New 2005 Classic prices

[Pappy]

We are going to buy a new Classic 25 in the next few days.
Is there any source for determining markup on these units.
We have a trade in which complicates the situation but do need a starting point. Right now we feel like we are flying blind.

Thanks Pappy

[Silvertwinkie]

New Albany? I was just there last week! I was on 111 looking at that Airstream motorhome as I drove to Elizabeth....small world!

Standard discount is about 19% off list, but with trade it can be less. From what I understand the 2006s are going to start to be built in about 4-5 weeks. If you special order one, it will most likely be titled as a 2006. Rumor also has it that if an order is placed before any price increases, you can get the newer model at the old price if you get your order in soon.

[Porky Pig]

Pappy ...

You are conducting two transactions. You are buying a trailer ... and selling a trailer. Do not mix the two.

Go to the dealer and get your best price on the new trailer (we got 20% off list on ours). Do NOT tell the dealer you have a trade.

Once you have hammered out a price ... then bring your trade into the picture. Don't expect anything more than wholesale for your trade. Now you can decide if you want to sell your trailer yourself.

If you do it any other way ... you're right ... you can "complicates the situation ."

[Coloradobus]

Pappy,

In the diesel pusher market, the industry would like us to believe mark up is 30%. Realistically, its closer to 42%. Realizing the dealer needs to make some $$$$ to pay the bills, we try to strike a happy medium. The RV sales business is currently riding a very tall wave of succuess. Certain towable RV's are "white hot." (aka Thor Ind. Inc.)Find a coach, fall in love with it, then walk away, fall out of love with it. Let the dealer simmer a bit. If they ask about a trade, dance around the answer, strike your best deal then drop your trade on them. Get a copy of the NADA guide,(www.nada.com) (found in most libraries) to get a good idea how much you rig is worth BEFORE going shopping. Also check with your insurance guy to see HOW MUCH you coverage will increase with a new trailer. Then, plan accordingly.

[Mike Lewis]

Originally Posted by Porky Pig

Pappy ...

You are conducting two transactions. You are buying a trailer ... and selling a trailer. Do not mix the two.

Go to the dealer and get your best price on the new trailer (we got 20% off list on ours). Do NOT tell the dealer you have a trade.

Once you have hammered out a price ... then bring your trade into the picture. Don't expect anything more than wholesale for your trade. Now you can decide if you want to sell your trailer yourself.

If you do it any other way ... you're right ... you can "complicates the situation ."

Good advise--this is exactly how we do busness when trading anything , car trailer, etc. It's the only way you'll know what they are really allowing you for yours. Be prepared for a shock! At that point they are offering to buy your trailer at a price they can sell it and make a proffit. By the way that is their busness!!!! It is ALWAYS better to sell yours and buy with no trade. That said I have seldom done that. When I get the bug I generally work out the best deal I can get and BITE THE BULLET.---Pieman

[Silvertwinkie]

I fully agree with whats been said here. I started down that path when I phone shopped several dealers when I bought our Safari. The problem is that I found it's harder to pull this off when doing a long distance deal. Some dealers would back out saying that the deal was no longer valid since the parameters of the deal changed significantly, which is easy to say over a telephone, but harder to do in person in a face to face horse trade.

At any rate, trying to look back at what I got I seem to recall I got 9 or 10% off list on a special order unit (meaning some on and off the menu options), but they gave me exactly what I paid for the Bambi, so I ate nothing but the interest on the Bambi, which I gladly passed onto Uncle Sam at tax time. I also got what I would consider at the time a very good rate.

I will say this though, when you have a unit on the dealer's lot that you like, you have a FAR better chance of getting a better deal than if you build one to order....and sometimes an even greater deal when you pick one up at an RV show (as I did with the Bambi) though these are not total givens as there are exceptions everywhere depending on your barter skills, time of year and how hungry the dealer is, etc...

[jcanavera]

I was upfront with my dealer and basicly told him that if we are dealing with a trade in, I want to be working from the same book on both units. Either we go retail to retail or discounted against wholesale. Bottom line we went retail against retail and I got a good deal on trading my Safari. You just have to do your homework ahead of time and figure what the net figure has to be on your new trailer. As long as he treats both trailers the same for pricing purposes, his margin and your net price will be right where it should be.

Jack

[Peter&Denise]

When you have a trade it doesn't matter one bit what you are "paying" for the new item or what they are "giving" you for your trade. The ONLY number that matters is how much DIFFERENCE you have to pay. Negotiate on the difference, don't hammer out a best price on a clean deal and then spring a trade on the dealer. IMHO that's just an underhanded way of handling things bordering on ignorant. Tactics like that certainly won't win you any friends at the dealership and you might just wind up paying more in the end, or down the road if you have a problem. Another thing to consider, at least up here in the land of over-taxation, is that you only pay tax on the difference, so you save the tax on the trade-in value. In Ontario that's a whopping 15% (ie: you save $1500.00 on a deal with a trade valued at $10000.00), this alone could sway the balance between trading-in or dealing with the hassle of selling privately. Just my 2cents. P.

[Porky Pig]

Originally Posted by Peter&Denise

... don't hammer out a best price on a clean deal and then spring a trade on the dealer. IMHO that's just an underhanded way of handling things bordering on ignorant. Tactics like that certainly won't win you any friends at the dealership and you might just wind up paying more in the end, or down the road if you have a problem.

