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Post Info TOPIC: RV Negotiating Tips


RV-Dreams Family Member

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RV Negotiating Tips


Genecop and Dog Folks, thanks! That will definitely be a top tactic of ours. We've found both our temporary used rig and eventual new rig at many different locations via rvtrader and the like, and because I work for an airline it will cost us practically nothing to fly somewhere else if we can't get the deal we want locally.

What I'd also like to know is how to be sure we have the best starting price. Is NADA the best place to go for that?



-- Edited by jjsbergy on Friday 5th of July 2013 09:09:55 AM

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Sam & Belinda

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Dream MH - Thor Tuscany 45LT



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Hi Everybody!

My DW and I have posted on here a few times as we get closer to realizing our dream of becoming full-timers. Our home is on the market and we believe within the next two to three months we will be out of it. So we have stepped up our research and, although we may not be able to purchase our dream RV (2013 Alpine 3720FB), we have found a couple of 5vers that will suit our needs for a few months. But here's our help-need:

I've looked at some RV Buying/Negotiating books and they are all six to seven years old. Can anyone here give us any more up-to-date information on where we can find something or, better yet, does anyone have a top-five or ten list of what to do and what not to do when we begin negotiating?

Thanks guys!



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Be willing to walk away # 1 IMO....

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A very wealth, self-made millionaire once told me this and it has always worked well: When negotiating, he whom cares less…… wins.

Upon selling a business, the buyer tried to lower the price $10,000 at the closing! I refused, said I would keep the business and started to leave. The buyer quickly reversed course and wanted to buy at the previously agreed price. I wasn’t having that. Before I sat back down, they had to agree to pay $10,000 MORE. I really did not care and it worked. They paid dearly for their last minute games.


Be ready to walk. Care less. If that camper you absolutely love is at a dealer you that won’t give you a deal, remember, there are more dealers out there carrying that exact same unit.




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I agree with the others, when we bought our current 5er, we had done quite a bit of research, had the manufacturers MSRP sheet and went into the dealer with a dollar number that was approaching 40% off MSRP.

The salesman started telling me all the discounts and what we were getting, I told him lets save time and here is my dollar number.
To say the least he was floored and said wow, that is a lot lower than he was allowed to go.

My response, if my dollar number did not work we were wasting both our time and we would be going down the road and look somewhere else.
The salesman told me our unit had been on the lot less than 90 days and he had units that had been on the lot for over 400 days he could make a great deal on.
I had already looked at the date of Manufacturer on the unit we were looking at and saw it was less than 4 month since it was built.
I also told him we were not interested in looking at something else.
I sat and listened to the salesman whine, the salesman go get his manager, the manager go get the dealership manager and so on, I did not waver and we agreed on a price that was about $600 higher than the dollar number I started with.
To say the least I was surprised they got that close to my dollar number but in the end everything went fine, delivery went off without a hitch and we love our 5th Wheel.

The one thing that you do not know about dealers is their inventory status and what is on order.
When we bought our 5er they only had two models / floorplans in our brand / product line.
I went back to their website a few weeks later and they had 4 more 5ers of our brand / product line that had arrived, so they were motivated to move ours off the lot.

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My negotiating guidelines.

1. Know my budget, and the absolute top I can go.  Chances are I'm going to end up spending a little bit more than I want to pay for features I want.  But I don't want to handicap myself by digging too deep into savings or financing more (although financing isn't an option for us anymore).

2. Know the pricing on the models I'm interested in.  I don't have to be spot on, but I want to know the ranges.  For others, I do a quick online search of the models and use sites like RV Trader to find the range of starting points for the particular model to get a good idea. I know dealers will usually come off the MSRP by at least 25 - 30%.  However, many already have list prices well below MSRP, so expecting 30% off their starting price may be unrealistic.  Sure, be ready to take your lowball shot, but be realistic as well.

