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 > How much off MSRP now?

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way2roll

Wilmington NC

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Posted: 04/19/20 06:42am Link  |  Quote  |  Print  |  Notify Moderator

The easiest way to get "your" deal is to provide some evidence it's not a crazy offer. When we bought our last 2 MH's I scoured the internet all over the US. I knew exactly what I wanted and found as many of that particular RV as I could. And I noted all their pricing. The lowest ones I called and asked for their lowest number. Armed with that information I started pitting dealers closer to home against one another. I would flat out tell them, I can go here and get it for a much lower price, even if it meant a $300 plane ticket. Once they know you are serious and you start throwing around prices from another dealer, they start to come around. But you can't just willy nilly come in and say I want 40% off. Different dealers have different margins and sometimes different MSRP (Not supposed to but they do). If Dealer A's 25% off is better than dealer B's 40% off, well then your % argument is moot. Talk dollars, not percentages and get competitive pricing.


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RobWNY

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Posted: 04/19/20 08:04am Link  |  Quote  |  Print  |  Notify Moderator

These are great strategies many of you have offered but none of them have worked for me here in Western NY. Maybe they work in areas with larger dealers that have hundreds of RV's for sale but not here. This isn't my first rodeo dealing with purchasing an RV. When I said their advertised price is 20%-25% off MSRP, depending on model and dealer, That's also their end game. It does me no good to pit one dealer against another if their percentages off MSRP are basically the same and they won't budge. It also doesn't allow for any negotiation when they do not counter. I made very reasonable and fair offers (30% off out the door) to several dealers on RV's I would be willing to purchase and every response was similar to "We can't sell that to you for that price, we would be losing money" and those were the exact words by one dealer. Not one dealer made a counter offer. None of them replied with "the best we can do is...." or anything similar. Negotiation is a two way street. This economy isn't hurting RV dealers. Not in this area anyway. Not if they aren't motivated to make a sale.


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way2roll

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Posted: 04/19/20 08:20am Link  |  Quote  |  Print  |  Notify Moderator

It's a little early yet to expect dealers to panic and start a fire sale. Maybe in a few months if things remain locked down prices will be more in your favor. Have you checked the entire US for this model? You can buy a plane ticket, buy your RV and make a one way trip home. Worth $300 or so if you save thousands. I was prepared to do that. Your search seems pretty narrow geographically to offer the right competition. All that said, if all the dealers are arriving at the same price, then that's your answer. You need to decide if you want to pay that. Also, negotiating in person is much more powerful. If you are prepared to leave a dealership it speaks volumes. I am sure they get a lot of tire kicking on the internet.

RobWNY

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Posted: 04/19/20 09:01am Link  |  Quote  |  Print  |  Notify Moderator

way2roll wrote:

It's a little early yet to expect dealers to panic and start a fire sale. Maybe in a few months if things remain locked down prices will be more in your favor. Have you checked the entire US for this model? You can buy a plane ticket, buy your RV and make a one way trip home. Worth $300 or so if you save thousands. I was prepared to do that. Your search seems pretty narrow geographically to offer the right competition. All that said, if all the dealers are arriving at the same price, then that's your answer. You need to decide if you want to pay that. Also, negotiating in person is much more powerful. If you are prepared to leave a dealership it speaks volumes. I am sure they get a lot of tire kicking on the internet.

I think you're right and expressed that dealers seem to be holding firm on pricing the same as before this economic issue began. I'm willing to go where I need to in order to get a decent deal. I started here obviously because I'm close. For now, email or phone are the only ways I can contact dealers until States open things up to go there in person.

westernrvparkowner

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Posted: 04/19/20 09:08am Link  |  Quote  |  Print  |  Notify Moderator

The economics of pricing are much more complicated than just lower demand equals lower prices.
First, sellers cannot a product for less than cost and stay in business. Vehicle sellers often finance their inventory and have to pay the balance owed on each vehicle at time of sale. That means a dealer would have to pay out of their financial reserves to sell a vehicle below cost.
Second, sellers know that within the laws of supply and demand, there is elasticity of demand to consider. Some products are very price sensitive. People will probably buy a lot more pizzas if the price falls to $3.00 and very few if the price rises to $300. On the other hand, the price of insulin really doesn't matter. People with diabetes will pay whatever the sellers are charging, but cheap insulin won't get them any more customers so the price competition is only between the various sellers with no real concern for the demand from buyers.
Within the RV sales business, both happen. Lower prices would certainly draw more customers, but the price changes needed to draw those customers may be too extreme for the sellers. Lowering the price of an $80,000 fifth wheel an additional 5 or 10 percent likely isn't going to motivate someone who is out of the market due to fear of losing their job. It is very likely the dealers are realizing the only people currently buying are those with a need to buy. Buyers such as a full timer who's motorhome had a catastrophic failure or a buyer who wants to flee a virus hotspot and really isn't concerned over the final $5,000 of a transaction.
And don't forget the dealers know it is more difficult to actually shop for an RV. Travel to distant dealers is more difficult and may appear to be dangerous to many. They know that there are many people stuck at home with nothing to do, so they shop the RV world on the internet with no real plan to buy today.
Dealers know that offering exceptionally low prices today may cost them profits in the future when things open up and buyers return. They won't want to be in a situation where the returning customers waive an email from the dealer offering to sell RVs at a price the dealer only wanted to accept during the shutdown. The dealers are likely going to adopt the policy of "good things come to those who wait".

