Negotiating a purchase with a dealership

[DianaCox]

OK, it has been taking us a VERY long time to get to the point of making an offer (because we have to have our house sold first, and we're not there yet). But using this as a hypothetical situation (because I'm going to guess this coach will be gone before the house closes):

This coach 2013 Tiffin ALLEGRO BUS TPA84030
has been listed since mid-January. It was originally listed at $270K, and now they're asking $230K.

Do you think after it's been sitting there for 3 months (or 4), that offering $190K would be ridiculous? Or could I even offer less?

[Hit_the_Rhod]

Originally Posted by MRUSA14

Try telling that to the owners suffering from Norcold refrigerator fires. I have read dozens of reports of these fires over the years, and have read about only one or two fires of another sort.

Totally agree! But in this case it was a Dometic exploding refrigerator!

[Hit_the_Rhod]

Originally Posted by DianaCox

OK, it has been taking us a VERY long time to get to the point of making an offer (because we have to have our house sold first, and we're not there yet). But using this as a hypothetical situation (because I'm going to guess this coach will be gone before the house closes):

This coach 2013 Tiffin ALLEGRO BUS TPA84030
has been listed since mid-January. It was originally listed at $270K, and now they're asking $230K.

Do you think after it's been sitting there for 3 months (or 4), that offering $190K would be ridiculous? Or could I even offer less?

Your 190k offer is only 30% off of their original 270k price. I would first verify the actual MSRP (which MAY be 270k), then I would offer them 40% off. As stated before, get a copy of their sales agreement, fill it in, putting in say . . . 170k, include a check for 10% of your offer, with the stipulation that it pass PDI and that the offer is only good for 24 hours. Tell them that you only need a yes of no. Don't try and negotiate on the tires or batteries, just factor in that in to the price you are offering. Make it easy for them, it's difficult for them to turn down a "bird in the hand"!

[Betr2Trvl]

The real question, is "what is it worth to you?", not what "discount" or "%" off asking can you get (which is usually more about bragging rights).

If a new version of the coach is $300k (as an example) and 25% off (a reasonable new discount) that would be a $225k buy price for a new coach with a warranty and equipped exactly how you want it (considering you can order one vs. taking on off the lot). So it is as simple as, how much less does the used coach have to be for you (no one else) to buy it and be happy?

And don't loose what you really want over a relatively small amount of money, you'll reget it later....... And never buy something that is a "good deal" if it's not what you really want because you won't be happy and in the long run it will cost you more money to get what you really wanted anyway.

[SpaceNorman]

Obviously - nobody like the idea of overpaying for anything. But, you'll go crazy second guessing yourself about whether a deal you're considering is the absolute best deal you might be able to get. Find yourself a coach you like, ensure that you're in the ballpark in terms of price - and go for it. If you don't, you'll be sitting here having this same conversation over and over again. Life is way too short.

[barmcd]

Originally Posted by SpaceNorman

Obviously - nobody like the idea of overpaying for anything. But, you'll go crazy second guessing yourself about whether a deal you're considering is the absolute best deal you might be able to get. Find yourself a coach you like, ensure that you're in the ballpark in terms of price - and go for it. If you don't, you'll be sitting here having this same conversation over and over again. Life is way too short.

This is good advice. Do you research and come up with a price you're comfortable with and go with it.

[RV Vagabond]

Originally Posted by My3js

I was asking on another link if Nexus negotiates ... So they don't budge at all? Do you have one ? And if so what are your thoughts on it?

I tried to negotiate with Nexus and I suspected they were hurting for sales, but taking $500 off is as much as they would offer. I loved their willingness to customize at the factory level, but it was going to cost me at least $20,000 more than the Winnebago Solei 36 I wanted, so I bought from Winnebago. I may end up regretting my decision.

[DianaCox]

Originally Posted by Hit_the_Rhod

Your 190k offer is only 30% off of their original 270k price. I would first verify the actual MSRP (which MAY be 270k), then I would offer them 40% off. As stated before, get a copy of their sales agreement, fill it in, putting in say . . . 170k, include a check for 10% of your offer, with the stipulation that it pass PDI and that the offer is only good for 24 hours. Tell them that you only need a yes of no. Don't try and negotiate on the tires or batteries, just factor in that in to the price you are offering. Make it easy for them, it's difficult for them to turn down a "bird in the hand"!

Maybe I'm confusing terms, but since this is a used 2013 coach, what does the MSRP have to do with the current price? Do you mean NADA price?

How does the NADA price compare in flexibility to the MSRP on a new coach, which apparently nobody pays full price for? If they dropped their original ask of $270K in January to $230K now, does the 40% off $270K make sense? Do you think offering $162K is actually reasonable?

Thanks in advance!

