| Determining your RV's TRUE Wholesale Value | | | | Price" button. Now, let you your jaw drop as you |
| The first thing you need to know is that the ONLINE | | | | look at the value for: "Low Retail." |
| valuation guides for RVs are usually much higher than | | | | Now emit a mild groan, because it gets worse from |
| the values in the dealer's copy of the NADA guide. In | | | | here. DEDUCT another 7% to 10% of that figure to |
| other words, what YOU think your RV is worth is | | | | establish the wholesale value in the dealer's copy of |
| probably much, much higher that what the DEALER | | | | the NADA book. This is the value that the dealer will |
| will actually allow for it. | | | | be looking at. If your RV is an upper-line or luxury |
| This is the same for the automotive, boat or RV | | | | RV, or if it is a specialty RV you will need to deduct |
| industries. The dealer MUST take trade-ins at or | | | | even more - 10% to 15% of the "Low Retail" figure. |
| below wholesale to ever hope to eventually make a | | | | Since the online Low Retail prices do not match the |
| reasonable profit. He must allow for interest | | | | wholesale prices in the dealer's NADA guide, this is an |
| payments on his used inventory, commissions to | | | | educated guess for you. It will however, get you |
| sales people, overhead, and much more. | | | | close enough to decide whether or not you are willing |
| A typical mid-sized RV dealer will have a monthly | | | | to trade your RV, and accept the actual cash value |
| overhead of $50,000 to $150,000... or more per | | | | the dealer will allow. |
| MONTH! Believe me, it's not an easy game. He has | | | | Remember NOT TO ADD FOR OPTIONS! I know |
| laid out millions of dollars to allow you to browse a | | | | you tried to sneak a few in there didn't you? |
| decent selection of RVs, so please... Don't think of | | | | Remember... The dealer NEVER adds for options |
| him as the bad guy. | | | | when determining an ACV on a trade-in. In some rare |
| Online RV Valuation Sources | | | | cases such as hydraulic leveling jacks or other options |
| Lets take a look at the online RV valuation sources | | | | that are very expensive, he MAY allow a little more, |
| and how to use them in order to place a realistic | | | | but nowhere near the actual cost of the option. |
| wholesale and retail value on your RV. | | | | Your best bet in determining what the dealer is |
| The best place to get fairly accurate online values for | | | | allowing you for your trade-in is to take the "Low |
| RVs is at: [ | | | | Retail" figure minus 10%. (More for upper-line or |
| Go to the RV section and select the appropriate | | | | specialty units.) |
| letter that corresponds to the make of your RV. | | | | Certain factors such as mileage, condition and unit |
| Now is where you're going to have to grit your teeth | | | | popularity and salability my influence the actual cash |
| and do something completely against your nature. | | | | value allowed for your vehicle. Remember that we |
| DON'T ADD FOR ANY OPTIONS! The dealer won't, | | | | are dealing with an inexact science. We are simply |
| so in this case we won't either. Understand that we | | | | trying to establish a guideline for estimating the actual |
| are only trying to determine what the dealer will allow | | | | amount allowed for your trade-in. Whether or not |
| for your trade-in. This doesn't mean that you have to | | | | you decide to trade, is completely up to you. Now |
| take it. In fact, you will be many dollars ahead if you | | | | you have a way to weigh one against the other. The |
| decide to market your RV on your own, and then | | | | final decision of course... is up to you. |
| approach the dealer on a cash only basis.... But that's | | | | Barry Wilder |
| another topic we'll address in another article. | | | | President, Best Rate, Inc. |
| At the bottom of the NADA page, click on the "Get | | | | |