Buying an RV - the Dealer is Not the Enemy

Statistics show that the 80/20 rule applies to RV3. You have the right to know the wholesale and
sales profits. That means that approximately 80% ofretail book value of your trade in, as well as the RV
all RV's sold will make a dealer an acceptable profit.you are buying.
How much is that? I can tell you it is measured in the4. If you finance your RV, you have the right to
thousands of dollars.choose your own source for RV Loans, and the best
How about the other 20%? Most of them will fall intointerest rate and terms possible.
the area of "just under the acceptable range". But,5. If you choose to purchase an RV Warranty, you
they are still paying the dealer several thousandhave the right to a fair price and a reputable
dollars in profit. Actually, only about 3% - 5% of RVcompany.
sales made last year were at a profit margin thatClearly, the dealer is entitled to a some profit.
would be considered totally unacceptable to theWithout it he could never survive. Many dealers make
dealer. In other words, the customer won... and wonHUGE profits on the RV's they sell. Your job as a
BIG!consumer, is to make sure that he pays the rent on
Why am I telling you this? I'm really mad. As angry asthe next buyer... Not you.
I have ever been about anything. I get calls all theYou are your own worst enemy...
time from friends and clients who have been burnedMost people never take the time and/or money to
by fast buck "Slick Willie" salesmen selling a load oflearn. They don't realize that when they walk into the
bull and using high pressure tactics.dealership and sit down, they have taken a knife to a
There are just too many "Big City Dealers" anymore,gun fight. Dealerships spend thousands of dollars
who are tarnishing the heck out of the business mytraining their sales people to make a good profit on
family and I have worked so hard to keep clean andeach and every person they work with. Yet still, the
simple. My sales people have always been taught tovast majority of buyers never take the time to really
be courteous, helpful, and most of all professional.learn how to buy an RV at little or no profit for the
They return phone calls, they send thank you notesdealer.
and they treat each and every customer withUnfortunately there is very little good information out
respect.there on the subject of RV related SAVINGS! There
They also are taught two basic principles:are plenty of books on how to use your RV, fix
1. Make a reasonable profit. We have earned it andyour RV, and travel in your RV. There are even
we deserve it. We have to pay the mortgage,some books on the subject of buying an RV. But all
utilities, salaries, commissions, etc. So by all means,of them combined provide very little real-world, down
make us a reasonable profit.and dirty secrets.
2. Sell RV's. Always try to make a reasonable profit,I have read every book that is available on the
but if you can't... at least try to make some profit. Asubject and find all of them very lacking in good
little of something is better than a whole lot ofadvice. If you are only armed with the advice in
nothing.these manuals, a good salesman will eat your lunch
It's really very easy to save a substantial amount onevery time.
the purchase of your next RV. If, and only if youNot only must you be able to buy your RV very near
know exactly what to do.the dealer's cost, you must be skilled in evaluating the
Many people walk into a dealership with thequality, or lack of it, in the various makes and models
impression that they are going into battle. Theyyou have to choose from.
bristle with resistance as the salesman introducesOne important thing to consider is the issue of
himself, and begins the cat and mouse game of "Itrade-in. Should you put forth the effort to sell your
can sell you... No you can't".own RV before you purchase another one? Effort, is
The salesman is asking qualifying questions, tothe key word. If you put in the effort, you deserve
hopefully keep from walking all over the lot andto keep the profits of your labors.
showing each and every RV. You are simply trying toIf you trade in your RV, the dealer will be the one
see the different styles, options, colors, models, etc.who puts forth the effort to sell your unit. He will be
It is a tug of war... But it doesn't have to result in allthe one to make interest payments on it while it sits
out war.on his lot. He will incur the advertising expense, sales
Obviously the dealer, as the individual or business thatcommissions, etc. He will also have to fix any defects
has shelled out literally millions of dollars to provide aor problems as well as providing a warranty on the
good inventory of recreational vehicles, has the rightunit for a minimum of 30 days. In other words, don't
to regulate the flow of potential customers throughexpect to get full retail for your trade-in. It doesn't
his doors. He also has the right to dictate what typehappen... Ever.
of methods his sales people use.People ask me time and time again: "When is the
When people walk through the doors of thebest time to buy an RV?" My answer is always the
dealership, many salesmen, like a cop in a bad movie,same. "Anytime..." They then typically reply: "No, I
will subconsciously read you your RV Miranda Rights.mean is Winter the best time? Or maybe at the RV
"You have the right to remain ignorant. Anything youShows? What about the end of the month, I've
say can and will be used against you in the salesheard that is the best time of month..."
office. You have the right to speak to your spouse,The truth of the matter is this. RV dealers need to
and to have your spouse present during anysell RVs all year long. Some sales make a lot, some
negotiating. If you cannot afford an RV, one will besales make a little. Your job is to make sure you
financed for you at 3% over buy rate."have the skills to play the game effectively.
This is the mentality of many, many RV dealers andAs long you armed with the proper tools, and by
sales people across the country. They will use anythat I mean information and knowledge, you should
means possible to sell you an RV from theirbe able to negotiate a deal that is fair to both
inventory, and their lot. They will use a multitude ofindividual and dealer. No matter what time of year,
tricks and strategies to "help" you buy on your firstremember... Information is power. Use it to your
visit. They will give you reasons to buy NOW!advantage.
You, as the consumer also have a set of rights thatDo your homework. Research various models and
you should go over mentally as you walk through thedealer pricing. Leave your checkbook at home until
doors of any dealership.you are ready to make an offer. Remember the
1. You have the right to be knowledgeable. Anythingvalue of the Internet and the ease of shopping it
you have learned can be used against the pressureoffers.
tactics of any unscrupulous salesperson or greedyAnd remember... Be kind to your local RV dealer. He is
sales manager.the one most likely to be servicing and repairing your
2. You have the right to take your time. AlthoughRV. A few dollars more - spent locally... Are wisely
you do have the right to know how to use urgencyspent.
to your advantage.