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Old 11-01-2020, 11:57 AM   #1
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Depreciation from what value? MSRP? Advertised price? Sale price?

Depreciation from what value? MSRP? Advertised price? Sale price?

This question was asked back in 2015 but did not get answered.
I keep seeing sale prices 30% below list price and used prices a lot more then that.
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Old 11-01-2020, 12:15 PM   #2
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a little more info needed...
what is purpose of the calculation.
example... if you are depreciating a part damaged in accident for an insurance claim... companies are usually generous and start from new replacement cost.

if you are wondering about used value 4 years after new... then all kind of factors involved... is it a mercedes sprinter in great condition from a top tier builder or a ford in rough condition from a bottom of the ladder builder... with a poor reputation...
example.. i had a coachmen 24g prism sprinter mercedes.. list msrp was 119,600 with a 7 year extended warranty and a tire warranty... i paid 90k including taxes out the door. i thought i got a good deal.. b.s. i tried to call coachmen. couldn't get a human... i had heard of coachmen rv's all my life... i thought they were a solid company... when i got ready to move up, i thoght i'd do good... now i know what others know and that is coachmen is not a good company to deal with!!

could get -0- interest anywhere... finally traded it in with a 60,000 allowance... and it was less than 12 months old with under 5k miles... that is 50%
of msrp.
on the other hand low mileage on a 1 year old tiffin gasser... i got over 90% of my money back on a sale... less than 10% depreciation.
too many unknowns to give you a good answer.
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Old 11-01-2020, 04:34 PM   #3
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In Indiana if you are wanting to know, the BMV has the book value for make and model and 10% less each year thereafter.
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Old 11-02-2020, 04:37 AM   #4
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ran across this question again...
so, i'll try again to answer the question as asked.
--
depreciation on msrp? Yes.. there will be.
"" on sales price? Yes.. there will be.
"" on advertised price? Yes.. there will be.

if this identical question was asked in 2015 and didn't get answered then
probably it was asked, the same as this one, with insufficient information, but we are trying!

what have you bought already? what do you have?
if you are shopping and see the same unit at 30% off and a used one at only 25% off retail... that would be common... take the one you prefer... the used one may have many add ons that increase desirability..

personally, i saw this on my first class A, but chose to buy the new one.. then started spending money myself adding on extra stuff.. but i got a new coach with a new warranty that no one had passed gas in...

if you don't have a mh already, it is time for you to study them carefully and their prices and this will help you come to a conclusion as to which you will buy!! enjoy the process.
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Old 11-02-2020, 05:19 AM   #5
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The reason I asked this question is to find out what would be a good price to pick up a used motorhome.
I have read that a motorhome drops 20% off the lot then an additional 4 or 5% each year thereafter.

So if a new MH has a list price of 100k and a sale price of 70K and is a year old what would be a fair price (ignore condition for this question, just assume its great)

I have seen youtuber "Matt" sell a MH for 30% off list and somewhere else sell a 2 year old MH (same model) sell for the same price.

So, that is why I ask, is the depreciation based on the list or the sell price of a new MH?

Hope that is clear enough.
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Old 11-02-2020, 06:50 AM   #6
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Typically when folks quote depreciation percentages , it is relative to the original MSRP. MSRP is the only fixed/known value; anything else is a variable. However, annual depreciation means just what it says - the change since last years price. Now if only you knew last years price...


The initial big depreciation percentage is more a recognition of typical discount pricing than actual depreciation.
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Old 11-02-2020, 05:12 PM   #7
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you are still not giving us enough information to give you an answer that has quality.
but, see my answer above a 120k coachmen 1 year old very low mileage. mercedes gearing. loaded. no one wanted to offer anything... poor quality house portion. poor mfg. i paid 90 including taxes and 2 warranties.. i offered 80 that is a full 1/3 33% off it was accepted... they hollered and fussed about how inconsiderate i was to offer so low... but that hollering only lasted about 5 minutes and the salesman later told me that they were having trouble selling coachment for 33% off... so there are some real numbers for you. i moved to a class A in less than a year... got 60k on a trade... dealer i traded it to had trouble selling it...
i've bought 3 coaches since, i don't consider coachmen at all. a lot of other people obviously aren't either...


i still don't know enough to give you a good answer, and i'm a poor adviser as i've only been in this game for under 4 years...
here is a question for others that may want to help you...

do you want quality ??? or poop?? prevost or coachmen?
10 year old in great condition or 1 year old?
high mileage diesel or low mileage 10 year old.
honest personal friend or shyster selling motorhomes down on the corner that just opened?
willing to go out of state?
are you a good rv mechanic ?? are you qualified to inspect a used or new?

