What price do sellers actually get?

[chasfenwick]

Before purchasing my new 2017 Precept 31UL, I did a lot of searching on internet sites to try to figure out what I should pay. You probably did the same. When buying new, I came to the conclusion that 30 to 35% off of MSRP is the sweet spot. But what about a clean, USED one of these with, say, 10K miles on it? What I see owners ASKING here and there, dealers and private parties, often strikes me as totally insane. What is the rule of thumb for used Precepts, as far as what price sellers actually GET?

[Bassdogs]

Originally Posted by chasfenwick

Before purchasing my new 2017 Precept 31UL, I did a lot of searching on internet sites to try to figure out what I should pay. You probably did the same. When buying new, I came to the conclusion that 30 to 35% off of MSRP is the sweet spot. But what about a clean, USED one of these with, say, 10K miles on it? What I see owners ASKING here and there, dealers and private parties, often strikes me as totally insane. What is the rule of thumb for used Precepts, as far as what price sellers actually GET?

What you are seeing are "asking" price. What you don't see is the "sold" price. The price they settle on is driven by motivation of the seller [how bad they need the money or how quickly they need to get out of the ongoing expense of ownership. In the fall and winter they are facing several months of storage costs and then registration and licensing cost. I agree with your 30-35% sweet spot for buying new and after the first year I wouldn't pay more than 60-65% of what they paid new. 10,000 miles is high for a 1 or 2 year old motor home. Most used Mhomes I looked at have 30-35 k miles regardless of age. Sellers always want close to what they paid or will refer to the New msrp, but you know better. This time of year they s/b motivated so offer less than the above formula and give yourself a little wiggle room.

[KenAK]

Got to remember that most of these people financed and have a lot into the unit.

[chasfenwick]

Originally Posted by KenAK

Got to remember that most of these people financed and have a lot into the unit.

That may well be, but it wouldn’t have much to do with the actual market value of the unit, would it? It certainly WOULD affect what they hope to get out of it.

In the summer of 2017 we had owned our 2014 Jayco Melbourne 29D for exactly 3 years. We had paid $88,000 for it, and it had 18,000 miles on it when we traded it in on our Precept. The wholesale (trade-in) value a year ago was $58,000. But I saw people offering nearly identical units for sale at that time for more than $75,000. Today you will still see an asking price near $70,000 for one of those. Now, to my way of thinking, that advertised price would actually repel a prospective buyer, because it makes the seller look out-of-touch with reality.

[KenAK]

Originally Posted by chasfenwick

That may well be, but it wouldn’t have much to do with the actual market value of the unit, would it? It certainly WOULD affect what they hope to get out of it.

In the summer of 2017 we had owned our 2014 Jayco Melbourne 29D for exactly 3 years. We had paid $88,000 for it, and it had 18,000 miles on it when we traded it in on our Precept. The wholesale (trade-in) value a year ago was $58,000. But I saw people offering nearly identical units for sale at that time for more than $75,000. Today you will still see an asking price near $70,000 for one of those. Now, to my way of thinking, that advertised price would actually repel a prospective buyer, because it makes the seller look out-of-touch with reality.

Just saying some owe more than market value. What is known as upside down.

[Grumpy]

And according to our dealer banks will only finance used for NADA black book base price. They will not add options.

[OutCole'd]

When I first wanted to buy a RV, I had really planned on buying a 2-4 year old unit and save that 30-40% people talked about. Well that number did not really excist, people were asking more for a few year old model than what I could buy a brand new unit for that included a two year warranty.

Needless to say, I ended up buying new.

[chasfenwick]

Originally Posted by OutCole'd

When I first wanted to buy a RV, I had really planned on buying a 2-4 year old unit and save that 30-40% people talked about. Well that number did not really excist, people were asking more for a few year old model than what I could buy a brand new unit for that included a two year warranty.

Needless to say, I ended up buying new.

That tracks with what I’ve been seeing, insofar as asking price is concerned. This morning I saw an ad for a used 2017 31UL much like mine, private party, with an asking price of $107,500 (standard paint). I would be very surprised if seller could actually get any more than $85,000 on a cash deal.

[KenAK]

All I can say is buy the RV to enjoy. I have never heard of them appreciating in value. When I look at the years I have owned my RV I feel I came out ahead. Having my own Bed and my critters with me was the reason. Picking up number 3 Jan 15th and off on another adventure. We look forward to meeting more new friends we didn't know we had.

[chasfenwick]

Originally Posted by KenAK

All I can say is buy the RV to enjoy. I have never heard of them appreciating in value. When I look at the years I have owned my RV I feel I came out ahead. Having my own Bed and my critters with me was the reason. Picking up number 3 Jan 15th and off on another adventure. We look forward to meeting more new friends we didn't know we had.

