Current prices - Is now the time to buy?

[stoynbj]

Given the current economy, what are typical discounts off of MSRP now? A poll from 1.5 years ago showed most were getting between 25-30% off. I know you can get much higher discounts on cars and houses now versus 1.5 years ago. I would think the same is true for motorhomes. Are most people getting more than 30% off now? We're looking to buy soon (1st time) and wondering if now is the optimal time to get the best price (due to economy and off season) or wait until spring when we can actually use the motorhome more. Any info or perspective is appreciated.

Thanks,
Stoy

[DandS]

Welcome to the forum stoynbj. We ordered our new coach in June and got a deal we liked real well !! You are about right in your estimate of what to expect off MSRP - usually in the 20-30% range. Don't know if this time of year is advantageous or not, probably if you deal on inventory on dealers lot it would be and better deals can be had on past model years as dealers want to get rid of inventory.

Having said all that - we got approx. 27% off list on a 2010 ordered coach. Think we could have gotten a bigger discount if we were interested in what they had on hand. On one 09' model they had reduced a $160K coach down to $105K without any haggling.

Good luck with your shopping !

[GaryKD]

Hi Stoy,
The discounts are not going to be that much different, if at all. The cost of making the coach remains what it was or higher (lack of volume). If you happen to hit a dealer where there are some unusual circumstances one might get a larger discount. However, those situations are not public knowledge. Sometimes Newmar will provide dealers incentives to move certain inventory. Again, those incentives are not public knowledge. The different components that go into discounting are many, unique to a dealer, unique to a manufacturer or unique to a date range. All of these things are rarely public knowledge.

Buying from dealer inventory does not always get the best deal. In times like we are in now, ordering may get the larger discount. Dealers are having a tough time with floor plan financing. If they sell a coach in inventory, their bank may not let them buy another coach! Therefore, inventory on the lot is not discounted as much as a coach that is ordered. A coach that is ordered, never hits the dealer's floor plan.

As you can see, this remains complicated. The customer does not have enough pieces of the puzzle to know where and when to buy for the best price.

My recommendation is that floor plan sell the coach. When you find what you want, continue your comparison shopping. The same process is for a coach that will be ordered. The Internet is a great tool for this. You will quickly know the maximum discount you will receive.

Good luck,

[Jim Stewart]

The risk of buying new or ordering is significant depreciation in a down economy. One year old coaches are selling for up to 50% off of original MSRP. If you buy new now and sell in a few years, the depreciation is much steeper than in past years and good economies.

You may want to consider used, there are many good deals on used coaches, very good! When buying used, be sure to do your homework.

[a k]

I tried buying a new Essex and no one would deal.(Last year late).
finally starting looking at used and bought a 06" for $100 grand less than NADA book. I figure someone else took the hit and If it don't work out I can sell it for close to what I paid for it. All the bugs are worked out and then you can buy an aftermarket warranty and have it fixed where your at instead of driving 600 miles to a dealer( which subs out most the work anyway). I might be wrong but I don't worry how much I'm losing by not using it full time.

PS Most of the 08's I looked at where sitting on the lot for at least a year. If you look at new, open kitchen cabinet door and look at the paint date.That will give you a clue how long it's been sitting. Most 06's I looked at were painted in August or Sept 0f 05'

[Robsons]

we just pulled the trigger on a 2009 4154 (bunk model). very aggressive pricing going on at the moment from what i can see. summer is over and dealerships are staring at winter coming at 'em with a lot of inventory still on the books.

If you can find what you want as a new 09 or even a new 08, make a really low offer and be ready to walk if they say no. Unless you're in a rush or have a very particular need, then time is on your side.

dave

["007"]

Welcome Robsons to the Newmar forum and irv2.
Congrats on your new Newmar many safe and trouble free miles.
Where was you dealer and does he have other closeouts?
Enjoy the forums and do post often.

[Lee Litchfield]

Discount percentages are very misleading. Different manufacturers have different msrp mark-ups. Newmar has different mark-ups within their product lines and also different mark-ups for options. The higher the mark-ups, the larger the discounts available. We figure from cost and don't really pay any attention to discount percentages. Most customers appreciate this approach.

Is a 25% discount on motorhome A better than a 35% discount on motorhome B? Depends on the mark-up and scores of other items, such as is the manufacturer still in business? Did motorhome B cost $225K and motorhome A cost $250K? Comparing msrp prices between manufacturers is dangerous. Just because the msrp is the same does not mean they cost the dealer the same.

If you compare discounts to msrp between a 2009 Dutch Star and another 2009 Dutch Star, you're OK. You compare discounts to msrp on a 2009 DSDP and a 2009 Essex, you're not OK. In my opinion, you're better off shopping 2 or 3 dealers and going with the dealer that gives you the best combination of price, location, service and reputation.

Lee Litchfield
http://www.leesrv.com

[DandS]

Originally Posted by Lee Litchfield

Discount percentages are very misleading. Different manufacturers have different msrp mark-ups.

Therein lies the problem. The fact is the basic consumer has no idea of pricing structures between dealer and manufacturer so the only real measure is % off list or MSRP. It is still meaningful as a comparison while maybe not completely factual as to what is going on. I have bought two new coaches of different make thru two different dealers and my discount to list on both were within the 20-30% range mentioned earlier.

That said, it's nice to have a dealer's perspective on the issue and we appreciate your candor. Bottom line for buyer - If you're happy with the price, what difference does it make what the discount is ?

[Robsons]

probably beating a deadhorse a bit here but thought i'd respond to Lee to clarify my earlier post...

The percentage off MSRP was hardly what my decision was based on. But, it is an easy way to correspond to everyone without having to divulge the nitty gritty of what I paid. My decision and comfort in the price was based on over 6 months of watching prices for both used and new and then a solid month of corresponding with dealers and private parties to figure out where the sweet spot was.

I probably didn't get the "best deal on the planet", but I bet i did pretty well. More importantly, given the great reputation of Newmar from everything I've read, I think I got a great value and that's way more important to me than the total dollars spent.

I'll keep you posted on how this value buy plays out cause I'm planning to sell it at the end of next summer when we get back from our Big Trip.

- David

[Robsons]

Is it kosher to share/recommend dealers on these forums? I don't want to commit a faux pas in my first month of posting...

["007"]

We have most dealers posted in Newmar new motor home thread above you. Just posting your satisfaction would be ok.

[Phelpo]

Ok, here is what is happening at the largest auction concerning MH, two month
ago a 2007 DSDP 43' sold for $151,000, had about 8000 miles on it. Was clean
and probably a 3 out of 4 in rating. Bank of American repo. Last month a 43'
Alegro Bus 2007 with 4400 miles sold for $150,000......a friend bought the same rig new for $250,000 a couple yrs ago.

Phelpo

[racer0624]

Phelpo,
Where are you finding BofA auction info? I'd be interested in perusing this site.
Thanks,