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Old 12-18-2006, 10:16 AM   #1
CRUZIN 2
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Cost of trading

When you are thinking of trading, how much do you figure your rig would depreciate? I haven't seen this yet and looking for some good suggestions.

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Old 12-18-2006, 10:27 AM   #2
jrgwdenner
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This is just a wild idea. We recently spoke with a dealer offering a rig for $70,000. Our bottom price was about $31,000. In about six months, we would lose about $700.00 in value on the Montana. This was not a serious exchange so I don't know how much bartering could be done. But maybe it gives you an idea. Our rig is a 2004
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Old 12-18-2006, 11:10 AM   #3
Mudchief
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When we traded in our 11 month old 329RLS Mountaineer for the new 3400RL Montana it cost us about 20%. It could have passed for a new unit. But we can also say it was worth it.
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Old 12-18-2006, 11:59 AM   #4
Glenn and Lorraine
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A number of dealers use the NADA Guide to arrive at their inital offer. You can research this by going to NADA.com.

Good luck
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Old 12-19-2006, 02:43 AM   #5
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Larry, when you use the nadaguides site, be real judicious about which options you check off. In the fine print it notes not to check those "options" listed that are standard on the rig. So you'll need either your original price sheet or the keystone website's list of options and standards to select the right items. If you check the box for items that are standard you will get an inflated value.
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Old 12-19-2006, 04:21 AM   #6
bsmeaton
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The NADA guide is a good start, but once negotiations start, it's all relative. If you are throwing wholesale prices for the new unit, expect wholesale values for trade. From there you can start putting on pressure to narrow the numbers on the difference to get a deal you are comfortable with.

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Old 12-19-2006, 04:23 AM   #7
Bob & Lee
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When we worked the deal for our new 3400 the dealer said the NORM is about 20%. our trade a 04 when we bought was MSRP $51,xxx and bought for $41,xxx and NADA was $33,xxx he allowed us $38,xxx on trade. So I found it is not what yours is worth or what his is worth its the amount left over, the bottom line out the door. you need to be happy with. They will juggle numbers to make you feel like your deal is the best.
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Old 12-19-2006, 06:07 AM   #8
campbud
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Bob, yes they will juggle the numbers to make it look like you are getting more for trade but in the end it is the left over amount that you want to be happy with. It can also be mind boggling just going over them numbers!
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Old 12-19-2006, 01:04 PM   #9
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Here is what the dealers do: They bring in your rig at "actual cash value" meaning what they can wholesale out the door tomorrow. Basically it is the wholesale value in NADA for your rig less 10% or $2,000.0 whichever is greater. Rarely are the value of options added. Regardless of what they say you are getting, this is what they bring it in on their books and what they pay commissions on. The bottom line is that they are into their rigs at 60% of MSRP or less.
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Old 12-19-2006, 01:06 PM   #10
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FWIW, I'd check various RV selling sites (and eBay) to determine what your rig is worth. If you trade, you will get bottom dollar...no matter what you have on it or how little you have used it. We sold our last TT on eBay and got 50% more than the dealer was going to give us...it had been used a total of four nights...the dealer did not even look at it.
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Old 12-19-2006, 03:33 PM   #11
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I looked at trading my 2005 2955 for a 2007 3075 - all the dealers I talked to did not even come close to what the 2005 was worth - You are far better off to sell private then negotiate for a new one without the hassles of a trade.
The only benefit to a trade (and this is true in BC so don't know if it is true everywhere) when you trade in for a new rig you only pay taxes on the difference. You get a credit for the taxes you have already paid. In BC, sales tax and GST (General services Tax) total 13% so there is an opportunity to save on a trade in.
EXAMPLE - New rig costs $45000 - trade in old rig at $25000 - only pay taxes on the difference - $20000. In BC at 13% that is a tax saving of $3250.
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Old 12-19-2006, 07:24 PM   #12
Parrothead
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That sure isn't the way California does it. We paid tax on the full final price of the Monty after we haggled the deal.
Happy trails...................
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Old 12-19-2006, 07:51 PM   #13
JH Sechelt
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I agree with Markwick, the dealer won't pay you retail for your trade-in. If you want to know what it is worth to them just take it in and ask them to buy it from you. That way they are not padding the price with money that they would have give you off the new one anyways. I just keep trading ours in every few years and try not to think about all the money I've lost. Retirement is close so you can count on that coming to a close. The new Monty we bought last year will be around for a good many years to come.
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Old 12-20-2006, 12:38 AM   #14
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The bottom line is how you feel. Are you satisfied with your deal. You will find someone that got a better deal than you, that is human nature.
My truck get better fuel mileage than yours, I got the best trade-in on my purchase. My Montana costs less than yours. It really does not matter. If you are happy that's all that counts. We all should know that no dealer is losing any money on any deal unless he is a dummy. The mark-up on RV prices is 40 to 45 %. That is the haggle room.
I believe if you sell your unit you will probably come out better, but it is easier to trade, especially if you fulltime and need to moved your stuff.
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Old 12-20-2006, 07:12 AM   #15
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Quote:
quote:Originally posted by markwick

