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Old 07-16-2019, 09:27 AM   #1
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2018 30' Classic
Lawrenceville , Georgia
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Trying to Upgrade to 33 Classic, but trade in value?

Relative newbe- have a 2018 Classic 30. Want to trade it in for 2020 Classic 33, but dealers killing me on trade in value. Over 30-40% less than what I paid for the 30 in Jan 2018!
Am I wrong to think that is too much depreciation for a 2018 Classic?
Need some wisdom on this.
Thanks,
Wgsouth
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Old 07-16-2019, 09:48 AM   #2
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I think he’s lowballing you.
Do not be “In Love” with the new unit. In order to have bargaining power you have to be willing to walk away from the deal.
Make your best offer. If it doesn’t work, walk away.
There are other dealerships out there...
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Old 07-16-2019, 09:49 AM   #3
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The difference is more than just depreciation. Lets say he takes your trailer. There may be a few things he has to fix on it. He is going to have it sitting on his lot for a while, so there is cost of money there. He will have salesmen showing it. He has to pay them a commission. He has to make some money on the sale when it sells. All this is additional cost to him that you have to add to the depreciation to figure out what a fair trade-in price is.


With Airstreams, as with cars, it is a better financial deal to sell the trailer outright yourself and then buy your new one. If you don't want to do that, then you will lose some money.


All this is not to say that the number your dealer offered is or is not fair, just setting out what I believe the actual discount entails.


Al
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Old 07-16-2019, 09:52 AM   #4
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The best answer to that is SHOP AROUND. Call colonial or other dealers who have good reputations. Can't blame a business for trying to make money, and if you are upgrading from a 30 to a 33 in only 2 years, you are going to look like you have buckets full. Remember too that they are always making more, and you can wait - Indefinitely! Attitude does matter. Who knows?
I would also check RVTrader.com and see what comparable 30s have sold for... ammunition. Plus, you might sell the 30 privately if you try and you are not financing more than the sale price.


Good luck, and let us know in general terms how it works out.
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Old 07-16-2019, 10:17 AM   #5
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All of the above, but a few of our members have traded up at the Airstream dealer in Lexington, SC. I cannot say whether they felt low-balled, but they did a deal for a new trailer...and their trade-ins were newish.

Larry
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Old 07-16-2019, 10:22 AM   #6
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Carlisle , Pennsylvania
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Hi

On any transaction like this there are *always* lots of details

Is the starting point a 30% discount on the new trailer? If so, you can expect a pretty low offer for your trade in.

Is the deal on an "ordered in" trailer and it all happens when that gets here? With a three or four month wait, the deal actually happens in late fall. That's not the best time to sell an RV in most of the country.

Is the trade in in exactly the shape you bought it in? Mine most certainly is *not*. There are a variety of "improvements" on it. I like them, somebody else might not. There's also that rock hit over there and the scrape over there and about the doorbell ... Repairing / replacing / removing all that cost money.

How much did you pay for the trailer when new? If you paid list price, sorry for your luck. At the end of the season, AS discounted the remaining 2018's by a bit. If you had bought then, it's a good guess you could have gotten 25% off of list price.

Is the dealer's lot full of used trailers right now? If so he may not be very excited about bringing in any more. Even more so if it's something like the 30' that may not move as fast as a smaller trailer.

Take a look at his price for a full wash and wax on the trailer. Also check out his price on full "deep clean" of the inside. He's probably going to do the inside and outside clean when it gets to him and again when it sells. Toss in some seals on the roof and with most dealers, you just ran up a $10K sort of tab .....

So lots of fiddly details. 20% off on the new trailer and 25 to 35% below a reasonable buy price on the trade is a pretty good combo against something they have on the lot right now. If he's not making anything on the new trailer and not able to cover costs of selling the used one .... he will not be there when you need warranty work

As mentioned above, there are costs associated with selling a used trailer. They will indeed list it at some nutty price. They list the new trailers at .. err ... list price. Just as with the new ones, asking price isn't what they likely will sell for.

No matter what it is, car, truck, boat, trailer, or motor home .... you will get a better price selling it yourself than selling it to a dealer. That's just the way the market works. You also will spend some time doing this and that to make the sale. There will be risks associated with payment and other issues. It can be a hassle. How much is that worth? Who knows ...

Bob
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Old 07-16-2019, 10:23 AM   #7
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One option is to offer lower price for the new AS to make up for the loss of the trade $$.
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Old 07-16-2019, 09:36 PM   #8
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2018 30' Classic
Lawrenceville , Georgia
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Thanks!

Great input and thoughts from all!

