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What Is The Markup On Travel Trailers?

Published on November 12th, 2021 by Ray & Tammy Roman This post was updated on August 7th, 2022

Dealership markups on travel trailers and RVS, in general, can vary between 35-40% depending on influencing factors that would be specific for that market. We have seen some sites suggest markups as high as 50% but it is unlikely you will see a markup this elevated.

What Is The Markup On Travel Trailers

The hassle of high-pressure salesmen and extreme markups can seem overwhelming and sometimes downright terrifying.

But fear not, we have priceless advice that will outfit you with all the tools and expertise you need to be sure you have made the best negotiation possible and are walking away with a fair-priced travel trailer.

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Before we get into the tools you need to make a deal, let us explain the basics of travel trailer pricing.

How does MSRP (Manufacturer Suggested Retail Price) work when purchasing a travel trailer?

MSRPs were created to help facilitate the consistent pricing of products in various locations and stores. Retailers and dealerships are not bound to these suggestions; however, and may choose to price their goods above or below the MSRP.

Vehicle dealerships are required to show the MSRP or recommended retail price (RRP) of the vehicle they are selling on a window or windshield to ensure consumers know they are getting a fair deal.

As a travel trailer consumer, you could use the trailer’s MSRP to assist you with negotiations of the final purchase price.

What is the markup on travel trailers?

Dealership markups can vary between 35-40% depending on influencing factors that would be specific for that market.

We have seen some sites suggest markups as high as 50% but it is unlikely you will see a markup this elevated.

What discount amount should I expect to get off my Travel Trailer MSRP

We have found several sites and forums that suggest the expected markdown is anywhere between 20-25%.

Keep in mind the smaller, more economical travel trailers will have a lower markdown than that of the larger, more luxurious trailers.

The larger, more luxurious trailers could have a markdown potential of 15-30%.

So how do I negotiate my travel trailer price?

First, make sure you’re of the right mindset and prepared for the purchase of your travel trailer to be a big investment.

It is good to be familiar with the price of travel trailers like the one you’re considering so you are not caught off guard by the MSRP.

Go prepared. You will have a better opportunity to create wiggle room if you show up prepared with things such as facts, figures, and information regarding pricing and specifics for the travel trailer you’re interested in.

Here is the best advice we can offer for how to be sure you’re getting a good deal on your next travel trailer

“ Decide on the trailer you want, with what features, and know what that trailer and those features are worth. “

One way to familiarize yourself with different types of trailers away from high-pressure salesmen would be to rent the RV you’re considering. You can rent your top considerations to help better make an informed decision

Also, while enjoying the rented travel trailer, ask other RV owners for unbiased opinions of their preferred makes and models.

Talk to them about what you should expect to pay and if they have any advice to avoid higher prices.

The RV community is full of friendly, helpful owners who have already traversed the purchasing journey and most will be more than happy to help you navigate the journey yourself and help you to avoid pitfalls. Try this RV forum .

After you’ve found the trailer you think will be the best option for you, it is time to do your homework.

Taking the time now to learn the average purchase price of that trailer will help you approach your dealership with confidence.

Check sites like NADA for the average price or value and depreciation of the trailer you are interested in if you are considering a second-hand travel trailer.

You can even beef up this information by visiting RV trader sites for additional estimates to have on hand during the negotiation process.

Take your time

An RV purchase is a large investment that will bring your family loads of fun and entertainment so it is prudent that you don’t rush into a purchase you’ll later regret.

Spend the time and effort perusing ads, visiting dealerships, attending RV shows, and researching fair prices to ensure when you do finally make that big purchase the only thing you’ll feel is excitement, not buyer’s remorse.

Good things come to those who wait

The time of the month or year that you purchase your travel trailer could save you substantially. Most dealerships will have end-of-the-month or annual sales quotas they need to achieve and if you time it right you may have even more negotiating power.

RV sales are seasonal and most sales drop off in the fall. Also, consider purchasing your travel trailer around the time new models are released.

Often dealers will have additional markdowns in an attempt to clear out the old inventory for the new, higher-priced trailers.

Finally, check sales trends in the travel trailer market. During the beginning of the pandemic, there was a boom in the sales of travel trailers that are now resulting in an influx of used travel trailers on the market.

The market is ready and capable of providing you with a used travel trailer in good condition, all you have to do is go get it!

Set your price and don’t budge from it

Don’t let high pressure or smooth-talking salesmen convince you to buy more trailers than you want or the right trailer at a higher (than fair) price. Walk away from any dealership that will not budge on prices, especially if they are higher than the average.

If you have done all your homework and have a good estimate of what a fair deal is, keep looking. There’s a dealership out there that will love to sell you the trailer you want at a fair price.

Look further than your immediate area.

Shopping around will give you the best chance at finding something near the price you’ve set for yourself.

Some RV forums suggest looking as far as 300 miles from your location to ensure you’re getting the best price for the travel trailer you’ve chosen.

You may be able to show your local dealer a competitor’s offer to create additional wiggle room in their pricing because they don’t want to lose your sale.

Speaking of your local dealership, remember to NOT buy from the first place you stop. Yes, they may have exactly what you’re looking for but you can always come back.

Take the time to check other places. Shopping around could save you thousands.

Attend RV Shows

Attending a larger RV show will give you the opportunity to take advantage of competitive pricing as there will be more than one dealership there trying to get your attention and your business.

As with dealerships you’d visit in person, do not buy from the first booth you stop at. Check them all out and know you’re getting the best deal at the show.

Shop around for the best financing rates

Did you know, in most cases, if you shop around for rates at several locations those credit checks, if done in a small time frame together (say within 14 days), usually only count as one credit pull and should not greatly impact your credit?

Once you’ve found the perfect travel trailer at the perfect price, check a few different lenders and make sure you’re getting a good rate, even a difference of .25% could save you hundreds if not thousands over the life of the loan.

What is the markup on Travel Trailers? – Final Thoughts

We know it can seem daunting when you plan to make such a large purchase. The anxiety of overpaying can be overwhelming.

This article has given you several ideas and tactics to help mitigate that stress by making you a knowledgeable, well-prepared shopper.

The perfect RV is waiting for you, grab your notes and research, and go get it!

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How To Negotiate A Travel Trailer Purchase

Tips For Negotiating The Best Price On On A Travel Trailer

Aaron Richardson

  • Last Updated: March 3, 2024
  • 18 minutes read

RV and travel trailer dealerships make a pretty penny on every sale they make. While we’ll talk more about just how much they stand to gain later on, knowing that most dealerships do quite well for themselves is why you should know how to negotiate a travel trailer purchase so that you can get a better price on your new adventure rig.

Negotiating for a better price is a great way to save money on your next travel trailer purchase.

Whether you’re buying directly from a dealership or negotiating with a private seller, there’s always room for a healthy discussion about what the trailer is really worth. 

That being said, there’s an art to this kind of negotiation. And if you’re really interested in a certain travel trailer, pushing too hard for a lower price could dissuade the seller from making an agreement with you at all. 

So, you need to know how to negotiate a travel trailer purchase with cunning and finesse.

But don’t worry! That’s exactly what we’re going to focus on today. So let’s dive into it!

Negotiate A Travel Trailer Purchase

How To Negotiate A Travel Trailer Purchase

Many dealerships enjoy higher margins when they sell travel trailers compared to many other types of recreational vehicles.

This is partly due to the fact that they are considered ‘luxury vehicles’, but it also has to do with the fact that dealerships take advantage of increased consumer demand during the summer months.

Follow these RV Price Negotiation tips to getting the best price on your new travel trailer:

1: Narrow Down Your Choices

Walking onto a dealership’s lot or into their showroom can be very dangerous if you don’t already have some idea of the type of travel trailer you’re looking for.

It can be a major waste of time and can also put you at risk of getting sidetracked by a great sales pitch rather than focusing on what you really want in a new travel trailer. 

That’s why the first key to a successful travel trailer negotiation is to narrow down your choices. Going in with an idea of three or four models that you want to look at will help you stay on track while at the dealership.

And it will also help you avoid wasting time with private sellers that are advertising trailers that don’t meet your needs. 

A good way to see different trailer models without having a salesperson breathing down your neck is to visit RV and travel trailer trade shows.

These shows give you the freedom to walk through (and around) many different travel trailer models to get a better sense of what fits your style.

And it will also help you start to understand how much the trailer of your dreams might cost! 

If you can’t (or don’t feel comfortable) attending these types of trade shows, most dealerships nowadays will offer virtual tours of their travel trailers online.

These virtual tours are the next best thing to physically walking through a trailer in-person.

And, in some cases, it could even be beneficial to rent a trailer you’re interested in to really see if you like it before buying. 

Shop Nationwide

2: Shop Nationwide

It can also be a good idea to expand your search parameters for a new travel trailer to include the entire U.S.

And if you can locate where the manufacturers of the trailers you’re most interested in are located, look closely at the prices being offered by the dealerships within 100 miles of those locations. 

In many cases, the dealerships closest to where a trailer is originally manufactured are able to offer the best deals.

This is because they have to cover minimal transportation costs in order to get the trailers on their lots. 

When you consider that some dealerships pay as much as $2 per mile to have travel trailers shipped to their location, you can see why local dealerships are able to offer their trailers at lower prices.

So even if you end up paying a little extra in gas money to go pick up your trailer across the country, you may still come out ahead of the game in the long run. 

3: Set (And Stick To) Your Budget

Once you have an idea of a handful of travel trailers you might be interested in, this will allow you to set a budget range for your trailer purchase.

When setting your budget, we actually recommend setting three prices that represent the minimum, maximum, and “best-case scenario” amount you’d be willing to pay for your new travel trailer. 

The maximum will give you an idea of the most you’d be willing to pay for a travel trailer with all the bells and whistles you’d like most.

On the other end of the spectrum, the minimum number you set will help you avoid compromising too much, and ending up with a trailer that actually doesn’t suit your lifestyle. 

Your “best-case scenario” budget number should fall somewhere between your minimum and maximum numbers.

This is what you’d ideally like to spend to get a new travel trailer that checks all of your boxes. 

Avoid Buying On Your First Visit

4: Avoid Buying On Your First Visit

When you start visiting dealerships or meeting private sellers, having the strength to walk away is going to be essential.

This tactic is one of the oldest negotiation strategies in the book because it’s highly effective.

In many cases, dealers or sellers won’t really feel the pressure to make a sale until you let them know that you’re willing to wait to find a better deal. 

To be honest, this can be really difficult. Our impulses urge us to ‘get it done’ so that we don’t have to come back to the dealership and (seemingly) start the process all over again.

But you better bet that salespeople know this and they are going to work hard to get you to act on those impulses. 

That’s why it’s helpful to be clear and honest with a salesperson upfront. Let them know that you’re just starting your shopping process (even if you’re not!) and your goal for the day is to visit several dealerships in the area to learn more about different trailer models and compare prices. 

This will not only help you avoid dealing with an overly-pushy salesperson, but it will also put you in a better-leveraged position when and if it does come time to start negotiating.

It also leaves you wiggle room to change your mind about the exact features of the travel trailer you’re looking for before you narrow in on a model that might not be the best choice for you. 

5: Prioritize Lightly Used Trailers

Buying brand new can be enticing and you better bet that salespeople at dealerships are going to steer you towards the newest trailers on their lot if you don’t demand otherwise.

Sometimes, dealerships will offer the best deals or financing on their newer models, but prioritizing lightly used trailers can be an excellent negotiating tactic. 

This is because many dealerships will need to get older trailers off their lot in order to make room for next year’s models.

And this is especially true if you are shopping for a new trailer in the fall or winter rather than in the heat of the summer (when everyone else is too!). 

It’s interesting to note that trailers are either traded-in or sold every three years, on average.

People’s needs change and that can put trailers with very minimal use right back on the dealership’s lot. 

And you can be sure that those two or three-year-old models are going to come with a significantly lower price tag than this year’s brand spanking new trailers.  

Inspect For Imperfections or Damage

7: Inspect For Imperfections or Damage

This is especially important if you’re buying a used or pre-owned travel trailer. But it’s also a useful negotiating tactic if you’re looking for something brand new.

Even new trailers can have slight imperfections from the manufacturing process or small damage from being shipped from the manufacturing location to the dealership’s lot in your area. 

That’s why it’s really important to thoroughly look through every nook-and-cranny of a travel trailer to see if there are any imperfections or damage that you’ll be able to leverage in the negotiation process. 

For used travel trailers, you may even go so far as to request a full inspection from a third party.

Not all dealerships will agree to this, but it’s an essential negotiation tactic when you’re buying from a private party. 

And it’s really useful if you’re buying your first-ever travel trailer and you’re not quite familiar with what exactly you should be looking for yet. 

7: Utilize Multiple Dealerships 

Pitting dealerships against one another is a great way to drive down the price of the trailer you want.

The strategy for doing this usually requires that you find the exact same trailer on two different lots.

And those trailers will typically have to be listed at different prices. That being said, we’ve known plenty of folks who have claimed to have a better offer from a different dealership even if that wasn’t necessarily true. 

In fact, it’s possible to pit dealerships against one another when you’re comparing trailers with different floor plans or from different brands.

It’s all a matter of selling the fact that you’re ready to purchase a different trailer from a different dealer if the dealer you’re talking to doesn’t offer you a reduced price. 

For instance, you tell the dealer that your budget is about $25,000. But, inevitably, the salesperson tries to get you into something that’s closer to $30,000.

You really do like the more expensive trailer, but you walk away and say you need to think about it. In the meantime, you find another trailer that’s ‘OK’ in your book but is listed at $23,000. 

You return to the original dealership a week later and explain that you’re ready to settle for the other trailer for $23,000.

But you explain that the $30,000 is really your “dream trailer” even though it’s out of your price range.

Tell the salesperson you wanted to stop in before you buy that other trailer to see if there’s any last way they can get the price of your “dream trailer” down under your $25,000 budget. 

This tactic has worked for many buyers of RVs, travel trailers, 5th wheels , cars, trucks, and just about any other high-ticket item you could purchase from a major dealership.

And it’s a great way to use the sheer number of dealerships out there to your advantage. 

Consider Buying In Bulk

8: Consider Buying In Bulk 

Ok, wait a minute, hear us out. We know you probably don’t need to buy two travel trailers, but many people have had success asking a dealership to cut you a better deal if you’re willing to buy two trailers. Of course, there are some prerequisites for using this negotiation strategy. 

The best way to employ this strategy is to know someone else that is also currently interested in buying a travel trailer.

You’ll both need to be on the same page about the models of trailers you’re interested in, but there’s no reason you can’t both go to the dealership together to try this tactic. 

If you’re financially flush and you have the money to buy a new trailer, you may also consider employing this strategy to get a discount on both models.

In some cases, you may even be able to turn around and sell your second trailer back to a different dealership or a private party for as much or more than you paid for it. 

9: Compare Maintenance Fees

For at least the first year after you’ve purchased a new travel trailer, some maintenance fees and major repairs will be covered under the original factory warranty.

But smaller maintenance costs will come out of your pocket, which means it’s good to investigate the potential costs of maintenance before making a purchase. 

Not all travel trailer dealerships will offer this, but some will provide deals on free or low-priced maintenance for a small period of time after you complete your purchase.

This can help you save on the long-term costs of owning and maintaining a travel trailer. 

This is why, in some cases, it can actually make sense to purchase a more costly travel trailer from a dealership that offers free maintenance for the first year or two that you own the trailer.

And if the dealership you want to buy from doesn’t offer free maintenance, that lack of service may give you the leverage you need to negotiate a lower base price on your new travel trailer. 

Offer To Pay Cash

9: Offer To Pay Cash

Dealerships are almost always going to be willing to sell trailers at lower base prices for cash buyers.

While this isn’t always realistic for all buyers, offering to pay cash gives the dealership added assurance that they aren’t going to miss out on any of the money they’re owed for the sale. 

If you must finance, the dealership has to be willing to accept the risk that you may default on payments at some point in the future.

Sure, they can always repossess the trailer, but its value will have depreciated significantly by then.

So they cover that risk by getting you to agree to a higher base price than they might be willing to offer if you’re able (and willing) to pay cash for your new trailer. 

10: Negotiate For A Longer Warranty

If you can’t get the dealership to budge on the base asking price for the trailer you’re interested in, another good negotiation tactic is to get them to extend the length of the factory warranty.

A stunningly high percentage of new travel trailers and RVs will require major engine or mechanical repairs within the first two years of their lives. 

Unfortunately, most original factory warranties will only cover the costs of these major repairs for the first year of the trailer’s life.

This is why many folks buying new or even pre-owned RVs or travel trailers opt to purchase an additional extended warranty from either the dealership or a private online vendor. 

While you can always go that route, negotiating for a longer warranty when you’re first purchasing your travel trailer is a great way to avoid paying extra for a warranty later.

So even if you end up paying more for your trailer than you originally anticipated, you might be able to squeeze the dealership for an additional year or two of warranty coverage at no extra cost to you. 

11: Seek Multiple Financing Offers

In many cases, the dealership’s financing offer won’t be the absolute best you can get.

There are many banks, credit unions, and private lenders that can offer you better financing terms than the dealership.

But knowing what financing offers you have on the table before you agree to purchase a travel trailer can also be a useful negotiation tactic. 

This is because it will allow you to have a better idea of just what your long-term financial picture will look like if you buy a certain trailer.

