Used Retail Avg Quote

[aufinger]

Recently we've been thinking about getting a new camper with a little bit more room than we currently have. The closest dealer is just 10 minutes from my house. They had a camper there that met our needs and they provided me a quote with trade. I have a problem with the trade quote and I want to get your opinions if what they did was sleazy/dishonest or not. They handed me a NADA Online Pricing printout showing the Used Wholesale Trade-in value as $7,500 and the Used Avg. Retail selling price of $10,850. Ok, the spread between $7,500 and $10,850 is probably somewhat reasonable considering their costs to market it. After receiving the quote, I did a little research to see how much they were selling their used comparable campers compared to the NADA values. Well when I put in my camper, I had the option of getting just the unit's "base" retail value or I could list all the equipment (stove, AC, refer, etc.) and get the total price with the actual equipment included in the camper. Well, when I first did it for the base only price, the Used Avg. Retail price came back at the same $10,850 they quoted. When I redid it a second time but listed the stove, refer, microwave, tv, AC, water heater, furnace and awning, it came back $13,500, a $2,650 difference. By them handing me the NADA printout, I was supposed to believe that was the correct information for my camper when they knew that it was just for the base unit only. I can only imagine how many buyers they scammed this way. I'm glad I did my research because they are off my list of potential dealers.

[Cardinalowner]

I believe the base price on NADA includes all standard equipment for your specific unit. If the standard equipment on your unit includes the stove, fridge, a/c, etc. You shouldn't be adding them as optional equipment. If they are indeed options maybe tell the dealer he didn't include them in the trade value quoted to you.

[bikendan]

I've NEVER done trade-in with any of my vehicles or RVs because the customer always loses.
Just for laughs, I asked what would be the trade-in for my 2007 HTT, to buy our new TT. It was half what I ended selling it for.

[russhd1997]

Cardinalowner is correct, the standard features are included in the NADA price. The TV if you one could be an option that you can add because a lot of trailers only come with the hook up and not the TV. The important thing is how much are they taking off of the retail price of the unit they are selling. If they aren't taking off anything then they are ripping you off.

When I bought my camper used it had a price tag for 24,995 sitting on the counter. The salesman was already down to 20,000 before we even got done looking the trailer over. By the time we were ready to sign papers we had the price down to 18,000 which was about 1000 less than the NADA retail price.

[Cabinfever97]

Personally I would try and sell myself first. If you need to go lower at least you would be giving a deal to a fellow camper. That being said, remember the dealer is a business. They need to make as much money as possible on every deal. Likely most sales will be within industry norms, with a few homeruns and a few losses. When they sell a used RV buyers will expect the dealer to fix any problems they might find. I know, sold as is right. However if a dealer wants to keep a good name they will repair a lot of issues on a used unit. Dont like how trading feels, think you are not getting what you should, etc then dont trade. When we bought our last TT the dealer gave us a trade value but recommended we try selling on our own first. We did and got $3500 more than he could give. He told us he likely could sell our used Springdale but preferred selling new for some of the above mentioned reasons. Good luck!!

[Chuck_S]

You pay for the convenience of a trade-in. And the dealer always wins the game. If you get a high "discount" (note the quotes) from the irrational and fictional MSRP you get a low trade in and vv. Either way you pay the same and the dealer makes money, usually a lot of money.

The high volume dealers (RVWholesalers comes to mind) make plenty of money even at their prices which are typically thousands less than local dealers.

-- Chuck

[Kimber45]

The nada guide is usless when it comes to standards and add ons. if you don't have the original build sheet and paper work you or the nada have no idea what was standard and what was an ad on. Of coarse the dealer is going to offer low and resale high that is what the whole used vehicle business is based on. They are paying out for your unit and hoping to resell it.

[aufinger]

Well I was wrong about my post. However, I'm glad I asked before I took this any further and thanks for the quick replies. There was a Note that I didn't see to select only add-on options. It doesn't make sense to me for them to list the standard items in their list of optional items. I now want to edit out the dealer's name but I don't see an edit option for that.

[bubbles]

NADA, KELLEY, etc. are just guides and therefore any vehicle is only worth whatever you can get for it.

[bikendan]

Originally Posted by aufinger

I now want to edit out the dealer's name but I don't see an edit option for that.

Dealer name edited out. After a few hours, you can't edit your post. You have to request a moderator to edit it for you.

[Chuck_S]

Lots of 1-Star reviews for Campers Inn. Why did you delete their name?

-- Chuck

[Tundra 2014]

If it is in excellent condition, sell it yourself on RVT or other sites. You will come out ahead for your effort.

[PenJoe]

When we were ready to sell our MH, we used the NADA Guide. If you read carefully, NADA starts out with a shell and then adds in everything-standard or options. For instance, if you have a standard 3-burner stove with an oven, there is a check for that. standard size fridge, a check for that, size of the AC, check for that. If NADA figured the standard package as a whole, they would not have these items listed individually. You wouldn't have two stoves or refrigerators in specific units. It would be options only.And each camper does have variables. They use a similar method for motor vehicles. We made a list of any add-ons in excess of those listed in NADA. I'm sure others here will argue the dealer's way.