Walaby

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Posted: 04/19/20 09:12am Link  |  Quote  |  Print  |  Notify Moderator

Sounds like you've got enough experience to know how your local dealers will play (or not). Since you've bought locally before, you must have received what you consider a decent deal (in the past). Is it no longer a decent deal in your book, or are you looking for a steal of a deal, and wanting to take advantage of the situation. If you are looking for the steal, you will most certainly have to go elsewhere.

I don't mean that negatively. As consumers we need to take advantage of everything we can, because the dealers certainly do.

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RobWNY

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Posted: 04/19/20 09:32am Link  |  Quote  |  Print  |  Notify Moderator

Walaby wrote:

Sounds like you've got enough experience to know how your local dealers will play (or not). Since you've bought locally before, you must have received what you consider a decent deal (in the past). Is it no longer a decent deal in your book, or are you looking for a steal of a deal, and wanting to take advantage of the situation. If you are looking for the steal, you will most certainly have to go elsewhere.

I don't mean that negatively. As consumers we need to take advantage of everything we can, because the dealers certainly do.

Mike

Mike, No I'm not looking for a steal of a deal. Just a fair one under these difficult times. I just don't believe a final price being 20%-25% off MSRP is fair right now. Having read dozens and dozens of people posting how they received a 30% out the door price during good economic times over the years, it seems to me that would be a fair price to get now. Personally, I've never received 30% off before. I got 28% off once and I was satisfied with that but I'm not even being offered that much off now and I haven't gotten far enough in talks to know if that's out the door discount or if there are add ons that make the discount even less.

Walaby

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Posted: 04/19/20 11:14am Link  |  Quote  |  Print  |  Notify Moderator

I suspect you will have to wait awhile and if the current situation continues, you might find them more willing to play. I agree with those who say it's probably too early.

I too have never gotten 30%. My local dealer doesn't deal very much. They are generally speaking in the 25-28% off their MSRP range, but don't have any fees other than a $200 doc fee, which is far less than their competitors. My last purchase, I got 28% and considered that fair enough to stay local. I could have gotten 30% out of town/out of state, which would have saved another $1000-$1500, but at the time (granted, good economic times), it was worth it to me.

If you're really in the market, maybe supporting the local dealer in these times is worth a tad less cost savings.

I do agree that 20%-25% isn't even close to a reasonable deal, even during good times.

Lantley

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Posted: 04/19/20 11:32am Link  |  Quote  |  Print  |  Notify Moderator

My strategy for RV buying is to by in December and January when no one in seasonal areas are buying
Right now is typically prime time, During Spring People are generally lining up to buy.
The virus is not going to create any possible fire sales until July or August when the season closes If lots are still filled with RV's a fire sale may occur until then dealers are content to wait and see.


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lenr

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Posted: 04/19/20 01:30pm Link  |  Quote  |  Print  |  Notify Moderator

We deal up in the RV territory of Northern IN, and our son lives just South of there, so we're up that way quite often. We took our trailer to the dealer on March 20 for warranty work including a furnace problem. It is still sitting there because practically the whole industry shut down on March 23. One of the problems at that time was a shortage of Chinese parts--one factory that our dealer uses was down to 3 days. In that area Dometic sends out factory repair for warranty work, and the techs haven't worked in 4 weeks. At the same time the transport lots of finished trailers that we passed were jammed full. So, the dealers may not be in a panic yet, since they'll be able to get stock off the transport lots for quite a while. Transport has been the bottle neck since the industry recovered from the last recession.

Be aware that the towable RV industry changes model years in March--our 2020 fifth wheel was built in March 2019. So, 2020 models on dealer lots are a model year old and should reflect a larger discount if a dealer is getting in 2021 models. The strongest bargaining tactic is to say no and walk away. Some dealers will drop price to make a sale and some won't. Our favorite dealer is wanarv.com. While their prices on line are pretty good, they'll go one step lower when you visit or call--generally about 30% off. But that is with no doc fee, no transport fee, no prep fee, no nothing (including a 31 day tag to get home). I've seen people come from Kansas to Canada to purchase there because they are so easy to deal with. Also, when the factories are running you can order exactly what you want with the good discount generally in about 2 months.

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