Post Covid Glut of used RVs has resolved?

[DarkSideJeep]

I have been receiving emails from several National RV dealers touting new higher trade in prices. I kind of sounds like they are running short of used units to sell.

[boiledowl]

Originally Posted by DarkSideJeep

I have been receiving emails from several National RV dealers touting new higher trade in prices. I kind of sounds like they are running short of used units to sell.

I don't know, it may be a ploy to suck you in to their dark world of sales tactics.

[Papa Foxtrot]

Based on my unscientific observations, there is a glut of used bunkhouse floorplan Super Cs on the market - Renegade, Dynamax, Jayco/Entegra. IMO, there were a bunch of pandemic first time buyers that just had to have a bunkhouse to take all the kids along. Now those units are being dumped and I'm guessing that they're way underwater if they financed...

[DarkSideJeep]

Originally Posted by Papa Foxtrot

Based on my unscientific observations, there is a glut of used bunkhouse floorplan Super Cs on the market - Renegade, Dynamax, Jayco/Entegra. IMO, there were a bunch of pandemic first time buyers that just had to have a bunkhouse to take all the kids along. Now those units are being dumped and I'm guessing that they're way underwater if they financed...

My feeling is that everyone who wanted to dump has done so. Now the dealers are starting to see limited selection, where there is a shortage of popular floorplans and a minor glut of the less popular models like Bunk house floorplans. The emails have the same feel as the ones I was seeing from auto dealers trying to encourage me sell or trade my car.

[NXR]

Originally Posted by Papa Foxtrot

Based on my unscientific observations, there is a glut of used bunkhouse floorplan Super Cs on the market - Renegade, Dynamax, Jayco/Entegra. IMO, there were a bunch of pandemic first time buyers that just had to have a bunkhouse to take all the kids along. Now those units are being dumped and I'm guessing that they're way underwater if they financed...

It seems to be worse than that and it's not just bunkhouse units. It appears a lot of people way overpaid, some I know actually paid MSRP, took out a loan, the interest rates skyrocketed, and the motorhome market has crashed.

I've seen several ads where people say they just want their loan balance but their asking price is close to that of a new, heavily discounted motorhome. I've even seen some gas Class A's where, for example, the asking price for a used 2022 was $10K more than the advertised price for a new 2024.

We'd like to upgrade but are now sitting in the sidelines watching.

On a related note, an RV appraisal group I watch just had a post where the owner said they had never seen such a large difference between asking and the actual selling prices. That may mean that over-extended owners are just cutting their losses but it does not mean there was a bargain price.

So how are trade-ins valued? It's based on the wholesale price so that if a dealer cannot sell the trade-in they know they can still wholesale the unit and not lose money. For cars the trade-in often is 20% below the wholesale price so the dealer can appear to give you a better deal when all they are doing is rigging the game. I'd imagine that RV dealers do the same but I have no idea of the percentages they use.

I bought a certified sellers appraisal from this company: https://rvpricingandappraisals.com/

They give both the pricing you should ask for a private sale and the expected trade-in value based on current wholesale prices. I bought my appraisal right before the Tampa RV Show this year. At the show one finance guy worked up a "deal" and gave me my trade-in value sight unseen "and it can go up!"

It was within a thousand dollars of the number I got from the appraisal.

If anyone is serious about selling I absolutely would pay for an appraisal. For $149 with the company I used you can save yourself thousands. And if you drive your trade-in to the dealer for an "evaluation" there is an emotional aspect that may convince you to proceed even though the number is too low. Remember, the dealer already knows what they are going to offer you for a trade-in that's in good shape before they ever see it.

Start off as an informed seller or buyer and save the trip and high pressure if the number is way too low for you.

I have no affiliation with them or any other appraisal company except as a customer.

Ray

[d23haynes57]

During the so-called shortage of everything from houses to cars and trucks prices were inflated. Not only did folks pay too much but loans are offered for low down payments and extended terms. RV purchases fell into the trap of low monthly payments for 10-to-15-year terms. Without throwing a lot of extra money on the loan each month one is essentially paying only interest. In 2022 we were looking for an SUV or truck. 2018's were going for the same price as new. Just didn't make sense. For the popular vehicles many were sticker plus anything up to $20K above sticker. Talk about depreciation! I somehow found a 3-month-old Sierra Denali with 1,800 miles that was traded in for a BMW. I basically paid sticker. It also had a full cap and the fancy exhaust was added. They let me take it home with now money down, even though it was used. 5% interest for 6 years. Yes, I pay extra every month to stay ahead of the value.
Back to the RVs I see a lot of them hitting the market even the older high-end stuff. Some may be trades but I think many are dumping as the economy and market is sinking now. As we lose jobs, meet with early retirement, and investments lose value, RV's will be used and worth less.