3. Be nice and willing to walk away.  I smile and tell them, let's cut to the chase.  "You know I want a good deal and you need to make a profit, but let's skip the hard-core stuff and just get to the best you can do.  If I can't do your number, I have to walk away.  Call me if you decide you can do better, but we're not going to do the back-and-forth thing here."  Yes, be willing to walk away and do it if necessary.

4. Ask for extras.  Don't be afraid to say "Hey can you throw in ....." whatever (accessories, fuel, an RV wash, something from their store or parts dept, etc.).  They can always say "no".  If they agree and the contract isn't signed, make them write it in the contract.  If it's after the contract is signed, get it in writing or make them pony up right there on the spot.  We got some accessories thrown in and our LaFuma loungers for half price.  Smart dealers know that these little extras don't cost them much on the bottom line and it makes the customer feel like he won something psychologically.  smile  

5. In the end, all that matters is that I'm happy.  It only matters that I think I got a decent deal and I'm happy with the "value" for what I paid AND I didn't pay more than my budget and finances would allow (See #1).  It doesn't make a lick of difference that my buddy got his rig for $5,000 less and tightened the screws on the dealer.  It doesn't matter that I may have paid more that everyone else on every RV Forum.  As long as I got what I wanted, when I wanted it, at a price close to what I researched it should be (See #2), within my budget, I should be thrilled. 



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Details, details, details.....

The RV we eventually purchased had a website price of $35,710.....

But, there was a price tag on the table inside the RV that said........$35,100.  I took a picture of that with my cell phone before we went to do the deal.

She whipped out the $35,710 price, and I produced my cell phone picture of $35,100.    She said that was a mistake, the wrong tag was taped to the table.  I just looked at her, cell phone picture in hand.

They honored the price.  (Good for them.)  I saved $610 by paying attention............good for me. 

 



-- Edited by scrappy on Tuesday 9th of July 2013 12:06:14 PM

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RV-Dreams Family Member

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Thanks, Howard, for the tips. I definitely think Belinda & I will be fully armed & dangerous when we go to negotiate - whether it's for a used or new 5er. And thanks again for the birthday call! Now you see why I remarried Belinda? See you guys in the fall!

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Dream MH - Thor Tuscany 45LT



RV-Dreams Family Member

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I wonder if there are any former or current RV salesman on this site that could give more insight on how salesman are trained and tips on making a deal?



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RV-Dreams Family Member

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Robert, did you do the negotiating on a new 5er or used?



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RV-Dreams Family Member

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Ok gang, here are my next negotiating questions...

1.  I've read you should negotiate options/extras separately from the price of the RV - does that mean things like special packages or bundles should be negotiated apart from the rig itself? What if a particular rig on the lot has a specific MSRP including packages/bundles?

2.  Here is what I have learned about the financing aspect:

     After we have been pre-approved by the credit union we will most likely use, they will lend 100% of the actual dealer cost (not the "invoice" displayed in the RV) as long as the amount does not exceed what we qualify for. The loan consultant told me we have to negotiate the price, then the dealer will send the invoice (without us ever being able to see it), and whatever the difference is between that invoice and the negotiated price will be what we have to put as a down payment.

     So, of course, our goal is to get as close to the actual dealer cost as possible, but it seems we won't know that until the price is negotiated and the credit union comes back with what they will lend. By then it will be too late, right?

     If we were to negotiate based on percentages instead of dollar amounts, would it be reasonable to offer 2, 3, 4, or 5-percent above what ever the credit union will ultimately lend? What is a reasonable and expected profit for the dealer?



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Dream MH - Thor Tuscany 45LT



RV-Dreams Family Member

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Dog Folks wrote:

A very wealth, self-made millionaire once told me this and it has always worked well: When negotiating, he whom cares less…… wins.

Upon selling a business, the buyer tried to lower the price $10,000 at the closing! I refused, said I would keep the business and started to leave. The buyer quickly reversed course and wanted to buy at the previously agreed price. I wasn’t having that. Before I sat back down, they had to agree to pay $10,000 MORE. I really did not care and it worked. They paid dearly for their last minute games.