Let’s give you some concrete figures to help illustrate this point: 

1. Dealer A is listing a trailer for the asking price of $50,000

Their financing offer includes a 10-year loan term with a 4.5% interest rate. 

You’ll pay more than $12,000 in interest over the course of the loan

That brings the total cost of your new travel trailer over $62,000.

2. Dealer B offers the same trailer at a lower asking price of $47,000

Their financing offer also includes a 10-year loan term, but at a 6% interest rate. 

You’ll now pay more than $16,600 in interest of the course of the loan. 

So that will bring the total cost of your trailer over $66,600.

As you can see, while the initial asking price of the trailer from Dealer B looked like you could save $3,000, you’ll actually end up paying more than $4,600 more for that trailer than you would if you bought from Dealer A with financing at a lower interest rate.

And while this is moot if you’re able to pay in cash, it illustrates the importance of seeking multiple financing offers when you’re negotiating a travel trailer purchase. 

Search For Newer Dealerships

12: Search For Newer Dealerships

As you might imagine, dealerships that have just opened their doors in the last year or two are going to be under more pressure to get a return on their initial investment.

This means they may also be more likely to make sales at lower prices than their competitors, which you can use to your buying advantage. 

Newer dealerships need to establish their reputation and making more sales is a great way to do that.

That also allows them to get more consumer feedback and online reviews that add to their level of credibility.

So buying from a newer dealership can often allow you to find the lowest price on travel trailers in your area. 

13: Be Willing To Wait For Next Year’s Model

This kind of comes back to our original recommendation of exhibiting your willingness to wait for a better offer.

But if you do your research and you know your budget, there may be some cases in which you can actually get a brand new trailer at the same price as the year-old model the salesperson is currently trying to sell you on. 

If you’ve done your homework and you’re certain this is the case, now is not the time to keep that information close to the vest.

Don’t be afraid to let the salesperson know that you’re aware of the market and the fact that you can get a brand new RV for that price if you’re willing to wait. 

Explaining this lets the salesperson know you’re not a pushover and also puts the pressure on them to convince you otherwise.

And if you’re shopping for a trailer towards the end of the calendar year, the salesperson may also feel that added pressure to make a sale so that he or she can get that extra commission they’re looking for to cover holiday expenses!

14: Utilize Online Resources

There are a number of online resources that you should take advantage of when negotiating a travel trailer purchase.

For starters, NADAguides.com is the place to go to check the current market value of different travel trailer models. It’s sort of like the Kelley Blue Book for RVs, travel trailers, and 5th wheels. 

Using NADA Guides will really only apply if you’re purchasing a used travel trailer, but it’s still an important tool.

It will help you know what the trailer you’re interested in is worth and what similar models have been selling for in your area, which will give you an obvious negotiation tool when asking a private seller why they have their trailer listed much higher than its listed value online. 

Additionally, online community forums can be a great way to get up-to-date information on different travel trailers.

To find these forums, you can simply Google ‘[trailer make and model] forums’.

These forums contain stories and conversations about real users’ experiences buying from new and used trailer dealerships all across the country. 

If you enter one of these forums, you can also get answers to any specific questions you have about buying a new travel trailer.

And those answers are going to come from real people who have succeeded (or failed) at negotiating a better price on their own travel trailer purchase.  

What Is The Markup On Travel Trailers

What Is The Markup On Travel Trailers?

In many cases, dealerships can mark up their travel trailers by more than 50%. This is because the cost to the manufacturer is usually less than half of the travel trailers listed market value.

This figure is actually quite shocking considering the fact that RV and travel trailer manufacturers seem to cut corners and find new ways to manufacture their RVs and trailers at lower costs every year. 

So, if a trailer’s MSRP is $205,405, the dealer may stand to make as much as $136,936 on the sale.

In addition, certain manufacturers provide incentives to dealerships if they sell a certain number of units within a year, or if they are failing to sell certain units that have sat on their lots for more than a year. 

Knowing this markup is essential to you as a buyer because it puts into perspective how much that extra $5,000 you want to negotiate off the sale price really means to the dealership in the long-term.

And understanding that manufacturers provide incentives to dealerships to reach annual quotas is just another reason to shop for a travel trailer towards the latter part of the year.  

How Much Can You Negotiate On A Travel Trailer?

This will depend on how old the trailer is and where you’re buying it from. In most cases, you can actually negotiate for a higher percentage off the asking price when buying a new trailer from a dealership compared to buying a used trailer from a dealership or a private party.

Here’s a quick breakdown of how much you can negotiate on a travel trailer (based on percentages of asking price):

Should You Rent Before Buying A Travel Trailer?

Yes! Renting several different trailers before deciding on the model you want to buy is always a good idea.

Take these trailers on similar trips to determine how you really like living in them for multiple days at a time.

And this will also give you an idea of what’s missing on certain trailers that would make your camping life easier. 

There are many ways to rent a travel trailer to explore different models before buying.

You can go directly to dealerships and discuss what they offer in terms of leasing a trailer for a short period of time. 

If you’re looking to rent directly from owners, Outdoorsy and RVShare are two excellent resources.

And renting from a private party also gives you the advantage of speaking to owners directly about what they like and what they’d change about their particular trailer. 

Coming from someone that has purchased his fair share of questionable trailers, I can’t stress enough how important the negotiation process is when you’re making a travel trailer purchase.

Giving yourself a night (or two) to sleep on this kind of large purchase decision is never a bad idea either. 

If you wake up in the morning and you’re still set on that trailer being your new mobile adventure home, then go for it! But you should still be sure to utilize these strategies for how to negotiate a travel trailer purchase so that you get the best deal possible.

And then you’ll have more money left over in your pocket for your trailer adventures!

Aaron Richardson

About Author / Aaron Richardson

Aaron Richardson is an expert RVer and the co-founder of RVing Know How. Aaron, along with his wife Evelyn, has been living and traveling in their Keystone Fuzion RV since 2017. Their adventures span across the country and beyond, including memorable RVing experiences in Mexico. Aaron's passion for the outdoors and RVing shines through in his writings, where he shares a blend of travel stories, practical tips, and insights to enhance the RV lifestyle.

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I can say that a one or two year warranty is going to do much unless you are able to use the trailer quite a bit the first two years. Also make sure you TV is more than capable to tow your trailer with your things in it, including water if your boondocking

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Is 25% Off MSRP a Good Deal for an RV?

By: Author The Drivin' & Vibin' Team

Posted on May 15, 2022

If you’ve shopped for an RV in the past year or two, you may have found yourself experiencing a bit of sticker shock in the process. Price tags on RVs continue to trend northward with little sign of that changing anytime soon.

A dealer may tell you they have the lowest price in town, but is 25% off MSRP a good deal for an RV these days?

Today, we’ll look at the costs of RVs to help get you the best deal possible on your next RV purchase. Let’s get started.

What Is MSRP?

You may have seen the acronym MSRP when shopping for an RV or car. This is short for “Manufacturer’s Suggested Retail Price.” This is the price that the manufacturer recommends to ensure a profitable sale for the manufacturer, dealer, and any other entities involved.

The MSRP on an RV is simply a suggested price and not hard and fast. Depending on the market and inventory, the vehicle’s actual price may be more or less than MSRP. We’ve seen dealers tacking on “market adjustment” fees due to reduced inventory and increased demand in recent years. It’s the simple principle of supply and demand at work.

mark up on travel trailers

What Is the Average Markup on a New RV?

Typically, you’ll find a 30% to 40% markup on RVs despite what the sales staff may tell you. This leaves them wiggle room to make money and come down on the price to help buyers feel they’re getting a good deal.

If you’re in the market for a new RV, brush up on your negotiation skills and have patience. Making a quick transaction will likely force you to pay more for your rig than if you have time to play hardball and wait out a dealer wanting to make a sale.

How Much Can You Negotiate on a New RV?

RV dealerships have bills and salaries to pay too. So don’t expect that a dealership will lose money on a deal. However, some shoppers with decent negotiating skills can pay less than the MSRP. Some can even negotiate 20% or 30% off the price.

This keeps money in your pocket and can help you pay for the gear and supplies you’ll need for those future camping trips.

How Do You Make an Offer on an RV?

You don’t have to do or fill out anything official when making an offer on an RV. If you’re not happy with the price tag, you can ask the dealership if they’d consider the price you feel is fair. They’ll likely have to ask a manager or run some numbers, but they’ll reject or accept your offer. 

It doesn’t hurt to ask about a fair price because the worst that can happen is that they say no and reject your offer. They’ll likely counteroffer with a new one or stay firm at the original price of the RV.

mark up on travel trailers

In a typical RV market, 25% off MSRP was a decent deal for an RV. However, we haven’t lived in a regular RV market for quite some time due to supply shortages and increased demand. These have combined to create a bit of unpredictability in the RV buying process.

Many RVs sold in recent years sold closer to MSRP than consumers typically have paid in the past. Currently, 25% off MSRP would be great for most RVs. As manufacturers catch up with the demand and dealerships fill up with RVs, you’ll likely experience dealers being a little more generous when selling below MSRP.

Do RV Dealers Prefer Cash?

You might have heard the phrase “cash is king” from a bald financial guru, but RV dealers think differently. They prefer customers that walk onto their lot looking to finance their new purchase. Most dealers receive incentives from banks and credit unions for financing. They’ll get a kickback from the financial institution for getting them a new client.

Dealers will sometimes offer discounts when purchasing with financing through one of their banks. Many shoppers will not disclose their payment method until they agree upon a price with the sales team.

If the sales department knows they won’t get the financing kickback, they may not offer the best deal possible.

How Do You Deal with an RV Salesman?

When dealing with an RV sales associate, you have to remember not to take things personally. It’s a business transaction, and they have their best interest in mind despite what they tell you. They want you to feel as happy as possible with the transaction while still making money for them and the company. They may appear to be your buddy during the transaction, but they’re motivated by the idea of making a sale.

Just because they factor their financial interest into the equation doesn’t mean that you can’t still have a smooth buying experience. Treat the dealer and the sales team members with respect and courtesy, but don’t let them rush you to make a decision. Be confident and take your time when making any big financial decision.

Remember that you’re in control during the entire process. You have no obligation to purchase from a dealer just because they took the time to show you some RVs and answer your questions. If you’re uncomfortable or don’t feel they value your business, you can find other dealers willing to sell you an RV.

mark up on travel trailers

What Should You Not Say to an RV Salesman?

When shopping for an RV, you want to get the best deal possible. There are a handful of things you should never say to an RV sales associate. These can derail your ability to negotiate and result in you paying a higher price.

One thing you should never say is, “This RV is perfect.” Think of the entire transaction as a game of poker. You don’t want to let your competition know you have a pocket of aces. You want them to play the game as long as possible. So even if you think that a rig is perfect, you’ll want to practice your poker face when interacting with the dealer.

Additionally, you don’t want to show all of your cards when buying a new RV. Whether you’re trading in a rig or buying with cash, you do a disservice by giving them too much information. If they know you have a trade-in or will pay with cash, they may change the deal’s structure or give you a great deal on the RV, but undervalue your trade. Again, the less information you can provide for an RV transaction, the better.

Lastly, you want to avoid sharing your maximum monthly budget. If you do, you can almost guarantee your monthly payment. It’s going to be a few bucks under what you told them. The sales team can adjust interest rates or the loan length to fit your payment plan. This costly mistake may cause you to pay thousands more for your RV over the length of a loan.

Is It Possible to Get a Good Deal on an RV?

Getting a good deal on an RV is possible, even in the current insane RV market. However, it’s going to take some patience and flexibility. You may need to drive further than you’d like or consider all options. You have plenty of RV dealers, and manufacturers are catching up with the demand.

If you want to find the perfect rig for your future camping adventures, you can make it happen. Apply some of these techniques at the dealership, and hopefully, you can get a price under the MSRP.

What are your negotiating tips for those purchasing a car or RV?

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Written by Johnathan R. Smith • September 12, 2018 • 8:51 pm • Guides

RV Depreciation Chart (Year-by-Year RV Value Loss)

old depreciated rv

Are You Wondering How Much Your RV Will Depreciate?

We will answer that, and show you how you can get the most value out of it?

Regarding a financial investment, I’ve got some bad news for you; RV’s are a famously poor investment.

It isn’t all bad news though. Thanks to the internet – there are some fantastic ways for you to offset the loss in RV value.

There are not many sizable purchases that depreciate faster than an RV .

Immediately after the purchase when you are driving off of the sale’s lot; you are leaving 20 percent of the value upon the pavement.

It’s an expected hit that many of those already initiated into the lifestyle have experienced.

Many people do find this financial initiation to be worth the life that it affords.

There are ways to limit the negative impact that that this purchase will have on your finances. If you time it right, you can take advantage of this loss in value to more easily slide your way into the camper lifestyle.

There are a few moments that many consider being an ideal time in an RV’s lifespan when you will want to make the purchase.

MSRP vs. Invoice

When calculating the depreciation rate on your RV, it is essential to know the difference between the MSRP and the invoice price.

Typically, the RV dealers will mark up the sale price by 30 to 35% with the expectation that there will be a decent amount of negotiating. 

Rate of RV Depreciation

older rv and truck

The depreciation is a hard number to pin down. Due to the nature of negotiation, the prices will not be at a set point across every dealer.

The average markup from the invoice price to the MSRP is roughly 33% on average, but this number is not a hard rule.

To further complicate this calculation, that 33% is the initial set price that is expected to be a starting point for negotiation. It isn’t intended to be the final cost.

There will be an additional layer of variation between the classes of RVs.

The Class A and Class C trailers are expected to diminish in value at a similar rate, but that will be different from fifth wheels, and the less expensive Class Bs and the budget class (but still fun) travel trailers.

I produced the following data from the collected depreciation reports that I have found around the internet.

The values were inconsistent because the actual value depreciation depends upon a set price which is a variable rather than a fixed number.  

Also, this is an aggregated value from all of the RV classes. Use these numbers as a general guide to get a rough idea of the depreciation.

Later, you can do further research into your specific model to get a clearer picture of how quickly depreciation will pull value from the RV that interests you.

Anyways, let’s continue because a vague shape of the depreciation is better than no shape at all. With that in mind, let’s look at the averages.

Year-By-Year RV Depreciation

yearly rv depreciation

Year 1: 20.50%

You will see the most drastic dip in value in the first year. Immediately following the purchase, the value of your RV will be expected to depreciate over 20 percent.

That may not seem like a big deal for some of the smaller trailer purchases, but those higher priced campers are going to be rather painful.

Year 2 23.25%

Barely nudges that depreciating needle. I guess buyers are still satisfied with that 20% discount that the seller oh so kindly paid for them.  

Year 3: 28.33

On a hundred thousand dollar RV, the next potential owner just saved another $5,000.

Also, by the end of the second year, 30% of RV’s are expected to break down, so think about that if you are using expected depreciation to inform your potential purchase.

Year 4: 32.17

You will probably save yourself the cost of a major mechanical failure and knock those savings up to just under 40% if you look for RV just a tad bit older than this.

Year 5: 39.37%

Once again, when you are using depreciation to inform your purchase, you should be aware that the expected breakdown rate has increased to 80%.

Year 6: 42.27%

Year 7: 44.08%, year 8 and 9: 47% – 50%.

Values are inconsistent, but those are the general ranges. Nearly every RV has a major break down by this year, so purchasing after this point could help you to avoid an undesired expense.

Year 10: 56.18%

Year 15: 72.33%, year 20: 89.50%.

At the time of this article, Rooms equipped with slide outs become standard at 20 years ago. It was a revolution in RV design that you begin to find in most blueprints at the turn of the 21st century.

When you start searching for RVs that are over 20 years old, you will begin to notice that the prices bottom out around $2,000 to $3,000.

Wait for 5 to 8 Years to Minimize the Depreciation

Depreciation is just a fact of ownership. However, you can let others carry the most substantial part of the burden and turn what people consider to be a disadvantage into an advantage.

By the five year mark, there will be an expected depreciation of 36.86%. When you are purchasing something as expensive as a home, that is quite the discount.

Saving on this loss in value isn’t the only benefit.

New is Less Reliable Than Old

I realize how this is counter-intuitive. When we purchase something new to get that product in the best possible condition. RV’s are an unusual case in this regard.

Why? The manufacturing process is not as reliable as you might expect with a product such as a watch or a hairdryer.

I suppose it makes sense if you think about it. An RV is a house capable of propelling itself at 70 miles per hour. That is bizarre.

With those kinds of forces at play, it isn’t surprising that some things are going to shake loose.  Humans really can be quite inventive.

RV’s are expected to have significant issues within the first few years of ownership. By the 8th year, it is pretty much guaranteed.

The conventional wisdom in the community is to purchase your RV after the weak links have broken and replaced by the original owner.

At this point, the RV is considered to be in better shape than making a new purchase. Weird Right?

Ask for the Invoice Sheet

During negotiations, there are two types of power that both sides can wield. What is known and what is not known.

By asking questions and acquiring data, you are essentially gathering chess pieces that you can use to maneuver yourself into a good deal.

Asking for the invoice sheet takes one of those pieces out from the dealership and puts it into your pocket.

Not all dealerships will give you this sheet, but you can quickly look up the invoice price online on the website https://seedealercost.com/ .

