How Much Discount off of MSRP on New King Aire or Essex?

[BucketList]

What % discount off of MSRP for a new King Aire or Essex DP can be expected in this economy after all of the negotiations are done? I have a friend who used to work in the RV manufacturing indsutry a couple years back and said that a general rule of thumb on the higher end product lines such as a King Aire or Essex that there was about a 40% dealer markup over factory invoice. While he did not work for Newmar, he did work for both Fleetwood and Thor industries for a number of years.

[GaryKD]

Hi BucketList,

Dealer invoice means nothing. There are too many components going on behind the scenes (the buyer will never see) that determines what the dealer will sell the coach for. Some examples are:
1. manufacturer incentives
2. coach floor plan (is it hot or not)
3. dealer floor plan payment dates
4. cash or financing if financing going through dealer (finance company incentives) I've actually gotten a better deal by financing via the dealer and pay the loan off after the dealer gets their commission.
5. overall market (is it hot or not)

What I have done and still do is determine what I will pay for the coach. Have the sales person write the contract for what I am willing to pay. The contract states the dealer has XX hours (I use 24) to approve the deal. If not approved, the deal is void and the deposit is to be returned. The only real low price a customer will receive is when a contract states that price. Everything before the contract is just huff and puff.

The best time to do this is the last couple days of the month or quarter. The last coach I purchased (new) was 32-33% off MSRP.

[saydiver]

I think Gary's answer applies to buying a coach already sitting on a dealer's lot. If you plan on ordering your coach, write up your RFP including your options and specials and send it to the dealers you want to bid, unless you're planning on using a local dealer. If you're planning on buying a King Aire, there's only a few dealers in the US who sell them. Last I knew it's Buddy Gregg in TN , Tom Johnson in NC, Guaranty in OR, North Trail in FL and Coachlight in MO. If more are on the list, I'd like to know, especially since we're also planning to order a new King Aire this year. Previous polls and threads have indicated the discount is 25-30% off on a current year coach and more for previous model years.

Sue

[GaryKD]

Hi Sue,
My post applies to both scenarios (ordering or buying off the lot). When ordering another item comes into play. This is, does Newmar have the parts in their plan with suppliers? To get the best price from suppliers, Newmar must order for the model year, in advance. While many parts are good for all models, some are model specific. This is what I mean by is the model hot or not. For Newmar to place additional orders for parts (on the hot models) does not mean they can sell the additional coaches for the same price as the coaches that were built with the original, best deal, parts. Additional orders for a hot model creates quite a ripple effect throughout the entire supply chain.

[ottffss]

Actually writing a contract for "your price" and backing it with a hefty down payment (or better yet the full payment) is the most powerful approach (in stock or ordered). Time bind the decision to 24hr or so. I attach the down/full payment as a cashier's check (joint you/dealer name). A dealer will have an exceedingly hard time walking away from that check and will work exceedingly hard to meet it. If I "game" that contract offer it'll only be over things like before/after taxes and not budge on the price.

25%-30% seems to be the typical discount off MSRP - at least historically.

[Ann n Gene]

Sue, Ancira RV in Alvarado, Tx sells the King Aire and in fact have one on the lot as we speak. This is a recent development as they added the higher end to meet the competition next door I suppose. All just my opinion.

[Perry White]

Someone said ,back then, dealer markup on new was 40% on coach and 50% on options.

[saydiver]

Originally Posted by Ann n Gene

Sue, Ancira RV in Alvarado, Tx sells the King Aire and in fact have one on the lot as we speak. This is a recent development as they added the higher end to meet the competition next door I suppose. All just my opinion.

Thanks for the info Ann n Gene. Glad to hear another dealer is selling King Aires.

Sue

[BucketList]

Thanks to all who have commented to this post. I do agree that there are so many variables to deal with but hearing experiences from others is always insightful. I have not yet started my shopping but I will let you all know how it turns out when I do.

Bruce

[Perry White]

You have me looking at new ones now.

[BucketList]

Perry, I really want a King Aire...............but have not seen or been able to touch one since they dont exist in So Calif. I would have to fly to Oregon or elsewhere. But just hearing about the features, Newmar Customer stories about the quality and service and looking at the Newmar website and Newmar brochure..........this is the one I want. The reality is that they are not a cheap date and I am concerned that getting good competent local service may be a challenge. Which means a couple of road trips back to the factory! Which can't be all that bad.

bruce

[saydiver]

I know exactly where you're coming from...

We also were living in CA when we decided we wanted a 2008 King Aire, so we flew to Chicago, rented a car and drove to Nappanee to see one and talk to them to make sure they were willing to customize the coach for us.

Sue

[ottffss]

Originally Posted by BucketList

Which means a couple of road trips back to the factory! Which can't be all that bad.

While the thought of a factory visit for repairs might intimidate or scare some, I have made some superb friends there (NOT because of any frequent need to go get service) that I now regularly stop by Nappanee to visit them anytime I am anywhere I am even remotely nearby.

[FlyingDiver]

Originally Posted by ottffss

While the thought of a factory visit for repairs might intimidate or scare some, I have made some superb friends there (NOT because of any frequent need to go get service) that I now regularly stop by Nappanee to visit them anytime I am anywhere I am even remotely nearby.

Ditto. Jeanne in Parts, Todd, Ken, Harley, etc in Service. The folks in the NKK office.

joe