What's a trade in worth today?

[Sawbonz]

I asked Lazy Days about mine, should I find a coach and (I have to) trade mine in. They said wholesale is $207k, but they would likely pay 80% of that. Being that I owe considerably north of wholesale, that 20% bothers me. WTH is with that?

[Jon Wehrenberg]

I follow a certain unamed car dealer to auctions. He let's me do the heavy lifting like carry his wallet. As a result I have gotten to see the wholesale or auction side of the motor vehicle resale business.

I hope he posts and tells it from a professional's point of view. My spin on this is he and every other dealer is trying to buy low and sell high. It sounds like a joke until you start thinking of reality. When he bids on a vehicle he is hoping the people in his market want to buy that vehicle. If they do he also has to hope they will pay what he needs to get in order to make money. If he pays too much he has a car sitting on the lot getting worth less as each day passes. He risks there is not something wrong with it. He drives it, looks for codes, and tries to assess its condition but only the owner really knows what or if anything is wrong and they are not necessarily being truthful. A dealer buying your RV has no assurance you aren't trying to get rid of a lemon.

But today the dealer has another player that is the elephant in the room. If he pays too much for it, he cannot sell it because nobody will finance it for what he has to get out of it. If you decide you don't want to give up some money you need to pray the buyer is willing to pay your price (good luck with that because you have nothing to offer after the sale) and that the buyer has cash or can get financed. Getting financing for a car or RV requires that the buyer put a huge chunk of cash down, or that the dealer pays so little it can be sold at a price low enough to get it financed. The days of financing 100% of the purchase price are just about gone and the dealers have to adjust to that new reality.

Any of us that are selling or trying to sell big ticket items today are dealing with people that have cash and know they have you where they want you, or you are dealing with folks who have wants and needs far greater than their wallets will allow. You will spend a lot of time talking to both types. If you are lucky enough to find a buyer willing to pay what you think is a fair price today, and he has cash in hand, not only should you take his money, you should run out and get some lottery tickets because today is your lucky day.

[jack14r]

When the bottom hit I was told by a RV wholesaler that he would only pay 50% of wholesale(based on NADA) and he had plenty of opportunities.

[Jon Wehrenberg]

As much as I would like to see you driving a Prevost, Karl, exactly what is so bad about your RV that compels you to take what sounds like a substantial beating to go out and repeat the process? In weak moments my eyes glaze over looking at newer Country Coach Prevost coaches with 2 slides but then I do the mathematical equation that provides me with reality. That is answering exactly what I will get for my money. Every single time the answer is "not enough".

We really like new stuff and especially new big ticket items like planes and cars and buses. But not so much we feel compelled to transfer our wealth. (Sorry for the little attempt at political humor)

[truk4u]

I think Jacks comment is dead on, I was told 40 - 60% of wholesale on a good day for a trade-in of plastic by a Dealer acquaintance.

Karl - I think Lazy Days was blowing smoke at you, but I suppose you could get 80% on a trade while you pay almost full retail for the upgrade. If your that far upside down, just keep driving the Monaco and count the money you save. You also could try to sell the Monaco and your loss wouldn't be as great as a trade-in deal. Then you can shop for a Prevost with no baggage.

[Sawbonz]

As much as I would like to see you driving a Prevost, Karl, exactly what is so bad about your RV that compels you to take what sounds like a substantial beating to go out and repeat the process? In weak moments my eyes glaze over looking at newer Country Coach Prevost coaches with 2 slides but then I do the mathematical equation that provides me with reality. That is answering exactly what I will get for my money. Every single time the answer is "not enough".

We really like new stuff and especially new big ticket items like planes and cars and buses. But not so much we feel compelled to transfer our wealth. (Sorry for the little attempt at political humor)

Jon, you sound like my wife!

Truthfully, the answer is nothing. I plan to continue to sock away cash while we look and learn. IF we find _the one_, we'll jump, but there is really no hurry. That said, I want the quality of a better vehicle. Ours is great...really. I love it. But, should we ever make it full time, I want something more substantial.

[Sawbonz]

I think Jacks comment is dead on, I was told 40 - 60% of wholesale on a good day for a trade-in of plastic by a Dealer acquaintance.

Karl - I think Lazy Days was blowing smoke at you, but I suppose you could get 80% on a trade while you pay almost full retail for the upgrade. If your that far upside down, just keep driving the Monaco and count the money you save. You also could try to sell the Monaco and your loss wouldn't be as great as a trade-in deal. Then you can shop for a Prevost with no baggage.

Blowing smoke why? You don't think they would even give 80%?

I know I will get hosed on a trade, but it does seem to be the time to buy a bus. if I lose $100k one one but gain $200k on the other, did I lose?

[garyde]

If you have the time, and don't get restless, Run an Ad in 3 or 4 RV web sites for your Monaco. Or, put it on consignment with one of our sponsors. You probably will not get out from under the upside down situation but you will get the best price in todays market. Remember , your coach is going down in value daily.

[Jon Wehrenberg]

if I lose $100k one one but gain $200k on the other, did I lose?

Karl,

Now you have my attention. How are you going to gain the $200K? Every one of us wants to know that.

Right now I think we all would just like the depreciation we all experience slow down a little. The reality is that while our coaches lose book value by the bushel full every day we all continue to drive a substantial vehicle that is going to give us many years of good service and that is what makes our coaches so important to us. But gaining value or even slowing down depreciation hasn't been a part of ownership.

[phorner]

Karl,

If you believe there will be a financial "gain" in trading your coach and buying another (Prevost or not,) in my opinion you are setting yourself up for substantial disappointment.

The only way we could have taken a lesser bleeding at the wallet would have been to buy our Prevost first and not have suffered the substantial depreciation on our first four motorhomes that we just had to buy new.

We have learned a very expensive lesson.

But if you have figured out a way to "gain" financially by trading a plastic coach for a Prevost, I am sure interested in the details.