Used MHs, NADA and Dealer Asking Price

[retmotor]

I live in Western Montana. The nearest city is Missoula, about an hour away. Missoula has three RV dealers and unless I want drive another two hours or more, they're the only game in town (so to speak).

What I've noticed with all of them is they all ask at least double the Average Retail Value of NADA on all their used rigs. In one case they were asking almost ten times that -- seriously. Also of all the ones I've looked at, not one has met the qualifications for that rating and most don't even come close.

What's the deal with that pricing? Do they just not want to move their used inventory or do people really pay that much over NADA values?

[Midniteoyl]

NADA values are not based in fact.. they simply take the MSRP when new and subtract a certain percentage every year. In most cases they are wrong.. either very high, or very low.. Best way is to take the year/model and shop around other dealers. Even if you dont wish to actually go that far, it still gives you a better idea of what it should cost. If you can get a farther dealer to give you a quote, take that in and bargain.

[RV Wizard]

Value is what someone is willing to give you for it. Right now it is a buyer market. There are so many used coaches for sale; the buying price is very low compared to a few years ago.

[Gary RVRoamer]

The online NADA price is just average depreciation, without regard for demand for a particular brand or type, seasonal adjustments, etc. If you had the subscription version, it would be closer. You will also find that the older the RV is, themore the discrepanacy is pricing. That's because age/depreciation ceases to be a factor after about 10-12 years and condition and market demand pretty much determines the price. There are a lot more buyers lookingfor bargain-priced RVs than for high dollar ones.

As for asking rices, they can vary with the selling strategy. Most people like big trade-ins and discounts, so a high asking price gives the freedom to offer a steep discount or give a high trade-in value or both. And if somebody actually pays the asking price, that's great for the dealer.

So, you have a limited source of supply in your region, the beginning of the hot selling season in the north, and perhaps some highly desirable models.

[jzick]

Rather than NADA as an indicator, you can do some searching on line and get an idea of selling prices for what you are looking for. When we lived in the boonies we found that one disadvantage was that with little competition and limited selection, prices for nearly everything were high and sellers knew they had a captive market. We never did it for an rv, but we would plan mini vacations to fly somewhere when buying things like automobiles. The money we would save would pay for the trip many times over and we had more choices. Besides, it gave us an excuse to take some neat little trips.

[MaverickBBD]

They can ask whatever they want. It doesn't mean they will get anywhere near that. Like I tell DW "it is only worth that if you can find someone to give you that for it".

[retmotor]

Thanks you all for taking the time to respond.

It is true that it's a captive market up here. Our last vehicle purchase was in Vegas (where our kid lives). There is much more of a selection better prices in most cases. I have been looking at the dealers down there but nothing has caught my eye other than a neglected rig listed on craigslist.

I figured out how to search ebay for ended auctions, so I've been trying to use that as a barometer. There's that dealer in Texas, PPL, who lists what their consignments have sold for. I suppose I'll need to pay more attention to them and less to NADA. I think I'm just getting frustrated

Ah well, the search must go on...

[CorLynn]

when i was searching for my motorhome i searched..oregon, nevada, arizona, california, montana, and washington. I live in washinton. Yes i was willing to do the drive. I was determend to not only find the best price, but the best motorhome for me. I was set on a Beaver. and i think you are right, i found montanas prices to be a bit high. After searching about 8 months i got a good idea what MH sold for.

[UsualSuspect]

If you see something out of state you like, you might want to check with the Dealer. Some of them will reimburse you for the airfare if you buy a rig from them after you inspect it. As for NADA pricing, you can signup for a temporary online account for RV's. It is good for 14 days, and you can see what the Dealer sees.

[retmotor]

^ I did not know that on either count. Thank you!

[max49]

Also, banks will only loan so much for a certain year and model. Upgrades add no value to them.
Since most people finance, I can't see how any dealer can get twice or 10X the NADA listed value. Even if they find a cash buyer most people have more brain than that.