Can You Get Up to 50 Percent Off the Purchase Price of a New RV?Yes, You Can
Here is a question I recently received.
I am in the market for a new Class A motor home.
Prices on 2008 models are slashed up to 40%.
We haven't made an offer yet but some advice would be greatly appreciated! Do you have any idea how low dealers are willing to go? Would 50% off be an unreasonable request (maybe even more if I see that they have 5 of the same model RV on their lot)? ANSWER:YES!! Due to current economic conditions, you can expect some unbelievable deals on any new RV you are looking at.
To say that now is a "buyers market" for RVs would be an understatement.
This is a unique opportunity for new RV buyer's to get more RV for each dollar spent than ever before.
But, like the bad economy, this opportunity will not be around forever.
Due to the terrible economy and volatile fuel prices the RV Industry is in a major crisis.
In the last 2 years more RV Manufacturers and RV Dealers have permanently closed their doors than ever before in the history of the RV Industry.
Depending on who you listen to; 2008 RV sales were down by 30% to 40% compared to 2007.
2007 was also a bad year for RV sales, so the situation has gone from bad to worse.
Is expecting 50% off a new RV unreasonable? No, it is not, in fact some RV Dealerships still have some brand new 2006 RVs sitting on their lots.
All RV dealers are highly motivated to move out these RVs and will make some extraordinary deals, shy of giving the RV away for free.
My personal recommendation is; if you want to get the best deal you can, go to an RV Show.
This time of year there are lots of RV Shows going on.
In fact, even if an RV Show is not close to you, it will be worth the trip to go to one.
At RV Shows, dealers compete with other dealers to sell you an RV.
All RV Dealers are desperate to sell RVs right now, so when you have one desperate RV Dealer competing with another desperate RV Dealer to sell you an RV, you are bound to get a better deal than you would by only going to one dealership.
Here are some steps you need to take prior to going to the show.
1.
Narrow down the type of RV you are looking for.
Are you looking for a Motorhome (class A, B or C), 5th Wheel Trailer, Travel Trailer, Tent Trailer or Truck Camper? Regardless of which one you choose, you are going to end up with a great deal.
2.
You should narrow your search down to the Brand you are looking for.
Doing research via the internet is a good way to help pinpoint your choices.
3.
Determine how much you can comfortably afford to buy.
This is a very important step.
When figuring out what you can comfortably afford, consider other expenses that come with an RV that are not part of the purchase price.
Remember you are going to be spending money on fuel (for the motorhome or tow vehicle), camping expenses (that's why you are buying a RV right?), routine maintenance, insurance, license /registration, emergency road service, RV storage, etc.
The keyword here is, do not stretch yourself thin.
4.
In most cases, you are going to have to secure a loan to buy an RV.
If possible, get pre-approved for an RV Loan (this is a great advantage when negotiating for an RV, more on that later).
Because of the current economic circumstances, your credit score is going to be a big factor on whether you get a loan or not.
WARNING: A finance company will give you a loan for as much as you want (based on your credit).
But, just because they are going to give you that much credit does not mean that you have to use that much credit.
Remember what we talked about in step 3.
You are now ready to go to the RV Show or RV Dealership and start looking for your new RV.
Here are some things to consider when looking for a new RV.
1.
Because of the current economic conditions, now more than ever you are in the "Driver's Seat" when it comes to buying an RV and all of the RV Salespeople know it.
They really want you to buy an RV and are more willing to make excellent deals.
Take advantage of this situation, by bargaining hard and do not take NO for an answer.
2.
REMINDER: You are still going to have to negotiate to get the best deal for you.
The salesperson will not give you the rock bottom price the first time you ask.
Even in a rough economy, you are going to have to negotiate.
Here are some key points to remember when negotiating.
*If you have secured a loan in advance, use it to your advantage; let the salesperson know up front that you already have a loan.
This way they know that you are serious about purchasing an RV.
They will also know that they won't have to wait around while you go through the loan approval process, with the possibility of not being approved for the loan.
*If you are at an RV Show, determine if more than one dealer has the model RV you are looking for and use it to your advantage.
Start negotiating with Dealer A.
If Dealer A gives you an offer that they say is the best they can do, get the price in writing and tell them "you have to think about it".
