Trade In Values !!!!

[Mosnowman]

So as I have gotten older, the wifey and I have decided to buy a small Class A. I currently have a 2018 3721RL Montana which is absolutely beautiful! I did some research and JD Powers has it at $76k high retail and $64k low retail. I realize I will not get retail on a trade in. I was expecting under retail.

So, the dealer and I have agreed on the price of the coach of which I am satisfied. Here’s the kicker…they got back to me with an offer of $35 k for my Montana!!!! You read that right. Now I was expecting a lower figure, but that is simply ridiculous. I was expecting best case $55-57k but realistically would take possibly as low as $50k based on make the transaction simple. The unit is in excellent condition and never traveled with. Am I realistic thinking this is an absurd offer?

Thoughts?

[AZ Traveler]

Steve,

Simple, sell your trailer yourself and then look for a new rig. The lots are full - its a buyers market.

[BB_TX]

List it on Facebook Marketplace, free ad. Sold mine in 2 days for JD Power average retail value. Others have had good success selling there also.

[DutchmenSport]

The dealer offer sounds about right. Selling to a dealership is far, far different than buying from a dealership. That's why so many folks sell privately.

How you settle on this specific offer is strictly how eager you are to get rid of the old camper. You can take the offer and be done with it, or attempt to sell yourself and get more. However, every day you hang onto the camper it's depreciating more and more.

And for what it's worth JD Powers is not real world, real people. It a glorified computer program calculator that really does not reflect what's happening in the real world.

Go out to the internet and do some researching. Stay away from dealerships, and see what a similar make and model is listing for. Again, the "list price" is NOT the price the buyer will actually pay. It never is.

[jsb5717]

I agree, unless you’re in a desperate hurry to get rid of it you’re always better off to sell it yourself.

[Camp-a-Palooza]

Sell private. I just went through this attempting to trade a 2022 Cougar 290RLS on a Montana 3231CK. The initial offer on the trade in was $35K. I just purchased the Cougar 11 months ago new for $74K from the same dealership. The Finance guy had even looked me up on the previous purchase before he made that lowball offer. No shame!

[BB_TX]

Originally Posted by Camp-a-Palooza

............. The Finance guy had even looked me up on the previous purchase before he made that lowball offer. No shame!

Actually it is just good business practice. The dealer doesn't make a profit on the new unit until he sells the trade in unit to get that money he tied up in it. And there is little incentive to take in a used unit that he doesn't have reasonable expectations of selling it fairly quickly. And right now dealers, at least in this area, are overstocked to the point there is just enough room to walk between units and some are even parking them out on grassy areas off the main lots.

If he sells a new unit for $80,000 cash, then he recovered the cost of that unit plus pocketed a profit. But if he gives $40,000 trade in, he only gets $40,000 to cover his cost until he can sell the trade in to get the rest of the money. The longer that trade in sets on the lot, the longer before he sees a profit. Simple economics to stay in business.

Just a few short years ago inventories were low and trade ins were better. Now, not so much. Of course, good deals on new units were more difficult also. Supply and demand.

[432bartman]

Another great source for selling your rig is RVTrader, where we found ours. Yeah I'd sell it yourself, cause that dealership offer is horrible.

[dave22554]

What are others listed for. I recently traded in a 22 Keystone outback on a Montana 331 RL. The dealer lo balled me at 20k and I got him up to 25k and they then listed it for 33. I also called a couple places that will buy it outright or on consignment. Camping world is on but buyer be aware there.

[rkhoyt]

Another thought to consider. Sales tax difference. If you trade at the dealer, then you only have to pay sales tax on the difference. If you sell outright to an individual and then purchase the new unit at the agreed on price, you will have to pay sales tax on the higher amount. For example, if you didn't take the 40K trade you would have to pay addtional sales tax on the 40K. If your sales tax rate is 10%, then that would be an additional $4,000.00. If you could get 50K selling outright and 40K trading you would only gain $6,000.00. I'm a numbers guy so I would take the 6K all day long assuming I could sell my old rig realitively quickly. Food for thought.

