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Old 03-04-2014, 03:33 PM   #1
DonandBonnie
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When do you get the best trade in value?

Not that we are getting ready to trade any time soon, but like an automobile our rigs loose trade in value as they get older. We suspect too, that with age the cost of maintaining/fixing the various systems will start increasing.

Having said that, is there any such thing as an opportune time to trade in for a newer model to get the best value for your trade in?

 
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Old 03-04-2014, 03:40 PM   #2
DQDick
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This is a great question for Larry Wilson, "Hook", as he sells these things for Camping World and has traded with a number of our members. That being said, I look at it differently. This is our home. As such I'll trade it when the value of it as our home begins to diminish with little or no consideration about money. Another issue is that we have major options on our rig that are not, as yet, options on a new one so the cost of replacing those options have to be taken into account also. As long as we are happy in it the cost of maintaining isn't the deciding factor. Any of you who have, as we did, owned a house built in the 1890's will attest that a home like that isn't about the maintenance cost, if it is you should never have bought it in the first place.
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Old 03-04-2014, 04:02 PM   #3
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Not sure who Larry Wilson is, but Hook is Larry Sessoms. Or experience on trading is probably different than others, because each time we traded the primary reason was that we found things in the new rig that were more to our expectations for retirement (at some point in the future, hopefully).
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Old 03-04-2014, 05:40 PM   #4
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To further comment on what Bingo said, we ARE retired, and are loving the fiver. Now on our fourth trailer, the first being a towed (Keystone Cougar), then two 3400's, and now the 3725. Reason for change....made the mistake of going to the RV show. Actually, basic reason for change are improvements. Not minor ones either, but really good eye catching ones. When I crunched the numbers each time, the cost of getting a new rig was about the same as if we had added the extras "aftermarket" so it was just easier to "trade up" so to speak. The 3725 is a vast improvement over the previous ones, nice as they were. Six point level up for one, better insulation for another, and many more "reasons" that made us decide to change, again. As DQDick says, it can never be about the maintenance, even the new ones are prone to needing something.
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Old 03-04-2014, 05:56 PM   #5
Artemus Gordon
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I am not addressing your issue about older models and new features, or even timing of selling a used RV. Those are hard issues to address, but every year your RV is losing money. Depreciation is a fickled unforgiving beast. I will address the RV trade in subject. Long winded I am afraid, but worth reading...I hope! I have bought and sold over 100 new personal cars, several 45-50 ft boats, and several RVs. No mystery here, it's simply math. While selling your own RV may be distasteful, it truly is the only way to be ahead of the game. If you can sell it? Big if, same "if" the dealer is faced with when he takes your RV in trade. If he can't sell it, it goes to auction, and he prays to get close to what he has in it. The dealer cannot, give you retail for your RV and then sell his new model at wholesale, we all know that, just don't forget it. In most instances what you get for your trade is "low book" or lower. The dealer if not giving you his bottom line on the new rig, might transfer that additional profit to make your trade in look better, to you. Let's say your RV is upside down because of financing. In order to get you out from under the loan, he will build that negative equity into your new purchase. That puts you in another "negative equity situation", but that's another topic all together. The money has to come from somewhere? Dealers have to make profit. They get it in several ways. Volume discounts from factory, dealer rebates, and finally every dollar he gets over his cost to sell you the new RV. Flooring cost ( cost of money to buy coach from manufacturer), advertising, rent, prep costs, sales commissions, elect bills etc, and profit margin. Problem with RV business is they "don't have uniform MSRP". So what Bingo pays and I pay for example, can't be compared, without build sheets and knowledge of dealer mark ups. All that said, I have found that "end of quarter" is good a time to buy. Dealers get factory spiffs, or incentives to move particular models (slow sellers). Same is true in Automotive business. Sometimes dealers can talk manufacturers into "sweeting the deal"! If a model is not selling for example, or not gaining enough market presence. Just last week, a particular manufacturer, (building high end Travel Trailers) offered to "participate" in reducing the dealers cost on a 2013 model they cant sell. Retail was $79,500. Dealer got factory to help reduce price to $39,500.00 for my 25 year old son. (Trailer was designed for YUP's ( I think term still used) to tow behind their $100,000 Range Rovers). So far they have only sold about 50 of those "Deluxe" units, there is first hand example of factory incentives. All in all it comes down to timing, and your ability to negotiate and ability to sell your RV and how much time you have to make a deal.
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Old 03-05-2014, 12:35 AM   #6
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When RVs reach ten years, financial institutions do not want to touch them. So, IMHO, around 5 yrs is a good rule of thumb. You have access to the NADA listings on line, I suggest you look at that. Be careful about adding options, because Montana is considered high end and most options are considered standard on them.
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Old 03-05-2014, 01:32 AM   #7
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quote:Originally posted by HOOK

