Trade in Question, is this how its done?

[drh329]

Long story short, bought a 2021 X17Z in July for $18,900 plus prep and tax, bought it to fit the TV, shortly afterwards upgraded TV and we are looking at a X23B because it has more room and the TV can pull it. Talked to dealer today he offered $19,639 for our X17Z as a trade and said cost of the X23B was the MSRP of $32,000, told him no way i am paying MSRP then he said trade would be reduced by the same amount off the MSRP. Is this how its done when trading in a RV? FWIW I walked out when he said the trade would be reduced by the same amount the MSRP was reduced. Thanks in advance.

Looks like this-

MSRP- $32,213
PREP- $1,590
sub total- $33,803
trade- $19,639
trade diff- $14,164
tax 8%
tax- $1,133.12
pay off- $18,500
non tax items- $81
total- $33,878.12
down- $5,700
finance total- $28,178

[TxLoser]

Trade in on RV’s is terrible. Way worse than cars. He just massaged the numbers so you felt you had a great trade in and would feel ok with MSRP. In the big picture, he was off but probably not terribly so when looking at total cost of the transaction. Didn’t look to see where you live, but in my state that deal would help as sales tax is reduced by the amount of trade in. Anyway, always look the entire dollar amount when said and done. Go into it with an idea of what you want that to be. If it’s reduced MSRP or inflated trade so long as you land at the dollar amount you’re comfortable with, then enjoy that new RV.

On a side note, a trade to go up only slightly in size is recipe for another trade down the road. Something to consider. It’s expensive to trade. Make sure it’s worth it.

[Grumpy]

Your payoff is the killer.

[JFlightRisk]

We'll negotiate the price down on the new one like it a clean sale with no trade in. We aim for between 30% and 35% off MSPRP. When they get to an acceptable price, we'll see what they'll throw in to the deal. Needed items for a first time owner might include chocks, a decent starter kit, etc. Then we ask what a trade in would be worth, and negotiate up the trade price. Once those are settled, we get it on paper. Any money down doesn't matter at that point, it just lowers the bottom line. We make it clear there'll be no bogus add-ons, upcharges, extra "fees", or changes to the figures on the paperwork. This usually takes us a couple of hours, as there's trips to look at the camper again, for things we missed the first time that may need repairing before we pick it up.

Anything along the journey that doesn't feel right in any way, and we thank them for their time, and we walk out. We won't second guess our gut feeling. There are other RVs at other dealers that want to sell to you.

Disclaimer: We haven't looked at anything new since the virus thing, and that may have changed the landscape of negotiations. They can't get new stock in to sell, so they may stick to the MSRP on what inventory they do have. Good luck, happy shopping, and trust that voice in your head. It's ALWAYS right.

[drh329]

Thanks for the info, I am not sure why how much we owe plays a factor in this? Our original salesman is out on extended leave, the new person definitely turned us off and we felt like he was talking to us like we were stupid. We will not be using them again after this experience.

[2edgesword]

In this market you're not going to be making a killer deal. An RV losses 30% of value as soon as you take it off the lot just like a car so anything they give on the trade in side they'll take and the selling side.

[CAG]

Limited stock gives vehicle sales people a major advantage right now.

I never mention trade until we are done with the negotiation on the vehicle I am looking at buying. I have already priced my current vehicle and know what the range of value is. I also have calculated the sales tax savings with and without trading. I want to know if trading save enough sales tax to warrant a self sale or trade. In most cases I sell it myself.

Trading anything in that is not paid off only adds to the hole you are already in from the depreciation on the first purchase. Never a good financial decision.

[drh329]

Total understand taking a hit on trade in, I guess I was more put off by the fact that they wouldn’t budge on MSRP, funny thing is another dealer about an hour away has a 2020 X23B for 23,900.

[CAG]

Originally Posted by drh329

Total understand taking a hit on trade in, I guess I was more put off by the fact that they wouldn’t budge on MSRP, funny thing is another dealer about an hour away has a 2020 X23B for 23,900.

I don't recall which vehicle it was that we were looking at, a few years back but one that was very popular at that time. Every dealer I talked with had that vehicle priced $1500 over MSRP. Supply and demand, along with popularity. RVs are popular right now.

[mokurt]

Originally Posted by drh329

Looks like this-

MSRP- $32,213
PREP- $1,590
sub total- $33,803
trade- $19,639
trade diff- $14,164
tax 8%
tax- $1,133.12
pay off- $18,500
non tax items- $81
total- $33,878.12
down- $5,700
finance total- $28,178

$1590 for prep???

[WeRJuliian]

The value of a trade will vary widely, depending on the state of the market.

Right now, everyone is buying RVs, so the dealer has no need to offer you an incentive. There are a dozen people in line behind you, with cash in their pockets, he doesn't need to win your business.
That may seem unpleasant, but it's simply the way the retail business works. You only get the good deals.when they are having trouble moving the inventory.

[madmaxmutt]

Originally Posted by mokurt

$1590 for prep???

Includes surf and turf at Red Lobster for the entire staff....