[Carl n Susan]

Originally Posted by rkhoyt

Another thought to consider. Sales tax difference. If you trade at the dealer, then you only have to pay sales tax on the difference....

Unfortunately, this is not the case in all states. Be sure you know how sales tax is computed in your licensing state.

[steiny93]

Originally Posted by Carl n Susan

Unfortunately, this is not the case in all states. Be sure you know how sales tax is computed in your licensing state.

Tell me more,
We have states where you pay tax on the full purchase price? Vs paying tax only on the difference?

[rkhoyt]

Agree with Carl n Susan. Didn't put it in original post. Sales tax laws are different state to state. Please verify how sales tax is handled in your area.

[rkhoyt]

In KS, you only pay on the difference if you "trade" at the dealership. If I were to sale my unit outright to an individual and then use that money to purchase the new unit at full price at the dealership, I would have to pay sales tax on the full price because there would be no "trade" price.

[steiny93]

Originally Posted by Mosnowman

I was expecting best case $55-57k but realistically would take possibly as low as $50k based on make the transaction simple. The unit is in excellent condition and never traveled with. Am I realistic thinking this is an absurd offer?

I just did some searches for '2018 3721RL Montana for sale' and found a few listed for $49k - $58k; I'd consider those 'retail' numbers and realistically high retail numbers in that I doubt they will all sell at those numbers. Doesn't really matter what JD Power says, if rigs are for sale significantly lower, those are your competitors.

Dealer isn't going to be close to retail on a trade number; Assume they are going to be 2x% off retail. In the above example if those rigs sell for say $45k, 20% off is $36k.

Negotiate first, if that doesn't work you can sell on your own. I sold a 3 year old Montana 2 years ago, it went very well but the market has shifted a bit.

[steiny93]

Originally Posted by rkhoyt

In KS, you only pay on the difference if you "trade" at the dealership. If I were to sale my unit outright to an individual and then use that money to purchase the new unit at full price at the dealership, I would have to pay sales tax on the full price because there would be no "trade" price.

yep, I was under the assumption that on new purchases the above is universal across sales (some not having any tax, but universal in notion). I've done sales in states where used transactions between people is treated differently, but never a break for new sales.

[Shesails]

Absolutely walk away from them. I just experienced the same thing. Sold ours ourselves. Decided to never buy from a dealership again, only private parties.

[Carl n Susan]

Originally Posted by steiny93

Tell me more,
We have states where you pay tax on the full purchase price? Vs paying tax only on the difference?

Guess who? At least one is everyone's favorite state to knock - California.

A little background. Our friend was buying a brand new Redwood in AZ for list price - north of $125K. But he was happy because the dealer gave him $80K for his 6 year old Montana. He lives in CA. When he learned CA would tax the whole enchilada, he went back to the dealer and redid the deal. Now the new RV was $60K and his trade in was $20K. Same cost to him but the taxable amount was $65K less. Of course this was pre-Covid when dealers were discounting like mad.

[bcrvman]

Originally Posted by Mosnowman

So as I have gotten older, the wifey and I have decided to buy a small Class A. I currently have a 2018 3721RL Montana which is absolutely beautiful! I did some research and JD Powers has it at $76k high retail and $64k low retail. I realize I will not get retail on a trade in. I was expecting under retail.

So, the dealer and I have agreed on the price of the coach of which I am satisfied. Here’s the kicker…they got back to me with an offer of $35 k for my Montana!!!! You read that right. Now I was expecting a lower figure, but that is simply ridiculous. I was expecting best case $55-57k but realistically would take possibly as low as $50k based on make the transaction simple. The unit is in excellent condition and never traveled with. Am I realistic thinking this is an absurd offer?

Thoughts?

$57K is about the right price for the trade. HOWEVER, given they are trying to rip you off on the trade value there is a very good chance they did the same on the new unit. As a rule of thumb, expect a new rig to go for about 62% of MSRP. I watched prices on the internet for 2 years to determine that new units of Montana were selling for as much as 38% off.

[mlh]

In Virginia you pay sales taxes on the amount you paid for the camper or vehicle and if someone buys your old vehicle or camper they pay sales tax on what they paid.
Lynwood