It is a handy tool. If you don’t find it there, I would recommend going to a forum dedicated to the brand of RVs that you are looking to purchase.

RV Depreciation and Gas Mileage

Gas Mileage doesn’t affect the selling price of RVs as drastically as it does on cars.

The engines are built to last; they have to be tough to produce the necessary torque to haul such massive weights around the country.

Typically, these engines will last far beyond 200,000 miles.

There is also a sneaky fact that many don’t consider when purchasing a “new” RV.

The depreciation is an important factor, but there is another one that must be considered. As many people know, time, as well as weather, have a way of eroding anything that isn’t constantly maintained.

While the engine should be okay, there are problems that can develop in a vehicle that has been sitting idle for too long.

For this reason, when searching for the perfect RV, you won’t want to purchase an old RV that has very low gas mileage.

You will want an RV that has a bit of time on the road to prevent what many call “Lot Rot.”

Lot Rot is responsible for several deteriorating factors. One common issue with stagnated cars is rust.

The undercarriage can take quite a hit; rust can eat through pipes and turn a crispy clean looking car into a non-starter.  

The brakes can be just as bad. You may just have to replace them if they start to develop that third place copper color.

As the insides fade into dust, the paint can also start to go bad.

Time and disuse can really do a number on an RV, so even though it sounds weird, look for an RV with a few miles attached to it.

Renting Out Your RV

One thing that differentiates RVs from cars is that the loss in value of the RV is strongly tied to the year rather than the mileage.

With this inevitable decline in value, many part-time RV owners have become proactive in protecting the value of their financial investment.

When you consider the fact that most owners of RVs spend about two weeks in their precious campers, it becomes increasingly difficult to justify a second set of “house payments.”

The remaining 50 weeks of the year are leaving the camper to the possible damaging effects of lot rot.

For many, something has to be done.

Enter Outdoorsy and RVShare; these are two great services that are quickly becoming popular within the part-time camper community.   

These services connect those that want to rent an RV for a short vacation and for those that are tired of losing thousands of dollars to a vehicle sitting in their driveway.

They are both toted as simple services that can entirely offset the money that is lost each year in the dwindling value of your RV.

Both of these programs have insurance plans in place that protect the rented campers from any incidental damage.

Of course, you will need to decide if it is worth the risk. Careful consideration must be made before handing over your house keys to perfect strangers.

How Much Can You Make?

According to RVShare, you can make $120 to $365 per day.

That impressive sum can be a regular occurrence with the right RV and the right renter feedback.

According to one website, you can expect to receive $5,000 to $30,000 per year in revenue.

Take the time to calculate the depreciation cost of the RV that interests you.

Part-Time RV Living – Write-Offs

There is an additional opportunity for those that are interested in renting their camper out part of the time.

The current tax laws allow owners who use their RV’s for business purposes to write off a percentage of the cost that is relative to the amount of time that the RV is used for business vs. the amount of time it is used for personal use.

To reiterate, if you use the RV for personal use 20% of the time, and to use it for business 80% of the time; you will be able to write off 80% of the RV cost.

This doesn’t just apply to the price of the RV and the interest on the monthly payments. This also applies to the running costs of the RV.

The fuel that you buy. You can write that off. Does the RV need a 300 dollar oil change? You can write that off.

You can even write-off those expensive repairs and that inevitable water damage that every camper eventually acquires.

Of course, you will still need to pay the 20% that is associated with personal use, but do you understand the value?

This is a very simple business that will demolish the costs of depreciation, and make owning an RV financially viable.

Recommended RV Articles

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  • Do Travel Trailers Have VIN Numbers?
  • Best RV Memberships To Join (2021 Favorites)
  • Can I Live In An RV On My Own Property
  • Average RV Tank Size and Gas Mileage (MPG) Chart
  • RV Extended Warranties (Are They Worth It?)

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How to Negotiate a Travel Trailer Price (RV Negotiating Tips)

Ready to hit the open road with a travel trailer but worried about getting the best deal? RVs depreciate, like all vehicles, so saving the most money upfront is key. So here’s how to how to negotiate a travel trailer purchase:

Here is the best way to negotiate the price of a new travel trailer:

  • Research : Gather information about the travel trailer’s market value, features, and comparable prices.
  • Set a budget : Determine your maximum spending limit and stick to it during negotiations.
  • Inspect the trailer : Thoroughly examine the condition of the trailer, noting any repairs or maintenance required.
  • Gather leverage : Highlight any issues or discrepancies discovered during the inspection to negotiate a lower price.
  • Be prepared to walk away : Show your willingness to explore other options if the seller is unwilling to negotiate.
  • Start with a lower offer : Begin negotiations below your maximum budget to leave room for counteroffers.
  • Negotiate terms : Discuss financing options, warranties, and extras that may be included in the purchase.
  • Stay firm, but be flexible : Stick to your budget, but be open to compromise on certain terms or conditions.
  • Consider timing : Negotiating towards the end of the month or model year may increase your chances of getting a better deal.
  • Get it in writing : Once an agreement is reached, ensure all negotiated terms are documented in a written contract.

Fear not! We’ve got you covered with a comprehensive guide on how to negotiate a travel trailer purchase like a pro from RV dealerships. Say goodbye to buyer’s remorse and hello to the adventure of a lifetime!

Short Summary

  • Research and prepare for the best possible deal on a travel trailer.
  • Leverage multiple dealerships, offers, and cash payments to negotiate extras & warranties.
  • Inspect and evaluate before purchase to ensure you get the best value!

Travel Trailer Purchase Research and Preparation

mark up on travel trailers

Before diving headfirst into negotiations, it’s essential to do your homework.

A well-informed buyer is a confident buyer, and confidence is key when it comes to negotiating. Researching recreational vehicle prices, attending RV shows, and exploring online resources will arm you with invaluable knowledge about the market, helping you secure the best possible deal on your travel trailer.

Visiting multiple local dealerships is also crucial for getting a better understanding of what’s available and comparing prices. This way, you’ll know if the offer you’re getting is reasonable or if you should keep looking. Keep in mind that dealerships within 200 miles of your area are the best to target, as they’re more likely to have competitive prices based on your region.

Attend RV Shows and Explore Online Resources

Attending an RV show can be a game-changer when it comes to finding the perfect travel trailer. RV shows offer a unique opportunity to:

  • Explore a variety of manufacturers and models, all in one convenient location
  • Quickly compare price ranges and get a better idea of what’s available on the market
  • Take advantage of salespeople who are often eager to make a deal on the spot

This can help you find the best travel trailer for your needs, ensuring you don’t end up with the same trailer as everyone else.

Online resources like NADAguides.com and community forums can provide you with great advice and insight into the market value of travel trailers. These platforms can help you gather information on the average prices of various travel trailer models, making it easier to negotiate with dealerships and get the best possible price.

Determine Your Budget and Priorities

Having a clear budget for your travel trailer price and a list of priorities is essential when negotiating a travel trailer purchase. By setting a minimum, maximum, and “best-case scenario” price range, you’ll have a solid foundation for your negotiation strategy.

Moreover, establishing your priorities before visiting dealerships will help you stay focused on your goals and avoid getting sidetracked by features and extras you don’t necessarily need. Remember, dealerships can be persuasive, but sticking to your budget and priorities will empower you to make the best decision for your travel trailer purchase.

Speaking of budget, looking for new travel trailers under $10,000?

In a recent article, I took a look at 18 of the very best new travel trailers that are under $10,000 . These are great RVs at a great price and a great way to get into the RV lifestyle at a price almost anyone can afford.

Just click that link to read it on my site.

Timing Your Travel Trailer Purchase to Get the Best Price

mark up on travel trailers

Timing is everything when it comes to getting a good price on a travel trailer. Shopping during off-peak seasons or at the end of the month or quarter can significantly increase your chances of securing a great deal.

Dealerships are often more open to negotiation when they have sales targets to reach, and this can work in your favor. By being aware of these key times for negotiating, you can strategically plan your travel trailer purchase and maximize your savings.

Shop During Off-Peak Seasons

Winter is an ideal time to shop for travel trailers, as demand is typically low, and dealers may be more willing to negotiate.

Additionally, shopping during the fall or winter can provide you with the opportunity to score a fantastic deal on older trailers, as dealerships may need to clear their lots for the upcoming year’s models. This means you could potentially save thousands of dollars on your travel trailer purchase.

End-of-Month or Quarter Negotiations

Another prime time to negotiate RV prices is at the end of the month or quarter. Dealerships often have sales goals to meet during these periods, making them more inclined to cut deals on an RV’s price tag to reach their targets.

By strategically planning your purchase during these times, you can leverage this pressure on dealerships to secure a more competitive deal on your travel trailer and save a lot of money.

Remember, knowledge is power, and being aware of these key negotiating periods can make all the difference in your travel trailer purchase.

What Are the Financing Options for a Travel Trailer?

mark up on travel trailers

Understanding the financing options available for a travel trailer is crucial for securing the best deal.

You have two primary options: securing your own financing or seeking multiple offers from dealerships. By securing your own financing, you demonstrate to the dealer that you are committed to making a purchase and have the financial means to do so. This can give you the upper hand in securing the best RV price.

On the other hand, comparing multiple offers from dealerships can help you find the most favorable financing terms and interest rates. Ultimately, it’s essential to explore your options and choose the financing solution that best suits your needs and budget.

Leverage Multiple Travel Trailer Dealerships and Offers

mark up on travel trailers

To get the best possible deal on your travel trailer, it’s crucial to leverage multiple dealerships and offers.

By shopping nationwide and pitting dealers against each other, you can maximize your savings and get the travel trailer of your dreams at the lowest possible bottom line price.

This strategy involves:

  • Comparing prices and offers from different dealerships, both locally and nationwide
  • Gaining a better understanding of the market
  • Using this information to negotiate an even better deal

Remember, a well-informed buyer who has done their due diligence is a powerful buyer, and leveraging multiple dealerships and offers can make all the difference in your travel trailer purchase. If one dealer won’t play ball, the strongest negotiating position is to walk away (and mean it) to a different dealer.

The most important thing is to not be in a rush, don’t get emotionally attached to one specific RV, and hold out for the lowest price possible even if that delays your instant gratification. There’s more than one perfect RV and waiting for the right deal is totally worth the extra money you can save.

Some of the least expensive trailers are teardrop trailers.

In a recent article, I took a look at 23 of the very best new teardrop trailers that are under $6,900 . These are great RVs at a rock-bottom price and a great way to get into the RV lifestyle at a price almost anyone can afford.

Nationwide Shopping

Shopping nationwide can help you find the best prices on travel trailers, especially when considering dealerships within 100 miles of manufacturers’ locations. These dealerships often have lower transportation costs, allowing them to offer more competitive prices on travel trailers.

Online platforms like RV Trader ( RVTrader.com ) and Facebook Marketplace can be excellent resources for finding travel trailers nationwide. These websites provide a wealth of information on available travel trailers and their prices, allowing you to compare your options and make an informed decision on your purchase.

Pit Dealers Against Each Other

Pitting dealers against each other can be a powerful negotiation tactic to get a good deal. By comparing prices and offers from different dealerships, you can use the information you’ve gathered to negotiate a better deal.

For instance, if you find a lower price for the same travel trailer at a different dealership, you can show this to the dealer you’re negotiating with and see if they can match or beat it. This strategy can help you get the best possible price on your travel trailer and ensure you’re getting the best deal available.

Inspect and Evaluate the Travel Trailer Before Purchase

mark up on travel trailers

Before finalizing your travel trailer purchase, it’s essential to inspect and evaluate the trailer thoroughly. This includes checking for any missing features or components and considering a third-party inspection for used travel trailers. Doing so will ensure you’re getting the best value for your money and help you avoid any costly surprises down the road.

Proper inspection and evaluation can also provide you with valuable information to use during the negotiation process. By identifying any issues or missing features, you can leverage this information to negotiate a better price or additional extras and warranties.

On the top end of RVs, you have Class A RVs, and on the low end you have travel trailers.

But how do you weigh one against the other? How do you decide which kind to buy and know which features you would actually use? In a recent article, I compare both travel trailers and Class A RVs so you can see a complete list of pros and cons, features, and prices.

Request a Third-Party Inspection

Requesting a third-party inspection for used travel trailers is an excellent way to ensure their condition and avoid potential issues. A third-party inspection can provide an impartial assessment of the trailer’s condition, detect potential problems, and help you make an informed purchasing decision.

Moreover, any issues found during the inspection can be used as a negotiation tactic. By highlighting repairs or damages that need to be addressed, you can use this information to negotiate a better price or additional extras and warranties, ensuring you get the best possible deal on your travel trailer.

Look for Missing Features or Components

During your inspection, it’s crucial to look for any missing features or components in the travel trailer. Create a comprehensive checklist of features and components to ensure you don’t miss anything important.

If you find any missing features or components, you can use this information to negotiate a better price or additional extras and warranties. By leveraging this information in your negotiations, you can ensure you’re getting the best possible deal and value for your money.

Is a Cash Payment an Incentive for Travel Trailer Dealers?

mark up on travel trailers

Cash payments can be an attractive incentive for travel trailer dealers, as they provide immediate payment in full, eliminating the need for dealers to follow up on monthly payments. This can make dealers more willing to offer lower base prices and additional incentives for cash buyers.

Additionally, cash payments can be used as a powerful negotiation tool, allowing you to leverage extras and extended warranties in your purchase. By offering to pay cash upfront, you demonstrate your commitment to making a purchase and your financial ability to do so, giving you an advantage in the negotiation process.

Cash Payment as a Negotiation Tool

Offering cash payments as a negotiation tool can lead to dealers being more willing to lower the purchase price for the assurance of immediate payment. This can help you secure a better base price and save money on financing or interest charges from a bank or credit union.

Moreover, RV dealers are often eager to offer lower prices for cash buyers.

By confidently negotiating on your terms and highlighting any drawbacks in the new RV, you can use the information you have to get the best deal possible at an RV dealership during your RV purchase.

Negotiate for Extras and Warranties

If the dealer is unwilling to lower the base price, you can use cash payments to negotiate for extras and extended warranties. By offering to pay cash and considering any issues found during the inspection, you can use this information to negotiate additional extras and warranties to ensure you get the best value for your money.

Remember, it’s essential to research the average prices of extras and warranties on a travel trailer purchase to make an informed decision. By attending RV shows and exploring online resources, you can gain insight into the market prices and make the best choice for your travel trailer.

Should I Buy a New or Used Travel Trailer?

mark up on travel trailers

Deciding whether to buy a new or used RV can be a daunting task, but it’s essential to weigh the pros and cons of each option and factor in your budget and priorities.

A used trailer from a private seller can offer unbeatable bargains, but it’s important to consider the condition of the trailer and any potential repair costs.

On the other hand, a new trailer may come with a higher price but can provide peace of mind with warranties and being in pristine condition. Ultimately, the choice between a new or used travel trailer depends on your needs, budget, and priorities.

Here’s a handy table showing the average prices for both new and used travel trailers in various common lengths:

10 Tips to Get the BEST DEAL on a New RV

In conclusion, negotiating a travel trailer purchase doesn’t have to be a daunting task.

By doing your research, attending RV shows, exploring financing options, timing your purchase, leveraging multiple dealerships and offers, and inspecting the travel trailer thoroughly, you can secure the best possible deal on your dream travel trailer.

So hit the open road with confidence, knowing you’ve got the best deal on your home away from home!

Frequently Asked Questions

How much can you negotiate down on an rv.

You can negotiate down on an RV depending on the supply and demand, with discounts ranging from 20-30% or more off of the sticker price in some cases.

How much below MSRP should I pay for a travel trailer this year?

With a typical RV market, you can likely negotiate up to 30% off the MSRP for your new travel trailer.

What are the benefits of attending RV shows?

Attending RV shows offers the convenience of exploring a wide selection of models and comparing price ranges between dealers quickly and easily, making it a great way to find your dream RV.

RV shows provide an opportunity to ask questions and get advice from experienced RVers, as well as to get a feel for the different types of RVs available. You can also get a better understanding of the features and amenities that come with each model.

When is the best time to buy a travel trailer?

For the best deal on a travel trailer, shop during off-peak times such as winter or at the end of the month when dealerships have sales goals to meet.

This is the best time to get the best deal, as dealerships are more likely to offer discounts and incentives to meet their sales goals.

What financing options are available for a travel trailer?

Finding the best financing for a travel trailer can be done through self-financing or multiple offers from dealerships.

Self-financing involves researching loan options and applying for the best one. It can be a time-consuming process, but it can also be the most cost-effective option.

Jeff Campbell

Jeff Campbell travels on and off with his 3 daughters in a Newmar Baystar Class A Motorhome. He writes extensively on both RVs, campgrounds, parenting on the road tips, remote learning & schooling, and much more! Click Here to learn more about me. Click Here to learn more about my site. Editorial Policies.

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15 Tips for Getting the Best Price on an RV

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Everyone wants a good deal, especially when making an expensive purchase like a home or car. An RV has the potential to cost you tens of thousands of dollars before you even sign on the dotted line. To find the best RV prices possible, you need the best negotiating and buying strategies to secure the optimal RV price tag for your budget.

If you’re ready to leap into RVing, ​your budget will play a huge part in your entry-level RV. Here are 15 tips to negotiate the best RV prices whether you’re looking to buy a new or used rig for your travel adventures.

