Buy Here Pay Here Birmingham AL How to Buy a Used RV – Secrets RV Dealers Don’t Want You to Know
- August 31, 2018
- Posted by crosbyru
- Comments Off on Buy Here Pay Here Birmingham AL How to Buy a Used RV – Secrets RV Dealers Don’t Want You to Know
What is the Dealer mark up on a used RV?
The typical dealer mark up on a used RV is 30 to 45% above wholesale RV invoice price. With extremes at 10 to 60%. The Manufacture’s suggested retail price is generally 30-40%, but most RV dealers are free to sell the RV for a price that they can get the most for it. High volume RV dealers typically sell more RVs at lower margins. Smaller volume rv dealers may sell less but expect more profit on each unit.
What is the wholesale invoice price amount? This is the price that the dealer paid for the motor home. Most dealers will not let you see this price up front. A few will. Even though they have list prices of 30 to 50% above RV wholesale invoice, most dealers like to make at least a 30% margin on their inventory. You should always be able to talk them to at least 30% over wholesale invoice. If I can buy a car for $500 over the wholesale invoice, can’t I do the same think with a motorhome? To stay in business a dealership would have to sell for a minimum of 10-20%. RVs are much more expensive then cars and require more overhead.
Are their any other advantages to being a high volume dealer? Yes being a high volume dealer also allows you to get manufacturers rebates from $50 to 15% cash back from the manufacture. This depends on how aggressively the manufacturer is working to promote products or increase market share.
What amount should I offer the RV dealer and how do you calculate this amount? If you know the rv wholesale pricing or invoice amount (the amount the dealer paid) for the motorhome, in a competitive market just add 15 to 20% to the wholesale amount to make your offer. If you don’t know the wholesale amount, here is a good way to estimate it: 1) Divide the SRP(suggested retail price) by 1.4. (This Assumes the average a 40% mark up) ex. List price 140,000/1.4 is equal to 100,000 wholesale invoice price. 2) Add a 30% mark up to the invoice price to bring it to $130,000 this an offer that a dealer will almost never refuse. 3) If you are a bargain shopper or feel that the dealer is in a pinch or in a competitive market offer of invoice plus a 20% mark up =$120,000 4) Probably the best deal you will find on the current years model is a 10% mark up for $110,000 above the wholesale RV invoice. Most dealers won’t accept this though.
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