I disagree. I sold cars for a year back in the 80s. When a customer sprung a trade on us at the last minute ... it didn't bother us at all. We offered wholesale ... everyone knew where they stood. Never looked at it as "underhanded". In fact, we preferred to deal with the educated buyer ... less of a chance of hard feelings during and after the transaction.

That's the way it is in California ... perhaps the culture is a bit different in Canada.

[Peter&Denise]

I still don't see how hiding the fact that you have a trade could benefit anyone. Whenever we quote a price to a customer we always ask first thing if it's a clean deal, or if there is a trade. It was even suggested that a person should be evasive if the salesperson pointedly asked if there was going to be a trade involved in the deal. I work at a dealership (ATV, motorcycle, snowmobile and boat sales) and everyone being up front about the whole deal will always bring the best results and ultimately avoid any hard feelings. Whatever happened to "do unto others" anyways? P.

[Silvertwinkie]

Peter, I'm not sure all sales folks are as honest as you....

[jcanavera]

Originally Posted by Peter&Denise

Another thing to consider, at least up here in the land of over-taxation, is that you only pay tax on the difference, so you save the tax on the trade-in value. In Ontario that's a whopping 15% (ie: you save $1500.00 on a deal with a trade valued at $10000.00), this alone could sway the balance between trading-in or dealing with the hassle of selling privately. Just my 2cents. P.

Keep in mind that in some states, you can purchase your new trailer, and sell the other on your own, and still get a sales tax credit. In Missouri I think you have 60 days after you pay (title your trailer) your sales tax on your new vehicle. You send in a form to the state with a notorized bill of sale on your old vehicle, and Missouri sends you a check for the amount of tax on the overpayment. (Sales price of old trailer times tax rate.)

Jack

[Condoluminum]

While I agree it might be potentially harmful to the dealer relationship to spring trade after deal made for new unit, most people don't care too much about such relationships.. Several items to consider...

1. Phone calls aren't as effective as being there... Dealers are used to flakes on phone, and might quote phony low-ball numbers or play other games.. If you want best deal, visit the target dealership(s).

2. Make and model of trade makes a difference.. Most Airstream dealers will plan to wholesale or auction a non-Airstream trade-in to someone else, so they aren't going to bid much above their best reference of wholesale price. And yes, some dealers will try to confuse issues hoping to create impression of "generous" trade allowance to make the sale and keep you from further shopping..

3. Airstream trades, however, might be worth taking to dealer, as our local dealer has sold several within 4 hours of arriving at lot (one even before new unit was hooked up...), and they also have very much more confidence in retail sale price of Airstream trade-in...

4. If you're going to sell yourself, get out to RVTraderonline or one of the other major online listings, and put up several really good digital photo's, to increase size of potential market. Local newspaper ads or signs in window at storage yard are pretty much worthless in many places.... If you dare try E-Bay, be ready for some serious shenanigans and game playing, and possible disappointments...

John McG

>> and Dealer markup on new trailers is greater than 20%, and several advertise in WBCCI magazine that they'll sell at 15% off or better, so if you're willing to shop remotely, 18% to 20% discount is range of good deals...

[Mike Lewis]

[QUOTE=Peter&Denise]When you have a trade it doesn't matter one bit what you are "paying" for the new item or what they are "giving" you for your trade. The ONLY number that matters is how much DIFFERENCE you have to pay. Negotiate on the difference, don't hammer out a best price on a clean deal and then spring a trade on the dealer. IMHO that's just an underhanded way of handling things bordering on ignorant. Tactics like that certainly won't win you any friends at the dealership and you might just wind up paying more in the end, or down the road if you have a problem.
Of course you're entitled to your opinon but I don't find it at all UNDERHANDED or IGNORANT to ask a dealer to figure a purchase both ways--with or without a trade. I do agree that if asked do you have a trade?, and you say "no", that would be deceiving. That said most anyone who has ever traded will agree that deception, while not acceptable, is not limited to the PURCHASER.!!!
Pieman

[Peter&Denise]

Keep in mind that in some states, you can purchase your new trailer, and sell the other on your own, and still get a sales tax credit. In Missouri I think you have 60 days after you pay (title your trailer) your sales tax on your new vehicle. You send in a form to the state with a notorized bill of sale on your old vehicle, and Missouri sends you a check for the amount of tax on the overpayment. (Sales price of old trailer times tax rate.)

That's a sweet deal you've got there. Up here there is no opportunity to get such a credit. In fact the purchaser of your used trailer would be obligated to pay the 8% PST on the purchase price. That happens everytime the unit is resold for as long as the trailer exists, and you can add the 7% GST for the full 15% if it is resold by a dealer. P.

[Pappy]

Thanks to everyones advice.

I suppose as they say let the games begin.

I estimate from what has been posted that the mark up must be about 30% and the best discount up to 20% best cash deal.

I will begin the process tomorrow with the hope of getting one ordered .

Thanks Pappy.

[tomriley]

Pappy,

In Jan., I ordered a 2005 30'SO Classic, which was built in Feb. I did not have a trade. The approach I used was to "shop" nationally via the internet, then use these negotiated "best prices" as leverage on my local dealer. I explained to him that I would not hesitate to order from another dealer outside my local area unless he was competitive. With this approach, I was successful in getting the dealer to discount 25% from List Prices. I should mention, however, that my unit is quite "loaded" with options, which likely resulted in a higher mark-up than a more basic trailer.

Good Luck!

Tom