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Old 03-11-2009, 06:48 PM   #1
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Smile Determining trade in values

Discussions of prices paid for motor homes seem to focus on % discount from MSRP. While this works for 1st time purchasers it does not for those who are trading in--as the bottom line is how big a check you have to write(or finance). We are currently negotiating on an 07 Phaeton 36QSH and trading in our 06 Winnebego Voyage. The dealer has given us a net price which does not break out the specific amounts for discount and trade-in.

It would be really helpful to know the "true" trade-in (wholesale) and retail values of our perspective and current coachs to help in determining whether we are getting a fair deal. We have looked at NADA values, but they seem inflated. We have also looked at prices asked by dealers and private parties on both coaches, but they vary considerably due to condition, mileage and motivation to sell. We know that car dealers use auction results to determine values and assume that a similiar concept is used for motor homes but have not been able to find any.

Any input on how or where to determine the values for trade-in and retail which take into consideration condition and miles, etc. would be GREATLY APPRECIATED.

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Old 03-11-2009, 08:24 PM   #2
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Why don't you tell the dealer to quote both prices in writing - if they refuse, go to another dealer. It is your money - you are in charge. It might be too late for this dealer, but the right way to buy a vehicle of any kind is to negotiate the price to buy the new one and then tell the dealer you will buy if they will take the trade - expect to get a fair wholesale price for the trade. This eliminates the "net pricing" games.

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Old 03-12-2009, 12:44 PM   #3
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That's excellant advice to ask for prices both with and without a trade.

When we purchased our Allegro Bus last year, I asked for a cash price to purchase the new rig as well as the wholesale price for the dealer to buy my Winnebago from me as a trade in.

Interestingly, the 3 dealers I had quote me pricing were all within 1.2% of each other on the new rig cash price. They were a little further apart on the value of the Winnebago, but still within $ 2,000 of each other.

Once I had both the discounted price of the new rig in hand along with the value that the dealer would pay me for my old coach, I placed my order for the Bus. While I was waiting for the new rig to be manufactured, I advertised my Winnebago and sold it myself for $ 17,000 more than the Dealers offered me as their wholesale price.

Negotiating the transaction with a purchase price separate from trade give you the option of working a deal in your favor and avoids the confustion of working with those magic "difference" number the dealers like using.
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Old 03-12-2009, 02:49 PM   #4
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Thank you both for your responses.

How does one get a good handle on the "fair" trade-in price?? When a dealer has a specific used RV--that even in this economy--may be in demand--it is hard to take your business elsewhere if you want the RV (of course you can search for other comparable RV's) but the pricing questions still remain.

I understand the seperate the new and trade-in vehicles concept and believe that is an excellent approach when dealing with new vehicles where the MSRP and Invoice prices can be determined (invoice less easily than for cars). However, at the end of the day it is still the total amount that you have to pay that counts. I guess what I am struggling with is what is a fair total amount--put another way when to you "stay" and when do you "walk".
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Old 03-12-2009, 03:42 PM   #5
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In todays and for that matter any market, a fair trade is defined as the most you can get, for the Dealer it's the least they can pay.

You are correct on the variences for current prices. You can look on E-Bay and find identical make, model year and mileage coaches for a wide variable. When I bought mine on e-bay 5 months ago, I paid $88K. Over the last 2 months, there have been identical coaches with greater mileage listed for $80-$150K, my best guess is the high end people were upside down on their loans.

Your best bet is to contact multiple dealers for the same deal. If all are similar, that's the going rate. If a wide varience; after all they are business people just trying to maximize their profits.
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