Community Forums

Sky_Boss · 09-23-2012, 09:18 AM

We are still looking to upgrade and with all my posts, ya'll might think I have to do it TODAY! LOL

In my efforts to learn about getting out of my RV and buying the next I have found that dealers are generally only going to offer wholesale. Yes, there are "numbers games" but we all know that where they add to the trade in but don't make much of a move on the purchase. So, here are some thoughts I have for your comments.

1. Trade-in. That gives a tax advantage but appears to be the option where we won't get much out of it. As an example, low retail for my unit without options is about $84K but wholesale according to 2 dealerships is about $64.5K. (If anyone has a current NADA Wholesale price and wants to share that, please do so.

)

2. Sell it on my own. Assuming I have to beat the tax advantage of trade-in at $64.5K, and a 6.25% sales tax, I have to sell it for at least $68,531. Theoretically, I should be able to do better so let's say I make a hell of a deal and sell it for $80K, here is the twist. According to some sources a bank will only loan 120% of wholesale meaning they will only finance around $77.4K so a buyer looking for a good rig at minimum buy-in has to cough up the extra $2.6K plus about $5K for sales tax. Now, that isn't so terrible but then I have to advertise, take lots of stupid calls and other hassles of selling. Still, if I could get that much without too much of a hassle, that would be a significant difference.

3. Consign it. I figure that a consignment agreement might be somewhere in the $70K - $71K range. That puts all the headaches on the dealer.

I suppose I am more concerned about the hassles of personally selling it. I've never tried to sell something like this and I wonder if the market for a good, used gasser is better than I think and that I will get a better price than I think. Realistically, I would think $78k - $80K would be a good haul.

OK folks...any thoughts on this and my "assumptions"?

THANKS!

Smitty77 · 09-23-2012, 09:42 AM

Best $$ to you, is to sell by yourself. It also has the most work. Price it fairly, prep it for sale correctly, and it will move. NADA is not something to hang your hat on. (Use it when it supports your needs, factor it as 'ball park' when it does not

!).

I was a bit confused about the sales tax. Sales tax is usually for total price, regardless of tradein, I thought? ($100K sales price, $40K trade - still equals sales tax on $100K). Maybe different in different states, or maybe I've just not had enough coffee

!

If you had a high end rig, then consignment might open you up to a different group of buyers, with buying agents helping them look.

Your rig is a popular unit, well known, so that is a plus.

Never hurts to take some pictures, price it where it belongs, and toss it on Craigslist to see what interest may pop up.

It is 'the end of the season' for many areas, so factor that in pricing. I also think that this time of the year, many people are looking at the holiday expenses ahead, and not a political statement - but also waiting to see what happens in DC. So, may not be the best time to purchase.

If you sell it yourself, do 'look out for number 1', and do it by the book. Protect yourself, as scammers are everywhere.

Best of luck,
Smitty

deandec · 09-23-2012, 09:51 AM

Highest return and no complicated side agreements is to sell it yourself.

Craigs List is free and allows links or photo to more fully interest the shopper.

Why not try that route while you are debating the other two?

Sky_Boss · 09-23-2012, 09:51 AM

Smitty,

Sales tax in IL is based on price after trade in. Maybe other states are different.

Good comment on "end of season". I'm not adverse to holding on to it till spring fever hits if I have to discount it too much but I suspect the first "good" offer that tosses the money in my lap wins. LOL I can then get ready for my own purchase and use all my new found knowledge to make a better deal on my next RV.

JimM68 · 09-23-2012, 10:00 AM

I would go the tradein route. Find "your new coach", drive the old one there, sign on the line, drive the new one home. Done.

Not sure how a private sale would even work?
Only thing for me would be a suitcase full of cash...

SarahW · 09-23-2012, 12:24 PM

I think we would probably bend over and take the trade-in route as well. Just less hassle, which is worth a lot to us. In Texas, you only pay sales tax on the trade difference.

Jack1234 · 09-23-2012, 01:27 PM

Let me ask you a question.....how much do you like your money? Do you work hard for it or is pretty easy?

Let's say....for sake of argument...that by selling your existing MH yourself and negotiating a clean purchase you could save $20k....albeit it a bit more work & hassle. Is $20k a pretty meaningless number to you. How many weeks of work does it take you "save" .....not earn...$20k ( after tax)?

