Determining your RV’s TRUE Wholesale Value
The first thing you need to know is that the ONLINE valuation guides for RVs are usually much higher than the values in the dealer’s copy of the NADA guide. In other words, what YOU think your RV is worth is probably much, much higher that what the DEALER will actually allow for it.
This is the same for the automotive, boat or RV industries. The dealer MUST take trade-ins at or below wholesale to ever hope to eventually make a reasonable profit. He must allow for interest payments on his used inventory, commissions to sales people, overhead, and much more.
A typical mid-sized RV dealer will have a monthly overhead of $50,000 to $150,000… or more per MONTH! Believe me, it’s not an easy game. He has laid out millions of dollars to allow you to browse a decent selection of RVs, so please… Don’t think of him as the bad guy.
Online RV Valuation Sources
Lets take a look at the online RV valuation sources and how to use them in order to place a realistic wholesale and retail value on your RV.
The best place to get fairly accurate online values for RVs is at: [http://www.nadaguides.com]
Go to the RV section and select the appropriate letter that corresponds to the make of your RV.
Now is where you’re going to have to grit your teeth and do something completely against your nature. DON’T ADD FOR ANY OPTIONS! The dealer won’t, so in this case we won’t either. Understand that we are only trying to determine what the dealer will allow for your trade-in. This doesn’t mean that you have to take it. In fact, you will be many dollars ahead if you decide to market your RV on your own, and then approach the dealer on a cash only basis…. But that’s another topic we’ll address in another article.
At the bottom of the NADA page, click on the “Get Price” button. Now, let you your jaw drop as you look at the value for: “Low Retail.”
Now emit a mild groan, because it gets worse from here. DEDUCT another 7% to 10% of that figure to establish the wholesale value in the dealer’s copy of the NADA book. This is the value that the dealer will be looking at. If your RV is an upper-line or luxury RV, or if it is a specialty RV you will need to deduct even more – 10% to 15% of the “Low Retail” figure. Since the online Low Retail prices do not match the wholesale prices in the dealer’s NADA guide, this is an educated guess for you. It will however, get you close enough to decide whether or not you are willing to trade your RV, and accept the actual cash value the dealer will allow.
Remember NOT TO ADD FOR OPTIONS! I know you tried to sneak a few in there didn’t you? Remember… The dealer NEVER adds for options when determining an ACV on a trade-in. In some rare cases such as hydraulic leveling jacks or other options that are very expensive, he MAY allow a little more, but nowhere near the actual cost of the option.
Your best bet in determining what the dealer is allowing you for your trade-in is to take the “Low Retail” figure minus 10%. (More for upper-line or specialty units.)
Certain factors such as mileage, condition and unit popularity and salability my influence the actual cash value allowed for your vehicle. Remember that we are dealing with an inexact science. We are simply trying to establish a guideline for estimating the actual amount allowed for your trade-in. Whether or not you decide to trade, is completely up to you. Now you have a way to weigh one against the other. The final decision of course… is up to you.
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