How can one dealer sell for so much cheaper?

[Snowsail]

Thank you so much for your replies. This became such a great read for me.

I ended up calling dealer #1 and told him the deal the other guy was giving me. They told me they would crunch some numbers and call me back. They ended up giving me the trailer for much less than they had originally quoted me. With the paper trade, they saved me $2000. I didn't have the electric lift, but it was 5 minutes from home and their service was excellent. We didn't have to spend 13 hrs driving to get the cheaper one.

I would never have known that I could have asked for a better price if it wasn't for this tread.

I'v always negotiated hard when buying something. I also compared prices between 5 major sellers in the U.S. and RVW and RVD had the lowest, they are within a few hundred dollars of each other. So I went with RVW because they were $11500 below the 3 dealers in the province of Quebec. I negotiated locally, at the end of 2011. Then in Feb. ordered from RVW. I couldn't believe the difference so I went to the RV show in Montreal in march to see if my numbers were wrong. I showed them my list of options to compare the exact same things and they were still over by $11500. So our Rockwood 8280 diamond will come of line this Wednesday, and picking it up at the Champlain border on Saturday. And yes the shipping price and $200 inspection is included in the $11500 savings.

 

[Rsgtivr6]

I actually had a camper in mind at another dealer and was financed and ready to go get it the next day, but when I went to get a pigtail for my P3 at the local dealer to go pick it up (6 hours away) I took a look at their selection and found a camper with the power package, rear rack and a better layout and told the sales woman that I was going to pick up a trailer, had financing/cash in hand, and what the price of said trailer was. She worked up from what I had priced from the other dealer and we met in a middle ground and I ended up paying just $1400 more and got full power options, wireless remote, rear rack, TV and WDH w/sway hitch included. Also, I didnt have a 12 hour round trip ahead of me and got to sleep in the next morning, lol.

 

[dretired]

Having worked 15+ years at dealers (car, motorcycle, boat, etc) I can GUARANTEE you that if two units come in for warranty repair the guy that bought from the local dealer will get fixed first and your 'out of town' purchase will wait.

Why? Of course the dealer is gong to give preferential treatment to HIS customers!

Don't you remember - he told you that in the sales pitch that you thought was all BS, huh?

When parts get scarce HIS customers will get it while you wait for it on backorder. Sorry.

Is this important to you? Like insurance, not till you need it does it matter how good the service is.

I must be the LUCKY one.. We had camped in Florida for 3 months this last winter..Found 5 different things that needed repair..took the 5th wheel to General RV in Mt. Clemens ,MI.. ( not the place of purchase) ..but they are a Keystone dealer. All 5 concerns were taken care of .. I am happy to report..

 

[Herk7769]

I must be the LUCKY one.. We had camped in Florida for 3 months this last winter..Found 5 different things that needed repair..took the 5th wheel to General RV in Mt. Clemens ,MI.. ( not the place of purchase) ..but they are a Keystone dealer. All 5 concerns were taken care of .. I am happy to report..

Been my experience that being a visitor to the area gets you a higher priority than a local guy with a camper bought from a non-local source.

 

[Mick-FRF]

Hello all, I'm Mick and I enjoyed reading all your comments on buying from a dealer. We loved our little Motor Home and decided that we loved camping so we tried to trade up from 22 feet to about 25 feet. We tried five different dealers and none could find listed anywhere what the value of our Lexington GTS Model 210 year 2011 would go for and only wanted to offer 40,000. This is a Forest River product, very well made and not even listed anywhere. The only one found was a 2009 on a ford chassis and ours is on a chevy chassis. I'm at a lost, looked everywhere and nothing. Not even the dealer I bought it from, Campers Inn would help me with a trade, go figure. If anyone knows anything please let me know. Back to Dealers, I found one Out of state we like and for 23,000 less than anyone here would offer me and gave me 5,000 more on my trade. That's enough for now. I do enjoy the forums. Thank you and happy camping and Happy Father's Day to all Dads. Mick

 

[bclemens]

Might not be in the NADA book yet. August is the next printing date I think.