When RVs reach ten years, financial institutions do not want to touch them.
This was a huge factor in trading in my 2005 last May besides the fact that we needed to have more room to accommodate my son, daughter-in-law, and grandson as they (HE!!!) starts the camping adventure.
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Old 03-05-2014, 01:55 AM   #8
kdeiss
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I had a dealer tell me 10 Years a big drop in value as stated above
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Old 03-05-2014, 02:36 AM   #9
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I wait until the next years' model comes out and this years' inventory is running low. Dealers want to move them in order to replace them with the new models. Has worked well for me.
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Old 03-05-2014, 02:51 AM   #10
DonandBonnie
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Something tells us that the desire to have a "new and improved" model will overwhelm all but the most serious financial considerations.
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Old 03-05-2014, 02:55 AM   #11
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There are numerous ways to look at the RV trade issue. No matter how you approach it you are going to drop money every year. For us it was a combination of increasing our standard of living (going from a 2008 to a 2014 and being full time), and the fact that our current return on investments isn't that great. As far as how long do you keep a Montana before you trade, IMHO I think there is a strong market out there for 3 - 5 year old models. If my unit was 8 or 10 years old I don't think I would expect as much out of it and would probably try to sell it myself. Don't get me wrong, I have seen some really nice older units out there in perfect condition, but the dealers probably wouldn't give much for them on a trade.
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Old 03-05-2014, 03:21 AM   #12
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Quote:
quote:Originally posted by bncinwv

Not sure who Larry Wilson is, but Hook is Larry Sessoms. Or experience on trading is probably different than others, because each time we traded the primary reason was that we found things in the new rig that were more to our expectations for retirement (at some point in the future, hopefully).
Bingo
My apologies to Larry. Not sure where that came from. It's hell getting old!
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Old 03-05-2014, 03:50 AM   #13
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Quote:
quote:Originally posted by Captain Joe

I wait until the next years' model comes out and this years' inventory is running low. Dealers want to move them in order to replace them with the new models. Has worked well for me.
That's what I do with my vehicles. Works well if you're not too fussy about color or other amenities.
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Old 03-05-2014, 05:53 AM   #14
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Hey Vern, I know what you mean about getting old. I'm sure glad they give us name badges at the rallies so I can remember mine
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Old 03-05-2014, 10:30 AM   #15
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quote:Originally posted by JandC

Don't get me wrong, I have seen some really nice older units out there in perfect condition, but the dealers probably wouldn't give much for them on a trade.
Like you, we purchased from Lazydays. We traded in our 2004 2955rl in Nov. 2013. Before we left Lazydays, about 5 days, our old unit was sold and gone. They gave us on paper $15k, which I know that was not true, it was just playing with the numbers game. But did lower our out of pocket costs.

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Old 03-05-2014, 10:41 AM   #16
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Also, our salesman said that Keystone paid his commission directly.

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Old 03-06-2014, 03:52 AM   #17
Captain Joe
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Of course, I also watch the interest rates really close. The 3.99% made it work for me.
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Old 03-07-2014, 09:50 AM   #18
Rainer
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A general rule of thumb is that your vehicles including RV's will lost about 15% of their value every year. Please note this is a rule of thumb and not a fast and hard rule.

But this rule has worked well for me, whether in trade-in, insurance value, or outright sale.

I purchased my Montana a year ago. The price was great, $10K less than my local dealer was willing to sell it to me for. Yes, I had to drive 1000 miles round trip to pick it up. But that comes to $10/mile! Definitely worth it to me.

I figured I'd sell my 2006 Outback trailer privately. But about a week before we headed out on our around the country RV trip for a couple of months, we decided to see if that local dealer could sell it for us while we were gone.

We got back, and discovered it hadn't been sold. I went to pick it up, and the manager said leave it here for three more months and I guarantee you I'll sell it myself because it's in such good shape and it has that 4300-watt Cummins-Onan generator as part of the package.

You guessed it, three months later it hadn't been sold. I tried to pick it up, but the keys to the locks were missing as well as all the manuals to every piece of equipment in/on the trailer. We were meticulous about keeping/saving them. I had put combination locks on the storage compartments, and the sales people said that they couldn't get into them because they didn't know the combination. I asked why they didn't call me? They just gave me their collective dumbfounded look.

I got a universal key to open the two doors into the trailer, then went out and purchased two new door locks at the Camping World next door.

I put the trailer on Craigslist and sold it in 48 hours for more money than the company that had it for six months was going to give me.

I'm now going after that company in small claims to collect the money for the door locks I had to replace as well as the lost manuals to all the stuff in/on the trailer.

The best deal about this ordeal were the things, 1) I got to store the trailer for six months for free, 2) I received the I wanted for the trailer, 3) overall I got a much better RV for a great price not only buying it but getting what I wanted on the sale of my old trailer.

I've discovered that if you're buying a vehicle and you're being given a phenomenal price, you'll find yourself getting much less for your trade-in, no matter what shape it's in. Dealers aren't going to lose money, they make it up either on the selling price or the trade-in.

When I traded my 2006 F-250 on a 2012 F-250, the dealer took $14K off the list price of the new truck. A great deal, but when I saw the trade-in paperwork, the trade-in value of my old truck was just $14K. A couple of days later I see my truck in a prominent place in front of the dealership with a $30K price tag on it. I called the dealer as a prospective customer to ask about the 2006 F-250, and the salesman told me it belonged to a "rich guy" who never towed anything and just wanted a new truck. Well, I'm not rich, the truck only towed a trailer that's why I had it, and the reason I bought a new truck is that I had just spent a fortune replacing the turbo system on the truck as it suffered from the 6.0 liter problem almost all of those engines got! Never trust a car dealer salesman - how do you know a car salesman is lying? His lips are moving!

That's my story, live and learn.
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