cancel
Showing results forย 
Search instead forย 
Did you mean:ย 

How much do dealers pay for the RV's they sell

RobWNY
Explorer
Explorer
I was talking to a guy that's snowbirding next to me and we were discussing RV prices, discounts consumers should expect etc. He works for a dealer in his home state during the summer months so he was able to buy his rig at dealer price. He told me his 2019 Jayco Pinnacle 5th wheel had an MSRP of just over $100,000 but he paid $54,000 for it. He said a dealer typically is paying 51%-52% of the MSRP + the freight cost to get the rig to the dealer. I told him I had recently gone to the Tampa RV Super show and dealers were advertising 20%-28% off MSRP depending on the rig, but no mention of the other costs dealers like to attempt to get consumers to pay for (Freight, Prep, PDI fee etc.) so there was no way of knowing if the prices were "out the door" prices. He said that you should start negotiations at 30% of MSRP and then get the dealer to "throw in some stuff". I said I got 28% off my rig plus tax but I didn't get anything else thrown in. He felt I could have done better. I felt if I walked away hoping the dealer would do better, I would have not been able to buy my rig from that dealer. I had a strong feeling that was as good a deal that I was going to get on the 5th wheel I bought.

So my thoughts are this...Why should a dealer be making more than 2 grand on any sale? That seems like a fair profit for them. Realistically I'm pretty sure we aren't going to get discounts that deep but why not? Why do we accept 25%-30% off MSRP, allowing the dealers to make a bundle on each sale, and then have to accept lousy customer service following the sale in many instances? If the 51%-52% numbers my neighbor talked about are accurate, shouldn't we be negotiating up from that number rather than down from the MSRP?
2020 Silverado 2500HD LT, CC, 4X4 6.6 Duramax
2021 Grand Design Reflection 311BHS

I asked him to do one thing and he didn't do any of them.
54 REPLIES 54

philh
Explorer II
Explorer II
I know how OP can get maximum discount on RV's... get his dealers license and negotiate directly with mfg's.

smarty
Explorer
Explorer
When we purchased our toy hauler back in 2013 we shopped around and were able to get 35% of MSRP. I think this is achievable today as well. We also purchased at the time of year they were willing to deal as the new models were about to arrive and they were willing to deal on last year's models still on their lot.

PawPaw_n_Gram
Explorer
Explorer
Lightning55 wrote:
Salesman are paid a percentage of the PROFIT made on a sale


Thank you
Full-Time 2014 - ????

โ€œNot all who wander are lost.โ€
"You were supposed to turn back at the last street."

2012 Ram 2500 Mega Cab
2014 Flagstaff 832IKBS TT

lakeside013104
Explorer
Explorer
RobWNY wrote:
Since the consensus is that the dealers need to make as much as they can to pay their business overhead and rent to the manufacturers for the units on their lots so they don't go out of business, I'm glad to know that you all turned down any kind of discount your dealer offered you. Same goes for the vehicles you have purchased. Sticker price for your cars and trucks would be the only option. You know, so the dealerships don't go out of business. Shame on me for thinking RV dealers gouge their customers. I should have realized they are making the very best deals for every one of their customers.


I like it.......
Made my day, thanks.

Lakeside

An RV facility can make all the money they want on me as long as I am happy with my deal... After all, how often can you say "IT'S All ABOUT ME" and not sound condescending.....

Shame on you if you are making a purchase of that dollar amount ( or any $$ at that matter) and you do not do ALL of your due diligence before hand...
Me-Her-the kids
2020 Ford F350 SD 6.7
2020 Redwood 3991RD Garnet

DarkSkySeeker
Explorer
Explorer
Dtank wrote:
...in "competition" with other buyers

I have definitely run into that with car sales.
There is something special about camping in an RV.
.

Deb_and_Ed_M
Explorer
Explorer
Always, ALWAYS, get the "out the door" price. Ed and I have a used-car lot in Michigan, where all dealers are limited to a $195 "Doc Fee" by the State (of course, many can find other things to charge fees for). Not every state does this - we were shocked to recently learn of a car dealer who is charging a $395.00 Doc Fee plus a $995 "Dealer Fee" in Florida. Granted, these steep fees can let the dealer show competitive prices in their advertising, but when they are done adding fees, it can drastically affect the actual selling price.
Ed, Deb, and 2 dogs
Looking for a small Class C!

Dtank
Explorer
Explorer
Dtank wrote:
Some EASY facts:

1. You will *never* know what an RV dealer paid for the unit/s on his lot.
1a. You *can* come close to what the dealer paid on autos and pickups. Keep in mind: For autos and pickups, MSRP (toss that one), Dealer INVOICE, and Dealer COST are the numbers you want to come "close" to. More on the last two later.

2. The guy the OP talked to - might know his "stuff" - maybe not.
3. You *can* / *will* (usually) get a better deal on an RV if you *order* it.

3a. Ordering - You *can* find the best price by shopping for exactly what you want. Always, apples to apples. More on that later also.

4. High volume dealers (think So. CA - with pretty good weather all year round) are less likely to participate in long-term negotiations for units on their lots.....the "gotta have it NOW" buyer will probably walk into the dealership the next day!
*If* you are attempting to purchase from the dealer's inventory, you *will* be involved in negotiations - and in "competition" with other buyers.

.


Great SB game.

Dallas Steve:
My method for ordering - RVs, cars & pickups. Others may disagree, or have a system they prefer.
The only "negotiations" involved are for *your* preferences as to how far you will travel for your best price/deal.

