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Trade-In Values

connelljanis
Explorer
Explorer
Hi everyone, we are looking at trading in our 2014 Thor Tuscany for a Tiffin Phaeton. The dealership is offering us the NADA trade-in price for the Thor MINUS 10%. Is it normal to take 10% off the NADA trad-in price on a trade-in?

The sales person also told me that consignment would be NADA minus 10% as well, but he could do better on a trade-in, yet he's taking 10% off the trade-in value. Doesn't make sense to me and I'm trying to figure out if that normal throughout the industry or if they are taking me for a ride.

Any advice is appreciated.

Janis Connell
Austin, TX
17 REPLIES 17

Vinman02
Explorer
Explorer
We had a trade-in on the the last new TT we purchased and the salemen tried and tried to add a ton of confusion to the deal and ultimately I just said I don't care how much you give me for trade-in or how much you want to sell me the new unit for, but this is the amount I am will to give you in the difference.
We ended up getting the deal we wanted
2019 Ram 3500 6.7 HO Cummins
2016 Arctic Fox 25Y
Honda EU3000i

Dave_H_M
Explorer
Explorer
I have sold a couple of campers but no where near the NADA value.

My bottom line is to do a nation wide search for like campers and get a feel for the water on the real pricing. Discount the outrageously priced ones and try to sort out the ones that are close to the bottom line.

I am an out the door price guy. Last car we bought I did not even fiddle with pricing/cooking the books. i knew what I wanted and it was out the door right up front. Took about 30 minutes to get to the bottom line.

Just remember, as I foggily recall for some reason, that Toby Kieth once proclaimed, if you cannot afford to walk you will never get the price to your satisfaction or "a good deal".

Walaby
Explorer II
Explorer II
While you have the info for each one individually, the dealer will always look at the totality of the deal, at the bottom line. You can rest assured if he gives you more on the trade, he will not discount the new one as much. It's no different when trading in a car. Same principal applies.

I usually try starting out by negotiating the price on the new vehicle/RV. Then try to do the best I can with the trade (if I have one).

It's called Nada GUIDE for a reason. There's no guarantee they will get $176K selling your used one.

Mike
Im Mike Willoughby, and I approve this message.
2017 Ram 3500 CTD (aka FRAM)
2019 GrandDesign Reflection 367BHS

delwhjr
Explorer
Explorer
The NADA is not a price list, it is a "guide". Every dealer has their own pricing model and what they work with in profits. The only amount anything is worth when selling or trading is what someone is willing to pay. If you don't like what the offer is don't complete the transaction and find another buyer.
Selling yourself will always get you more but you have to do the leg work to make the sale. When you trade, the dealer has to do the same plus.
You have to decide what you are willing to pay for the whole deal. What someone puts on the individual lines is unimportant, except for sales tax calculations, all that matters is the bottom line.
2022 Rockwood 2109S
2006 Durango HEMI

p220sigman
Explorer
Explorer
You could get $167K for your trade, but then they are just going to not take as much off of the retail of the coach you are buying. This is why the bottom line is less confusing. Other than potential sales tax implications, it doesn't matter what the trade is and what the purchase price is, they are going to make their minimum profit from the deal and you ultimately have to pay the bottom line amount. The trade value they give can affect the taxes depending on the tax laws of your state.

connelljanis
Explorer
Explorer
Thank you everyone. I completely understand that I need to consider the net of the trade-in + new coach, but I have data to support each number individually. So I'm questioning each one separately.

On the trade-in, I have the NADA report which has two numbers on it. Trade in of $167k and Used retail of $235k. If you take 25% off (std list price discount), the dealer can sell it for $176. Currently they are offering us $160k for the trade-in. So they will ultimately make $16k just on the trade-in.

Please correct me if I am wrong, but shouldn't I be getting $167k for my trade-in?

Janis

p220sigman
Explorer
Explorer
midnightsadie wrote:
all great answers ,its the bottom line you need to work on ,out the door if your happy ? go for it. they can wiggle numbers till the cows come home its the last figure on the bottom line that counts.