i think you better order a new one, from a quality dealer. and buy the extended warranty.
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Old 11-03-2020, 04:53 AM   #8
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you are still not giving us enough information to give you an answer that has quality.
but, see my answer above a 120k coachmen 1 year old very low mileage. mercedes gearing. loaded. no one wanted to offer anything... poor quality house portion. poor mfg. i paid 90 including taxes and 2 warranties.. i offered 80 that is a full 1/3 33% off it was accepted... they hollered and fussed about how inconsiderate i was to offer so low... but that hollering only lasted about 5 minutes and the salesman later told me that they were having trouble selling coachment for 33% off... so there are some real numbers for you. i moved to a class A in less than a year... got 60k on a trade... dealer i traded it to had trouble selling it...
i've bought 3 coaches since, i don't consider coachmen at all. a lot of other people obviously aren't either...


i still don't know enough to give you a good answer, and i'm a poor adviser as i've only been in this game for under 4 years...
here is a question for others that may want to help you...

do you want quality ??? or poop?? prevost or coachmen?
10 year old in great condition or 1 year old?
high mileage diesel or low mileage 10 year old.
honest personal friend or shyster selling motorhomes down on the corner that just opened?
willing to go out of state?
are you a good rv mechanic ?? are you qualified to inspect a used or new?

i think you better order a new one, from a quality dealer. and buy the extended warranty.
I think you may be over thinking a simple question, but thank you for all that time and effort.
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Old 11-03-2020, 05:13 AM   #9
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Originally Posted by Gary RVRoamer View Post
Typically when folks quote depreciation percentages , it is relative to the original MSRP. MSRP is the only fixed/known value; anything else is a variable. However, annual depreciation means just what it says - the change since last years price. Now if only you knew last years price...


The initial big depreciation percentage is more a recognition of typical discount pricing than actual depreciation.

See, that is what I was thinking too. If that 20% out the door depreciation is from the MSRP then if I buy a MH at 30% off MSRP(and I see this all the time on Matt's), then if I sell it a year later I could theoretically sell it for the same price as long as its in good condition.

Before I get a bunch of replies let me just say, no. its not what I plan to do.

Thanks RVRoamer, it does explain why I see so many used RV's selling for more then what a new one with a 30% discount of MSRP is selling for.

And yes, I understand that some used RV do have improvements that make the vehicle possibly sell for more.

I am just trying to figure out if its better to buy the MH that I like at 30% off MSRP then a used one. The only reason I would ever buy used is if I wanted to avoid the big hit I take when it leaves the showroom.
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Old 11-03-2020, 02:37 PM   #10
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Quote:
See, that is what I was thinking too. If that 20% out the door depreciation is from the MSRP then if I buy a MH at 30% off MSRP(and I see this all the time on Matt's), then if I sell it a year later I could theoretically sell it for the same price as long as its in good condition.

Not really. If you can get 30% of MSRP, so can somebody else, and they'd be nuts to pay you the same amount for a used one with no warranty. The only way you could do what you theoretically suggest would be if the following year had a major price increase, making yours a relative bargain at that price.


All this is rough approximations - some buyers probably pay close to MSRP, while others bargain for the last 2 cents of discount and think anything less than 33% discount is robbery. You might find a buyer who thinks your 30% off MSRP price is dandy and you make out fine. But the odds are not with you.
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Old 11-03-2020, 03:06 PM   #11
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Think about it!
If anyone could buy new for MSRP less 30% and turn around and sell it for MSRP less 20% why not buy 2 and do the same... why not 10 or 100 and go into business. The answer because you can't do it on avg. Not to say you won't find 1 in 100 that might pay that but any savvy shopper looking at late models used units will also be shopping new and comparing prices.
A new unit at MSRP less 30% is much easier to sell with a warranty than buying the same unit at the same price as a second owner with no warranty... especially when you throw in private seller as the prospective buyer is wondering whats wrong they are selling a relatively new unit... must be a lemon!
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Old 11-04-2020, 04:49 AM   #12
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Now you see why I ask this question.
20% off the lot loss cant be both MSRP and sale price.
Otherwise like someone suggested, you could make income selling used MH's.

I think it only applies to when someone buys a MH at full list price then tries to sell it 2 years later.
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Old 11-04-2020, 05:19 AM   #13
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Quote:
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I think it only applies to when someone buys a MH at full list price then tries to sell it 2 years later.
No - They might ASK that and feel justified but they won't sell it... not even if someone paid MSRP because nobody else in their right mind would pay used private sale more than they could go buy new from dealer with warranty.
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Old 11-04-2020, 06:03 AM   #14
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No - They might ASK that and feel justified but they won't sell it... not even if someone paid MSRP because nobody else in their right mind would pay used private sale more than they could go buy new from dealer with warranty.
This. When we were looking in 2018, we saw 2016 and 2017 units that were priced at considerably more than what we could get a brand new unit considering the discount. They didn’t have a bunch of add ons either. I figure they were from inexperienced buyers who paid full MSRP, financed, and were bottoms up. And it wasn’t $4-5K to provide some negotiation room; some of these were priced $20-30K over a brand new unit.
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