Shop Around

You may have been buying a new or used motorhome every ten years from the same dealer, but that doesn’t mean they will always have the best deal for you. Loyalty will only get you so far in negotiating a great price, so always keep your options open. Your dealer’s competitor down the street might have a better deal, or they might have one up the dealer you’ve been going to for years.

Look at as many prices as possible, your dealer, their competitor, online dealers, and more before you make a move. Don’t settle for the first dealership or the first price tag that fits within your ideal budget.

Don't Settle for New

Many consumers believe a new home or a new car or a new anything is the way to save money long-term. It seems that by buying new, you’ll have fewer issues, need to perform less maintenance, and your purchase will last longer. But that isn’t always true.

When it comes to RVs, buying used allows you more control over your budget, improvements, customizations, and more. By spending less upfront, you have more to invest in your rig over time giving you a true home away from home with features and functionality you can’t always get buying new in this industry.

Don’t Tie Yourself to a Brand

People are loyal to brands. Whether it’s toilet paper or your cell phone, or a car, brand loyalty is one of the reasons certain brands are always on top no matter the year. When it comes to RVing, the same is true, but at the end of the day, all RVs serve the same purpose.

They’re designed to give you a place to stay at the end of the day comfortably. Even though you may have your heart set on a brand, look at similar RV types to find the rig you’ll call home. You may be surprised by what you find, and you may save thousands of dollars in the process.

Buy Now, Customize Later

One of the biggest downfalls of buying an RV is realizing how much more money you’re going to have to spend to get the features you want. Whether it’s a better mattress or an upgraded entertainment center, the price tag on the RV is enough to make most turn away and give up on the RV lifestyle.

When budgeting for an RV, think long-term. Don’t be afraid to buy a basic model and upgrade it later. Customizations from installing new cabinetry to wiring an intercom system to fitting a skirt to your RV can all be done down the line. Think of your RV as a home; you’re always going to have improvement projects to tackle.

Buy a Fixer Upper

One of the most popular trends among RVers is to buy an older model, such as an Airstream, and fix it up. There are communities around the US dedicated to doing this and saving money while doing it. You can get a cheap RV on Craigslist or other unconventional places, gut it, and fix it up the way you imagine your dream RV to look and feel.

Buying a fixer-upper comes with risk, but you’ll put out much less upfront and if you plan properly, save more than half of the cost of a brand-new RV with all the bells and whistles. Buying a fixer-upper isn’t for everyone, but if you play your cards right, you’ll be the envy of every RV park or campground.

Watch Financing Rates

Financing your RV can be the make or break on securing a great deal. Financing rates depend on current market trends; RV loan rates tend to mirror auto loan rates. Don’t accept financing from an RV dealer if you can get a better rate from your bank or credit union or vice versa.

Get a quote from your bank before you go to an RV dealership and use that to leverage a better deal there. If you know the market is sweet on auto loans, it’s your time to strike for good RV loan rate as well.

Pool Your Resources

Have you ever heard a timeshare pitch? Imagine the same concept but for an RV. Another trend started by millennials is going in together on an RV. By going in together, you can split the cost, maintenance, and share an awesome home on wheels at a fraction of the cost.

While sharing an RV isn’t for everyone, if scheduled efficiently, everyone who goes all in can get the time they want on the road. Make sure if you consider this option, you get a contract drafted up by all parties in case anything goes wrong down the line.

Find a Friendly Salesperson

We all get it. A salesperson is going to do everything within reason they can to get you into that new RV. This includes being friendly, but it goes both ways. Your salesperson wants you to like him or her because you’re more apt to buy from a “friend,” but a seller is also likely to want to give a friend a better deal.

Be friendly, polite and develop a good rapport with your salesperson. They could end up pulling a few strings to get you a better deal, especially if it’s the end of the month and they’re trying to make their quota.

How Will You Use the RV?

With Lyft, Airbnb, and other interesting ways to make a few bucks on the side becoming more popular, have you considered how else you could use your RV? There’s a variety of options out there, like RVShare, Outdoorsy, and RVwithMe to name a few. List your RV when it’s not in use, share it with others and see what extra income might pay off your initial investment or improvement plans.

Many have considered RVing full-time and telecommuting to save on rising house costs across the country. This could change your budget and on-going maintenance costs for an RV purchase, so keep that in mind as you begin plotting how you’ll use your RV and the budget you’ll set aside to be comfortable in it.

Some dealers may mark their prices up over 50 percent. Don’t fall for “sale,” “low price,” and other stickers plastered across an RV windshield. They’re luring you in to make you think the markup is the “market value” of the RV. They plan on negotiating the price down but can usually get away with a higher price than they should.

That’s why it’s important to take risks in negotiation. Start low, very low, half the asking price. If they recognize you know what you’re talking about, and you’re interested in the RV, you will be surprised at some concessions the dealer may make.

Find the Right Incentives

Your salesperson will throw many incentives at you to sweet-talk you into the deal and avoid the best RV prices for your budget. If the amenities add inherent value, it may be worth spending a bit more but forget about the free pair of sunglasses or seat warmers and hold out for the real incentives.

When closing the deal or looking for a bargaining chip, ask for a real incentive, such as free oil changes for a year or interior upgrades, make the temptation worth it. If the incentives aren’t worth it, the overall price tag on the RV you’re looking at aren’t worth it either.

Wait for the Deal

No matter what kind of reasonable financing rates a third-party institution can secure for you, the dealer can always beat them if they want to. Come with a firm budget, multiple loan quotes if possible, and be flexible when the time is right. While in general getting your RV financed through a bank is usually cheaper, they can’t beat promotions and specials straight from the dealer.

Some good examples are promotions such as zero percent APR on RVs for a year or dramatic price cuts should you choose to finance with the dealer. Wait for these deals to happen before moving in on a new ride.

Try RV Shows

RV dealers aren’t at trade shows to look pretty; they’re there to sell RVs. This can work in your favor with some calculated risk. Spend the first day scouting around RVs that grab your interest and make a note of your options. Talk to people, learn about brands, and start narrowing down the list of best rigs you’ve seen.

Wait until the last day of the show and see what is still available on your list. The chances are that the dealer will offer better prices and incentives to move his merchandise before the RV show ends to avoid having to tow or ship it back to their lot.

Buy at the End of the Season

This is like the RV show strategy. Like auto dealerships, RV dealers operate on monthly and yearly schedules. This means if they have not met their sales quotas by month or year’s end, they will be eager to move some RVs. You may also find sweet spots during the middle of fall when RV season is coming to an end in most of the US.

Dealers will be eager to sell before the chilly weather settles in. This may be the perfect time to negotiate a deal out of the dealer or target a salesperson who may not be having the best month selling.

You are never obligated to take a deal no matter what the salesperson has done for you. If you don’t feel the deal is right, feel too much pressure, or uncomfortable about anything, walk away.

Never, ever feel compelled to make the buy because the salesperson has met you half way. Never feel like you must buy no matter the circumstances. If it’s out of your price range, unfavorable loan terms, or just the wrong RV, take a deep breath and walk away. While you may feel bad at the time, you won’t feel any better down the line with an RV you’re unhappy with in the future.

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How to Find the Best Deal on a Travel Trailer

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Purchasing a travel trailer is a massive decision for anyone. Not only are you essentially purchasing a new home, but you’re also making a significant financial investment. RVs can be incredibly expensive, and like when you purchase a home, you want to take your time and make sure that you have the perfect fit. You will also want to try to find the best deal on a travel trailer that you can find.

When you’re in the process of searching for a new travel trailer it can be stressful. However, if you take your time and do the proper research, you’ll notice that the process is no more stressful than purchasing anything else. By doing the proper research, you’ll ensure that you are getting the best deal on a travel trailer possible.

To find the best deal on a travel trailer, you can use a plethora of resources that are available to you online and in person. You can get advice from dealerships, or you can ask advice from other people who have bought travel trailers in the past. You can also spend your time researching on your own thoroughly. All options are viable if you take your time. If you don’t take your time you won’t find the best deal on a travel trailer available to you.

How to Justify Buying a Travel Trailer

One problem many aspiring travel trailer owners run into is justifying purchasing a travel trailer. Obviously, everyone’s financial situation is different, so the decision will be more difficult for different people. However, that’s a decision you need to make yourself.

Before you decide to purchase a travel trailer, you first need to make sure that you can afford it. This means you need to allocate a budget for a travel trailer. If the budget you set isn’t enough to get you a travel trailer, you’d be satisfied with, then it might not be the right time to purchase one for yourself. However, if a travel trailer is in your budget then you shouldn’t have any issues.

Another thing you need to consider is that a travel trailer is like a second home for some people. However, for others, it might be their primary home. Many people live in travel trailers and RVs because they’re cheaper to purchase than a typical home. If this is an option you’re considering, then you can give yourself a bigger budget than someone who wants to purchase a travel trailer purely for leisure.

No matter your reason for purchasing a travel trailer, you will still want to find the best deal on a travel trailer that you can find. No one wants to spend more money than they need to, so finding a good deal is ideal. If you take the time to do your research, you can find a deal that is within your budget.

You can save a tone of time and money when purchasing a travel trailer by learning how to buy the right travel trailer and then learning how to negotiate your best deal. That’s why we highly recommend the RVEducation101 course called How to Buy the Right RV & Save Thousands . We have used many of their courses to learn all kinds of things about RVing and we think you will like their courses too!

Should I Buy a New or Used Travel Trailer?

Once you’ve decided that you want to purchase a travel trailer, a decision you need to make is whether you want to purchase a new or used trailer. Both options have their pros and cons, but most of the factors depend on your financial situation.

If you had all the money in the world, the only reason you would ever consider purchasing a used trailer is if you wanted a vintage version that was no longer being produced. In that situation, you might consider purchasing a used option because you can get a new trailer in the style that you want. However, in all other situations, you would go with the new option.

Unfortunately, not everyone is filthy rich, so money is a factor. As a result, many people consider purchasing used travel trailers instead of new ones. That being said, you don’t need to purchase a used travel trailer if you don’t want to, but you should be prepared to spend more on a new trailer.

New travel trailers will be more fuel efficient, have the most up to date amenities, and will overall be in the best shape. However, that doesn’t mean that used travel trailers won’t be in good shape. Used RVs can be great options and a lot of the time will look like they’re brand new. So, if you’re worried about the state of a used trailer you don’t need to be. All you need to do is make sure that you inspect the trailer beforehand to make sure there aren’t any issues. You should be doing that for any trailer you buy anyway, so that shouldn’t be a problem.

That being said, used trailers are cheaper, so if you’re looking for the best deal on a travel trailer, it will be a used one.

How Much are New Travel Trailers?

When you decide that you want to purchase a new travel trailer, you probably will be worried about the price. You’ll want to find the best deal on a travel trailer that you can find. Most new travel trailer cost between $11,000 and $35,000. How expensive a travel trailer is, is largely dependent on the size of the trailer. As a result, if you have a lower budget, you’ll want to consider smaller options.

Typically, a travel trailer that is between 20 and 25 feet will cost around $19,000. That price will fluctuate by a few thousand dollars depending on the brand and the amenities that come with the vehicle. However, that’s the general price you can expect.

If you want a travel trailer that is somewhere from 25 to 30 feet long, you can expect the price to increase slightly. On average, the price of a trailer of this size will be around $24,000. The prices of trailers in this range vary more drastically. Some can be incredibly cheap, while others will push $35,000. Once again, this is dependant on the brand and amenities available.

Finally, if you’re interested in a larger travel trailer, you can expect another slight increase in price. However, it isn’t as drastic as the other size jump. For travel trailers that are 30 feet and longer, you can expect the price to be around $26,000 on average. However, prices can vary drastically and the best, large travel trailers will be much more expensive. That being said, if you’re willing to put some time into purchasing amenities for yourself, you can get a larger travel trailer for a similar price to smaller options.

How Much are Used Travel Trailers?

If you decide that you want to save some money and purchase a used travel trailer, then you’ve made a responsible financial decision. Used options will provide you with the best deal on a travel trailer that you can find. However, you should remember that it’s more important to check out used trailers in person than it is with the new options.

Unfortunately, there’s no way to determine the average price of used travel trailers by size because they vary so drastically. The price is dependant on how old the trailer is and the condition that it’s in. For example, a travel trailer that’s five years old that had an original listing of $30,000 could have several different prices. If it was in pristine condition, it might still be $25,000. However, if it’s taken some damage over the years, it might be $20,000 or less.

When you’re looking for the best deal on a travel trailer, you need to be careful about looking at prices exclusively. When you find an option that’s very cheap and well within your budget you need to ask yourself why it’s that cheap. It could just be because it’s old, but it could also be because it’s in bad condition. If you purchase a used travel trailer in bad condition, you might spend more time repairing it than you saved in the first place. As a result, you need to take your time and find the best deal on a travel trailer, while ensuring that it’s in decent condition.

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How to Negotiate a Travel Trailer Purchase

When you’re looking for the best deal on a travel trailer, there are a few things you can do to improve your chances at getting a good deal. Firstly, you should increase the distance that you’re willing to go to purchase your trailer. By increasing your range of options, you’ll have a better chance at getting the best deal on a travel trailer.

Secondly, you should look for trailers that are lightly used. Used trailers, no matter how little they were used, are going to be cheaper than new trailers. However, if you look for used trailers exclusively, you’ll find trailers that are in poor condition. Conversely, if you for lightly used trailers then you will find options that look like they’re brand new. This will help you find the best deal on a travel trailer available.

Additionally, one of the most important things to do when negotiating is to pit dealerships against each other. A lot of the time trailers will have an artificially high price because they are from certain brands. However, if you find a similar trailer from a different dealership that’s lower in price, you might be able to negotiate a lower price on the original trailer. Dealerships want your business, and if you threaten that you’ll go elsewhere they might be receptive to lowering the price.

Furthermore, you should also never make a purchase on your first visit. You will never get the best deal you can on the first visit. The first time your there, the price will be at its highest. By making your purchase after a few trips, you can negotiate the price down to a more reasonable number.

What Is the Markup on Travel Trailers?

Markup is the profit a dealer makes on a product they sell. In other words, it’s the difference between the price that they buy the product from the manufacturer and the price that they sell it to you.

Generally, the markup on most travel trailers is around 40%. However, some dealers will increase their markup. As a result, it’s best to purchase a travel trailer with an MSRP that’s listed. If a trailer doesn’t have an MSRP then the dealer can set the price wherever they want. As a result, you may end up spending way more on a travel trailer in this situation.

How Much Can You Negotiate on a New Travel Trailer?

Negotiating is an important part of finding the best deal on a travel trailer. However, when you’re purchasing a new travel trailer it can be more difficult. New trailers are more likely to have a fixed price, and therefore there’s a lot less room for negotiation.

When you’re purchasing a used travel trailer there’s a lot of things you can argue to possibly get the price reduced. You can argue that it’s in worse condition than they claim or that there are cheaper options from other dealers. However, this won’t be the case for new travel trailers.

With new travel trailers, the best thing you can do is look at different dealerships and find travel trailers that have similar floorplans. You can then find the trailer that’s lowest in price and bring that price to the dealer that you’re working with. If you can show them that you could purchase a trailer that’s nearly identical for a lower price, they may be willing the reduce their price.

However, it’s unlikely that this will save you a lot of money. In some cases, you might be able to get the price reduced by a few thousand dollars. But in a lot of cases, the price will be fixed. However, there’s no harm in trying and you won’t get the best deal on a travel trailer without trying to negotiate.

Best Month of Year to Buy a Travel Trailer

In most places, the time of the year where you’ll be able to get the best deal on a travel trailer is the summer. The second-best time is in the fall. Conversely, the spring and summer are considered terrible times to purchase a travel trailer.

It’s better to purchase a travel trailer in the winter or months approaching it because there are fewer people that will be taking trips in their trailers. As a result, there are fewer people purchasing trailers. Since there are fewer people buying trailers, prices will be lower so that dealers can make sales.

Conversely, there’s a lot more competition in the spring and summer months because more people want to get a trailer for vacations. Since more people want trailers, dealers can increase prices because more people want to purchase their travel trailers. Supply and demand apply to everything, and when the demand for travel trailers goes up, so does the price.

How Do You Inspect a Travel Trailer Before Buying?

When you think you’ve found the best deal on a travel trailer possible, you’ll want to inspect it first. Otherwise, you might find yourself with a trailer that’s falling apart. This is especially important if you’re purchasing a used travel trailer.

The first thing you should do when you’re considering a trailer is to inspect the roof. You want to carefully check to see if there are any leaks. An easy way to tell if there are leaks is to check for water stains or discolorations. If they exist, then there’s probably a leak somewhere nearby.

Furthermore, you should check the floor for water damage. Water damage can be a big issue for travel trailers because they are often exposed to the elements. A good way to check for damage is to tap the floor with a blunt object. If you notice a section of the floor is softer than others, then it has been damaged by water.

You should also have the dealer hook up the electrical and water supply before you leave the shop. The only way to ensure that these systems are working is to test them beforehand. If the dealer refuses to do this for you, that should tell you enough.

Additionally, you should check the tires of the travel trailer. You don’t want to be dragging around a trailer with flat tires. So, make sure that the tires are in good condition before you make a purchase.

Finally, you should ask if you can drive around with your travel trailer before you make a purchase. Driving around with it will give you a good indicator of how the tires hold up. Most dealers will allow you to do this, so don’t be afraid to ask!