[formerFR]

a trade-in is certainly going to lower your price you receive for your used camper, but it also affords you the ability to both sell it quickly, and sometimes even roll any left over payments still due on it to the new loan, making for a much quicker and easier transaction.

There will always be those of us who would say that it's 'best' to sell it yourself, but for RVs, unlike cars, it's really a whole different animal. The market is not nearly as large, and since you can't offer financing, I presume, you have to have a buyer who is either paying you cash, or taking their resources to a lender to purchase it with a loan, which is typically a check from that lender directly to you. That lender, though, may be someone you've never heard of, and a risk should the check not be honored, or you have to have the customer 'wait' so many days for the check to officially be cleared. Either way, it's not a great situation. All the while, this postpones your new purchase, since it probably is contingent on your sell, first.

Another positive is that you are minutes from your dealer, from the trade, and very close to those you are transacting with. If the price is fair, feel comfortable doing the deal, and knowing that they are a minute or two away, should something need to be handled under warranty, etc.

[rmac04401]

Options: could be AC, stove, refrigerator. AC standard would be 13500 btu but option be 15000 btu, standard frig 6 cf option 8 cf, stove standard 18” option 21”. So you need to look at the ratings on those items because you may have those as options if you have the bigger. AC also standard is 1 unit but option could be 2nd unit.

Bottom line on trading is if you feel good with numbers do it, if not don’t.

I have friend that did not trade his in when he bought used. He still has the other RV. It’s 1 year later and he is NOT asking a high price.

If you compare retail prices of both your trade in and potential new used one you want to buy across the nation and use those numbers to make your decisions out should be good.

When I traded last year my new one was well below MSRP and also most local dealers, I also got a good price for my trade in, just go in educated on prices and be prepared to walk away if you don’t get the numbers where you want. Good luck.

[KNMIB]

I agree with tmac, do your homework and tell them what you want for trade and what you'll pay for new. If the bottom line pleases you buy if not walk. It is all about the end number sometimes it's a lot for trade or extremely discounted price. Once again bottom line. I try to trade because I dont want to fool with selling. Maybe I win and maybe I loss but at the end of the day I will like the deal or not buy. Safe travels to all.

[dieselbobcat]

When trading in or trying to sell on your own, it is easy to just see the numbers in front of you... "I was able to sell it for $3000 more than the dealer was willing to give at trade..." Don't forget about the sales tax benefit to trading - depending on the value of what you are trading, this can be substantial and sometimes forgotten/overlooked.

If you look at the sales agreement for your next RV (auto transactions are the same here in NJ as well) you pay sales tax on the purchase price or financed amount... this is the selling price of your new vehicle less your trade... the sales tax savings in this situation here in NJ is 7%.

So your current unit is "worth" 7% more bottom line as a trade than if sold on your own. Depending on the trade value, this in addition to the convenience of flipping out of one unit into the next might be worth it to some.

So the "$3000 more than the dealer was willing to give as trade..." on something with a trade-in value of $15,000 is actually closer to $2000 once the sales tax is accounted for.




As far as the NADA or "book" values go:

Have been actively researching this topic for the last few weeks... you can access the NADA wholesale value for your trade by getting a free 30 day trial to the NADA Connect RV pricing guide here...
https://www.nadaguidesconnect.com/

This will give you access to the "behind the curtain" magic number that dealers go to. The above-mentioned statement about options is correct... they don't count and frankly, the dealer doesn't care when working out a wholesale number.

The other way to get to a trade-in value which falls roughly in line with the above NADA wholesale guide is to take the low retail number listed in the public NADA guide and deduct 7-10% off that...

[Cowracer]

NADA is one of the biggest scams going.

Notice that NADA stands for National Auto Dealers Association. Who's interest do you think they have in mind when they generate their figures? Ill give you a hint; Unless you are an auto dealer... It ain't you.

The only true value of something is what price the market will bear, not some arbitrary numbers generated by dealers.

tim

[PenJoe]

There is one advantage to a trade if the numbers are close and that is sales tax. When you trade a taxable item, the tax is based on the difference between the sale price and the trade in. For instance, if the new purchase is $20,000 and the tax is 5%, the tax is $1,000. The sale price would be $21,000. If the trade-in value is $8,000, calculating the 5% tax is $400. So, in effect, you would be paying a tax difference of $600 on the new purchase.

[BehindBars]

Originally Posted by PenJoe

There is one advantage to a trade if the numbers are close and that is sales tax. When you trade a taxable item, the tax is based on the difference between the sale price and the trade in. For instance, if the new purchase is $20,000 and the tax is 5%, the tax is $1,000. The sale price would be $21,000. If the trade-in value is $8,000, calculating the 5% tax is $400. So, in effect, you would be paying a tax difference of $600 on the new purchase.

This is an advantage in some areas. However, speaking of the United States, not every state has a sales tax. Also, at least one state I know of limits the trade value that can be used to offset sales tax to $10,000. So if your trade in was valued at $20,000, only $10,000 of that value would be used to reduce the sales tax on the deal.