Be ready to walk. Care less. If that camper you absolutely love is at a dealer you that won’t give you a deal, remember, there are more dealers out there carrying that exact same unit.



 I love that quote!  "He who cares less wins."   I have bought and sold a bunch of high ticket items and the rules for a successful transaction are:  Never let the sellers know how much you like their product....have the "I could take or leave it attitude."  When selling (even if desperate to make the sale) never let a potential buyer know your anxious to close the deal.  We always do a ton of research on the items we are interested in and if possible we look at completed deals so we can have an average price in mind before we make an offer.  When buying cars, RV, real estate, etc. we look at the item and we make an (educated) reasonable offer, we never participate in the whole "let me see what my manager will allow me to do BS."  Once they start that we pick up our checkbook and exit the building, we do make it clear up front that we don't play the back and forth game. 

When we sold our house back east, the real estate agent presented us with a ridiculously low offer on our house and a laundry list of demands too.  I was so mad at our agent for even presenting us with the contract but he claimed they had to and that we were required to counter offer.  I counter offered with a figure well over our asking price and told the buyer they would have to sign a contract stating they were buying the house in “as is condition.”  A few months later this same couple had their agent contact our agent and find out what we would be willing to concede.  I told them I wanted a full price offer with no contingencies and they had to pay for all inspections and closing cost associated with the purchase.  They have been the proud owners for seven years now and I hope they learned a lesson on how to negotiate a fair deal and not to insult the seller.

Buying "new" or at a dealer is something else we rarely do, let the guy before you pay the sales tax, doc fees, transportation cost, depreciation, etc.  

Shop around too!  

When I was in the market for diesel truck to pull our TT, I started perusing the local dealers doing some research and getting price quotes on new and used trucks.  A couple of weeks later I was at a Ford Dealer that was having a Red Tag Sale and I saw a diesel truck with all of the equipment I wanted, as I stated we never buy new but the price on this new truck was lower than the used trucks we had been looking at.  I did some quick math in my head (this state had a $300 sales tax cap) and I called the salesman over and told him we would take the truck for the price on the Red Tag, no negotiation needed, we would pay their asking price.  We signed all of the paperwork and agreed to pick the truck up the following day.   I got a call from the dealer the next day, it seems they made a mistake pricing the truck, they priced it with gas engine not a diesel engine and they wanted out of the deal.  With the ink dry on all of the paperwork and us having copies in our possession, they really didn't have a leg to stand on; we got the truck for their advertised price.  It pays to shop around and I'm sure the dealer still made a little money off the deal too.  We ended up purchasing another (Used F-150) vehicle from this same dealer 6 months later.

Make an (fair) offer and be willing to walk away if they refuse it.  If the dealer or private party seller has their item priced reasonably, I will ask if there's room for negotiation and if they say NO, I pay their asking price.  I once made an offer of $16,000 on a used mini van and the dealer told me to take a hike, they would never consider taking that little.  The van had belonged to my secretary; she only had it for 6 months and had only put 4,500 miles on it.  She decided it didn't have enough power for her and traded it at the local Dodge Dealer.  She paid around $26,000 new and of course she took a beating when she traded it.  Every couple of weeks the salesman would call me up and say "it has been on the lot for X number of days and we need to move it, would you be willing to pay X amount," my reply was always the same, 16,000 and not a penny more...LOL  Three months later we drove that van home and our out the door price all fees included was 16,000 even!  You have to stick to your guns sometimes, it's your money, never get emotionally attached, if it's meant to be, the deal will work out. 

 


 



-- Edited by azrving on Tuesday 20th of August 2013 04:04:34 PM

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The other day I found the make and model of the fifth wheel we are leaning towards on a dealers website. He listed the MSRP at $95K and change. They had a button labeled "make an offer". I calculated 60% of the list or $58,600 and made the offer. They called me this morning and accepted my offer.