Figure out the bottom line difference. We always end up selling ours outright to a private party, after we find out what the real trade-in value is. (ie the reduced MSRP number) You should be able to sell outright above the real trade-in value = tax.

Seems like 30% off MSRP would be better than slightly above market value for the trade-in.

[drh329]

Originally Posted by mokurt

$1590 for prep???

Frieght, battery and to fill the tanks,maybe something else but thats what I remeber, is that not a normal charge?

Thanks

[drh329]

Originally Posted by madmaxmutt

Includes surf and turf at Red Lobster for the entire staff....


Figure out the bottom line difference. We always end up selling ours outright to a private party, after we find out what the real trade-in value is. (ie the reduced MSRP number) You should be able to sell outright above the real trade-in value = tax.

Seems like 30% off MSRP would be better than slightly above market value for the trade-in.

Sounds like thats our plan, I may put it up for sale and see what happens, if it doesn't sell this fall we might buy the X23B outright then work on selling the X17Z.

[michael.g]

Originally Posted by drh329

Frieght, battery and to fill the tanks,maybe something else but thats what I remeber, is that not a normal charge?

Thanks

I generally don't get hung up on the extra fees, as long as the out-the-door price is acceptable. However, $1,590 for Dealer Prep seems outrageous. The dealer we bought our current TT from listed Dealer Prep for $300.

-Michael

[USNMA1]

Bought a 2020 North Point 383FKWS. Retail on it was $114000 and then we put a solar system on it at $6,800 (panels, batteries and install. Total $120,800) Went to check on trade for a smaller unit. Offered trade of $52,000. So yes that’s the Rv business. Oh did I mention I have not been able to use the Rv yet because it’s been in the shop for months and still not done.

[nynethead]

I would negotiate no prep fee

[cekkk]

In normal times you cannot expect not to be killed if you buy a vehicle one day and sell it the next. But in these covid-19 when RVs are selling like hotcakes it will only be worse. If you really want a larger trailer, you're just going to have to grin and bear it. You might pick up a few bucks here and there but you're going to get it, and without any lubricant

[jkrawitz1]

We just bought a 2021 X23B for $25000 with tax, prep, and starter kit...and they included two over winter's storage (they do it, so no real cost to them). They also had a (minimally) used 2020 17 on the lot, asking about $19,500.

[kblast523]

Originally Posted by 2edgesword

In this market you're not going to be making a killer deal. An RV losses 30% of value as soon as you take it off the lot just like a car so anything they give on the trade in side they'll take and the selling side.

Bought a 2016 FR Salem (traded 2012 Jayco SLX 185RB) in May 2016.

Looks like this-

MSRP- $23,998
PREP- $0
sub total- $23,998
trade- $6,500
trade diff- $10,000
tax 8.5%
tax- $850
pay off- $0
non tax items- $0
total- $10,850
down- $10,850
finance total- $0
The trailer was reduced to $16,500 sale price, the dealer (Custom RV Amarillo) negotiated the trade over a 3 hour period.


Traded the FR in at Camping World OKC May 2018. Bought a 2018 Jayco Jayfeather 23RL, and have since convinced myself not to do that again.
Looks like this-

MSRP- $34,600
PREP- $500
sub total- $35,100
trade- $10,000
trade diff- $16,000
tax 8.5%
tax- $1,360
pay off- $0
non tax items- $0
total- $17,360
down- $0
finance total- $17,360
CW OKC started offering $5,000 trade in for a two year old 26 ft queen bed equipped dragger. And they started AT msrp. First thing I had to do was get them off msrp, and they stopped at $26,000 which was a 'discount' of $8,600 from sticker or roughly 25%. By the time I had the price 'down', they had agreed to $6,000 trade allowance with purchase of additional Good Sam Gold package for $12,000. NO WAY!!! I left.
Three days later someone called me (I was camping at Sequoya State Park, Ok) and told me I needed to come back to the dealership and they would make me a better 'deal'. I told the person on the phone "No, you have already insulted my intelligence enough for one lifetime. I hung up. A couple of hours later I got a call from someone else. "I understand your position, what would it take to earn your business?" I told him I'd give $10,000 TOTAL difference on the tt. There was a long pause...we can't do that, but would you give $19,000 and us throw in some extra coverage? Nope, we are too far apart. Again, I hung up.

The next morning, got a call from the alleged 'Sales Manager', who had done some additional 'shopping' of my 241qbxl Salem Cruise Lite and it appears we can make you a better deal than we thought. We can give you $8,000 trade allowance on the Jayco. I said, "I'm confused...what price on the Jayco?" He responded, "Of the price we quoted." (Here's my chance, they thought I didn't remember the $26,000 price quote-and they didn't) And I said, "I'll give you $16,000 difference." He started rattling off some numbers, I responded with "That is based on $26,000 sale price of your unit." He responded 'NO WAY WE CAN DO THAT', I said good bye and hung up. Someone ELSE called back 10 minutes later and asked when I would like to pick up my new tt, they were processing paperwork and it could be picked up before the end of the day. Nope I'll be there Tuesday about noon. And that was an entirely different story and experience...