 

[Mick-FRF]

Thanks will keep that in mind.
Mick

 

[Mr. Vic]

I bought 3 new travel trailers. RVW is pretty easy to work with and thousands less than other dealers. I bought my current camper off of Couch's RV nation in Cincy. Very good pricing. The ride from Pittsburgh to Cincy was worth the savings.

 

[MilCop4523]

I'v always negotiated hard when buying something. I also compared prices between 5 major sellers in the U.S. and RVW and RVD had the lowest, they are within a few hundred dollars of each other. So I went with RVW because they were $11500 below the 3 dealers in the province of Quebec. I negotiated locally, at the end of 2011. Then in Feb. ordered from RVW. I couldn't believe the difference so I went to the RV show in Montreal in march to see if my numbers were wrong. I showed them my list of options to compare the exact same things and they were still over by $11500. So our Rockwood 8280 diamond will come of line this Wednesday, and picking it up at the Champlain border on Saturday. And yes the shipping price and $200 inspection is included in the $11500 savings.

We saved over that by a few thousand on our 2012 Salem 27RKSS list in NB was $33899 Canadian on the road. Couchs RV was $15899 less 5% exchange on the dollar at purchase time, another 2% at the border.
$1000 US to deliver to where we were in the States at the time.

Other than the warranty hassles for a dozen things which went wrong to date and the fact that the slide out is rubing through the siding at the top... its water tight and rolling.

 

[handbuilder]

I found the biggest reason for price difference of one dealer to another was FREIGHT...shipping to Washington state seems more expensive than any other area...if I drove 8 hours to Boise, I would save quite a bit because freight is less expensive...same as in buying from California...and if I was willing to spend a few days on the road, I could go to Iowa and really "save" a few dollars....but my time is worth more to me.

I decided to make my purchase methodically and tested the advice given online for "how to negotiate the best price for an RV"....#1 word of advice was not to pay MSRP - offer 30-40% less....be prepared to walk away, be prepared to wait a day or two for them to come back and counter offer your low ball figure.

If you start out with a high offer, you can go lower...but if you start out low, you can always go higher. Those who think you are offending a salesman for offering 40% less are just not comfortable with the prospect of negotiating conflict....the salesman is a professional, he knows how to work that end of "guilt" and discomfort to his best advantage...

This is a product a person is buying, NOT a service. In my opinion, you can negotiate products, but "services" are not really something you want to negotiate if you dont want to anger or offend the provider & you truly believe you are at the best place for that type of service needed. Who in their right mind wants to negotiate a heart surgeon's fee, or a hairstylist, or a mechanic - (oh sure, let them make up for that reduced fee by using lesser quality parts, used parts, cut corners on other areas so you can save) - service is waaay different than product. A dealership can offer fantastic service, but you must first negotiate the product at the price you want to get that wonderful service that a dealership touts...and hope that the dealership is solvent and not going to go out anytime soon.

SO anyway, I did offer 40% less the MSRP...got a huge pregnant pause from salesman on different lots after a little sputtering on their end. I just smiled back and said well, present my offer to your financial manager, I will wait. I knew I was willing to pay no more than 30% of the MSRP. They came back with a 'no deal' response. I did this with several local dealers. I finally checked out of state and out of area. They were willing to accept 32% off their MSRP. I just didnt want to make the drive...in the end, a couple dealers called me back and basically they were all at the same price (in my price requirement) so then I selected the dealership who treated me the best, they were 2 hours away.

may sound weird, but it is easier to make the deal when you are prepared to walk away. Also look at buying in the Fall - (they dont want to floor these units during winter when no one looks at them) or early Spring.