This. Since it is the bottom line that matters, that is what I work from with any deal that includes a trade. Be prepared though, some dealers don't like working with the "out the door" price because it is more difficult for confusion to be introduced. You decide what price you are willing to pay for the new coach. Subtract what you are willing to take for you old coach and then add taxes/fees/profit/etc (some you have to pay, some you don't) and that is your top number out the door. Of course this assumes your trade is paid for or you at least have equity in it. If you owe on it or you are upside down on it, you have to take that into consideration in your figures as well. Start your negotiation significantly below your top number. I always have a folder with me with a single sheet of paper in it. That piece of paper has my top number written on it. If, during the negotiation I start to waiver, I consult my "research" for a minute and get back on track. Remember, this is a business transaction. Treat it as such. People worry about insulting the sales person. Be polite, but firm on what you will pay. If necessary, walk. There are other dealers.

midnightsadie
Explorer II
Explorer II
all great answers ,its the bottom line you need to work on ,out the door if your happy ? go for it. they can wiggle numbers till the cows come home its the last figure on the bottom line that counts.

Aridon
Explorer
Explorer
You can get a decent deal on trading and buying but usually it is much more difficult.

Many people have issues with looking at the total deal and doing the math to get to the point where it is a good deal for them.

Without knowing the new coach MSRP and what you're actually paying it is hard to say. However just realize something, you should be getting 25% off MSRP on the new purchase or more. End of story.

As for your trade, you figure the value, realize they are going to take some off because they need to make a profit and you're doing this for convenience or perhaps you need to roll a loan or whatever. Regardless, it will be less than if you sold it on your own.

You now have both ends of the deal figured out and the math either works or it doesn't.
2019 Grand Design Momentum 395
2018 Ram 3500 DRW 4.10

2014.5 DRV Atlanta (sold)

2008 Newmar 4330 (Modified) Sold

DutchmenSport
Explorer
Explorer
When they turn around and sell the camper, they'll take that 10 percent and add it back on. They have to make money somehow to stay in business.

Mr_Mark1
Explorer
Explorer
We certainly received a better price consigning with Motorhomes of Texas in Nacogdoches, TX vs. the buyout value given by a couple of RV outfits. MHofT charged 8% of selling price.

We were very pleased with the whole transaction, it took 90 days to sell. Early on, we did get several low-ball offers as there is always someone looking for a desperate seller.

It's not fun to be a member of the 'two bus club' as we were for two weeks when the new coach arrived, then the Dynasty sold.

Safe travels,
MM.
Mr.Mark
2021.5 Pleasure Way Plateau FL Class-B on the Sprinter Chassis
2018 Mini Cooper Hardtop Coupe, 2 dr., 6-speed manual
(SOLD) 2015 Prevost Liberty Coach, 45 ft, 500 hp Volvo
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time2roll
Explorer II
Explorer II
Put it on Craig's list, RV Trader for NADA value a couple weeks and see where it goes.

RckyMtnVia
Explorer
Explorer
The starting point for the dealer's offer is NADA Wholesale, and this book may be found in any good reference library. In general terms, NADA Wholesale is 8 to 10% below NADA low retail, so your dealer is doing what most dealers do. My experience has been to look at the total deal and not just trade-in value. If there is a big discount on MSRP, say 30%, then a low trade in value may not be too bad. If the dealer offers NADA plus 20%, but only 15% off MSRP, then this may not be a good deal. Negotiating a sale is not a time to get emotional about your old rv. You need to understand how much money is coming out of your pocket, what your monthly pay will be and what the total deal adds up to. I agree with others, if you have time to sell the old rv yourself, and are willing to do that, then you probably will get more for your trade in. In that instance, there is only 1 component to your new purchase, % off MSRP.
2022 Forester MBS 2401B

Oasisbob
Explorer
Explorer
I was offered NADA on my trade and walked on the deal. My rig is worth more than that without a doubt. Your best bet is to sell it yourself.
Oasis Bob
Wonderful wife 3 of 4 kids at home. 1 proudly serving in USAF
2018 Ford Explorer
2001 Bantam Trail Lite B-19

HAPPY TRAILS:)