Back when we had an Airstream travel trailer we discovered that it was quite the conversation starter in campgrounds. We Even in service stations and parking lots. Was a potent magnet for socializing like nothing i’d ever seen! But in the 13 months we’ve had the Precept, nobody has mentioned anything about it. Nothing at all. I guess there’s no such thing as a Precept cult. But it is a much better RV for the money, more practical, than any Airstream ever was.

Oh, by the way, when I advertised the Airstream for sale, I could have sold 4 of them, and the price I got was only $400 less than what I had paid for it new, two years earlier. Most amazing.

[Bassdogs]

Originally Posted by KenAK

Just saying some owe more than market value. What is known as upside down.

How true that is. People fall for the 10 year financing and after 3 or 4 years still owe what they paid as they probably were barely covering interest. Who knows why lenders offer long loans on something that loses most of its valve in the first 5 years.

[fish8it]

And then there are guys like me that can't sell my 2015 Precept 31UL with 4,300 miles for 65K. Nothing wrong with it.....yes I'm willing to take a hit....

[chasfenwick]

Originally Posted by fish8it

And then there are guys like me that can't sell my 2015 Precept 31UL with 4,300 miles for 65K. Nothing wrong with it.....yes I'm willing to take a hit....

Now we’re getting down to some facts that are relevant to my original question.

[fish8it]

I was however offered 50k from a dealer.

[chasfenwick]

Originally Posted by fish8it

I was however offered 50k from a dealer.

That is about what I would expect, based on my experience with the 2014 Melbourne. Maybe a bit more, depending on how many similar to yours are currently for sale in your part of the country. I see that some of the 2017’s that were for sale (new) in mid-summer of 2016 are still sitting on those lots. Close-out pricing on those, although higher, would not be helpful to your situation.

[Bassdogs]

Originally Posted by fish8it

And then there are guys like me that can't sell my 2015 Precept 31UL with 4,300 miles for 65K. Nothing wrong with it.....yes I'm willing to take a hit....

I hear you and understand your situation. That said, if you dropped the asking $$ to $50k you would move it quickly. The alternative of holding out for the higher price is that in the Spring you will still be the owner and still making the payments and cost of registration.

About a year ago we sold our houseboat. It was an older steel hull but in very nice condition, offering an opportunity for a person wanting to get into houseboating without making a lifealtering financial commentment. I would have liked to sell it for a bit more and that would have been a reasonable price, but opted for a sale about 20% below asking and it sold in less than 2 months. I was facing slip fees for the coming year of $4.5k as well as the ongoing maintenance of an older boat.

Selling is often not what you "need" or what market says its worth, but rather what a buyer in your market is prepared to pay. With RV's you are almost always facing a buyers market.

[KCSA75]

Originally Posted by Bassdogs

Selling is often not what you "need" or what market says its worth, but rather what a buyer in your market is prepared to pay. With RV's you are almost always facing a buyers market.

Exactly!

[Crabman]

Originally Posted by Bassdogs

I hear you and understand your situation. That said, if you dropped the asking $$ to $50k you would move it quickly. The alternative of holding out for the higher price is that in the Spring you will still be the owner and still making the payments and cost of registration.

About a year ago we sold our houseboat. It was an older steel hull but in very nice condition, offering an opportunity for a person wanting to get into houseboating without making a lifealtering financial commentment. I would have liked to sell it for a bit more and that would have been a reasonable price, but opted for a sale about 20% below asking and it sold in less than 2 months. I was facing slip fees for the coming year of $4.5k as well as the ongoing maintenance of an older boat.

Selling is often not what you "need" or what market says its worth, but rather what a buyer in your market is prepared to pay. With RV's you are almost always facing a buyers market.

Wow, those are pricey slip fees! Ouch.

[TigerFanatic1]

My family and I have been debating on new versus used. I’d really prefer used, less than three years old. However, we’ve come across the same issues as mentioned in this thread; most are simply upside down and are blinded by MSRP, which I pray they weren’t willing to pay.

My expectations for a great used unit is ~20-25% below what I could get one new for a one year old unit and ~10% for each year after.

[chasfenwick]

And then there are discontinuities, when a model year introduces must-have features. When I was in the market for a Precept 31UL, my local dealer had a new 2016 model in inventory that he was motivated to sell. But I didn’t care how much he cut the price because I was insisting on the new features of the 2017 model, as an absolute requirement. I would think that this mode of thinking would carry over downstream to the used market as well. But maybe a lot of buyers don’t share my absolutist attitudes, or aren’t as aware of the model year differences.