Motorhome Valuations

[vjohnny]

We are trying to make some sense out of valuations on previously owned RV's. I have heard formulas but don't know if they are based upon the original sticker price or the actual amount paid to the dealer. NADA high retail / low retail is confusing also. How does a novice figure this out?

Jan and John Armour
"itching to hit the road"

[RVRon]

Originally Posted by vjohnny

We are trying to make some sense out of valuations on previously owned RV's. I have heard formulas but don't know if they are based upon the original sticker price or the actual amount paid to the dealer. NADA high retail / low retail is confusing also. How does a novice figure this out? Jan and John Armour "itching to hit the road"

Throw out the "sticker price" as new in any calculation. It doesn't come into play. A good point to make an offer on a used MH is below NADA low book and work from there, but study the classifieds as well to gain perspective on your particular choice. Good luck and happy highways, Ron

[RoscoeAndTam]

I agree with RVRon, if you have an idea of what you want you can check out PPL Motors and what they want for what they have on the lot. You can also search their site to find out what units have sold for in the past.

[Air Baron]

What a dealer advertises/quotes/wants and what they end up getting are two different amounts. Selling prices determine market value, not asking prices. Dealers do not pay more than NADA wholesale when buying a used motorhome...and those figures are not available online. One needs to subscribe to the service. Dealers adjust for options/mileage/condition. I would not pay more than NADA Low Retail in this market. Supply is greater than demand. We are still in a recession, and so is the RV industry. Why don't you look on RVT.com and try to find a private seller? Or find a broker to find the one you want? Buy from a dealer only as a last resort...and make them work for their markup/profit. They need to actually provide you with something of value...such as information, instruction on operation, or discounts on service.

[vjohnny]

Thanks to all for helping make sense of this.

[Algoma]

I would slightly disagree with Air baron. Private individuals have a problem accepting that their RV is worth a lot less than they think. Dealers may list them high but are more realistic in what offers they will accept. I know of one coach on RVT where a private seller is asking $50,000 more than a dealer is asking for the same year and model.

[Gary RVRoamer]

The free online version is worth what you pay for it. It doesn't represent market data - just a projected annual depreciation from the original MSRP. It may be close for some models when not too old (less than 10 years?), but it doesn't reflect higher valuations for popular models or local market differences. At best it's a vague guideline.

Low vs Average is simply a statement of condition and a range of pricing.

The best way to establish value is to do some shopping, get some quotes and maybe make some offers. This will quickly give you a range. Dealers often start high and hope you won't bargain, but don't be afraid to make a low offer. Don't worry that they may laugh at you - you aren't out there to impress the sales person. You just want the best deal you can get. You can always increase your offer later, and if it is high enough they will still accept it. And if they don't, you can simply walk out the door.

[B Bob]

You need to do your own research to figure out what you should be paying. NADA is a start. But you need to figure out what other people have paid for similar coaches recently. PPL motorhomes lists solds. So does eBay. After you look at a few dozen you get an idea of what they are worth.

I do not agree that private parties are more reliable than a good dealer. The private party has only one RV to sell you. Many times they will say what it takes to sell you. A dealer only needs to sell you one of his stock. If you find a good salesperson they will steer you in the direction of one of their better ones. Of course so will a good private party.

[mojoracing]

