What's a trade in worth today?

[Jon Wehrenberg]

From time to time we engage in private and forum discussions on coaches, their value, and details relating to evaluating one. Those of us that are interested cruise through the various sites from time to time just to see what's out there and likely to measure what is being offered for sale against a coach we own or are contemplating.

Today I ran across a coach that I think either has a misprint for the selling price or I am way off base in my thinking of values.

http://www.prevost-stuff.com/1995Pre...CoachSales.htm

To my way of thinking this coach would be a steal. Assuming it was in decent shape as advertised, the price appears well below what I would have expected. I recognize the coach needs work. The belts are missing from the OTR compressor so something is wrong there and that could be expensive. I don't know the age or condition of the tires, air bags, batteries, its maintenance history, if it smells like the bottom of an ashtray, and how clean it really is, inside and out. But at that price a buyer could buy tires and all the other things necessary to bring it into a first class status as far as mechanical reliability and still have pocket money to buy a lot of fuel compared to prices on similar coaches.

Maybe the market still has not hit bottom.

[Sawbonz]

That does seem cheap. Maybe its going to be the same as the housing market. They say here north of Tampa that we are still a ways from the bottom.

[Sawbonz]

Another thread referred to Prevosttrader.com. Their front page has a couple of '94 models around that price point, so maybe that is just where it is...

[JIM CHALOUPKA]

Panterra Coach has a 1997 Marathon for $119,000.00.


JIM

[Jon Wehrenberg]

I guess if those prices are the new reality the market still is a buyer's market because those prices don't come close to reflecting the real value of a coach that still has 80 to 90% of its life remaining.

[gershwin]

I guess if those prices are the new reality the market still is a buyer's market because those prices don't come close to reflecting the real value of a coach that still has 80 to 90% of its life remaining.

Pricing today I"m seeing - 2001 non-slides in the mid to low $200's, 2001 1 slides $275k, add $15k-$25k for each MY thereafter, a $15k deduction for a CC digital dash. I'm seeing 2002 DS going @ $300k, 2003 DS $315-$325, 2004 $350-400k and 2005 in the $400k-$500k range. 2006-2007 - $485k-$599k of course Legandary price points aren't applicable.

[Jon Wehrenberg]

Absent from any price statements or estimates will be two things. The first is the condition. A coach in pristine shape that has detailed maintenance records should have a higher value than an average coach of the same age and converter. While in general it may be accurate to value a no slide 2001 coach in the mid to low $200,000 range I can easily think at 10 years of age some very expensive items that could be due for replacement or that have already been replaced making for a huge swing in value.

Add to that the cost of a deep cleaning or even replacement of carpets and upholstery and it is not unreasonable to add or subtract $50,000 from the range when also considering if air bags, tires, batteries, Norgren valves, etc are due.

The second and perhaps more critical factor in evaluation is what a buyer will pay. That is influenced by a great number of factors such as the coach meeting the buyers requirements for layout, equipment, colors, converter, etc. It is also influenced by the buyers ability to pay cash or secure financing, and finally by the right buyer being there when the coach is available for sale. Some coaches have unique colors or layouts or equipment lists and a limited market because of that, but conversely a coach that has the most desirable layout, colors, and equiment may have a great number of potential buyers and therefore be valued higher by the market. As an example, all sellers of coaches will always make it very clear that a coach has OTR. While not everyone necessarily feels compelled to buy a coach with OTR, there will always be people that will not buy a coach because it does not have OTR.

But the bottom line is always going to be how much a seller will accept. Assuming the values for coaches listed above is correct it makes the issue of depreciation very clear as to one of the biggest cost of ownership, especially with respect to newer coaches.