RELATED READING

Click here to check out our article called Travel Trailer Depreciation: What’s My Travel Trailer Worth? to learn how to use the future price of your RV to get the best price now!

Enjoy Your Travel Trailer Knowing You Found a Great Deal!

After reading, we hope you have all the information you need to find the best deal on a travel trailer possible. We know there’s a lot of information to absorb, but all of it is important for you to make the best purchase. Remember, doing your research is incredibly important before making a significant financial investment like purchasing a travel trailer.

Before you make your purchase, make sure you have a relatively good idea of your budget. This will help you narrow down the travel trailers you can look at. It will also help you decide whether you want a new or used travel trailer. Once you have your budget, you’ll have a lot more freedom to look at different options.

Have you purchased a travel trailer before? What type of budget do you have for your travel trailer? Do you plan on purchasing a new or used travel trailer? Let us know in the comments!

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mark up on travel trailers

mark up on travel trailers

Calculating Fair Market Value (FMV) for RVs

  • June 15, 2021

Table of Contents

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Whether buying a new or used RV, the exercise of determining the fair market value (FMV) is well worth the effort to avoid over-paying. Each transaction has a seller and a buyer with opposing financial goals—this article provides information to help the buyer minimize the cost while allowing a reasonable profit for the seller.

For the most accurate FMV, use as many of the techniques described in this article as possible. Allow variance in the FMV for condition, options, mileage, upgrades, number of available units, etc.

What Is Fair Market Value (FMV)?

According to Investopedia:

The fair market value is the price an asset would sell for on the open market when certain conditions are met. The conditions are: the parties involved are aware of all the facts, are acting in their own interest, are free of any pressure to buy or sell, and have ample time to make the decision.

In other words, fair market value is the happy, non-zero-sum intersection of where the seller has made a profit and the buyer has gotten a good deal.

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Determining Fair Market Value for a NEW RV

mark up on travel trailers

What’s the Book Value?

Unfortunately, “book value” does not really exist for RVs!

Calculating how much your RV is worth is far more difficult than for a home or automobile.

  • Home values are set by your local housing market supply and demand, comparable “comp” properties, and individual home appraisals (which are regulated by the FDIC). Selling prices are publicly available on real estate MLS listings.
  • Automobile MRSPs and selling prices are carefully tracked by third parties, such as Kelly Blue Book and LMC Automotive. This information is publicly available and is based on incredible amounts of data! In fact, discriminatory pricing has largely been curtailed by the transparency and credibility of these tools.

No such transparency or extensive third-party data tracking is present in the American RV market.

Manufactures often do not disclose MSRPs on their websites. Actual selling prices are not as carefully tracked by giant third-party analysts, leading to incomplete data and sampling bias. It’s a bit of a Wild West out there!

Psst! There are websites out there offering “blue book” valuation services for your RV. Vet and research these services before using them! Make sure the service is a credible source and not a camouflaged phishing or lead generation operation.

What's a Fair Price for an RV?

Even though reliable “blue book” values don’t exist for the RV world, you can still get a reasonable estimate for your RV’s fair market value.

We list a few of the most popular and credible services below. 

None of these services factor in the construction quality of an RV. They are all strictly based on sales trends and forecasting algorithms. 

We recommend using the Low Retail Price (+ up to 10%, not exceeding the Average Retail Price) as a FMV for a new RV.

NADA Guides

The most popular (albeit not the most accurate) new RV book pricing tool is the NADA Guide. Many buyers turn to it first because it provides a quick answer.

You should consult the  NADA Guides , but don’t make it your only source. Its primary limitation for RV’s is that the prices are statistically derived and not from actual selling prices. If you will be relying heavily on the NADA Guides as a buyer, I suggest you use the “Low Retail” number in the online guide or the “Used Wholesale” number in the printed guide as your target price.

NADA allows you to search for Low Retail/Average Retail/Suggested List Price based on:

  • Manufacturer
  • Trim Options

You must provide your zip code to receive an online selling price estimate.

NADA Guide is free to use online. You can purchase the NADA Recreation Vehicle Appraisal Guide from J.D. Power, though.

RVT.com Price Checker

The RVT Price Checker allows you to search for High/Medium/Low/Suggested prices based on:

You can compare results from RVT to estimates from J.D. Power on the same page!

Their estimates are partially based on analysis of list and/or sale prices from the thousands of RVs being sold at RVT.com. 

RV Trader Price Checker

The RV Trader Price Checker allows you to search for Average/Low/High prices based on:

You can search nationwide or limit yourself to your local zip code!

Their estimates are partially based on analysis of list and/or sale prices from the thousands of RVs being sold at RVTrader.com

If you want to attempt to calculate your camper or motorhome’s Fair Market Value yourself, you’ll need to understand the following.

What Do Dealers Pay?

Fair market value for a new RV can be roughly derived by adding an acceptable margin of profit to the dealer’s invoice price (aka wholesale price).

You see, a dealer purchases the RV from the OEM at the invoice price and resells it to you, the customer, for an upcharge as the retailer and service provider.

The manufacturer often provides an Manufacturer’s Suggested Retail Price (MRSP). The dealer will typically sell at or below this amount at a discount.

Sometimes, you can find the MSRP of your RV by visiting our RV Manufacturers List, finding your manufacturer, and then clicking through to their site. 

But some OEMs simply do not post their MSRPs online.

And many RV manufacturers and dealers leverage MSRP values to create forced scarcity and false discounts. MRSP values are intentionally set higher than what the market will bear. Dealers can then sell the unit at “15% off – July only!” and still make their normal profit.

Typical dealer markup ranges from 20-40% of the invoice price.

Ballpark Estimate

To calculate a Fair Market Value estimate, follow these steps:

  • Obtain an MSRP approximation from NADA, your dealer, or another trustworthy source.
  • Multiply this number by 0.85.

Example: $36,544 MSRP x 0.85 = $31,062 FMV.

Do not pay more than this number!

Sadly, there is no hard-and-fast rule for calculating an exact markup margin.

For instance, some smaller trailers have 40% markups because the amount of time it takes the dealership to process the sale for a $15,000 13-ft mini travel trailer is the same as to process a $120,000 luxury fifth-wheel.

Margins vary with market conditions. With supply is low and demand is high, such as during the COVID-19 pandemic, markups are sky-high.

When the travel industry crashed after the Great Recession of 2009, markups took a nose-dive as well.

Unfortunately, unless you have insider knowledge of the RV industry, the invoice price will be difficult to attain.  But if you can get your hands on it, then you can use the invoice price as a bartering tool to reduce the markup to a reasonable percentage.

To my knowledge, there are no publicly accessible databases where you can see RV dealer invoice costs. And most dealerships will jealously guard this information.

P.S. Don’t be waylaid by so-called “search tools.” For instance, I reviewed the website SeeDealerCost.com, which purports to show actual RV dealer costs. I sampled 14 RVs from five different brands, in all cases, the ratio between the “invoice cost” and the MSRP was the same: 45%. I suspect this website is merely dividing MSRP numbers pulled from a different database, like NADA.

What Do Other Customers Pay?

You can estimate an RV’s fair market value by comparing similar models across regional dealerships.

By “similar” models, we mean the same brand, same/similar floorplan, same trim level, from the same manufacturer.

You may not be able to find an exact match. However, the brand and model size should be equivalent.

Many RV dealerships are now posting their inventory with standard pricing online. A quick Google search will show results within your area.

Direct comparisons between local dealerships may be more useful than the regional estimates provided by online estimators.

You can use this information to pitch dealer vs. dealer and drive down the cost through competition.

In fact, here’s a book on the subject from J.D. Gallant at the RV Consumer Group: How to Outwit Any Auto, Truck, or RV Dealer Every Time (included in M – RV Consumer Group

What’s the Actual Out-the-Door Cost?

Some RV dealerships tack on upsells, charges and fees at every opportunity: PDI inspections, service contracts, document preparation fees, or “mandatory” accessory packages.

(I’ve even heard of dealerships trying to sell hitch receiver pins to customers for a measly $2).

You need to know the out-the-door price, with all required fees and charges, from your dealership.

And if you plan to finance through your dealer, you need a full roster of your contract fees, interest rate, and other financial details as well. You don’t want to “save” $1,000 on the RV purchase price only to lose it all over in an unfair interest rate or early payoff fees!

Add Depreciation to Used RV FMV

Another way to determine the FMV for a new recreational vehicle is to find the FMV of a similar used model and add back the depreciation. If you do not have the RVCG’s depreciation schedule, then adding back 25% to a 1-2 year old model should get you in the ballpark. For example, let’s say you found a one-year-old model in excellent condition. By using the techniques described in the USED RV FMV section, you determine that the used model’s fair market value is $48,000. To estimate the new FMV, divide the used FMV by the inverse of the depreciation percentage, like this: $48,000 / 0.75 = $64,000.

Determining Fair Market Value for a USED RV

mark up on travel trailers

When finding out the Fair Market Value for a used RV, we recommend starting with a detailed understanding of that vehicle’s quality.

A great deal of research is performed by the non-profit 501(c) RV Consumer Group. You can see their full list of paid downloads for brand and model ratings here.

For 50 years, the RV Consumer Group has been a watchdog of the unregulated RV industry. Today, the RVCG publishes extensive documentation regarding RV safety, RV brand quality, RV recalls, and other RV industry information.

RVCG does not provide direct pricing information online. However, we recommend you compare their notes on brand quality to the NADA Guide estimates and purchase accordingly.

The RVCG has compiled price statistics for most RV brands and models in their member publications. This information is invaluable to shoppers of new and used RV’s alike and contains a Price Guide  section for each model with the following information:

  • Average price paid for this brand/model as a percentage of the SLP.
  • Average list price when new.
  • Depreciation schedule.

You’ve heard it said that a fair price is the amount a buyer is willing to pay and a seller is willing accept. This is very true, but you also have to consider market conditions to bring the two sides together. These conditions are largely dictated by statistical data derived from completed sales.

Before we begin, however, you should understand that RVs undergo severe depreciation!

  • Year 1: 20%
  • Year 2: 25%
  • Year 3: 30%
  • Year 4: 35%
  • Year 5: 40%

As you can see, RVs drop about 20% in value from new-to-used, and each year adds about 5% deprecation loss.

This tends to level off after Year 5. It takes 8-10 years for an RV to hit a full 50% loss in value, although this is somewhat for faster for most towables compared to motorhomes.

As a quick n’ dirty Fair Market Value estimate for a used RV, find the MSRP of that RV when it was new (from NADA), and then account for the depreciation.

Let’s look at a few techniques for determining FMV of a used recreational vehicle.

Again, the easiest source for an estimated Fair Market Value for a used RV is the NADA Guide from J.D. Power.

You should consult the  NADA Guides , but don’t make it your only source. Its primary limitation for RVs is that the prices are statistically derived and not from actual selling prices. If you will be relying heavily on the NADA Guides as a buyer, I suggest you use the “Low Retail” number in the online guide or the “Used Wholesale” number in the printed guide as your target price.

Actual Selling Prices

By far the best way to determine FMV is by observing the actual selling prices of similar units.

As discussed in the New RV FMV section, you can use the following resources to search for estimated market prices for new AND used RVs and campers:

  • RVT Price Checker

The following sites don’t provide averaged sale prices, but you can manually compare similar models for sale:

  • RVClassified.com
  • RVOnline.com
  • CampingWorld

PPL Motor Homes

PPL Motor Homes is a consigner in Houston, Texas. It is the largest RV consignment dealer in the country. Having purchased an RV from them in 2004, I can tell you firsthand that my buying experience with PPL has been pleasant. They are nice enough to post their own selling prices on the following pages:

  • Class A Diesel Motor Homes
  • Class A Gasoline Motor Homes
  • Class B & C Motor Homes
  • Fifth Wheels
  • Travel Trailers

You can also visit their main Price Checker “blue book” and Price Comparison page here.

eBay Prices

Even if you have no interest in buying or selling on eBay, it is a valuable resource for determining selling prices. Examining final bid prices on RV’s similar to the one you are considering will give you a good idea of what those units are worth. Here is how you look up the final prices on completed listings:

  • Go to the  RV category on the eBay Motors web site .
  • Enter your search criteria, such as “monaco diesel”, and put a check mark in the “ Completed listings ” box under “Search Options” on the left side of the page.
  • In the results ignore items that say “ Reserve Not Met ” and those with a  zero  in the “ Bid ” column—these items did not sell.
  • Review the other items to find a model most similar to the one you are interested in and make a note of the final bid amount in the “ Price ” column.

Occasionally you will see asking prices far above the FMV for almost-new RV’s. When you see this, chances are the seller paid too much for the new unit and, naturally, wants to recoup as much of their investment as possible. Unfortunately, the chances of these folks getting anywhere near their asking price is slim.  The time to minimize resale losses was back when the new unit was purchased, by doing as much research as possible.

Local “Comps”

When in doubt, visit your local online marketplace and see what comparable RVs and campers are selling for.

Popular marketplaces include:

  • Facebook Marketplace

Get a Quote

Why not just get a quote? You don’t need to own the RV to submit information! If you know the year, make, model, location and condition, you can get a quote.

Try out the Good Sam RV Valuator for a quick quote, which will forward your submission to your nearest Gander Mountain or Camping World store (so use at your own risk!)

mark up on travel trailers

Andy Herrick is a blogging nerd, #8 Enneagram, wannabe bread baker, INTJ, RV industry professional, and small business entrepreneur. He can be found hanging out with his lovely wife and family, skiing, cycling, climbing, hiking, and convincing anyone who will listen why dogs aren’t really that great of pets. Also, he runs this website.

  • Andy https://changingears.com/author/andrew-herrick/ RV Salvage Yards and Part Stores in Hawaii
  • Andy https://changingears.com/author/andrew-herrick/ RV Salvage Yards and Part Stores in Ohio
  • Andy https://changingears.com/author/andrew-herrick/ RV Salvage Yards and Part Stores in North Carolina
  • Andy https://changingears.com/author/andrew-herrick/ RV Salvage Yards and Part Stores in New York

mark up on travel trailers

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mark up on travel trailers

GCT RV

How Much Are Travel Trailers Marked Up

The markup on a travel trailer is typically around 50% of the cost. The markup varies depending on the size and quality of the trailer.

A good rule of thumb is to multiply the cost by two to get an estimate for what it will sell for.

For example, if a travel trailer costs $10,000, it will likely sell for $20,000.

What is the markup on a camper?

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. Many sellers earn commissions of 20% to 30% of the profit on an RV, although this amount varies by dealership and area. [1]

How do I find out what my travel trailer is worth?

NADA RV Value website. This resource gives ranges for RV sale prices based on manufacturer, model and model year. RVTrader.com. Marketplaces like eBay, Facebook Marketplace and Craigslist. Professional appraisal companies. Your local dealer. [2]

How much off MSRP should you pay for an RV?

A good rule of thumb for an average RV is to expect to receive about 20-25% off the MSRP sticker price for a new RV. [3]

What is the profit margin on RVs?

Gross margins on used RVs averaged 20.4% in the first quarter of 2022. The gross margin on new RVs is the highest recorded by Spader/RVDA data in at least a decade. The used RV gross margin is even with 2021 as the highest level in at least a decade. [4]

Is there a Kelly Blue Book for RVs?

There is no Kelley Blue Book for RVs, but many use another website and database to help determine a used RV value. You have many factors and multiple data points to consider when pricing a used RV, but you can start with the vehicle NADA (National Automobile Dealers’ Association) Guides by JD Power. [5]

Do RVs hold their value?

How Well Do RVs Hold Their Value? RVs, whether motorized or towable, are notorious for depreciation. Some RVs hold their value better than others for various reasons. In general, RVs lose between 30% and 45% of their value after only five years of ownership. [6]

How do you find the wholesale price of an RV?

Take the “Low Retail” figure and subtract 10%. This will get you close to the NADA RV book value. You now have the wholesale, or trade-in value for the camper. This figure will usually be close to the actual cash value (ACV), which is the amount a dealer would pay you, in cash, for the RV. [7]

Why are RV MSRP so high?

Both new and used RV prices remain high after increased demand and short supply pushed them up during the pandemic. [8]

Is it cheaper to buy an RV from the manufacturer?

Among many other benefits, buying factory-direct can give consumers more bang for the buck. “The most important advantage of buying factory-direct is the reduced cost,” said Marsha Trautman, president of custom fifth-wheel builder Space Craft Manufacturing. [9]

Can you buy a new RV without the dealer prepping it?

The dealership must ready the RV for transfer. First, the dealer must do a PDI (Pre-Delivery Inspection) to confirm the physical condition of the RV has been checked and all systems are operational. [10]

How much can you negotiate on an Airstream?

How much should you pay for a new Airstream? For the best price, you are looking to get from 20%-30% off the MSRP. I suggest 15% off MSRP as the minimum you would be willing to accept. A discount closer to 30% is only going to happen if the dealer is a bit desperate for some reason, but it is possible. [11]

What brands are owned by Forest River?