Now wander over to dealer B and show them the price that Dealer A just offered you and ask them if they can beat it, if they say they can than get it in writing and go back to dealer A.
Repeat this process until you get the price you are looking for.
The beauty of this method is that you are no longer negotiating; you have started a bidding war between two dealers.
The winner of this war is going to be you.
* You may also hear this statement from your salesperson.
"The price we are giving you is good for today only".
That means, I really want to make a sale today.
If they really want to sell you an RV (and they do), you will still be able to get the same price on the same unit within a reasonable amount of time after that day.
Be prepared to walk away and not make a deal that day.
If you feel that you are not getting the sale price you should, be prepared to pack it in and leave.
Sometimes when the sales person actually sees you walking away they have an epiphany and can actually get a little better price.
If not, continue walking and actually leave.
This next part is optional; you can give them your phone number and ask them not to call you unless they can come closer to your price.
3.
During your RV hunting you will come across some brand new RVs that are known as "Orphan RVs".
These are brand new RVs that were manufactured by RV makers that have since gone out of business.
There are no new RV warranties on orphaned RVs.
If you buy it you will be solely responsible for the cost of any repairs on that RV.
Remember, the RV Dealer is selling you the RV; they did not build the RV.
That being said, there have been some RV Dealers that have stepped up and performed warranty work on "Orphaned" RVs and not charged the customer for the repairs.
In other words they eat the cost themselves.
Some dealers will tell you that they will provide you with a warranty for the RV, if you buy it.
This is where you have to be careful.
If the dealer is talking about an "Extended Warranty" then you have to be aware that an "Extended Warranty" does not cover all of the items that a "New RV Warranty" does.
Other dealers will actually commit to cover all of the repairs that the manufacturers New RV Warranty would have covered, had they still been in business.
If you are going to buy one of these RVs make sure you get in writing exactly how warranty repairs are going to be covered.
Do this before you sign on the dotted line.
The time for extraordinary deals on new RVs is here.
How long will it last no one knows.
One thing is for sure regardless if you are buying a new RV or upgrading to a newer RV, you will never regret your decision to become an RVer.
You will find that you will get hooked on the RV Lifestyle.
Happy RVing!
I am in the market for a new Class A motor home.
Prices on 2008 models are slashed up to 40%.
We haven't made an offer yet but some advice would be greatly appreciated! Do you have any idea how low dealers are willing to go? Would 50% off be an unreasonable request (maybe even more if I see that they have 5 of the same model RV on their lot)? ANSWER:YES!! Due to current economic conditions, you can expect some unbelievable deals on any new RV you are looking at.
To say that now is a "buyers market" for RVs would be an understatement.
This is a unique opportunity for new RV buyer's to get more RV for each dollar spent than ever before.
But, like the bad economy, this opportunity will not be around forever.
Due to the terrible economy and volatile fuel prices the RV Industry is in a major crisis.
In the last 2 years more RV Manufacturers and RV Dealers have permanently closed their doors than ever before in the history of the RV Industry.
Depending on who you listen to; 2008 RV sales were down by 30% to 40% compared to 2007.
2007 was also a bad year for RV sales, so the situation has gone from bad to worse.
Is expecting 50% off a new RV unreasonable? No, it is not, in fact some RV Dealerships still have some brand new 2006 RVs sitting on their lots.
All RV dealers are highly motivated to move out these RVs and will make some extraordinary deals, shy of giving the RV away for free.
My personal recommendation is; if you want to get the best deal you can, go to an RV Show.
This time of year there are lots of RV Shows going on.
In fact, even if an RV Show is not close to you, it will be worth the trip to go to one.
At RV Shows, dealers compete with other dealers to sell you an RV.
All RV Dealers are desperate to sell RVs right now, so when you have one desperate RV Dealer competing with another desperate RV Dealer to sell you an RV, you are bound to get a better deal than you would by only going to one dealership.
Here are some steps you need to take prior to going to the show.
1.
Narrow down the type of RV you are looking for.
Are you looking for a Motorhome (class A, B or C), 5th Wheel Trailer, Travel Trailer, Tent Trailer or Truck Camper? Regardless of which one you choose, you are going to end up with a great deal.
2.
You should narrow your search down to the Brand you are looking for.
