Dealer pricing

[jdlong49]

I have narrowed my choice down to 2 units and 1 of those units is in an over abundance in my area. There are 13 2022 models still on dealer lots within a 4 hour drive. One regional chain has 7 over their locations. The price has been dropping and I don't think they are going to be able to move all of them until they get it to a drastic level. Its a couples model that is geared more towards a solo traveler like myself, so I don't see a ton of demand for it. I don't NEED to buy until February but was planning to buy in January. I'm playing the waiting game but don't want to wait too long. The dealers closest to me have dropped it to 29995 and one a few hours away has theirs at 27995. My thinking is if that one doesn't sell, I could press the dealers around here to go down to 26K or maybe even less. What's the best strategy, just wait and see what happens and maybe have more leverage if none of those sell in 2 months OR go ahead and try to work the dealer down to a lower price now?

 

[Jireh Financial]

Good morning,
What state are you and the dealerships in? Seasonality does matter. Northern dealers know show season is only 2 months away so no real need to dump now. The selling price on new units often have things added in (frgt, prep, PDI...) so the bottom line is the only number that matters. Since 2023 units have been shipping, the 22 models are now old and costing the dealership money each month. Location matters.
Let me know how we can help.
Thank you,
Ken

 

[Rich W.]

What is the MSRP? Before the covid RV craze happened, I was getting offers from dealers starting at around 71% of MSRP, before beginning any negotiations, and at the time I was told their margin was in the mid 50% range. I don’t know how accurate that is, but the 71% offers from several large dealers and one small one, told me there is at least around 40% to play with.

Not sure if this applies to RVs in that price range, but it might be usefull information. So if its not an emotional gotta have it now purchase, and there are plenty of similar models available, I’d start making some offers but give it time and see what happens. Give em a poke and see what kind of response you get. But if you can wait, chances are you’ll get a better deal in January than now.

 

[jdlong49]

I’m in Mississippi. MSRP on the unit was $35,800. I had been using 70% as my guide, I had also heard somewhere that’s about the range I should try to get. With there being 13 of these 2022 models sitting on lots around here, especially one company having 7, I feel like if they don’t sell one by January they are going to go into panic mode. I thought about telling a dealer I’d be a buyer at 26k, but I’m not entirely sure they won’t go lower if wait.

 

[Jireh Financial]

I’m in Mississippi. MSRP on the unit was $35,800. I had been using 70% as my guide, I had also heard somewhere that’s about the range I should try to get. With there being 13 of these 2022 models sitting on lots around here, especially one company having 7, I feel like if they don’t sell one by January they are going to go into panic mode. I thought about telling a dealer I’d be a buyer at 26k, but I’m not entirely sure they won’t go lower if wait.

Hard to say. Mississippi is basically a year-a-round market so no real dead season. Here in Michigan, dealers are more likely to dump based on time of year. In the finance business, we see manufacturer invoices on all new units we work with. That info we never share. I would assume you mean 30% off, not 70% from MSRP.
Each month a dealer pays floor plan interest, his "cost of sale" actually increases. How that plays out will differ from dealer to dealer.
Let me know how we can help.
Thank you,
Ken

 

[Bigblockyeti]

I'm playing the numbers game now too, Upstate SC if that makes any difference. One trailer I like but may or may not fit us well, the sales person said "we have the best prices hands down in a 250 mile or larger radius" which struck me as typical sales person speak. I don't need or want to finance but they were pushing it really, really hard so I entertained them and they came back with over 12% for over a decade financing 70% of it. Of course when I got home, I found the exact same thing less than 100 miles away from a real dealership for $3K less. This is something I'd typically like to buy used from someone (not some dealership) that I trust and hopefully any cradle problems have been fully vetted. New only appeals due to the lack of other peoples' funk and all the fully intact warranties that come with a new unit. What would be ideal for me isn't the same as what the dealer is pushing but it appears something that fits my needs perfectly is few and far between plus what the dealer stocks, so do other dealers so volume is in my favor with regards to getting the best price from different dealers competing.