Couple of points
- I think we got decent deal when we bought -20% off list.
-The trailer is truly in excellent shape, stored inside , has been waxed and washed (by the dealer). Only improvements are new shower head and rugs to protect the flooring. I would say we only camped on Sunday, but that would be pushing it.....
-Agree that I will get more by selling. Just trying the easy way first
-I have shopped some, this is second dealer. Will continue to research. Don't mind driving for a great deal.
-Totally agree dealer has to make money. Just feel a bit defensive when they try to make it big on both sides- the new deal AND the trade
-Also agree i need to be willing to walk away, working on that one
-Speaking of defensive- don't have buckets of money, just a small one that i watch really closely!
Thanks for sharing. I asked for wisdom and got it! Look forward to reading more if anything comes to mind.
wgsouth
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Old 07-16-2019, 10:07 PM   #9
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Offer MARP-20% discount on the new.
Offer $8k below market for the used trade-in

Youíll recoup some of the $8k in reduced sales tax against the new trailer - the transaction would cost you perhaps $3-4k at those numbers vs if you sell privately and do 2 separate transactions. Dealer takes $8k profit on the used unit.

Question is ... is $3-4K cost worth the ease of transaction vs selling it yourself.
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Old 07-16-2019, 11:06 PM   #10
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[QUOTE=wulfraat;2265355

Youíll recoup some of the $8k in reduced sales tax against the new trailer -
.[/QUOTE]


Reduced sales tax can be a big deal, when trading in a used car or trailer. Almost 10% sales tax here in Kansas, so if I get $80,000 for my trade in, I would have to sell the trailer for $8,000 more than the dealership is offering, just to break even. Sometimes itís just not worth it to sell it yourself if you are trading, just my opinion. Good luck, hope youíre happy with the decision you make.
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Old 07-17-2019, 05:28 AM   #11
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Wgsouth

Everything said here is true whether it is a car, boat or trailer. You already know that. That said, selling it yourself is ALWAYS the best way to go.

We wanted to get into a Classic 30 (Darn, I could have bought yours!) but we did not even consider a trade. When your dealer finds out you are selling yours yourself, his pencil will get sharper on a straight out deal.

Put yours on the market here on Air Forum. The key to a successful sale is to spend some time preparing your ad. Clean the trailer inside and out. Stage your trailer just like they do on the HGTV channel. Plates and silverware on the table, throw rugs on the sofa and flowers in vases. That wine bottle and glasses on the nightstand, you know what I mean. If you are proficient at taking pictures, take some very good images of the inside and out. If you cannot get good images, find someone to help you. Make a video if you have that ability. Not too hard to do with today's technology.

Sit down and spend some time describing everything in your trailer and everything you added as upgrades. Very important to a prospective buyer.

We found a buyer in several days. He and his wife are very happy with their new (used) trailer. We sold our two-year-old trailer for what we paid for it.

Only then should you start looking for the new one.

Here is the video link for the 27' international signature we sold. It is sold so don't ask!

https://youtu.be/YZwFq-qc0j8

Have some fun doing this!! It will pay off in dollars with nothing invested but your time.
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Old 07-17-2019, 08:46 AM   #12
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Hi

The whole "sales tax savings" thing can get into a real tangle if you live in one state and do the deal in another state.

Bob
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Old 07-17-2019, 08:56 AM   #13
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Quote:
Originally Posted by uncle_bob View Post
Hi

The whole "sales tax savings" thing can get into a real tangle if you live in one state and do the deal in another state.

Bob


Never had a problem. Bought trailers in Mississippi and New Jersey. Never had a problem registering in Kansas City, with credit for my trade-in, on sales taxes . What kind of a tangle are you referring to?
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Old 07-17-2019, 10:19 AM   #14
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Quote:
Originally Posted by Wgsouth View Post
Relative newbe- have a 2018 Classic 30. Want to trade it in for 2020 Classic 33, but dealers killing me on trade in value. Over 30-40% less than what I paid for the 30 in Jan 2018!
Am I wrong to think that is too much depreciation for a 2018 Classic?
Need some wisdom on this.
Thanks,
Wgsouth
Sell it yourself.
Went trough the exact same scenario with our 2013 30' International.
We wanted to trade up to a new classic 30' in 2017 and dealers were low balling with ridiculous offers.
I listed and sold it within two weeks for double what the dealers offered.
Went and bought the classic and I low balled the dealer.
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Old 07-17-2019, 10:23 AM   #15
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In 2018, when the AS 33 came out, my sweetie got all attached to it, so I began shopping for one, in part because our local dealer quoted me something like $158K for one. I found a dealer in Florida who offered to order one for me from the factory for $119K, which sounded like a deal to me.