Forest River, a subsidiary of Berkshire Hathaway, manufactures RVs as well as utility cargo trailers, buses, and pontoon boats. The company ranked as the second leading RV supplier to the US market in 2016. Brands owned by Forest River include Coachmen, Dynamax, Forest River, Palomino, Prime Time, and Shasta. [12]

Related posts:

  • How Long Do Travel Trailer Brakes Last
  • How Tall is a Travel Trailer
  • How to Back a Travel Trailer Into a Driveway
  • Where To Get Gas When Pulling A Travel Trailer

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Camping Fun Zone

What is the dealer mark-up on RV’s?

  • Post author: admin
  • Post published: July 17, 2020
  • Post category: RVs
  • Post comments: 0 Comments

Dealerships add up to 50% mark-up on RVs, making it harder to find the best value for money. This give them room to negotiate price. The best time to get a deal is at end of season.

What to know when purchasing an RV:

Just like with any other vehicle, there are a few things you need to take into consideration when buying an RV.

By now you probably did research and found that it might be a tough task to take on; especially with different mark-up and selling prices.

What is the MSRP?

The retail price suggested by manufacturers range from 30% to 40% depending on where you buy.

What is your budget?

By knowing what you are willing to pay, you can save a lot of time and money!

You will be able to do research based on your budget, which makes the whole process easier.

Dealerships will ask what your budget is, what model you have in mind, and ask what kind of amenities you desire.

Discounts and deals

Do your research thoroughly, you might just find the perfect deal!

Someone you know might have seen sale adverts that you missed, or maybe bought an RV, and can equip you with more information.

The internet never disappoints; check out your local dealerships and compare prices beforehand.

Advertised price vs actual price

There might be added costs that you did not take into consideration.

Dealership fees is an expense that will be added to your final cost, make sure you know what you’ll be paying. Warranties last a few years and can be of great help if a system in your RV malfunctions. Finance charges can be a pain when you make a loan for a big sum of money; consider buying a used RV to save on additional costs.

Features and floor plans

Considering a new RV might just be a good idea compared to the older models.

Floorplanning has been improved with modern RV’s, making it even more fun to have an RV custom made.

You can easily fix or replace broken parts, whereas with older models you might not be able to find some parts due to them not being available anymore.

Attending an RV trade show can save you 25% or more

An RV with a suggested retail price of $100 000 could go for as little as $75 000 at an RV show.

These shows are a must for people who are planning to purchase an RV.

The variety at these shows can be overwhelming, so take your time and look for features you desire, instead of looking at every available RV.

An RV show is the best place to get to see all the variety of RVs available in the market and with special pricing. You should expect to get 15%-40% off the MSRP based on supply and demand, hot models will not be discounted as much.

In an RV show put up anywhere, the greatest advantage is that you get to see all the types and models of the RVs in prevalence. There are tons and tons of different models that you will come across.

They range from a cost of 30k dollars to many millions, making it for all models available under a single roof. You can examine and test these for drives. The Sales team come up with a good discount for many of the models displayed there.

Don’t settle for a single brand all the time. Many other brands will produce good models than you expected it would have had. The only way to end up at a good model is by doing your research through the entire showroom.

If the sales team you met is a local dealer, you can have a chat with them and find if they have a store nearby. If that is a green tick for all the questions, then you will not need to worry about the warranty issues.

Though the staff at an RV show give you a good discount, it will not be the best discount for many reasons. Visit a local store nearby and you will find that they are ready to provide a much bigger discount. You do not know the Dealer whom you meet at an RV show. This would not guarantee you anything about warranty issues for the vehicle.

If you wanted to buy an RV at a cheaper rate, then an RV show is not the place because you can find cheaper for the same models only in a local store.Select an RV model that you wanted to buy. Go through various websites on the internet that gives you a comparison between the prices of the RVs at different stores. Contact those particular dealers and ask if they could offer you a good discount. Collect the top few greatest discounts and try making deals with them by comparing their prices with the next cheaper ones. And now pick the best discount.

Don’t fall for the phrase telling ‘One time offer’. They are all marketing strategies of the salesperson to pull his customers. RV show price deals look cheaper from the outside but they are not.

You can instead explore the local stores in your town and choose the lowest price among them. You can fall for RV show price deals, but your need for warranty claims will pull you down until and unless they are verified and trusted dealers of any town in the state.

Should I negotiate with the dealership’s salesperson?

This might seem like a silly question to some, but not taking the chance to negotiate could cost you thousands, as the mark-up can be up to 50% and any dealer will rather give discounts that lose a possible sale.

MSRP and used RVs

Used recreational vehicles generally don’t come with an MSRP, but dealerships aren’t limited to MSRP’s, they can still add mark-ups.

Be careful before purchasing an RV, you might want to look at a few different options.

You will save a lot of money by researching the specific dealership you want to purchase from, reviews can help in making a final decision.

Kelly Blue Book and RVs

Kelly Blue Book is an automotive research company that is recognized as a reliable source for vehicle valuation.

While being well known for regular vehicles, and having done so in the past, the Kelly Blue Book no longer publishes listings for RVs.

Your best bet would be to make use of the multitude of available resources online on sites such as NADA or RVTrader.

I was eager to purchase – a small motorhome in the 20-25 foot range – and start enjoying weekends away and extended road trips. We spent days at the local dealerships crawling in and out of the various models, imagining ourselves hitting the open road.

The interiors were gorgeous – some had bathrooms with full showers, kitchenettes three-er stoves, co master bedrooms in the back. The amenities seemed endless. But when it came time to look at pricing sticker shock really set in.

We took notes and base MSR to final quotes were getting. On most models, we noticed a 15-20% over manufacturer’s listed retail price. For example, one 24-foothome had an MSR of $75,000 but the dealer’s ask was $89,000!

It was clear these RV dealers tacking on all kinds fees and adjustments. There were charges for freight, prep, documentation fees, and “market adjustments” of $5k more. Not mention they really pushed extended warranties and service packages too.

We realized these dealerships were out to maximize profits, layering markup on top of markup. It took serious negotiating and shopping around at several locations before we felt we found a fair price. We ended up saving $8,000 off one dealer’s initial quote!

Negotiating RV Prices

Underestimating the power of your negotiation skills is a fatal error that could cost you money, the money you could have spent on repairs, alterations, or upgrades.

Here are a few helpful tips to help you negotiate the best price for your RV:

Be prepared, you’ll need to know a bit about RVs before you can negotiate

Being “shy”, “fair” or worrying about robbing the dealer, while being admirable, won’t help your pockets.

Understand how far you can push it. Low balling will result in a negative reaction towards you and the dealer’s willingness to negotiate might dwindle or he might double back.

Let him do all the talking. If he’s talking and you’re listening, he won’t know what you are thinking. He might just drop the price to keep you interested in the buy.

Speak to the right people. Speaking to a new salesperson at a dealership or speaking to the owner of the company will have a different result. The new salesperson can’t give you 25% off, but the owner can!

Knowing when the deal just isn’t happening and walking away is sometimes the best option. Walking away might push the seller into accepting your offer.

Be friendly, yet firm. Your body language tells more about you than your words. A friendly smile is free and can save you a few hundred dollars. Being firm lets the seller knows that you know exactly what you want and won’t settle for less.

Pointing out problems you notice on the discussed RV, might sound harsh, but this will flutter the seller into doubting his price. It’s also a good indicator as to how much it will cost to return the RV to its peak condition.

Inspecting is important

When buying a used RV, you will need to check a few things, or you might just have to return it to the dealership.

Check for previous repairs made and make sure that they are fixed properly.

Water damage happens more often than you think; check carpet transitions to tiles, water consistency, and inspect gaps in seals and trim.

Make sure that cabinets stay closed and you might want to switch on the oven and fridge to be sure that you don’t buy a broken RV for the price of a new RV .

Private seller vs dealerships

You might feel more comfortable buying from a reputable dealership, some dealerships neglect the quality of their RV’s and make up for it with fancy amenities, be careful!

Manufacturers sometimes give incentives to dealerships when coaches stay on their lot for more than a year so you might just score a discount.

You might get the perfect deal when buying through a private seller, that’s where the research comes into play.

When buying through a private seller, make sure that you can collect the RV, you may just lose your money just by taking their word.

Trade-in your RV

If you own a used RV, you can always trade it in for a newer model!

Private buyers might be able to assist you with trade in’s and sometimes you can stumble upon a great deal!

Ultimately, make sure that you have discussed all your worries with the buyer or dealership.

There is a lot of options when trading in your used RV, you don’t necessarily have to trade for another RV.

What amenities do you prefer?

Modern RV’s can be custom made to your preferences; take all your ideas and dreams with you to the dealership of your choice, to discuss your exact expectations.

Manufacturers change the construction of RVs based on their customer’s feedback, making it better and better with every new release.

Older RV models all have the same construction and layout.

You can add-on any amenities of your choice, according to your budget.

  • Cars : Dealer markups on cars can range from 5% to 15% or even more, depending on the make and model. Luxury and high-demand vehicles may have higher markups, while more common models may have lower markups.
  • Boats : Boat dealer markups can vary widely, from as low as 10% to as high as 35% or more, depending on the type and size of the boat, as well as the manufacturer and dealership.
  • Jet Skis : Dealer markups on personal watercraft like jet skis can vary significantly, from around 10% to 25% or more, depending on the brand, model, and dealership.

Related posts:

  • Take Over Payments on RV: How to Transfer Ownership and Save Money
  • Is Mileage or Age More Important When Buying a Used RV?
  • How Much Does a Class C RV Cost? (51 Model Prices Compared)
  • How Much Does A Pop-Up Camper Cost? (7 Examples of Popular Models)

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How Much Do Dealers Mark Up Travel Trailers?

How Much Do Dealers Markup Travel Trailers

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On average, dealers mark up travel trailers around 35% to 40%. Now, that may sound pretty steep until you consider revenue versus profit. After all, dealers have to pay their workers, advertising, inventory costs, and in many cases, they get stuck with completing the cosmetic components of travel trailers delivered from the manufacturers. 

That 40% dealer’s markup might make you blanch if you were to learn the specific cost per RV they have. Luckily, as a buyer, you get to focus on what you can afford and walk into the dealership armed with the right information.

Mathematics and the right timing can be a great advantage when you’re in the market for a shiny, new travel trailer. Understanding a dealer’s markup on various travel trailers is good, but understanding the “hows” and “whys” is even better. 

In this article, we’ll help you understand the broad strokes of how much dealers mark up travel trailers and the factors behind it, so you can negotiate the best deal on that RV you have your eye on.

What is the Dealership Markup Percentage on Travel Trailers?

The industry standard is 40%, but it’s not always that high. Things change in the RV market consistently. You have seasons, more models than you can imagine, slow times of the year, and a variety of other market fluctuations that test that percentage from time to time. 

Unless you’re an accountant, a lot of the dealer costs are difficult to keep straight without a complicated spreadsheet full of functions and macros. For instance, it might surprise you to know that a major part of an RV dealer’s income stream doesn’t necessarily come from selling travel trailers and motorhomes but from parts. 

That’s right—parts. You can’t go down to your local auto parts store or Walmart and buy that must-have RV component.

How Much Does a Dealer Profit on a Travel Trailer?

Profit is harder to calculate when you’re dealing with non-specifics. The average amount a dealer makes per travel trailer is around 28.5%. However, the actual profit is between 5% and 15% of revenue. Dealers mark up travel trailers to maximize the overall profit. Yet you’ll typically see dealer prices below the MSRP.

Let’s say the dealer sells a travel trailer for $50,000. The dealer will usually make around $14,250. After operational costs, the dealer will keep between $712.50 to $2,137.50.

Of course, a lot of those travel trailers are a lot more expensive than $50,000. When you throw in used travel trailers and much smaller travel trailers (teardrops), profit margins shrink rapidly. 

What Does MSRP Mean?

What Does MSRP Mean?

In terms of an acronym, MSRP means Manufacturer Suggested Retail Price. In terms of definition, it’s simply the price the manufacturer thinks is fair for everyone, including the manufacturer itself, the dealer, and the buyer. 

You’ll notice that you always see the MSRP listed on the travel trailer, and you always see the marked-down dealer’s price below it. In a bubble, you would wonder how in the world the manufacturer or the dealer ever makes money if they always sell below MSRP. 

That’s because the “wholesale price,” otherwise known as the invoice price, is what the dealer paid the manufacturer for the travel trailer, and it’s a lot less than MSRP. The dealer’s markup on travel trailers is a markup on the wholesale price, not MSRP. 

Does a Dealer Have to List a Travel Trailer at MSRP?

By law, MSRP has to be listed on the travel trailer on-site. However, that’s not the case online. Some RV dealers list MSRP on their online travel trailers, and some don’t. It just depends on the dealer. 

Also, just because they list the MSRP doesn’t mean that’s the true cost of the travel trailer. Most of the time, you’ll see a markdown price below the listed MSRP price, and that’s true online or on the dealership lot. 

Can a Dealer Change the MSRP?

The manufacturer sets the MSRP, not the dealer. Once the manufacturer sets the price, that’s it. It’s important to note that the “S” in MSRP stands for “suggested.” It’s just a suggested price and is very rarely the price you’ll pay at the end of the day. 

The ultimate price has several factors in it, including your own negotiating skills. The dealer often lists their own price below the MSRP, and that price doesn’t have to be final either. If you have some pretty good negotiating skills, it definitely won’t be the final price.

Should You Buy a Travel Trailer Listed at MSRP?

Should You Buy a Travel Trailer Listed at MSRP?

Never buy a travel trailer for the listed MSRP price. It’s very rare for MSRP to be the only price listed on the travel trailer. The odds of you paying MSRP are slim to none. There are a wide array of factors that go into the ultimate price, and that’s before the unpredictability of negotiations. 

At the same time, it’s not like touring vacation hotspots in the Caribbean and the Mexican coast, where nothing has a price tag, and nothing is set in stone. Those places are a blast when it comes to bartering. Unfortunately, purchasing a travel trailer doesn’t get that wild. But neither is it a black-and-white finality, especially with all the external factors. 

  • Manufacturer-to-dealer incentives
  • Final dealer invoice with manufacturer
  • The time of year
  • The dealer’s floorplan 
  • Dealer’s “markdown” from MSRP
  • Trade in values
  • Fair market value (and whether or not you’ve calculated it)
  • Pre-inspection
  • Whether or not you got ahold of the invoice price (dealers don’t want you to have that and never list it)
  • How much price shopping you’ve done (pitting dealer versus dealer)
  • Your negotiation skills
  • Known depreciation values
  • NADA Guides (Now known as J.D. Power Value Guide)

That’s a lot of information and a lot of intangibles. Knowing every one of them intimately—at least the ones you can get your hands on—provides you with a major advantage. 

RVBlogger Editor’s Note On Paying MSRP : During the recent RV Boom, some RV dealerships were caught selling RVs at the MSRP price. At a time when customers had to wait for their travel trailers to be built, this practice was considered “unreasonable price gouging.” The RV Industry Association (RVIA) took the appropriate action to penalize these dealerships. It was found that only a few sales representatives were taking advantage of the situation versus a dealership policy.

How Do You Know You’re Getting a Fair Deal on Your Travel Trailer?

The above list is how you know you’re getting a fair deal. It’s not enough to walk on the buyer’s lot, accept the first price the dealer throws at you, and roll out with your new travel trailer in tow. 

Start with shopping all the travel trailers (within your acceptable limitations) available in your local RV dealerships. You can do that physically or online.

Calculate the fair market value based on all of the above-listed information. Find out all of the RV dealer fees as best you can. They don’t publish these online, so you’ll probably have to go to the dealership to learn these costs. From there, you can subtract their costs to get an idea of the price of the RV. If it’s crunch time, you’ll see the associated price drops. 

Do your homework. Study the J.D.Power Value Guide and write all of this stuff down for future reference at the dealership. It pays to be patient and take your time. That’s how you get a fair deal. 

Can You Negotiate the Dealer Price on Your Travel Trailer?

You can negotiate anything you want when it comes to price. It doesn’t mean you’ll win. However, the odds of getting the price you want increase the more you know about the actual price of the travel trailer and the dealership’s information.  

5 Best Strategies to Negotiate a Better Price for Your Travel Trailer

Best Strategies to Negotiate a Better Price for Your Travel Trailer

1. Use The J.D. Power Value Guide

If you want to drive the price down from the original dealer’s markup, it starts with the J.D. Power Value Guide. The values in the Guide are sales prices, but they will give you a very good foundation point to compare the price in front of you versus how the same RV model sells elsewhere.

Be aware each state has its own sales tax and other fees, which affects the total price.  

2. Time It Right

There are two things to consider when it comes to timing, and both are advantageous. The first is to shop at the right time of the year—late fall and winter.

The second is harder. You’ll need to figure out what the in-house costs are for the dealer in question. Dealers markup travel trailers for profit, but they’ll mark them down in a hurry to avoid paying interest on their loan on the RV.

When a dealer finances RVs from the manufacturer, they have a certain period to pay it back before interest payments begin. That’s how typical RV Dealer loans work. Dealers markup travel trailers for profit, but they’ll mark them down in a hurry to avoid the interest on the loan activating.  

3. Do Your Research

We can’t stress this enough. Shopping for a new RV should be something that takes weeks at a very minimum, months in a best-case scenario. Take your time and gather all the pertinent information you can get find.  

4. Set Realistic Expectations

It’s good to be very optimistic, but it’s also good to set realistic expectations for yourself. No matter how good your negotiating skills are, there’s always someone better at it than you.