Bottom line, to save in your purchase, you have to have done your homework & know what the average cost of what you want is & realize difference in regional prices could be driven by freight expenses...I think its not surprising that the last dealer contacted is usually the one who gets the sale, because they get the educated buyer who has discovered the bottom line & all the conflict dialogue has been handled at other dealerships. LOL

Happy hunting...heh heh...it really can be a fun experience if ya dont sweat it.

Tamara

 

[Herk7769]

Bottom line, to save in your purchase, you have to have done your homework & know what the average cost of what you want is & realize difference in regional prices could be driven by freight expenses.
Tamara

Perfect! You are right on.

 

[MilCop4523]

I found the biggest reason for price difference of one dealer to another was FREIGHT...

Tamara

I wonder what the freight cost for our 2012 Salem 27RKSS to ship it it NB, Canada from the factory that would make it 33,899 Canadian taxes in - on the road.

And our dollar was $1.05 to the American green back $1.00
$15,899 - 5% = 15,104.05 Canadian to pay dealer.
$1,000 hauler to Mass (We were on vacation) = 16104.05
$250 to bring back home = $16354.05
7% Canadian border tax on the trailer only (dollar at+2% = trailer was valued at $14801.97 Canadian). = $15838.10 Canadian
Registration in NB = 25 for the plate and 8% NB tax for registration on $15838.10 = $17,105.15 Canadian

33,899 - 17,105 = 16,794 on the trailer.
16794 + 1250 transport 18,044 = 250 RIV fee = $18,294 Canadian in my yard and using it.

33,899 less 18,294 = 15,605 Canadian difference.
Thats a lot of freight.

 

[Goomph]

My trailer would have cost me 29,000+ at my local dealer which is only 10 minutes away from me. I got it in USA for 17,000+ dollars when dollar was at parity. My trip there, two nights of camping one night of hotel, taxes all the expenses and I was very little over 20,000 when it was all said and done. It is not freight ... I do not know what it is but not freight.

 

[bclemens]

For a dealer not to budge off of $34k when you can buy it for $17k...I can tell you something is not apples to apples. I'm not saying with the specs...but with the deal itself.
From my experience (seeing both sides) these are the things that foul a local deal. (I'm not saying always)

1. you have a trade. The internet guy won't take trades but you figure your trade into the local deal. No matter HOW much you think your trade is worth...it is worth wholesale book. period. They either give you a great deal on the unit and book on your trade or they give you retail on your trade and jack up the price of the new unit. They can go buy used units at auction for book or less than book all day long. What you owe does not dictate what your trade is worth. NADA does that.

2. Sometimes you give that offer to the sales guys, they don't take you serious and the sales manager never really sees the offer. Or they just don't think you're serious with a number that low. (The sales guys don't know costs)

3. You shop the local guy, take the tour, take the test drive, they hit you with a number AND THEN you show the price you already have from the internet guy. If they drop now, they have egg on their face.

4. sometimes especially in Canada it doesn't matter when you look at it...it matters when THE DEALER brought it across the border. I remember years back when the Canadian dollar was not good...it suddenly flipped and dealers were sitting on a ton of units they brought over when the Canadian dollar was worth 80 cents.

5. If its a HOT model...why would they give it away for very little profit. I've had several dealers call me and say "when do I have another XXXX coming in? I can take a skinny deal, but not if I have to wait a long time for another one.

6. sometimes that customer that grinds you and grinds you is the hardest to please. No offense but I have seen it first hand. The grinding never stops. So dealers will happily walk away from that and not feel obligated to make you happy...let the other guy try.

My suggestion is what handbuilder said. Do your homework know a range of fair prices. Don't expect the local guy to beat the internet price. They do have to pay the freight to get it there, they do have to pay for those units to be stored and cleaned, and open for you to have looked through it in the first place. Be honest and up front with the dealer, don't try and "catch them" hitting you with a high number.