Then I asked them how much they'd give me for my 2016 FC 27 FB, which at the time were selling for around $65K. Their answer: "Maybe $40K if it's in good shape." Ouch! I asked where they got that price, and they said, "90% of wholesale as shown on NADA." They were decent enough to say, "We realize that this is a ridiculously low price, and that you should be able to sell it for substantially more yourself, and we're sorry, but that's all we can give you on a trade-in. We'd suggest you list it for sale in your locale and call us again when you've sold it." Needless to say, our 27 FB remains in its barn.

Take home lesson: If they discount the sales price on a new trailer, they're going to discount the trade-in value of your trailer.
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Old 07-17-2019, 01:58 PM   #16
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Call Ron Rawl at Johns RV, Lexington, SC. We owned a 2015 FC 28 purchased for $60k. Ron gave us $82k in May, 2018 on our upgrade to a 2018 Classic 33. He did an even greater deal on the 2018 Classic 33.
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Old 07-18-2019, 07:41 AM   #17
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Originally Posted by Hiho Silver View Post
Never had a problem. Bought trailers in Mississippi and New Jersey. Never had a problem registering in Kansas City, with credit for my trade-in, on sales taxes . What kind of a tangle are you referring to?
Hi

States turn out to have "reciprocity agreements" with other states when it comes to taxes. If you are dealing with a pair of states that do not have an agreement ( = sorry that state is not on the list ...) you don't get credit for the taxes paid in that state.

The other gotcha is selling or buying in a state that does not charge sales tax and doing the other half of the deal in a state that does. Often the "no sales tax" states have some other fees that are equally bothersome ....Those may or may not be due on this or that sort of sale. They generally do not count to offset sales tax in another state.

Bob
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Old 07-18-2019, 09:22 AM   #18
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[QUOTE=uncle_bob;2265869]Hi

States turn out to have "reciprocity agreements" with other states when it comes to taxes. If you are dealing with a pair of states that do not have an agreement ( = sorry that state is not on the list ...) you don't get credit for the taxes paid in that state.

The other gotcha is selling or buying in a state that does not charge sales tax and doing the other half of the deal in a state that does. Often the "no sales tax" states have some other fees that are equally bothersome ....Those may or may not be due on this or that sort of sale. They generally do not count to offset sales tax in another state.

Bob[/QUOTE



Sorry if I was not clear. For instance, when we bought one of our trailers at Foley RV, (great dealership) we were NOT charged sales tax in Mississippi, because we registered it in Kansas, which is where we paid the sales tax. Not at all complicated. The bill of sale from Mississippi shows the price we paid after credit for our trade-in and that is what we paid sales tax on, not the price of the trailer without trade in. No reciprocity agreement needed. I wish we lived in a state with no sales tax. I think there are ways to register RV's in states without sales tax, even if you don't live in that state, but I have had no experience with doing that.
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Old 07-19-2019, 10:02 AM   #19
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[QUOTE=Hiho Silver;2265921]
Quote:
Originally Posted by uncle_bob View Post
Hi

States turn out to have "reciprocity agreements" with other states when it comes to taxes. If you are dealing with a pair of states that do not have an agreement ( = sorry that state is not on the list ...) you don't get credit for the taxes paid in that state.

The other gotcha is selling or buying in a state that does not charge sales tax and doing the other half of the deal in a state that does. Often the "no sales tax" states have some other fees that are equally bothersome ....Those may or may not be due on this or that sort of sale. They generally do not count to offset sales tax in another state.

Bob[/QUOTE



Sorry if I was not clear. For instance, when we bought one of our trailers at Foley RV, (great dealership) we were NOT charged sales tax in Mississippi, because we registered it in Kansas, which is where we paid the sales tax. Not at all complicated. The bill of sale from Mississippi shows the price we paid after credit for our trade-in and that is what we paid sales tax on, not the price of the trailer without trade in. No reciprocity agreement needed. I wish we lived in a state with no sales tax. I think there are ways to register RV's in states without sales tax, even if you don't live in that state, but I have had no experience with doing that.
Hi

Again it is very much a state by state sort of thing. Some states are nastier than others as far as letting you not pay the tax.

Bob
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Old 07-24-2019, 09:31 AM   #20
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Sell it yourself. I sold my TT within 24 hours after I advertised it on RV Trader. I had 8 other buyers waiting to purchase it in case the first deal didn't go through. Good luck with your new 33. They are beautiful.
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