[CWJK55]

"Do you think after it's been sitting there for 3 months (or 4), that offering $190K would be ridiculous? Or could I even offer less?"

Make your offer, whatever it is leave your phone number and walk away. They will call you. Since you've already seen it several times I'd even make the offer over the phone.

[TQ60]

Better yet via an oh by the way email.

Make offer "out the door" and be clear on exactly your offer and expectations.

[LDCSteve]

Look on NADA and RV trader for 2015 Tiffin models like you want to purchase. That will give you an idea, take off another 10-15% and start your negotiations. I would only purchase from a reputable Tiffin dealer regardless of the savings you think you are getting. I can assure their will be dozens of problems they will need to fix, and you are already behind three years, oil change, tires belts, someone driving it on test drives, corrosion, battery life. I bet the dealer did not baby it, it just sits on their lot. Seems like if the dealer was a realistic on their pricing it would have already sold. The 17's are out and already selling. Some dealers buy these coaches stripped down hoping someone not familiar with the model will come along unaware. They should give you pricing if they were a reputable dealer and not hide anything. A coach sitting for 3 years is not a good thing.

[DianaCox]

I'm sorry - this thread had gone through some iterations - let me try again.

At the moment, there is a USED 2013 Tiffin Allegro Bus for sale by a dealer that has been listed since mid-January. It was originally listed at $270K, and now they're asking $230K.

Do you think after it's been sitting there for 3 months (or 4), that offering $190K would be ridiculous? Or could I even offer less?

How does the NADA price compare in flexibility to the MSRP on a new coach, which apparently nobody pays full price for? If they dropped their original ask of $270K in January to $230K now, does the 40% off (mentioned above) $270K make sense? Do you think offering $162K is actually reasonable?

I don't know if THIS coach will be available when we have the cash from the sale of our house in hand and are ready to buy. I'm trying to learn what to expect when we ARE ready, so I don't waste my time looking at coaches we can't afford - because I don't know how to predict what the "REAL" prices can or might be.

I contacted one dealer a couple of months ago about a 2016 "new" Phaeton that was a demo, had a couple thousand miles on it, and they were discounting it from $319K to $225K. Is it reasonable to expect that a USED coach would be discounted to that extent (30% more off)?

Thanks - and I'm sorry if I have contributed to the confusion!

[Hit_the_Rhod]

Originally Posted by DianaCox

Maybe I'm confusing terms, but since this is a used 2013 coach, what does the MSRP have to do with the current price? Do you mean NADA price?

How does the NADA price compare in flexibility to the MSRP on a new coach, which apparently nobody pays full price for? If they dropped their original ask of $270K in January to $230K now, does the 40% off $270K make sense? Do you think offering $162K is actually reasonable?

Thanks in advance!

Diana, I went back and re-read my post and it WAS a little confusing, so let me start over. To address your comment above, SOME people actually pay full price for coaches. I once asked a used car salesman why they put such ridiculous prices on used cars, and he told me that I would be amazed how many people drop by, look at a car with the crazy price and just buy it, no negotiation whatsoever.

That said, many people purchase coaches for 20%, 25%, or even 40% off of MSRP if you can believe the tales. If that is true, you may be able to purchase a NEW coach for less than a private party is willing to sell a say 1 or 2 year old USED coach! It sounds crazy, but it's true . . .

So, if you are looking at a used coach (which the one you are looking at apparently is) you don't know if the previous buyer paid full price, or got 40% off of MSRP. Now your situation is further complicated by the fact that you are looking at a used coach from a Dealer, not a private party.

NADA "value" is an interesting figure. First and foremost, Dealerships and Private Parties will often use it incorrectly (and to their advantage) by listing every item the coach has as an add on "option" with the associated "value" associated with it. If you look at the fine print on the NADA site, only the "add-ons" that were TRULY ADDITIONAL COST OPTIONS should be added onto the base value. For instance, a coach may come standard with two 13,500 btu AC units, but the original purchaser upgraded to the 15,000 btu AC units, that is a legitimate "upcharge", or "upvalue" to add on. However, that model came standard with the "upgraded interior" so that is NOT a legitimate "upcharge".

2nd problem with the NADA number for RV's. It is not based on actual sales prices, it is based on a "standard depreciation" off of a figure which may or may not accurately reflect what the model actually sold for new, therefore, you will hear people say that 10% to 20% below NADA value is a fair price. We purchased or latest coach for 18% off of "NADA value" from a private party and we feel that we got a good deal.

Bottom line (finally) do the research to find the coach you want, come up with a figure you are comfortable with, based on what YOUR financing will support, NOT the financing offered by the dealership, and make an offer a little under that to allow for a little "movement". If they take it, fine, if they don't, adjust a little, or just walk away!

[twogypsies]

You can get a better price paying cash rather than financing.