I looked at trading my 2005 2955 for a 2007 3075 - all the dealers I talked to did not even come close to what the 2005 was worth - You are far better off to sell private then negotiate for a new one without the hassles of a trade.
The only benefit to a trade (and this is true in BC so don't know if it is true everywhere) when you trade in for a new rig you only pay taxes on the difference. You get a credit for the taxes you have already paid. In BC, sales tax and GST (General services Tax) total 13% so there is an opportunity to save on a trade in.
EXAMPLE - New rig costs $45000 - trade in old rig at $25000 - only pay taxes on the difference - $20000. In BC at 13% that is a tax saving of $3250.
You might want to check the fine print in the tax law. In my state, we have the same law you sited for a trade. However, you can also do the same thing on a private sale...get a statement from the buyer stating what he paid you for the trailer and the tax consequences are the same as if you traded it. The Revenue Dept lady told me they check with the new owner to make sure the you (the tax payer) are not just making a phony statement to beat paying taxes.
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Old 12-20-2006, 12:44 PM   #16
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All this trade talk has me catching the trade in fever. I think I will call the Monty dealer and have him crunch some numbers. It may be time to get a 5th wheel.
Phil
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Old 12-20-2006, 12:45 PM   #17
markwick
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Hi CAT320 - been there tried that - in BC anyway - if you sell privately you do not get a tax break - you have to trade at a recognized dealer to get the break. I am sure every Province and State has different rules.
The bottom line is what RVFIREFIGHTER says - if you are happy, that is the main thing.
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Old 12-20-2006, 01:34 PM   #18
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Also in Canada, our infamous GST tax on everything is only paid when you buy from a business.
On private sales, no GST is paid and it has created a big tax break for people that buy privately.

All registered vehicles are subject to a provincial sales tax of 7% in BC and they collect that when you register the vehicle. In the case of Slide in Campers, not registered in BC, you can buy them privately paying no GST or PST , 13% cheaper than a dealer or you can go to Alberta, our no sales tax Province, ( same as Oregon to you Americans ) and buy your new Camper with no sales tax. We love shopping in Oregon and Alberta because we hate taxes.
Canada...........GST and PST on a frikkin haircut. Sell your property , get dinged 8000 dollars commission by the realtor, then because the commission is a service, you get raped with a 6% GST tax bill on the 8 Grand , yes, another $480.00 hoop shot by our Feds......GRRRRRRRRRRR
But we have free medical..............yeah right.
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Old 12-20-2006, 01:37 PM   #19
bsmeaton
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CO gives the same tax break for trade. The only way to do it through private sale is to run the sale through the Dealer as a pass through. They don't like it as there is no money for them, but I have negotiated it as part of the deal on occassion.

We elected to take the tax break and trade in. To me at least, the tax break helps offset the loss on trade in, and there is no risk that the old unit won't sell. It would be a hassle for me to run to storage everytime I got a call to show the unit, especially for no shows. It is also a little tougher for a buyer to get competitive financing for an outright sale from a private owner, so you loose a few sales to the Dealers. In some scenarios - for those buyers just looking at monthly payments - it can be cheaper per month to buy a new unit from a dealer than it is to buy my used unit from me given the difference in terms available.

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Old 12-21-2006, 06:54 AM   #20
CampingCrazyShirley
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It really is all about the bottom line. Don't get fooled when you go to RV shows and they have a wonderful price for the show. That's all great until you tell them you have a trade and that number disappears out the window. All of a sudden you have to deal with different numbers. If you deal with wholesale numbers, that is what they will give you for your trailer...it is all just a numbers game because it doesn't matter what they are asking for the new trailer, it boils down to the difference between yours and theirs and the bottom line, less anything you might owe on yours. If you have nothing to trade, then that's always the better deal I think. JMHO.
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