Shop across the country - both local and long distance - for the brand, floor plan, and options you are looking for. Never vary from that list! Use the internet and phone when necessary to find the best price. Get it in writing.

Then you can re-contact local dealers to see if they will match, or come close to - your "benchmark" deal/price.
You then must decide if you will travel -and how far- for the deal/price you choose.

When you make that decision - you should expect a contract with a "reasonable" (not outrageous) deposit requirement. Expect to pay a reasonable delivery fee (based on how far -miles- the dealer is from the factory). Dealers in some states may be required to charge sales tax. If so, don't forget that in your price comparisons.

Anticipate the possibility of dealers offering you something they have in their inventory. However, expect to negotiate.

Remember - when ordering, unless you fail to go through with the purchase you agreed upon - it hasn't cost the dealer anything other than some paperwork. He/she isn't paying interest on something on his sales lot.

Cars and pickups. Pretty much the same, you can (usually) find out dealer invoice. (Internet is your friend). Ignore MSRP. Actual dealer *cost* is dealer *invoice*, minus dealer holdback and any factory incentives to the dealer for volume, etc.
Note: As with RV's, you will never know the actual dealer *cost*.
Simply stated a dealer can sell you a vehicle at -or below- his *invoice* price, and still be making a profit.

For me, in Calif.....
I was ready to go to Dave Smith Motors (Dodge & GM) in Kellog Idaho for my truck - until a local dealer came within $500. of my "travel" price, (which was still under dealer invoice), so it was purchased within 100 miles of my home.

RV purchased in Montana. Enjoyable return trip with new 5th wheel.
Would I do it again - you bet, no regrets.

BTW - one last on the guy that saved 50K on his new Jayco. Haven't checked recently, but at one time Jayco was one (of a few) brands that would list prices and options prices on their web site. You knew exactly how much you saved over the list price.

However, "sometimes" -or- "on occasion" at RV shows, supposed RV prices with special "show deals" - would indicate an MSRP - which was inflated! Asked one sales person about that once, his response was, "It's probably increased since you saw it previously".
Buyer beware!

:W

DallasSteve
Nomad
Nomad
Dtank wrote:
Some EASY facts:
3. You *can* / *will* (usually) get a better deal on an RV if you *order* it.

3a. Ordering - You *can* find the best price by shopping for exactly what you want. Always, apples to apples. More on that later also.

Dtank

Do you mean ordering through a local dealer or directly from the factory? I'm guessing the local dealer is the only option. If I order about how long does it take to arrive and can I count on the arrival date they give me?
2022 JAYCO JAY FLIGHT SLX 8 324BDS
2022 FORD F-250 XL CREW CAB 4X4
All my exes live in Texas, that's why I live in an RV

Dtank
Explorer
Explorer
Some EASY facts:

1. You will *never* know what an RV dealer paid for the unit/s on his lot.
1a. You *can* come close to what the dealer paid on autos and pickups. Keep in mind: For autos and pickups, MSRP (toss that one), Dealer INVOICE, and Dealer COST are the numbers you want to come "close" to. More on the last two later.

2. The guy the OP talked to - might know his "stuff" - maybe not.
3. You *can* / *will* (usually) get a better deal on an RV if you *order* it.

3a. Ordering - You *can* find the best price by shopping for exactly what you want. Always, apples to apples. More on that later also.

4. High volume dealers (think So. CA - with pretty good weather all year round) are less likely to participate in long-term negotiations for units on their lots.....the "gotta have it NOW" buyer will probably walk into the dealership the next day!
*If* you are attempting to purchase from the dealer's inventory, you *will* be involved in negotiations - and in "competition" with other buyers.

Will finish this missive after THE game, LOL.

.

Lightning55
Explorer
Explorer
PawPaw_n_Gram wrote:
Say a 3% commission on a $30,000 sale price trailer = $900
Same commission on a $100,000 Class C or gas Class A = $3,000
Same commission on a $250,000 Clas A DP = $7,500

Now I have no idea how salesmen are really compensated or what commission rates might be. But just looking at the math - but earning more commission money on high dollar sales makes sense.


I think RV sales are very similar to the car business, which I have been in all of my adult life. Salesman are paid a percentage of the PROFIT made on a sale, not the selling price. Commissionable profit is based on the difference between the cost of the vehicle and the selling price, less cost of sale items like non-factory reimbursed get ready expense, detailing,and any dealer 'packs'. In the car business, typical sales commissions are like 20-25% of the gross profit per unit, except when there are bonus deals, or volume increases in commission percentages.

Lightning55
Explorer
Explorer
Dealer cost might be different from one dealer to the next. Some dealers might get volume incentives where the others don't. Ordering more new models may give the dealer cost adjustments on existing inventory as an incentive to order more. From what I've heard, if you can get a 30% discount off of the real MSRP, you are getting a fair deal.

PawPaw_n_Gram
Explorer
Explorer
Say a 3% commission on a $30,000 sale price trailer = $900
Same commission on a $100,000 Class C or gas Class A = $3,000
Same commission on a $250,000 Clas A DP = $7,500

Now I have no idea how salesmen are really compensated or what commission rates might be. But just looking at the math - but earning more commission money on high dollar sales makes sense.
Full-Time 2014 - ????

โ€œNot all who wander are lost.โ€
"You were supposed to turn back at the last street."

2012 Ram 2500 Mega Cab
2014 Flagstaff 832IKBS TT

FlatBroke
Explorer
Explorer
Guess I just assumed they paid by the pound. You know the same way as you sell your junk.

Hitch Hiker
"08" 29.5 FKTG LS