Finally let me tell you this story about an internet deal gone bad. Dealer had a local store and an internet site (separate). Customer was local so they visit the brick and mortar store to see the unit. They happily paid $90k for a Class A. They were excited. They then go visit their family in another state. They go online to show their mom what they just bought. When they go to pull up the site, they enter their mom's zip code (not their own) which pulls up the internet site (not local store) and that EXACT same unit was $15,000 less. She immediately canceled the deal and went from perfectly happy with a motorhome to pissed without. They have sales guys they need to pay and stores to pay for so when you come in they will typically hit you with a high number. Internet customers? They don't care they'll never see you again, they are just trying to steal deals that they had no chance of getting due to their location.

 

[Dave and Monica]

They have sales guys they need to pay and stores to pay for so when you come in they will typically hit you with a high number. Internet customers? They don't care they'll never see you again, they are just trying to steal deals that they had no chance of getting due to their location.

Nice to see you batting for the local dealers...my understanding from a Rockwood factory rep is that Forest River only sells to internet dealers that also have a 'stick and brick' locations and can support what they sell. Examples, RVW is a division of Durnell RV...RV Direct is a division of Albany One RV.

I've personally have purchased from both RVW and RVD. These guys are volume dealers, I believe RVW claimed to me sales around 100 units per week in high season. That's how they can offer the deals substantially lower than local dealers...overhead costs per unit very low on that volume.

I can't claim to understand pricing strategy with some local dealers. I looked at a Jayco 303RK in the fall of 2009 locally and was quoted $49900 CDN. The same unit was priced at a internet dealer in Michigan at $32800 US. That same local dealer had the 303RK on sale for $36900 CDN 8 months later in the summer 2010. It's not the exchange rate which was around 0.95 during that period.

Internet dealers like RVW, RVD and others live (or die) by their reputation and customer satisfaction on forums like this and RV.net. They're not 'fly by night' organizations as your comments may imply.

Dave

 

[bclemens]

I'm not implying that they are fly by night. I know both of those dealers well. My point was they treat their "brick and mortar" store just like any other dealer, they have to pay sales guys, pay overhead etc. The internet side they treat differently. In most cases they will never see that customer again, as I was trying to show in my "true story". In most cases if you walk in off the street, you are not seeing prices that you would see on the internet side. I can't speak for all...but at least the ones I know and have sold to.

 

[MilCop4523]

I told the local JAYCO dealer in Fredericton after looking at every trailer thay had on the lot that I was buying a unit "this Week"

what was his best price today before closing on a 10 26RKSS Jayco they had listed on the lot for 30,899 Canadian

They stalled me 4 times on purchasing when I said cash taxes in - best price.
The final straw was "we don't make our money off cash deals, we make our money off the bank when you take it out for 20 years at 3 to 5 % interest."

"you can pay it off in a year or so if you want to - that way we get our full loan amount."

I came back a couple weeks later and hauled through their lot. The we got was priceless. I warned them I was buying that week - they just didn't want my money bad enough I guess. SAVE MONEY - SHOP Around

 

[Python15]

Skin a dealer now he'll skin you later ae poor service, high parts cost, delayed service or none at all.

 

[MilCop4523]

Skin a dealer now he'll skin you later ae poor service, high parts cost, delayed service or none at all.

but in todays ecomomy when there is barely enough cash to feed everyone's business - those who get caught skinning on parts, poor service, delayed service or none at all generally dont last that long. other dealerships are oftn more than happy to assist if they know that treating someone elses customer will do the following
increase revenue, increase service calls from other owners who may have similar war stories, and
when a new trailer Brand A is sitting on a competitors lot being repaired it sometimes generates questions from potential buyers of Brand B as to whats it ther getting done and .... why did the owner not take it to Brand A dealers shop.
It doesnt look good for Brand A business when 1 or 2 or even 5 or 6 more prospect buyers looking at Brand B planned on going to Brand A but fail to do so because Brand B's service department says the owner of Brand A trailer has nothing +ve to say about the service.
In , Toronto or Atlanta you can get away with it but.... in a small town or city its deadly.