In this blog post, we will answer the following question: How much below MSRP should I pay for a travel trailer? We will give you valuable tips on how to negotiate for a travel trailer and get the best deal possible.
How much below MSRP should I pay for a travel trailer?
You should expect 20% below MSRP when paying for a new travel trailer. Still, keep in mind that the pricing of trailers is often very misleading. Suppose you see a $20,000 trailer at one dealership and another $22,000 trailer at a different dealership. Obviously, you’ll think the $20,000 trailer is cheaper, but that might not be true.
The dealer’s registration and title fees are also added to the price. The application fee is generally 250 and the title fee is generally less than $50.
A mention of “firm price” on the advertisement closes any possibility of negotiation. The seller will be less bothered, if not bother at all.
On the other hand, the mention “price to be discussed” leaves a lot of latitude. For some sellers, this means “a few tens of dollars”. More seriously, the endorsement should not be used if the seller does not agree to a drop of a few percent.
Some rules of negotiation for a travel trailer:
- Never be aggressive or protest: the seller is free to choose his price, free to sell;
- Never close the discussion, always leave an opening. For example, if the salesperson “made a mistake” in the model year, kindly point out to them, giving them the opportunity to explain themselves and make you a new proposal;
- Before negotiating, make sure you know “your vehicle” well. You will first have carefully studied the trailer for sale, looked for a similar trailer in the ads, checked the market price.
- Think before making a proposal; too low, it will appear fanciful and discredit you. Too high, you will not be able to go back!
How to get the best price on a new travel trailer
You have decided to treat yourself to a beautiful, brand new trailer. Everything is clear in your head, the model, the fabrics, the options and the equipment.
Which dealer to choose? One would be tempted to say: the closest, as long as there is one in your department, which is not always the case. The advantage of choosing proximity is obvious: application of the guarantee, sealing checks, fitting of accessories that will not necessarily be ready when the keys are handed over …
However, do not hesitate to quote, in the negotiation the name, of the competitors of the close departments.
- Check the amount of the manufacturer’s price: you will find it in specialized magazines.
- Negotiate on this price. Nothing is due, but a discount of a few% is possible; (original margin around 12%)
- Even more than a discount, have the desired equipment and their assembly offered to you: Awning (but is it really useful?), External windshield protection, wedges, solar panel, 2nd living area battery, TV, car -radio…
- The margin on accessories is higher (around 40%), so dealers are more inclined to offer them than to give a discount on the trailer.
- Keep smiling! A negotiation is not a conflict, even if the sum at stake is very important.
Before signing the order form, check not to forget any costs: the price of the trailer, options, equipment, their assembly, transport costs from the factory, registration costs, preparation costs and getting started …
The order form is an authentic document. Do not accept any oral promise that is not in writing.
After that, it will be too late to negotiate or claim a discount.
Financing is always an option to buy a new travel trailer
If you have followed our tips but failed to negotiate a bigger discount, financing is always a possibility.
The finance of a motorhome is often offered by the professional seller from whom you buy the motorhome. The dealers have contracts with credit organizations. Financing begins when your vehicle is delivered.
The advantage is that there is no compulsory contribution and that you can choose the duration of the financing (between 12 and 180 months) as well as the monthly payments. These are also flexible.
You can also take out a loan from your usual bank or a credit institution. You also have freedom in the choice of monthly payments and the duration of the loan. The interest rate remains the same over the life of the loan.
The good news is that if you buy on credit, you have a right of withdrawal of credit for 14 calendar days from the acceptance of the credit offer which automatically results in the cancellation of the sale. The withdrawal is made with the credit institution and with the seller by registered letter with acknowledgement of receipt. Termination of credit alone is not enough.
To finance the purchase of your motorhome or to reimburse your monthly payments, consider leasing your vehicle! Rental platforms between individuals were created a few years ago and offer to put you in touch with travellers interested in renting a motorhome! A great opportunity to save some money and not leave your vehicle in the garage when you are not using it.
Before deciding to finance through your dealer and buy your RV, it is important to do your research. Check their comments to see if clients have discussed financing and their interest rates. If possible, contact other clients to see if they are happy with the treatment they received.
There are some bonuses with the choice to finance through the dealer. The process is usually quick and convenient since it is not necessary to go back and forth between the credit institution and the bank. Some merchants may offer very low financing rates through promotions and sales.
There are some downsides to dealer financing as well. Oftentimes, the rates will not be as competitive, and you will not have as many payment options and APRs. The seller may use high-pressure sales tactics to get you to sign up before they have compared prices.
The purchase price is unfortunately not the most important factor when buying a travel trailer. What really matters is the cost of ownership, which is the difference between the amount paid on acquisition and the price obtained on resale, a few years later. This includes the cost of maintaining and/or repairing the trailer during the period of use.
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FAQ on How much below MSRP should I pay for a travel trailer?
How to negotiate a price reduction?
Here are the basics to negotiate a price reduction:
- Carry out a preliminary market study.
- Do not give too much information on the first visit.
- Make a reasonable offer on the RV.
- Have another purchase option.
- Be clear if the RV is what you are looking for at a reasonable price.
How to request a price reduction?
Requesting a discount requires three important elements: planning, information and clarity of the objective.
What is the price of a motorhome?
The cost for the motorhome amounts to about US $ 55,000, which can rise to US $ 70,000 if higher level and quality equipment are added, such as a special refrigerator, electric awnings, digital television, and premium audio equipment.