You may meet your match at the dealer and end up on your heels the entire time. You’ll never buy a travel trailer for pennies on the dollar. 

5. Be Willing To Travel For A Good Deal

Best Strategies to Negotiate a Better Price for Your Travel Trailer Be Willing to Travel for a Good Deal

A hundred miles isn’t that bad when you can save thousands. Be willing to travel to RV dealerships further out from where you live. You may find a great deal at an RV dealership an hour away. Who knows, Even with the cost of gas, you may still save money on that desired RV!

6. Don’t Say Too Much To The Sales Person

This is a key negotiating tactic. Make them do all the talking, and never give it away that you want a specific travel trailer. Avoid all mention of your own financial situation or how much you’re willing to pay. Just keep it to yourself, at least until it’s time to spring your negotiating trap. 

7. Attend RV Shows To Familiarize Yourself With The Market

Attending RV shows will not only help you gain knowledge but can also save you up to 25% on the price. A lot of RV dealers like to make a big mark at an RV show, and they want to get that first sale on the books in the morning. By the end of the day, they’re getting desperate. Time your arrival for either. 

Will Some Dealers Try to Overcharge You?

Will Some Dealers Try to Overcharge You?

Some dealers may try to overcharge you. That’s their job. At the end of the day, this is a business, and the dealer’s sales people need to put food on the table and keep the lights on, just like you.

No, that doesn’t mean they’re going to raise the price to an unreasonable level. What it does mean is they will try to sell you the offered price when you probably could have negotiated something much better. 

If you want to avoid being overcharged, you have to be willing to walk away. The way you have to look at it is like this: the price sticker on the travel trailer is already more than what the RV is worth. Your job is to get that price down as low as you can. 

While remaining within the realm of reality, come up with a fair deal for you that the dealer will accept. If you can’t reach that price point, walk away. 

How to Avoid Overpaying for a Travel Trailer

The average travel trailer depreciates by a little more than 20% the moment you drive it off the lot for the first time. You should approach the travel trailer you want with the idea of taking the biggest chunk out of that 20% as you can. 

  • Buy your travel trailer in the late fall or winter
  • Offer to pay in cash, but only when the dealer has said no to the deal
  • Buy in bulk (explained below)
  • Create a fixed budget and stick with it
  • Attend RV shows
  • Target as many dealers as you can within your area
  • Price shop online until your typing fingers turn blue
  • Point out problems with the travel trailer (only when buying used)

All of the above are self-explanatory, except for the part about buying in bulk. To pull this off, you need multiple friends or family members willing to buy travel trailers or motorhomes. If you can buy three, the dealers will be more than happy to come off their sticking price.

✅ Check out this video below, where an RV dealer spilled the beans on MSRP! Just click on the video below to watch it! 👇

Final Thoughts on How Much Dealers Can Markup Their Travel Trailers

While there will always be exceptions to the rule, expect a 35% to 40% dealers markup on travel trailers. But remember, good things come to those that wait. Patience is a virtue, as they say, and patience is also lucrative. At least in terms of saving yourself a good deal of money. 

The RV market is a lot more convoluted than the auto market, but it’s not insurmountable. Stick to your budget and game plan. Do your homework and spend all the time necessary researching the type of travel trailer you want. 

If you do all of those things, at the end of the day, that markup is nothing more than a number—a number that represents nothing. 

Related Reading:

– 10 Best Travel Trailers Under $25,000 – 8 Travel Trailers With The Best Resale Value

About the Author:

Thomas Godwin is a full-time freelance writer with a BFA in Creative Writing, a U.S. Marine, and an avid outdoorsman.

When he’s not writing, he’s raising chickens and Appleyard ducks. Thomas also constructs teardrop campers (attempting to anyway) and kayaks the Blackwater River with his wife, two daughters, and his Dobermans.

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RV Depreciation Rates Per Year + Method To Calculate 2024

mark up on travel trailers

What Is The Typical Depreciation Of An RV Or Camper?

We have made four tables with depreciation rates for Class A, Class C, fifth wheels, and travel trailers.

The numbers below are the average/typical depreciation rates per year found when comparing the advertised price of different types of RVs all across the United States.

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The depreciation rate is the percentage rate at which an RV is depreciated across the estimated productive life of an RV.

How fast or slow a specific RV depreciates depends on several factors, and we’ll talk about a couple of them after listing the depreciation tables down below.

Please take these numbers with a grain of salt, since these were the averages at the moment we created the tables.

Let’s look at the tables first and then talk about how you can calculate the value of an RV, what to think about, and how we found these numbers.

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Table of Contents show What Is The Typical Depreciation Of An RV Or Camper? Class A Class C Fifth Wheels Travel Trailer RV Depreciation Rates – What To Think About Why MSRP Vs. Price Out The Door Matters How We Calculated Depreciation Percentages What We Can Learn From These Depreciation Rates How You Can Use The Numbers

We’ll assume that the average new Class A costs $120,000 out the door.

A few things to note

  • The difference between year 1 and year 2 isn’t huge. But do the year 2 models sell? The bigger drop between year 2 and 3 could indicate that a lot of Class A’s that are two years old don’t get sold, and then in the third year, the price goes down because of this. Just speculating.
  • If we imagine that we buy the Class A for 35% off MSRP, it’s down to half the MSRP value after just one year.
  • The biggest drop is in the first year, which tells us that new RVs lose 5-18% when you drive them off the lot. With a Class A, this is a lot of money lost in depreciation.

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We’ll assume that the average new Class C costs $80,000 out the door

  • Class C’s depreciation rate is lower than the rate of Class A’s. Why? Could be because they’re cheaper and more people can afford to buy them.
  • Class A and C depreciation rates are somewhat close to each other until after 10 years. Then the Class C slows down.

Fifth Wheels

We’ll assume that the average new fifth wheel costs $50,000 out the door

  • Pretty slow depreciation rate until after 11-12 years
  • Goes up significantly after 13 years
  • 19.3% depreciation after one year is a big loss

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Travel Trailer

We’ll assume that the average new travel trailer costs $25,000 out the door

  • Travel trailer depreciation rate is significantly higher than fifth wheels, especially after 12 years
  • Travel trailers have a more steady depreciation rate even from the start compared to every other kind of RV
  • A 21.2% depreciation after one year is pretty big

class c rv motorhomes that will depreciate in value every year

RV Depreciation Rates – What To Think About

Today I would like to talk about RVs and how they lose value over time, known as depreciation. We’ll talk about Class A’s, Class C’s, travel trailers, and fifth wheels.

There are people that believe you should never buy a new RV, while other people have never thought about buying a used one.

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We’re all in different financial scenarios and do things differently, so there really isn’t a right or wrong. Keep that in mind and in the end, do what makes sense to you.

There are tons of factors that play in when it comes to the value of an RV you want to buy or sell but speaking in general, these play a big part.

Some RVs and trailers are made better from the start and depreciate slower.

Take a look at Airstream trailers and you’ll quickly notice that the depreciation is slower on those trailers.

That isn’t just because of brand reputation and quality, but the demand.

Demand drives prices up and down so don’t go buy an Airstream and think that it will lose value as fast as a lower quality trailer.

Where you are going to buy or sell matters. If a trailer is manufactured in the west and you live in the east, the price you’ll pay in your state for that trailer new will include shipping.

But when the time comes to sell the trailer, you might have to forget about the shipping cost and sell your trailer for however much it costs where it was made, because your buyer can be comparing it to prices in the whole country.

Time of the year 

There are fewer trailer sales in the winter and more in the spring, so if you plan on selling your trailer, plan ahead and do it at the right time.

On the other hand, if you’re buying, you might be able to find a better deal in October/November as the dealership is trying to clear their inventory out.

If you’re buying in the spring or summer, the chances of getting a great deal are lower.

State of the Economy 

The economy in your country is an important factor in whether you’ll get a good price when selling or buying.

If the economy is down, people have less money and are more careful with spending.

When the economy is up, there is a higher demand, and dealerships won’t give you an incredible deal if they know that someone else might walk in tomorrow and buy it for more.

State of the RV 

If you’re planning on selling the RV, the shape it’s in will matter.

Just because the average depreciation value for a travel trailer might be 50% (for example) doesn’t mean that you will sell for that much or little.

How much you’ve used and stored it will be the big one but also what kind of work you’ve had to do on it.

Don’t overvalue the work you’ve done, it doesn’t matter how much you spent on fixing the leaky roof.

It’s basic functionality of a trailer and not something a buyer should be paying extra for.

It’s different if you’ve replaced the roof completely on a 10-year-old travel trailer and it’s only a few months old.

The reason I wrote these factors down is that I don’t want you to get discouraged or led wrong with the numbers below.

While you will see an average depreciation percentage, remember that it’s a general guideline and not true for all RVs.

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Why MSRP Vs. Price Out The Door Matters

MSRP (Manufacturer’s Suggested Retail Price) is the list price that you’ll often see on dealerships’ websites or locations.

There’s often a marketing ploy like “30% OFF MSRP” below it to trick you into thinking that you’re getting the best possible deal.

The truth is that nobody pays the MSRP price, and the dealership knows this.

Any serious dealer expects you to negotiate so know that their sale price often isn’t the lowest they’ll go.

You could very well get an additional 5-20% off depending on demand and time of the year.

I visited 20 different dealerships from different states online and picked five trailers from each at different price points to calculate what the average difference was between their “sale price” and the listed MSRP.

The total average on travel trailers and fifth wheels was 34%. So MSRP was on average 34% higher than their sale price.

This means that when you drive off the lot, your out of the door price should be at least 35-40% off the MSRP in my opinion.

These kinds of numbers might be harder to reach on a Class A and Class C.

Why am I going through this? Because this is also a factor that plays into the percentages.

Some dealers mark up their trailers more than others, and since we’ll be seeing an average percentage that is based on their list price, you’ll have to take this into consideration.

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How We Calculated Depreciation Percentages

My wife and I put together a list of 160 RVs. 40 of each RV type that we’re looking at. Class A, Class C, Fifth Wheels, and Travel Trailers.

You might have read somewhere that fifth wheels and travel trailers depreciate at the same rate, but according to our calculations, there is a big enough difference to put them into their own tables.

As both are big markets on their own, it made sense to us (although it took us a few extra hours).

What we then did was go on Nadaguides and RVTrader and started looking at each trailer from each year starting with the 2019 model as new.

From 2018 we looked at used, and so on. We tried to make sure the options selected on Nadaguides were as close as possible to the trailer for sale.

We picked RVs from different brands, states, and price points.

We quickly ran into a few trailers that were new models and not on sale 10 years ago, so what we did then was found a new trailer and added that to the list as well, so we ended up with about 250 RVs in total.

Because of this, years 1-8 will be based on more data than years 9-20. We did the best we could with the data we had.

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Class A RVs that depreciate in value every year

What We Can Learn From These Depreciation Rates

The first thing to remember is that we should take these percentages with a grain of salt, each percentage shown in each table is a very general average rate.

The $-amount in each table is there to show what that percentage looks like in numbers, not to be the correct average value of RVs.

What I learned

  • Class A’s depreciate a lot, especially after year 10. This could have to do with engine work that usually has to get done around this time or mileage. Let me know what you think could be the reason.
  • Class C’s don’t depreciate as fast. Most likely due to them being cheaper which means that the demand is higher since more people can afford them.
  • Fifth wheels hold their value the best but have the second to biggest depreciation after the first year
  • As soon as you drive off the lot, no matter what kind of RV you’ve bought, you’ll lose 5-20%.
  • I saw some incredible deals from dealers, I found several new RVs that were cheaper than two-year-old used ones of the exact same model. Not all of the used ones were priced high according to NADAguides either, which shows that there are good deals out there, especially in the late winter/early spring months.

How You Can Use The Numbers

Say that you’re planning on buying a used RV. Use these numbers to figure out what a good year to buy from would be, meaning the years when RVs depreciate the most.

Let’s look at some examples.

  • Class A depreciates almost 4% on average between years 5 and 6, that’s some savings right there if you plan the purchase right.
  • Fifth wheels depreciate on average 5.7% between years 4 and 5.
  • Travel trailers depreciate on average 3.1% between years 2 and 3

As you can see, if you plan your purchase you can save more or less money by choosing an RV that is a little bit older or newer.

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You can also use the numbers to calculate what your RV could be worth right now. Here is how:

  • Scroll to the table about the kind of RV that you have.
  • Figure out how old your RV is and copy the depreciation rate percentage from the table next to that year
  • Go to Google.com and insert how much you paid for the RV out of the door. Then subtract (-) the percentage you copied, click enter and read the value

Example: I have a travel trailer that I bought for  $25,000 new, it’s a 2015 model so it’s four years old.

I’ll go to the travel trailer table above and take the percentage next to year 4, which is 31.3%.

Then I’ll head to Google.com and input “25000-31.3%” and hit enter.

The value that returns is 17,175, this is how much my travel trailer is worth based on the average rate.

Take these numbers with a grain of salt though, since some people might negotiate a $25,000 down to $22,000, but that doesn’t mean that it’s worth less when you sell it.

Let me know if you have any questions down below and I will do my best to help you.

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17 thoughts on “RV Depreciation Rates Per Year + Method To Calculate 2024”

I feel strongly about it and really like mastering more on this subject. If feasible, as you acquire experience, would you mind updating your blog with much more information. It is very helpful for me. thanks for sharing amazing information.

This doesn’t make any sense to me if I understand your process correctly: “Go to Google.com and insert how much you paid for the RV out of the door. Then subtract (-) the percentage you copied, click enter and read the value”. Using your example of a trailer you bought for $25K new, a better negotiator could have paid $22K and a less experienced negotiator could have paid $27K. Using your process, the value of the trailer is a function of how well you were able to negotiate the original deal ($15,114 vs $17,175 vs $18,549)

I am considering a 2019 Rockwood 8299BS, with a MSRP of about $60,000. This is a new unit, but will be 3 model years old in a few months when the 2021 models start hitting the showroom. What is a reasonable offer for me to make. Your article says 35-40% off MSRP for a new model. Would 50% of MSRP be unreasonable? Thanks

50% off is a bit much for a 2019 model, but like you say, in a couple of months it wouldnt be too unreasonable. I would start around $35,000. The market is high right now though, so that might be way low depending on the seller and location.

Is this depreciation based off of what we pay or what to expect for trade in? I am looking at a 2021 Grand Design travel trailer at $35000 new. Do you have an opinion about it’s resale value or what brand might have a better one besides airstream?

It’s based on the cost without a trade-in involved.

Grand Design campers hold their value quite well and better than most other brands. Not as good as Airstream, but still better than most. Some of the other ones that do well, based on what I have seen, are Lance and Winnebago campers. You’re always going to lose money buying a new camper but that’s what I’d go for if I bought new.

Im sorry is the depreciation chart based off of the price I pay or the MSRP?

Hello Ron It’s based on the prices that the dealers advertise, so the price that you pay before negotiating or any extra fees. Jesse

Is Coachman a very good trailer quality wise

They’re alright, not the best but not the worst. You can find bad reviews of every trailer manufacturer out there, so what matters more is where you buy it. See what other people have to say about the dealer you’re planning on buying from and watch out for dealerships with a lot of bad reviews.

How come you didn’t do a chart for Class B or B+? That’s what I will be looking to purchase this winter or spring. Would like your input.

Thanks Rafael

Hello Rafael,

Because most of the dealers we looked at with a big inventory didn’t sell Class B’s so it would’ve taken a lot more work and research, but I am considering doing one for Class B’s as well.

Thanks for the suggestion. Jesse

I’m a little confused. You base your chart on “out the door” price of $120,000 on the Class A but in response to one of the comments you say (I think) it’s based on what the dealers advertise.

Here is my example. I’m looking at a one year old high end Class A for $379,000. I know from looking at numerous models of this coach that the MSRP was around $494,000 – $500,000 which is a 20-25% discount. If that’s the case the seller wants to sell the coach roughly what he paid for it. In my negation am I right to offer 18% off the $379,000 which is roughly $311,000?

In other words it seems depreciation should be based on what you actually pay for the coach and not the MSRP.

What do you think about what happens with depreciation in the current environment of rising MSRPs. For example the Boldt

2020 List Price: $211,541 Low: $133,250 https://www.nadaguides.com/RVs/2020/Winnebago/M-70BL-Sprinter-4×4/6592516/Values

2021 List Price: $215,092 Low: $138,100 https://www.nadaguides.com/RVs/2021/Winnebago/M-70BL-Sprinter/6606748/Values

2022 List Price: $227,569 Low: $160,900 https://www.nadaguides.com/RVs/2022/Winnebago/M-70BL-Sprinter-4×4/6608278/Values

I recognize we are in a strange psychology driven market where for the first time ever sellers think their model will increase in value next year (it was true during 2020-2021) and they are holding on to that idea (maybe fantasy) continuing. I have seen a dealer wanting to sell a 2022 for $179,999 while a private party was holding firm on this barely used model at $175k. Maybe these one off examples are not unusual, I just wondered what you thought of the recent blip. Would it for example be a better deal (2-3 years from now when selling) to buy a 2020 for $150k or a 2022 for $175k? Or are both fairly priced? With the 2020 we would expect OTD price to have been $211k x 75% = $158,655.75 and today’s 3rd year value around 75% of that, thus a selling price of $118,991.81. However, we know that the dealer probably paid much more. I would suspect the dealer paid something like 10% less than $133,250, or around $120k on trade. Maybe my numbers are close enough, and still valid. But the dealer’s asking price of $155k for the 2020 sounds ambitious. Thoughts and comments? Has the model changed today? I guess you dont want to do all the work again (must have taken hours), but you must have some guess on this as well. Thanks!

