General pricing question

[H.Huester]

This may seem like a sensitive issue for owners, but a relevant question for those of us looking for a used coach.

Ran across a '02 38DS01. Asking price is $78,000, while NADA is $46,110-$55,560. Owner reasons that price is FMV due to $20,000 in options added at the factory, along with items added after delivery.

Bob Randall, in his "RV Buyer's Survival Guide", states that addition of options will most likely NOT affect value at time of trade-in. Seems the same would hold true at resale. Even if options were factored in, it would stand to reason that they would be at a reduced rate from the original purchase price - not as it was out of the factory door.

Am by no means trying to disrespect the current owner, but would like to get some philosophical feedback from the group.

Thanks for your help!

[sdennislee]

In todays market I rarely see anything going over book. NADA's website should allow you to tick mark the factory installed options and see their value. After market obviously different.

I just bought a 2009 Safari Cheetah 40", 13,400 miles, 4 slides, every option that was offered at the time except bay slide. Sticker in 09 $321,000.00, book when I bought it $179,000.00. Owner owed the bank $157,000.00. I paid $130.000.00.

It needed 2 tires and 4 house batteries. The broker replaced the slide covers

Beautiful unit

Hopefully some point of reference here, especially in seeing the owner took a $27,000.00 haircut.

Some of the options that I liked:
TracVision satellite
Washer/Dryer
Fireplace
Central vac
Side by Side refer with ice and water in the door

Search the Rv classifieds, ebay and craigslist to find a comparable unit for price comparison, thats what I did.

[450Donn]

My philosophy is and always has been " something is only worth what someone else is willing to pay for it"
If the MH is in excellent condition and the options are something you would normally add to a similar MH without them then it might be good advise to spend the extra. Personally I fond most options people think are gold at resale are worthless to me as I just don't care to have them.

[NLOVNIT]

Don's right, it's only worth what someone will pay for it. He's tied to it emotionally & can't see it's worth objectively. I've found, over the years, what upgrades I've put in an RV aren't worth squat to someone else. Unless he finds that someone who has his taste in options, he's not gonna get what he's asking.

Lori-

[RickO]

Ditto Lori and Don's comments. From what I've been reading here, NADA is most often HIGH when compared to FMV. Emotional attachment is a tough thing... for both sellers AND buyers.

Having said that. only YOU know just how much a particular unit fits what you're looking for and if you're willing to pay his price then that's what it's worth.

Good luck...

Rick

[Mr_D]

One thing to keep in mind is the NADA lists "options" that may, in fact, be already in the base given. For instance on our rig slideouts and 10 gallon water heater are shown in the options, BUT 3 slides and the 10 gallon WH are in fact, standard on our model and don't add to the base price.

[sailor_lou]

I must agree what all the others have stated, a product is only worth what someone is willing to pay. In 09 when we purchased our current rig, the motorhomes that were selling were the ones going around the low NADA value and that was the base price w/o options. I wouldn't imagine too many things have changed since then. Good luck with your search.

Lou
05 Travel Supreme Envoy

[rvbmw1]

I know the guy trying to sell that Travel Supreme. He told me he wanted $89,900! The $20k was mostly in the new paint he put on the coach. You can spend $100k on the coach and it is still worth $45-50k. If you wanted to take a loan out, the bank will only give you 80% of that ($40k).
I told him "good luck" I'm sure he will find someone.

Rob & Victoria
2011 Entegra Aspire 42rb

[glarnold]

I've bought and sold more than a few MH's in the last decade. The general rule that I use is, a Dealer will want you to pay 25% more than he paid for the unit. New or used, not much difference. That same dealer will want to give you (pay you on a trade) 20% less than the unit is worth. That's after all the wheeling and dealing and taking it to the sales manager and the owner and the finance guy, are done with, and you have the best deal in the world. Of course, if you're willing to pay more, they will happily take it and make you feel as if you just got the best bargain in the whole RV industry.

And a private seller wants you to pay what he imagines his unit is worth.

My general rule to figure what the unit is worth is to take low NADA, with no options and no low mileage figured, and deduct 10 to 20 %. Those are not kind figures. And generally, that range from 10 to 20 % is for the fudge factor.

You don't have to believe me. You can look at PPL's website and see what units have been actually selling for recently. The seller gets 90% of that.

If I'm buying one, my goal is 10% to 15% below NADA low, no options counted. I won't pay more. (Yes, I do get them.)

If I'm selling one, my goal is 10% over NADA average. I won't sell for less. (Yes, I do sell them.)

The difference is in the appearance of the MH. If I'm selling, it will shine like gold, look like showroom new, and have not a single flaw. Buyers want a MH that is reliable. And looks like it. They will pay more.

Most people who are selling a MH leave it looking like crap and expect to get top dollar. And they don't want to do costly repairs.

Just my opinions. Hope it's helpful.

But hey, if you find one you like and want, and can afford it, go for it. Life's too short to stand on the sidelines forever.

[H.Huester]

Thank you everyone for your comments. This has been a bit more if an eye opener than I expected! I thought I was on the right track, but did not realize how far off my thinking was. This has been quite educational - you may have saved me a ton of money!

Thank you EVERYONE for sharing your knowledge - this forum is simply pphhabulous!!!!
H.Huester

[Ann n Gene]

Remember H, our advice ONLY costs you IF YOU FOLLOW IT! lol lol Good luck and hang in there you will find the right coach at the right price.