RVtravel.com presents Charles Davis of RVfinancing.com with advice to RV buyers about how to negotiate their best deal with an RV dealer. Davis believes many buyers are too timid about the negotiation process, and therefore end up paying too much -- often way too much. If you plan to buy an RV anytime soon, be sure to watch this short, but very sweet bit of professional advice.
MOST MANUFACTURERS WILL GIVE YOU THE MSRP. THIS IS USUALLY THE LIST. THEN DIVIDE BY 1.4 AND THIS IS PROBABLY CLOSE TO COST FOR A LOW VOLUME DEALER. A HIGH VOLUME DEALER LIKE LA MEASE OR LAZYDAYS ALSO GETS ADDITIONAL REBATES.
ReplyDeleteSTART AT $10-20,000 BELOW THE ABOVE COST.
ALSO ON THE SIDE OF THE COACH IS THE MANUFACTURE DATE. THE OLDER THE COACH LOWER THE PRICE.
ON USED COACHES CHECK NADA AND OFFER LESS THAN HALF.
REMEMBER YOUR BEST FRIENDS ARE YOUR FEET. CALL OTHER DEALERS AROUND THE COUNTRY FOR THEIR INVENTORY AND THEIR PRICE.
I found this video a bit of a joke. Seriously what RV has 70% mark up? Normal cost for an RV is about 30% below MSRP and it can vary by brand.
ReplyDeleteMost dealers who are going to be worth negotiating with will have a sale price on a unit that likely takes off 10% of MSRP. And I expect most would take another 10% off which they leave in the price to make trades look higher.
Expect a good dealer to want to make about 10-15% on a unit.
Now from there you know where to go from there.
Want to get the best price on an RV? Go to the place you want to buy from last. Get prices around the country. Figure out who is going the lowest and make sure it's not a fly by night opporation, a dealership that has no service center, or one that orders stripped down models.
Now figure out the cost to pick up the unit from there.
Their price is your offer, the most the dealer you want to buy from can counter offer and be acceptable is their price plus your cost to get the unit.
Now you have a nice range and if you made sure to pick the lowest price from a real dealer you should still be profitable so your choosen dealer would be stupid to not make a deal happen.
But remember to make sure the options match. If the coach you are trying to buy has an MSRP 20 grand more then the low price you got you will never get the dealer to take your offer because it will likely not be profitable. He will have to let you walk if you don't negotiate from equal ground.
Remember if the deal is profitable they will be stupid to let you buy from some other dealer. Make sure they know you have done your homework. Make it fast and easy on the dealer and if you know the owners take the deal to them so they don't have to pay a salesperson.
If you waste their time or make them put effort into it they will see less and less value in selling to you.
Also remember that some companies do not stand behind their warranties as well as others. So some of that profit the dealer is keeping may be to compensate for that. That's why I said watch out for fly by night dealers or ones without service. These "internet only" dealers sell for less but your RV never gets looked over and good luck getting warranty work done.
Remember play fair and you will get a good price that still has profit in it for the dealer.
And don't listen to this "guru". Ask any internet marketer that is making money online. The key to their success was to not listen to the "gurus". Most don't know what they are talking about. They make money selling ideas to you that don't work. If they worked they would be using them personally.