Once you know the answer to the " number of weeks" question you can decide if you want to work those extra weeks or "bank" them for your retirement.

jimmyjnr · 09-23-2012, 01:41 PM

Try PPL Texas they will give you an over the phone estimate on how much they expect to sell it for . Deduct 10% commission .
Could be easiest route for you

jzick · 09-23-2012, 02:21 PM

We recently sold a motorhome ourselves and, quite frankly, I doubt if we would ever do it again. Our asking price (and what we sold for) was essentially equal to dealer asking price - we were in no hurry to sell and it was a very popular model in very good condition. I literally talked on the phone with dozens of lookie-lous and showed the unit about 10 times in the month it took us to finalize the sale. 98% of the people we talked with wanted to argue with us about price, and "educate" us on what the right price should be. Several wanted special financing or deal like "let me try it for a week, then I'll let you know". A lot of people who called had no money and had not arranged financing. Some wanted to deal so that they could avoid paying sales tax, not to mention the internet solicitations from Nigeria.

We laugh about it now, and it was an interesting experience, but DW and I think if we did it again we would rather pay someone else to deal with the craziness.

Tha_Rooster · 09-23-2012, 02:22 PM

If you,can trade wholesale to wholesale or retail to retail and then you only pay sales tax on the difference maybe the way. To me consignment may take awhile and if your making payments on your rig now it's going to cost more money.

Sky_Boss · 09-23-2012, 02:39 PM

Quote:

Originally Posted by jzick

We recently sold a motorhome ourselves and, quite frankly, I doubt if we would ever do it again. Our asking price (and what we sold for) was essentially equal to dealer asking price - we were in no hurry to sell and it was a very popular model in very good condition. I literally talked on the phone with dozens of lookie-lous and showed the unit about 10 times in the month it took us to finalize the sale. 98% of the people we talked with wanted to argue with us about price, and "educate" us on what the right price should be. Several wanted special financing or deal like "let me try it for a week, then I'll let you know". A lot of people who called had no money and had not arranged financing. Some wanted to deal so that they could avoid paying sales tax, not to mention the internet solicitations from Nigeria.

We laugh about it now, and it was an interesting experience, but DW and I think if we did it again we would rather pay someone else to deal with the craziness.

Those are some of my concerns but if I go that route I have a throw away google phone number and will set up a toss away email address to work through.

The other thing to consider is liability. If they don't have a proper driver's license, they don't get to drive it. Also, no joy rides...they need to be "qualified" (in sales terms) before they get that fun.

I think Jack1234 makes a very good point for serious consideration. Perhaps the best route is for a person to put out an add and see if there are any serious responses that will pay a fair price. I've been educated on that very well now. LOL

Jack1234 · 09-23-2012, 05:46 PM

Quote:

Originally Posted by jzick

We recently sold a motorhome ourselves and, quite frankly, I doubt if we would ever do it again. Our asking price (and what we sold for) was essentially equal to dealer asking price - we were in no hurry to sell and it was a very popular model in very good condition. I literally talked on the phone with dozens of lookie-lous and showed the unit about 10 times in the month it took us to finalize the sale. 98% of the people we talked with wanted to argue with us about price, and "educate" us on what the right price should be. Several wanted special financing or deal like "let me try it for a week, then I'll let you know". A lot of people who called had no money and had not arranged financing. Some wanted to deal so that they could avoid paying sales tax, not to mention the internet solicitations from Nigeria.

We laugh about it now, and it was an interesting experience, but DW and I think if we did it again we would rather pay someone else to deal with the craziness.

What a great post!

I particularly like your comments on people wanting to "educate" you on price. I think everyone should go through the process of trying to sell their MH "before" they head-off to negotiate with the Dealer or Private Seller on a new unit.....kinda puts all those fancy hard-nosed negotiating tactics into a more respectful perspective.

szy · 09-23-2012, 06:25 PM

Quote:

Originally Posted by SarahW

I think we would probably bend over and take the trade-in route as well. Just less hassle, which is worth a lot to us. In Texas, you only pay sales tax on the trade difference.

THIS

GuitarLefty · 09-23-2012, 06:47 PM

Trade in, tax advantage plus it is a buyer's market especially if you are a shrewd negotiator.
Negotiate the price down an additional 4k after you have their "best" deal and I bet they bite, the dealer normally doesn't own all of the units at the dealership, they are "floor planned" and the cost moves up over time. You can also get them to come off additional warranties and swag, etc. have fun and good luck