[Dutch Star Don]

I can't count how many times a dealer has said they want to pay me top dollar for my car or coach, when all they want to do is push a new car or coach and then give you way under trade in value.

I was getting the first service on my 2024 GMC Sierra 1500 and waiting in the lobby. I had a salesman ask if I was getting a vehicle serviced, he wanted to try and push me into a new truck. When I told him it was a 2024, he moved on.

The market is the weirdest it's EVER been. When I bought my 2019 DS, I pretty much figured by now it would be worth about half of what I paid for it. However, Covid and Newmar changed the norm. Covid caused some shortages and Newmar jumped the Dutch Star up over $200K from what I paid a six years ago. My coach is still selling for about $280K, I paid $320K new. If I was at the end of our RVing life, I would be in great shape to sell. By the time I'm ready to sell, the market may change again. You can't buy a 2025 or newer DP in California, so that will up used prices.

[GaryP1007]

Originally Posted by Dutch Star Don

I can't count how many times a dealer has said they want to pay me top dollar for my car or coach, when all they want to do is push a new car or coach and then give you way under trade in value.

I was getting the first service on my 2024 GMC Sierra 1500 and waiting in the lobby. I had a salesman ask if I was getting a vehicle serviced, he wanted to try and push me into a new truck. When I told him it was a 2024, he moved on.

The market is the weirdest it's EVER been. When I bought my 2019 DS, I pretty much figured by now it would be worth about half of what I paid for it. However, Covid and Newmar changed the norm. Covid caused some shortages and Newmar jumped the Dutch Star up over $200K from what I paid a six years ago. My coach is still selling for about $280K, I paid $320K new. If I was at the end of our RVing life, I would be in great shape to sell. By the time I'm ready to sell, the market may change again. You can't buy a 2025 or newer DP in California, so that will up used prices.

When is the best time to buy? I see some new 2024 Newmars available and makes me ask. Also the economy is going to get worse. Thoughts?

[DarkSideJeep]

Originally Posted by Dutch Star Don

I can't count how many times a dealer has said they want to pay me top dollar for my car or coach, when all they want to do is push a new car or coach and then give you way under trade in value.

I was getting the first service on my 2024 GMC Sierra 1500 and waiting in the lobby. I had a salesman ask if I was getting a vehicle serviced, he wanted to try and push me into a new truck. When I told him it was a 2024, he moved on.

The market is the weirdest it's EVER been. When I bought my 2019 DS, I pretty much figured by now it would be worth about half of what I paid for it. However, Covid and Newmar changed the norm. Covid caused some shortages and Newmar jumped the Dutch Star up over $200K from what I paid a six years ago. My coach is still selling for about $280K, I paid $320K new. If I was at the end of our RVing life, I would be in great shape to sell. By the time I'm ready to sell, the market may change again. You can't buy a 2025 or newer DP in California, so that will up used prices.

Is that final selling price or asking price?

[Dutch Star Don]

Originally Posted by DarkSideJeep

Is that final selling price or asking price?

Selling, it was $285K

[Wellibe]

My local bank's repo lot has had a steady stream of TTs and 5ers for the last couple of months. Classifieds in the local small town newspaper have several lightly used TTs for sale. Private sellers asking way too much, IMHO. I see these as indicators that people are trying to unload RVs that they didn't use much and can't afford.

[Isaac-1]

People are nervous about the economy and with interest rates like they are people are also avoiding major purchases

[d23haynes57]

Originally Posted by Isaac-1

People are nervous about the economy and with interest rates like they are people are also avoiding major purchases

Not just interest rates but also investment performance. Many rely on investments for part of their income and also for large purchases. Thier is also the factor of job security.

[MarvinG]

I flip and build spec houses. I’m not about to start a new house right now. Building material prices could hit the sky before I can get a house finished, many really good workers may be deported and U.S. citizens of any color are not eager to do construction work, at least not in my area.

Not to say I won’t build or purchase another foreclosure to flip. But what I am saying is I will most definitely proceed, if at all, with great caution. And that is the point: A whole lot of us are being careful and that will bleed down to hesitancy in all kinds of major (if not minor) purchases including RV’s. I think we are already seeing that. I know, I know, I am sounding a lot like I forecast a recession. I don’t like to be a doom and gloom soothsayer, but. . . .