealer mentioned a number closer to 20% lower than retail ($35k) for example then I would have considered the trade. However 45% below average retail is a non starter for me.

[Jeeper44]

So I've come to the conclusion that it's not the NADA that is at issue here but rather a lazy RV dealer. Maybe the demand is so high that they don't have to worry about keeping customers.

First I tried to contact them twice over a couple weeks via their website. I used the standard form showing I was interested in a certain class A and gave the info on my fifth wheel. I never heard back from then. Today I finally just called them, with the intention that if the numbers were close, we would make the drive today to look at the motorhome.

A few minutes ago I contacted another dealer in the area with one of those Automatic valuation tools (powered by nada) for trade value. Based on the year and model it returned a trade in value range from $26k->$41k. That tells me that the first dealer just looked at the bottom range number and then knocked another couple thousand off.

Maybe this new dealer will get my business, maybe not. I do know I won't spend my money at the first dealer I contacted.

[lbrjet]

You need to look at the bottom line price after the trade to compare the dealers deals. And BTW the 21% is not from MSRP it is from the sales price, which I'm sure was much less than MSRP. At least up until this year no one ever paid MSRP on a fifth wheel.

[Oaklevel]

Some dealers do not like to deal with used RVs we had a dealer tell us that. They preferred only to sell new ones and after looking on their lot they had only one used RV. It was priced at wholesale. They did make us an offer on our trade.

The new RVs they sold were priced low too (but that was last year)

Some give more in trade and others instead give more off retail.

[asr524]

I know for vehicles right now dealers are using auction prices for trade in and not NADA/KBB. RVs could be the same way.

[Msgtret]

In some states (like Indiana) under some circumstances, trading in at a reduced price rather than selling outright can save a little money on the tax side. For every $10000 off the final sales price you save $700 on the sales tax. Sometimes it’s a wash.

[nomad297]

When I bought my Windjammer in 2015, I worked out my deal with the dealer and got a great discount before even bringing my five-year-old travel trailer trade-in into the equation. The dealer didn’t even bat an eye at this last-minute “trick up my sleeve” and told me to “Bring it on in”. I based what I thought I would get for the trade off of NADA, assuming I would get a few thousand less than the NADA value. I was very pleased and surprised to get over $4,000.00 more than what NADA quoted.

I love my local RV dealer.

Bruce

[phillyg]

A dealer is always going to low-ball their trade-in offer regardless of book value. Dealers have all the advantage, and hope you're desperate to buy that shiny new object.

[Cabinfever97]

Originally Posted by phillyg

A dealer is always going to low-ball their trade-in offer regardless of book value. Dealers have all the advantage, and hope you're desperate to buy that shiny new object.

Dealers only have whatever advantage you are willing to give them. As for trades. There are so many unknowns. How many clean great condition trade ins do you suppose had expensive surprises waiting for the dealer? How long will the trade sit on the lot? Then after the sale any issues that arise with the new owners need dealt with by the dealer, no backing from a manufacture. Best way is to sell on your own. IMO, Don't want to do that then don't complain about the process at the dealer.

[D W]

Anymore, RV values are like Real Estate with 3 factors, location, location, location.

[pgandw]

Originally Posted by D W

Anymore, RV values are like Real Estate with 3 factors, location, location, location.

As said, RV values vary a lot by region, much more so than cars/trucks.

KBB/NADA depend on reports from dealers of sales of used cars/trucks, with statistically significant numbers reported for each model and model year. It's very hard to get a reasonable sample size by RV model and model year, especially when you really need a good sample size by region, not just for the whole country. RVs, by model and model year, sell in much, much smaller quantities than cars/trucks.

And given RV dealers propensity for honesty as a whole, how many sales go unreported, and how many of those reported have correct figures, along with a correct list of options?

Is it any wonder that KBB/NADA RV figures don't line up with the real world?

Probably a better model is the one used by realtors and assessors - comparable recent sales. The problem for the RV world is that nobody has data for actual selling price, the only public info is the asking price, which will lead to inaccuracy.

Nevertheless, that's why I use when selling boats and RVs - what are others asking for a similar boat/RV? Then see what offers I get - usually I plan on taking 10-20% off asking price for actual sale.

Unlike cars/trucks, it would be difficult to have enough volume selling used RVs to specialize in it. So differentials of $5K between retail and dealer price would be expected.

just my thoughts
Fred W
2019 Flagstaff T21TBHW A-frame
2008 Hyundai Entourage minivan
camping Colorado and adjacent states one weekend at a time

[tomkatb]

Welcome to purchasing a car before 2000.

There are dealers that look in your eyes and decide you are vulnerable and prepare to maximize profit on the new one and burn you on the old one.

Today, supply cannot keep up with demand.

Getting a good deal today might be tough.

We are fortunate two of the discount dealers are nearby.

In the past selling your unit outright usually got you a better deal. But, is a pain.

You have to pay for convenience.

Lie if necessary and say the word finance.

Good luck. Work hard getting prices.

[Palinduff]

Also, dealers take into account what they have in the unit that you are interested in and also the potential demand for your trade.

[Linnemj]

There is a service on line called RV Pricing and Appraisals that has gotten excellent reviews. You pay a fee and they have access to sales data. They will give you an accurate value on the Toy Hauler you are selling. I belong to their Facebook Group. The group is owned by David Lester.

[The Newsoms]

Originally Posted by Linnemj

There is a service on line called RV Pricing and Appraisals that has gotten excellent reviews. You pay a fee and they have access to sales data. They will give you an accurate value on the Toy Hauler you are selling. I belong to their Facebook Group. The group is owned by David Lester.

I have used his services twice. Once for buying and once for selling. I’ve been satisfied with the information he’s provided.

[Ford1]

That NADA pricing has proven to be pretty useless with respect to purchasing RV's. Seems the only ones who are interested in referring to that pricing is the banks! A prime example of that was demonstrated when we were looking to buy a used Rialta a few years ago. The lowest priced unit that we could find was about $18,000. The NADA value for financing was around 9,000 to $10,000. I bought it for $18,000, used it for three years and sold it for $18,000! The NADA book was still $9,000 which is all that banks would loan, but it was in such demand that my $18,000 price was enticing and it was sold within a week. The best estimates come from price searches on RVTrader and RV.com. Also dealers have an idea of which type/brands are hot and which would probably take up space on their lot for a year. When we were searching for our coach a couple of years ago, there was a similar coach available at a local dealer. It is still there!

[Chuck_S]

No connection between fictional "values?" Who'd have thought that?

Prices are what the buyer pays.

-- Chuck