Doing research via the internet is a good way to help pinpoint your choices.
3.
Determine how much you can comfortably afford to buy.
This is a very important step.
When figuring out what you can comfortably afford, consider other expenses that come with an RV that are not part of the purchase price.
Remember you are going to be spending money on fuel (for the motorhome or tow vehicle), camping expenses (that's why you are buying a RV right?), routine maintenance, insurance, license /registration, emergency road service, RV storage, etc.
The keyword here is, do not stretch yourself thin.
4.
In most cases, you are going to have to secure a loan to buy an RV.
If possible, get pre-approved for an RV Loan (this is a great advantage when negotiating for an RV, more on that later).
Because of the current economic circumstances, your credit score is going to be a big factor on whether you get a loan or not.
WARNING: A finance company will give you a loan for as much as you want (based on your credit).
But, just because they are going to give you that much credit does not mean that you have to use that much credit.
Remember what we talked about in step 3.
You are now ready to go to the RV Show or RV Dealership and start looking for your new RV.
Here are some things to consider when looking for a new RV.
1.
Because of the current economic conditions, now more than ever you are in the "Driver's Seat" when it comes to buying an RV and all of the RV Salespeople know it.
They really want you to buy an RV and are more willing to make excellent deals.
Take advantage of this situation, by bargaining hard and do not take NO for an answer.
2.
REMINDER: You are still going to have to negotiate to get the best deal for you.
The salesperson will not give you the rock bottom price the first time you ask.
Even in a rough economy, you are going to have to negotiate.
Here are some key points to remember when negotiating.
*If you have secured a loan in advance, use it to your advantage; let the salesperson know up front that you already have a loan.
This way they know that you are serious about purchasing an RV.
They will also know that they won't have to wait around while you go through the loan approval process, with the possibility of not being approved for the loan.
*If you are at an RV Show, determine if more than one dealer has the model RV you are looking for and use it to your advantage.
Start negotiating with Dealer A.
If Dealer A gives you an offer that they say is the best they can do, get the price in writing and tell them "you have to think about it".
Now wander over to dealer B and show them the price that Dealer A just offered you and ask them if they can beat it, if they say they can than get it in writing and go back to dealer A.
Repeat this process until you get the price you are looking for.
The beauty of this method is that you are no longer negotiating; you have started a bidding war between two dealers.
The winner of this war is going to be you.
* You may also hear this statement from your salesperson.
"The price we are giving you is good for today only".
That means, I really want to make a sale today.
If they really want to sell you an RV (and they do), you will still be able to get the same price on the same unit within a reasonable amount of time after that day.
Be prepared to walk away and not make a deal that day.
If you feel that you are not getting the sale price you should, be prepared to pack it in and leave.
Sometimes when the sales person actually sees you walking away they have an epiphany and can actually get a little better price.
If not, continue walking and actually leave.
This next part is optional; you can give them your phone number and ask them not to call you unless they can come closer to your price.
3.
During your RV hunting you will come across some brand new RVs that are known as "Orphan RVs".
These are brand new RVs that were manufactured by RV makers that have since gone out of business.
There are no new RV warranties on orphaned RVs.
If you buy it you will be solely responsible for the cost of any repairs on that RV.
Remember, the RV Dealer is selling you the RV; they did not build the RV.
That being said, there have been some RV Dealers that have stepped up and performed warranty work on "Orphaned" RVs and not charged the customer for the repairs.
In other words they eat the cost themselves.
Some dealers will tell you that they will provide you with a warranty for the RV, if you buy it.
This is where you have to be careful.
If the dealer is talking about an "Extended Warranty" then you have to be aware that an "Extended Warranty" does not cover all of the items that a "New RV Warranty" does.
Other dealers will actually commit to cover all of the repairs that the manufacturers New RV Warranty would have covered, had they still been in business.
If you are going to buy one of these RVs make sure you get in writing exactly how warranty repairs are going to be covered.
Do this before you sign on the dotted line.
The time for extraordinary deals on new RVs is here.
How long will it last no one knows.
One thing is for sure regardless if you are buying a new RV or upgrading to a newer RV, you will never regret your decision to become an RVer.
You will find that you will get hooked on the RV Lifestyle.
Happy RVing!