In this blog post, we will answer the following question: What is dealer stock only? We will give you advice on what to consider before buying a dealer stock only RV. We will also give you some practical advice on how to get the best possible price from the dealer.
What is dealer stock only?
Dealer stock only usually means that either the dealer has this particular model limited to the stock on hand, or that the model has been discontinued, meaning the manufacturer decided to suspend all production on a particular RV model, for example.
Considerations when buying a dealer stock only RV
When we are looking for an RV to buy, whether used or new, we can come across very interesting offers of excellent RVs at a low price. Still, if an RV is a discontinued model, there are several things you must consider before signing the deal!
- Maintenance: If you buy a new RV from a brand that has just faded out, you probably won’t have a maintenance problem for several years. However, if the RV you are going to buy is used, keep in mind that it will be increasingly difficult to find parts for that place or certified service centres for that specific RV.
It may seem like a bargain at this point to buy a discontinued RV, but in the long run, consider that you will spend more money to maintain it.
- Cost and availability of spare parts: If the RV you just bought was recently discontinued, you will be able to find parts easily and at a good price, but as the years go by, parts will be produced in fewer quantities, which will make them harder to find, and of course, more expensive.
There is a fairly simple rule that applies in this case: the more popular the discontinued RV you are going to buy has been, the more opportunities you have to find parts easily, and the better price you can get them, and the more rare or limited the discontinued RV has been, the more difficult it will be to find the right auto parts for repairs.
- The resale price: For any discontinued mass-produced RV, the resale price you can ask for will plummet, ever lower. This is mainly due to the fact that the resale price is largely determined by the costs and ease of maintenance of an RV.
Precisely because of this you will notice that the rarest RVs, as long as they are not collectable, will have extremely attractive prices. This low price will be offset later by what you will spend to keep it in good condition.
- Difficulties in placing it on the market. If you have ever bought a discontinued RV, you know that it is not easy to find a buyer later. This is due, again, to the fact that being a discontinued RV, finding certified auto parts and service centres is not an easy task.
For this reason, take into account that it is quite likely that if you buy a discontinued RV you will not be able to resell it for its real value later and you will have to place it at a much lower price than you imagine or keep it until the end of its life. useful life, having to sell it for parts when you can no longer repair it.
- But if despite all this you want that RV: If the discontinued and out of production RV that you are going to buy has been your object of desire for a long time, and you feel that you must have it at any cost: buy it, enjoy it a lot and take into account all the factors that we have mentioned since in the long term they will have a negative impact on your personal finances.
- Our advice: If you are going to buy a discontinued RV, make sure it is one that has only recently stopped being assembled, since this way you will still have guaranteed access to spare parts and maintenance at normal prices and not scandalous. Look for a copy that is in good condition and find out well about the places where you can order auto parts for this model.
Give priority to RVs whose brands continue to exist and work, as this will be an additional backup for your vehicle. We recommend giving preference to models with lower mileage, and consider that obviously, the RVs of extinct brands will have a much lower price, but it will be more difficult to keep them in good condition and resell them at a good price later.
How to get the best price for a dealer stock only RV
Here are a few tips to get the best price for a dealer stock only RV, so that if you get it, it at least is at the lowest ownership cost possible.
- Check the resale value of the model you plan to buy on websites like RV Trader, AutoHebdo, FindTonVR or NADA. Look for the same model, but three to five years older. This will give you a good indication of the average devaluation.
- Make sure the model is rare. If there are hundreds of trailers like yours for sale on these sites, it will take longer to find a buyer and you probably won’t get the best price. Rare pearls, especially if they are of high quality, are always easier to sell.
- Try to take advantage of the exchange rate. Most RVs and almost all equipment/accessories are made in the USA. So if you buy your trailer when the dollar is strong and sell it when it is weak, you could get a price very close to the amount you originally paid because the price of the same model, new, will have climbed since your purchase.
- Devaluation takes on even greater importance when it comes to motorized RVs. In this case, it is absolutely necessary to consider the mileage that one thinks to be done annually because the number entered in the odometer is the main input in the calculation of the value of the vehicle.
- Finally, the bigger, heavier and less aerodynamic the RV, the more fuel it will cost. It’s an expensive item that can make all the difference when gasoline or diesel prices go up.
Next to the cost of ownership, the most important thing to consider when it comes to buying a new RV is the type of trips you want to take.
What happens to dealer stock only RVs that don’t sell?
There are some options for RVs that are not sold:
- The dealer can then send them to another market where certain models are in high demand. For example, a dealership in a town may need Class B RVs that the city doesn’t sell and make a deal.
- They can also be auctioned, but this is not the best idea because it implies that the model in question is already discounted and must be given even cheaper. Another option is for agencies to keep them to lend them when their clients bring theirs to service.
- They tend to lower their prices at the end of the year. When an agency RV fails to be sold in the first months of acquisition, they are usually offered at a “better” price at the end of the year, because the arrival of the new model is approaching, which will devalue the car that failed to sell in its year, but it is unlikely that they will fall by more than 30%, as they make you believe on social networks.
- They are used for rent or leasing. If after that period, the RV cannot be sold, a very profitable option for the agencies is to use them for rent or leasing, which consists of putting the vehicle in the hands of people who cannot buy it or it is simply not their objective, in exchange of a lower income from an RV loan.
- The last option is to lower the price and sell them. Keep in mind that manufacturers want to get rid of old models, so they will never be in competition with new ones.
Motorhome dealers are franchises. This means that they buy their products very cheaply from a supplier to make a profit. So once they have bought the vehicles, they are theirs. They cannot return the merchandise at the end of the year, they must sell everything to earn money.
As you have read in this article, there are several advantages but some considerations you must take if you want to buy a dealer stock only RV, or car for that matter.
And finally, remember to exercise your negotiating skills to get the best deal on your RV!
Please let us know if you have any questions or comments on the content!
FAQ on What is dealer stock only?
How to negotiate a price reduction for an RV?
Here are the basics to negotiate a price reduction for an RV:
- 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.
What is the dealer markup on RVs?
The dealer markup on RVs is usually between 20% and 40%, depending on whether the RV is brand new or second-hand, but also on your negotiating skills.
How much below MSRP can I pay for an RV?
You should expect a maximum of 25% below MSRP for an RV. This is a happy case, however, as many dealers hesitate to offer too much of a discount, especially for new and luxurious RVs. It will all come to your negotiation abilities.