RVs ARE EXPENSIVE: TIPS, TRICKS AND TOOLS YOU NEED TO MAKE THE BEST DECISION

Buying a motorhome that fits your lifestyle and budget can be a daunting task. There is an endless sea of options and hope may feel like the only strategy to catch the best price. Sure, you may see the listing price and quickly calculate a low-ball offer, but how do you know what wiggle room you really have? And, how much will that rig be worth in two, five or ten years? Is buying used better than new and how do you get the most money when it’s time to sell? There are tips and tricks to answer all these questions; today I’ll give you three of them, plus a bonus!

Motorhomes can range in price from under $20,000 to over a million, so before you pry open your wallet or shackle yourself to a loan, it’s important to consider how to negotiate the best purchase price and how specific models drop in value year after year. Before I give you tips, tricks and a free tool you can use to calculate your next move, let’s put some context around your purchase.

 

BUDGET, USE, TIMELINE AND DEPRECIATION

Of course, budget is a huge consideration when purchasing a Recreation Vehicle. You might have a good idea of what dollar amount or payment you can afford, but you don’t need to stop there.

Consider these questions:

• How are you going to use your motorhome? If it’s just a vacation or weekend vehicle, or a full-time home?
• If you are going full-time, will your other expenses (like rent or mortgage interest payments) go down?
• Are you planning to sell your rig in two years? Or do you plan to keep it for ten?
• Does one type or model of RV depreciate faster than another?

Once you have an idea of what your budget is, how you will use your RV and for how long, there are resources out there that you can use to negotiate the best price, choose the right model, and get the best price when it’s time to sell.

 

BUYING NEW? HOW TO NEGOTIATE THE BEST PRICE

 

Sure, most of us know that the price you see listed on the MSRP or listing for a new motorhome is negotiable . . . but how much wiggle room do you really have? Many people will take 30% off the list price and throw that low-ball offer at the dealer and see if it sticks. But, if you want to really go into that negotiation fully-loaded, here is…

TIP AND TRICK #1

Don’t rely on your buddy or that guy in an online forum. Get an idea of what the real wiggle-room is on the model you want by checking out these two resources:

1. NADA Guides

NADA guides gather listing and sales data from over 1.5 million different sources and update that date every quarter, giving you a decent idea of what dollar amount RVs actually fetch as a purchase price. Of course, individual purchases vary widely on economy, negotiating skills and supply and demand, but checking out the NADA for difference between the SUGGESTED LIST PRICE and AVERAGE RETAIL PAID for the newest model year can give you an idea how low your offer can be.

The Suggested List Price gives us the manufacturer suggested retail price (MSRP) for the unit when it is brand new. Meaning, when you look at the Guide, each year’s Suggested List Price will give you an idea of what the MSRP was, as a new rig, in that year.

Then, once the Guide has enough data in the current model year to give a value, you will see the Average Retail Price Paid. This will give you an approximate idea what dealerships have accepted as a final sales price on your specific rig.

Negotiating room varies widely by manufacturer and model type. Checking out these numbers will give you confidence your offer is competitive in that market. Want to get even more info? Check out,

2. See Dealer Cost

This website lists the MSRP (what the manufacture suggests as a selling price) compared to the INVOICE COST (the dealership paid the manufacturer for that unit).

For example, let’s say you are interested in a new Class A that has an MSRP of $132,000 but an INVOICE COST of $72,000. That means there is a $60,000 spread between what the dealer paid the manufacturer for that rig and the dollar amount they hope to get from you.

Does that mean you should waltz in and offer $72,000 Invoice Cost only? Probably not. Keep in mind the invoice price likely doesn’t include the dealer’s other expenses, like freight, overhead and storage. They are going to want to recoup that cost and make a profit.

 

WANT TO TRACK HOW YOUR RV WILL LOSE VALUE OVER TIME?

Every manufacturer and model of RV will lose value differently as it ages. Let’s say you have your eye on two sweet little Class Cs, but you want to choose the one that will hold it’s value the best over time, giving you the biggest payout when you trade it in or sell it. If that’s important for you, check out…

TIP AND TRICK #2

We’ve all seen websites like RVtrader that show motorhomes for sale across the U.S., from both private and public sources. This is a great resource if you’re shopping and want to see different models and an idea of price, but they don’t give you a solid idea of how those models will depreciate over time. There is some generic information online that averages how different classes (Class A, B or C) may depreciate, but they won’t give you any specifics on the model you want to buy. Perhaps, one depreciates moderately year after year while another falls off a cliff, leaving you with a giant metal paperweight when it’s time to sell.

There is a way to glean how specific models will vary in value year after year. How can we do this when purchase data is variable? Again, we turn to the NADA Guide, but this time we track the AVERAGE SALE PRICE.

Tracking how a specific model drops in Average Sale Price each year can give you an idea which models retain their value best over time.

For Example: Let’s say you ended up buying that Class A we discussed in TRICK NUMBER #1 for $100,000 in 2019. Assuming that make and model was sold in the past, you can use the NADA Guide’s Average Sales Price to see what others bought it for USED, on average, as the unit got older.

BONUS TOOL!

To see these numbers in action, click this link. It will take you to an example spreadsheet that compares a Class C, Camping Trailer and Class A over a five-year period using the NADA numbers. Tracking models this way can easily tell you what wiggle room you have in negotiations when buying new, see how prices have increased or decreased over time and which models take this biggest hit in value as they age.

IT’S EASY. You can compile these numbers for yourself on whatever models you like, and to make it even easier, I’ve created a sample, blank spreadsheet you can use and the link for that is embedded in the comparison spreadsheet. Just fill in a few numbers and it will calculate the percentage and dollar values for you. It only takes about ten minutes to get a comparison done, but it could save you thousands of dollars!

PLUS, you can see how I grab the from the NADA, fill in the spreadsheet and discuss the very illuminating conclusions we can draw from tracking these numbers before buying, selling or negotiating. Want to see it? Click here.

TIP AND TRICK #3

Money isn’t the only thing of value you can consider; living a rewarding life also has value, perhaps even more than the financial bottom line. For me, living full-time in my RV has added more value than anything else I’ve ever done in my life.

While you are studying the numbers don’t lose site of what you wanted a motorhome to do for you in the first place. Sure, RVs are a depreciating asset, but they may also provide a chance to travel, start a business or enjoy your life more than you would have had you just stayed in a regular house.

Decide what you value, what you can afford and then make the best buying decision you can. I hope these tools help you do just that.

 

 

 

 

Want to live FULL-TIME in your RV? See Robin’s LIVING BOOK for all the resources you need.

Visit the Creativity RV YouTube Channel.