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We're actively looking for a toad right now. What I want is to trade our 2004 Town Car and 2005 Mountaineer straight across for a 2010 CR-V. That isn't going to happen, and I know it. We were at a dealer recently who said that their asking price was absolutely firm, but they might have a bit of wiggle room on the trade-in. They came back quite pleased with themselves that we could trade for "our" new car for only $6,000 difference. They got within a thousand dollars of what I was willing to pay before we walked. With most people having Internet access now, dealers are having to price their vehicles pretty close to what they will sell them for. While there aren't as many similar coaches as there are Fords, the idea still works. If one dealer can sell a coach for a particular amount, others can get close to that number, too. For full-timers, the fact that we will have to deal with someone other than the selling dealer for some warranty issues is just part of what we'll have to contend with. That's why some of us buy used. Yes, we'll have to factor into the cost the cost of a trip to some distant location and back, which may make the local dealer's price more attractive. On the other hand, if the local dealer thinks you may be willing to go elsewhere he may sharpen his pencil a bit more.

I have done the no negotiation bit a couple of times. Sometimes I get the vehicle at my price and sometimes I don't. I've got several CR-V's to look at, and when we go in I'll have KBB numbers for our cars and the car we're looking at, based on the dealer's address because there is some difference from one place to another. I'm not going to tell the dealer that I have any information, though. We'll just drive in and ask if they have something like what we want. I'll describe the car they have advertised, but only in general terms. Of course, I'll know their "Internet price" and the KBB price for our cars before I drive onto their lot. We'll see how it works. Since I'm in no great hurry to trade I have some time on my side.

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I can negotiate without even trying. We once went to a large RV dealer in Tucson and we looked at whatever it was at the time and the salesperson was intent on selling us a unit. My husband tends to just ride out the sales pitch but this salesperson had hauled us all over the lot and I was tired. So, in trying to just get the heck out of there, the salesperson just kept dropping the price. He came down and down to really a good price if someone was really interested which I was not. We once had a salesman for a car dealership admit that they were using "bait and switch" when we went to look at an advertised car, they told us it was gone and we found it on the lot. He said they just run those ads to get people to come in. Another time, I was told that they had a van in our price range, again in Tucson, and when we went down the salesman wasn't there and the van, under $14,000 was now almost $18,000. I called the manager and we had a serious talk. He called me back and said if we wanted the van to come down and he would include taxes, tags and all those ad ons and the price would be under $14,000 with no one making a commission on that sale. We got it and still have it years later. You really have to dig your heels in to get a good deal and mentioning these days that you want to do some checking online seems to help in any sales venue. Since we buy with cash, we have a limit and will not exceed it. It is very important to set a limit, learned that at an auction, my first years ago and stick to it. If the unit is gone tomorrow, it wasn't met to be yours in the first place. It really is a buyer's market these days. I have watched the market for years and right now, both new and used are the best prices I have ever seen. They don't like to have them sitting on the lots during the winter either.

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Mark at AZRVING... thanks for that post! That is incredible how you have been able to haggle W/Out haggling! Everyone has been great with their tips and advice. The last two offers on our home were so insulting, I wish I had read your post before but next time I will know exactly how to respond!



-- Edited by jjsbergy on Tuesday 1st of October 2013 03:44:44 PM

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Sam & Belinda

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Dream MH - Thor Tuscany 45LT



RV-Dreams Family Member

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MarkS...was that a brand new 5er?



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RV-Dreams Family Member

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Thanks SnowGypsy... I haven't been back to check my thread in awhile because the market for selling our home has stalled so we have to sit and wait. Meanwhile, DW and I sold most of our worldly furnishings back in April and are still sleeping on a nice - but increasingly uncomfortable Coleman Queen Air mattress. The market may be a seller's in other parts of the country, but in our lakeside community it does not seem to be the case - we're not overpriced, it's just that everyone who is interested has their OWN home to sell first! But, again, thanks for the negotiating tips!



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