The problem with some private sellers is that they really don't know the market. They often base their selling price on factors that have nothing to do with the actual value of the MH. For instance, they may need to pay off a loan that they originated with little money down and a long term. The MH has depreciated much faster than they were paying down the principal but in order to get out from under it they have to get a selling price that is close to what they owe. Of course what someone owes has nothing to do with its value but they will price it according to what they owe falsely believing that "it must be worth at least what they owe". Some private sellers may research the value of their coach based upon asking prices that dealers are publishing either online or in advertisements. What they conveniently forget is the dealer most likely is not going to get full asking price. Purchasing from a private seller also leaves a buyer with little if any recourse should something go wrong with the sale or the coach has issues. A dealer has literally millions invested in their business. That being said, they are not going to jeopardize that investment by providing poor product and poor service. They also survive on repeat business. They will usually do everything within their power to make a customer happy. Try going back to the guy on craigslist when you discover your water heater not working when you get home. At first glance it may seem that dealers price their units high but keep in mind they do so full well knowing that customers expect a discount and that they might have to make a couple changes or repair an item that was missed during an inspection. Keep in mind when negotiating that a dealer has priced a unit based on what they own it for. The dollar figure they own it for includes what they gave the previous owner in trade for it plus the cost of any repairs done to the unit. In the end, a dealer has a better idea of what a unit is worth based on current market conditions and will price accordingly not based on some pie in the sky number. A dealer also knows that if his prices are not competitive, he won't be selling many units. Thats not to say that there aren't deals to be had out there based on a private seller needing to make a quick sale or something along those lines but a good dealer knows his prices need to be fair and his customers need to be happy. As always, do your homework and you will end up with a nice unit and hopefully some cash left for some fuel too. Good luck!

[Air Baron]

After studying the market for 5 years, I used a reputable broker to find an exceptional used motorhome. The widow was asking close to $100k for a low mileage, immaculate coach that had been stored under cover for most of it's 11 years. I found 5 others on-line of the same model/year for much less and made her an offer of $70k. Although upset, she countered at $72k and said goodbye to her husband's pride and joy. I paid her and she paid the broker. I will use the money I saved (from paying to a dealer) to replace the carpet...and buy many more thousands of gallons of diesel fuel.

In my opinion, used motorhome dealers are no better than used car dealers. They know nothing about the coaches they buy...yet try to convince you how well they have been maintained. When you are clear across the country and have a problem, their promises and assurances are essentially worthless. Even without having paid for an inspection, I have had only a few minor problems over 2 years and 16,000 miles.

[ProjectPro]

Originally Posted by RoscoeAndTam

I agree with RVRon, if you have an idea of what you want you can check out PPL Motors and what they want for what they have on the lot. You can also search their site to find out what units have sold for in the past.

Roscoe and Tam, I'm not great at Web site navigation and can't find how to access historical sales data. I apologize in advance if it is an obvious link, but could you please point me in the right direction to find the actual sale prices?

[StevenNSteph]

Originally Posted by Air Baron

In my opinion, used motorhome dealers are no better than used car dealers. They know nothing about the coaches they buy...yet try to convince you how well they have been maintained. When you are clear across the country and have a problem, their promises and assurances are essentially worthless. Even without having paid for an inspection, I have had only a few minor problems over 2 years and 16,000 miles.

X2

I have owned 6 coaches

4 were bought from private sellers
1 was bought at a wholesale dealers auction
1 was bought from a bank (it was a repo)

All of these coaches were bought way below NADA low prices and usually below NADA wholesale prices. IF you do your homework and are patient you can find a great deals through private sellers but rarely can you find great deals.

Good luck and have fun in your search.

[vsheetz]

Originally Posted by Algoma

I would slightly disagree with Air baron. Private individuals have a problem accepting that their RV is worth a lot less than they think. Dealers may list them high but are more realistic in what offers they will accept. I know of one coach on RVT where a private seller is asking $50,000 more than a dealer is asking for the same year and model.

Agree that private sellers often are looking for more than the coach is worth. They look at the NADA book wrong (retail value, add options when they should not, etc), they know their coach and think its great etc. Also you get those that are financed and upside-down and therefore basing price on what they owe. These sellers you have to catch after they have been on the market unsold for awhile and are realizing reality.

[PyrateSilly]

Originally Posted by ProjectPro

Roscoe and Tam, I'm not great at Web site navigation and can't find how to access historical sales data. I apologize in advance if it is an obvious link, but could you please point me in the right direction to find the actual sale prices?

Here is the direct link to the page: Used Recreational Vehicles Sold or for Sale - PPL Motor Homes
Under the "Sold" column click on the type you are looking for. Then you look by the name of the RV. It shows a list with the $ sold for and the date it sold.