Maybe you were at a park and saw a newer model. Or you thought that getting a top of line motorhome with all the room in the world was the way to go, only to find out that you really wanted just a nice small trailer to take to the lake a few times a year. Or, perhaps, you realized that the RV lifestyle might not be for you.
There are many cases where folks realize that the choice they originally made in RVing wasn't the perfect one - whether that means they need to upgrade, downgrade or get out completely. How do you go about selling your RV? Is there ways to get the maximum return on investment for your rig? The Buzz aimed to find out!
We talked to one of the premier RV dealers in southern California to get some insight into the process, RV Ready. They sell new RVs, but also work with consignments and used RVs, and are known for their honest, comfortable approach to RV sales, according to most reviews.
RV Ready CEO Sammy Khalilieh says the most important thing to consider when selling an RV is sentimentality. "One of the biggest obstacles for the consumer is their own attachment to the RV they are selling," he says, "We see it all the time. People are prevented from getting a realistic value on their RV because they are attached to the memories they had in it. Once they let go of the memories, it is much easier to get the RV priced right."
RVers have some of the best moments of their lives in their rigs - it is why they are attracted to the RV lifestyle. Whether that is time with family or the outdoors or on the road, everyone that RVs can point to some moments that are just priceless. That is the problem, according to Khalilieh. "The memories are priceless, yet people try to put a price on them and it is often a lot more than what the RV is worth. To the person buying the RV, they don't see the memories or care about them - what they see is a box or a piece of metal on wheels that they might buy," he says.
To get a good return on your RV, price it right, detail it and check the tires thoroughly. [Photo/RV Ready]
The personal attachment often puts the seller's price well beyond any reasonable offer, which deters buyers from even looking at the RV.
After a seller is able to let go of what the RV meant to them, the process of finding a price point can start. Khalilieh says that the NADA RV prices are not necessarily a good place to look for that. "The banks that finance RVs do not have the same NADA guide that is readily available online," he explains, "They used a paid version that is a lot more strict and goes by a base value. So, if you are looking at the NADA guide, don't add extra features because, with most newer models, the 'extras' come standard. Plus, those features are added if they are in perfect working order."
A better way to find a price is to search dealer websites for the same model and the lowest price they are offering on it. This is more closely aligned to an accurate price point. If your RV is older than 10 years old, traditional RV finance options are limited for those rigs, so that changes the market on who would buy it considerably - mainly, you would be looking at a cash offer so the price point would be significantly lower than something that is available for finance.
After figuring out a price point, there are a few things to do physically to the RV to get it to sell well. "First, get it professionally detailed. Buff the exterior and make sure the metal isn't oxidized," says Khalilieh, "Some sellers think that buyers will simply walk around stains or dirt and think it's nothing and that they can explain to the buyer why it is there. But, really, the buyer doesn't care. So just get it detailed."
Potential buyers will offer significantly higher if they walk into an RV that is nearly indistinguishable from a new RV. It is the same idea behind staging and cleaning a house before selling or detailing a car before selling.
Inspecting tires is also important. "Anything close to 5 years old shouldn't even be on the road," Khalilieh says, "They may look good on the outside, but the rubber wears from the inside and can cause some major issues the older they get."
It is certainly possible to make a decent return on your RV, if you consider many of the factors above. Another factor that affects potential profit is the way the RV was financed. A lot of people will finance a new RV with little to no money down, resulting in the RV being worth significantly less than what it is owed on the RV. As new RVs lose significant value just being driven off the lot (NADA puts the number at 25% depreciation), when the entire RV was financed and the down payment just went to taxes and license, it might be hard to even get back to zero when selling the RV. If this is the case, consider putting a bigger down payment on the next purchase.
Going into a dealership understanding that buying a new RV will likely not be profitable is something you should put in your head. A good way to think of it is you are investing in memories, not money. Using calculations done by CamperReport, after the initial depreciation, the RV continues to lose about 3-5% value every year until year 10, when it drops considerably, most likely because of the lack of financing options. At that point, it ranges from 60% depreciation for a Class A to a 45% depreciation for a travel trailer. Therefore, if you bought a new trailer with little money down, expecting a profit is probably unreasonable - instead try to get the most you can by considering the factors above.
So, as an example, let’s say Robert bought a Class A Holiday Rambler new for $125,000. If Robert were to try to sell it now, using the depreciation rate above, it should be priced around $50,000, if everything is in working order (for reference, NADA puts a 2010 Holiday Rambler Admiral Series M-30FS at a list price of $126,584; and average retail for selling it used at $41,050).
There are many ways to sell an RV. There are reputable sites such as RVTrader that put up your RV for a fee and other websites such as Craigslist or Facebook Marketplace that do it for free. These are all great options, but certainly takes a lot of energy going through responses and finding serious buyers. You can also do it on consignment with many dealers throughout the country, which takes a lot of the stress of finding a buyer away. Khalilieh provides a word of warning when selling an RV, especially with consignments and when others offer to sell it for you. “Make sure you do your research and find out if it is a reputable business,” he says, “There are many scam artists out there and they are very good, so be very careful who you hand your title over to when selling an RV. Basically, if it is too good to be true, then it probably is.”
Remember to follow these basic guidelines: To get a good return on your RV, price it right, detail it and make sure the tires are like new. Then find a way to sell it that is reputable and fits the amount of energy you are able to devote to it. Good luck!
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