What is the Depreciation Rate of a Class B Camper Van?

This may not be as complicated as we think. If the depreciation numbers are relatively accurate, and they appear to be, the key is assuming a reasonable purchase price and forget buyer competence. If a motorhome MSRP is $300,000, assume the purchase price is (25-30% discount), $210,000 to $225,ooo. Use the depreciation numbers in the chart and you should be in line. Look at new prices today, (10/25/23). Dealers are offering discounts of 25 to 40% all over the country. That is likely consistent with previous years. Good luck.

I’m glad others are looking at the depreciation. I have an unused 2023 Mallard M260 by Heartland. I purchased all accessories and bells and whistles for it. At approximately 55,000.. Due to health issues that came up I decided to sell. The same dealer I paid 55,000 to offered me 20,000 for it . 5 months old and never used

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Travel trailer mark-up percentage question

Discussion in ' Shiny Things ' started by basketcase , Nov 21, 2023 .

basketcase

basketcase lifelong reject fixer Supporter

basketwife and I are campers so I tend to watch the RV market. A particular camper I've been watching on RV trader has gone from retail with no discount, to a reduction at a 15% discount, to another reduction at a 25% discount, and now to "make an offer." If the thing wasn't 500+ miles away, I might just be there to check that out. Anyway, I've become curious to know "What is the markup on travel trailers?" Somebody at AdvRider seems to know everything, so I'm here querying the brain-trust! Thanks in advance, and best Thanksgiving wishes to all.

Chingo77

Chingo77 Been here awhile Supporter

I'm shopping large fifth wheel toy haulers. Some dealers are asking MSRP still, but phoned around and others are starting the negotiation process at 25 percent reduction. I'm shopping now, not quite ready to buy (house on the market), but I was going to offer about 33 percent off and see what happens. RV dealers make more money if you finance through them, but they want you to carry the loan for 7 months before paying off. Supposedly it's a gentleman's agreement, but I would make sure to read the fine print of you go that route. Cash offers don't seem to move the needle. Good luck.

CrazyCooter

CrazyCooter --Crazy MoFo--

Back in the day before the Covid frenzy, an offer of 30% off MSRP and settling in somewhere in the 24-28% off was the standard that I remember. Hard to even know what MSRP even is anymore with dealer inflating that number. I have noticed some manufacturers are listing the base MSRP's though. Pretty sickening that an equivalent 40' toyhauler I bought in 2011 for $42k delivered is now well north of $100K now?

tominboise

tominboise Long timer

It's a luxury item, not a necessity, so I would expect a high markup on it. Like 30%.

mikidymac

mikidymac Long timer

It might be something new but typically there is no MSRP for RV's. The delaers are free to use whatever number they choose and the more they buy the better deal they get from the manufacturer or if it is a slow model the factory is trying to phase out.

jb882

jb882 13HP of fury.

mikidymac said: ↑ It might be something new but typically there is no MSRP for RV's. The delaers are free to use whatever number they choose and the more they buy the better deal they get from the manufacturer or if it is a slow model the factory is trying to phase out. Click to expand...

sieg

sieg Wearing out tires......2 at a time, day after day. Supporter

This ^. Not this v. Hell the manufacture's web site will give you the M anufacturer's S uggested R etail P rice! ??? mikidymac said: ↑ It might be something new but typically there is no MSRP for RV's. The delaers are free to use whatever number they choose and the more they buy the better deal they get from the manufacturer or if it is a slow model the factory is trying to phase out. Click to expand...

FatChance

FatChance Road Captain

Winter is here, or coming, depending on where you are and interest rates are still high. Dealers need to move inventory. Low ball them and let them counter, counter with your offer, rinse repeat. It is a buyers market. Don't worry about insulting them, they are immune and have no morals.

oldmanb777

oldmanb777 Just say NO to socialism! It's a bad drug!

I keep hearing the bottom is rapidly dropping out of the RV market. The pandemic caused all kinds of ridiculous purchases, and now its coming back to haunt people? I dunno. People trying to get rid of RV's they didn't understand, and don't use.
Thanks to all for the feedback. Reading your comments and thinking on my browsing observations, a "discount" of 30% to 35% apparently gets them close to the break even point in terms of dealer price. Re, this comment: oldmanb777 said: ↑ I keep hearing the bottom is rapidly dropping out of the RV market. The pandemic caused all kinds of ridiculous purchases, and now its coming back to haunt people? I dunno. People trying to get rid of RV's they didn't understand, and don't use. Click to expand...

HeliMark

HeliMark Long timer

I have read that most of the manufacturers are cutting production lines up to 50% due to overstock. Back in early 2021, I purchased a 5th wheel with about 28% off. From the RV forums, it is back to that percentage or more now.

Gillus

Gillus High Desert Rat

In September '09 we bought a Montana fifth wheel from a dealer in Michigan. I had called the guy mid-summer. MSRP was $57K and he offered it to me for $38K. A deal in CO at a dealer the time was $44K, found a new/used one for 41K locally. He called me in September and said $31,000 come and get it, so I did, they wanted it off their lot before winter. They did the full precheck and orientation and let me overnight in their lot, a great experience. It cost me about $2K to go get it and almost a week but it was an adventure thru part of the country I never visited. Sold it two weeks ago for $17K. We bought a Class A that was $120K new for $60 used three years old, used it for four years, lived in it for 6 months while our house was being built and sold it for $38K. Depreciation on new stuff is a killer unless you can find a good deal before winter or want to look up north.

Hohmie

Hohmie Long timer

We have friends that bought an tt during the pandemic, they are now trying to sell it, I pretty sure they are stuck with it for a while, they put very little down and paid a premium, not a wise decision.
We're thinking about downsizing, so watching for a good deal on a particular model. Local dealer has a new '23 almost 30% under retail. Pandemic buyers are asking more than that for 2-year-old ones. Some sellers have realized that the market has gone down and those are the ones we're watching.

GyroRon

GyroRon Been here awhile

I think it would be foolish to buy a new camper of any kind... brand new... Only exception would be if it is a super rare low volume model that would be very difficult to find used. Another thing to consider is it is well known in the RV industry that anything built post covid is going to be much lower quality than before covid.

Tmaximusv

Tmaximusv Separated at birth

GyroRon said: ↑ I think it would be foolish to buy a new camper of any kind... brand new... Only exception would be if it is a super rare low volume model that would be very difficult to find used. Another thing to consider is it is well known in the RV industry that anything built post covid is going to be much lower quality than before covid. Click to expand...

Chethro

Chethro Confidence is High

Drove 500 miles to pick up my Dreamhauler DH175 in August. It was marked down 31%. I checked yesterday to see if they had dropped more, but they haven't. That must be close to the markup or at least minimum profit.

broncobowsher

broncobowsher Long timer

The local TV ads are showing $167k adventure vans now on sale for only $100k. Gives me an idea of the markup.
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mark up on travel trailers

mark up on travel trailers

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What is mark up on 5th Wheel?

  • Thread starter Barbara
  • Start date Jan 26, 2004
  • Jan 26, 2004

I am looking to by a 5th wheel 29-30 ft. RLS, I'm learning what the letters mean! I have been looking at MSRP from 30K to 45K. Anyway I don't mind them making a profit, but please, I work hard for my money and make far less than a good RV Sales person. What is the usual percent of mark up from dealer invoice? Is the MSRP what the manufacture thinks the dealer should make? After years of being riped off in the auto market I finally know how to make a fair deal for myself and the salesperson. I am lost in this type of product can any one help. :blush:  

What is mark up on 5th Wheel? Barbara, I'm not an expert by any means, but from what I have read in magazines and on websites, 15-18% off MSRP is probably a good deal. If you can get the dealer to throw in anything else, you're even that much farther ahead. I got 18% off on the fifth wheel that I bought, and found that I could do no better. If you wait until the end of the year like September, dealers are even more ready to unload stock. buckbs  

C Nash

Senior Member

What is mark up on 5th Wheel? Barbara, In the price range you are looking at I would offer 25% off which they probably want take but don't be affraid you will hurt their feelings. Offer and walk away and let them think a few days while you are looking elsewhere and making offers. Even the MSRP may not be accurate at some dealers. Try to find a dealer that you trust. Look even the new units over the same as you would a used unit. All makes can have lemons. Good luck  

  • Jan 27, 2004

What is mark up on 5th Wheel? Gary, the part I didn't get was how the mark up on RV/5th wheels and vegetables can be the same thing. Groceries cost and quality vary little from store to store, not so with the product at issue. I didn't want to argue with the woman, it was a small dealership and local. Where I live the local business people have a sence of entitlement, meaning they can stick it to you just cause they are local and there are few choices. Nice, beautiful place to visit hole to live in. Want the Trailer to get the H out! Looks like they will all keep the product as living in an apartment is starting to look like a better financial deal for the short run. :angry: :laugh: :clown:  

  • Feb 2, 2004

What is mark up on 5th Wheel? If you can find a year old unit (last year's model), you may be able to save a bundle. I got mine, with full warrenty, at the NADA used price. Tell the salesman you (generally) don't have to take out a loan to buy a can of peas...  

belleshun02

Junior member.

  • Aug 19, 2014

Just curious but does anyone know what kind of percent Audi dealers are getting in a new car? I'm planning to purchase a new one however, informal reports are emerging that a growing quantity of car dealerships are beginning to scale back their markups on replacement insurance and financing. The dealer finance markup, in addition to dealer insurance markup , can be pretty steep as often as not.  

  • Aug 23, 2014

Does anyone have a Light Open Range 2014 LF319RLS and do they like it or dos like it. I'm planning to get one soon if all goes well.  

COMMENTS

  1. What Is The Markup On Travel Trailers (RV Best price ...

    The markup on travel trailers is around 40% as an industry standard, and with overheads, an average dealer is looking at a 28.5% gross profit. Although MSRPs may differ from place to place, season, and the travel trailer model you chose, 20-25% off MSRP is considered a good deal. Sometimes RV industry figures, sales, and profits may be pretty ...

  2. What Is The Markup On Travel Trailers?

    Dealership markups on travel trailers and RVS, in general, can vary between 35-40% depending on influencing factors that would be specific for that market. We have seen some sites suggest markups as high as 50% but it is unlikely you will see a markup this elevated. The hassle of high-pressure salesmen and extreme markups can seem overwhelming ...

  3. Tips For Negotiating The Best Price On On A Travel Trailer

    In many cases, dealerships can mark up their travel trailers by more than 50%. This is because the cost to the manufacturer is usually less than half of the travel trailers listed market value. This figure is actually quite shocking considering the fact that RV and travel trailer manufacturers seem to cut corners and find new ways to ...

  4. How Much Can You Negotiate on a Travel Trailer?

    N/A. 25% or much more. Get upfront price offers on local inventory. Get Dealer Pricing. There are several things you can do to negotiate the price of a travel trailer or RV. However, to do any of those things you need to do your research and make sure you are informed on the prices of other trailers on the market.

  5. Is 25% Off MSRP a Good Deal for an RV?

    In a typical RV market, 25% off MSRP was a decent deal for an RV. However, we haven't lived in a regular RV market for quite some time due to supply shortages and increased demand. These have combined to create a bit of unpredictability in the RV buying process. Many RVs sold in recent years sold closer to MSRP than consumers typically have ...

  6. RV Depreciation Chart (Year-by-Year RV Value Loss)

    Typically, the RV dealers will mark up the sale price by 30 to 35% with the expectation that there will be a decent amount of negotiating. Rate of RV Depreciation. The depreciation is a hard number to pin down. Due to the nature of negotiation, the prices will not be at a set point across every dealer.

  7. How to Negotiate a Travel Trailer Price (RV Negotiating Tips)

    Here is the best way to negotiate the price of a new travel trailer: Research: Gather information about the travel trailer's market value, features, and comparable prices. Set a budget: Determine your maximum spending limit and stick to it during negotiations. Inspect the trailer: Thoroughly examine the condition of the trailer, noting any ...

  8. 15 Tips for Getting the Best Price on an RV

    Some dealers may mark their prices up over 50 percent. Don't fall for "sale," "low price," and other stickers plastered across an RV windshield. They're luring you in to make you think the markup is the "market value" of the RV. They plan on negotiating the price down but can usually get away with a higher price than they should.

  9. How to Determine the Right Price for a Used RV

    The fair market value (FMV) is different from the intrinsic value, or the personal value, of the RV, so try not to get that confused when you're working on finding the right price for a used RV. As that is, both the FMV and the intrinsic value will help you determine whether or not the seller or dealer is really offering the right price for ...

  10. How to Find the Best Deal on a Travel Trailer

    Generally, the markup on most travel trailers is around 40%. However, some dealers will increase their markup. As a result, it's best to purchase a travel trailer with an MSRP that's listed. If a trailer doesn't have an MSRP then the dealer can set the price wherever they want. As a result, you may end up spending way more on a travel ...

  11. Calculating Fair Market Value (FMV) for RVs

    And many RV manufacturers and dealers leverage MSRP values to create forced scarcity and false discounts. MRSP values are intentionally set higher than what the market will bear. Dealers can then sell the unit at "15% off - July only!" and still make their normal profit. Typical dealer markup ranges from 20-40% of the invoice price.

  12. Get a Good Deal on a Travel Trailer with these Clever Tips

    This is my favorite technique for getting a good deal on a travel trailer. It gave me the leverage I needed to talk the dealership down $6,000 on a recent RV purchase. When I bought my trailer, the cost was initially $29,000 for the trailer I wanted. But I found a very similar floorplan in a trailer at a different dealership.

  13. How Much Are Travel Trailers Marked Up

    September 16, 2022 by Douglas. The markup on a travel trailer is typically around 50% of the cost. The markup varies depending on the size and quality of the trailer. A good rule of thumb is to multiply the cost by two to get an estimate for what it will sell for. For example, if a travel trailer costs $10,000, it will likely sell for $20,000.

  14. What is the dealer mark-up on RV's?

    Dealerships add up to 50% mark-up on RVs, making it harder to find the best value for money. This give them room to negotiate price. The best time to get a deal is at end of season. What to know when purchasing an RV: Just like with any other vehicle, there are a few things you need to take into consideration when buying an RV.

  15. How much should mark up on parts be

    Posts: 6,401. I used to have an account at an Auto Parts store and 30% to 50% discounts were common. 50% discount equals 100% markup. A Winne dealer wanted $35 for a parking light, found out the car it came from and bought it for $5.35. I had 2 power gear jacks replaced 2 years ago, parts and labor was almost $2000.

  16. How Much Do Dealers Mark Up Travel Trailers?

    Dealers mark up travel trailers to maximize the overall profit. Yet you'll typically see dealer prices below the MSRP. Let's say the dealer sells a travel trailer for $50,000. The dealer will usually make around $14,250. After operational costs, the dealer will keep between $712.50 to $2,137.50. Of course, a lot of those travel trailers are ...

  17. How Much Money Do Dealers Make on the RVs They Sell?

    Here's how it works: A buyer brings an RV in to trade that has a wholesale value of $20,000 and a retail sales value of $30,000. The retail value of the RV he wants to buy is $205, 405. The dealer is only going to pay the manufacturer $136,936 for the new RV, which leaves him a potential profit of more than $68,000.

  18. Is the markup on RVs really that much? : r/GoRVing

    The last RV show we went to (right before everyone went on lockdown), dealers had posters up showing discounts of 40%-45% off MSRP if you bought on the spot. That they aren't going to accept taking a loss on those sales, so MSRP is a huge markup from invoice/wholesale.

  19. RV Depreciation Rates Per Year + Method To Calculate 2024

    72.3%. $6,925. 20. 84.5%. $3,875. A few things to note. Travel trailer depreciation rate is significantly higher than fifth wheels, especially after 12 years. Travel trailers have a more steady depreciation rate even from the start compared to every other kind of RV. A 21.2% depreciation after one year is pretty big.

  20. Travel trailer mark-up percentage question

    A particular camper I've been watching on RV trader has gone from retail with no discount, to a reduction at a 15% discount, to another reduction at a 25% discount, and now to "make an offer." If the thing wasn't 500+ miles away, I might just be there to check that out. Anyway, I've become curious to know "What is the markup on travel trailers?"

  21. Why Are RV MSRPs So Inflated in 2023?

    The amount of the markup can vary depending on several factors, including the make and model of the RV, local market conditions, and the dealership's operating costs. In some cases, RV dealerships may also offer discounts and incentives to customers, reducing the final price below the original markup.

  22. What is mark up on 5th Wheel?

    Gary, the part I didn't get was how the mark up on RV/5th wheels and vegetables can be the same thing. Groceries cost and quality vary little from store to store, not so with the product at issue. I didn't want to argue with the woman, it was a small dealership and local. Where I live the local business people have a sence of entitlement ...

  23. Dealer markup on freight?

    In looking at 2013 Jayco Whitehawks, I found that the 27DSRL located at a dealer in TX had a MSRP of $33,120. The same unit, with even more options than the TX unit, retailed for $31,277 in Indiana. My first thought is that the freight must account for the higher price, but maybe that's not a correct assumption.