Used RV Dealers - RV Financing and other Factors to Consider in Pricing Your RV For Sale.

 

When pricing an RV for sale, sellers often discount or ignore competitive advantages that used rv dealers may have that the individual rv seller can't match - such as service after the sale, below market financing, large inventory selection, and perceived expertise.   These advantages that used rv dealers have may affect both the price at which the RV may be sold as well as how long it may take to sell the RV.

Sellers should realize that while their RV may be priced lower than similar RV's at local used rv dealers, price alone is not always the determining factor in an RV sale.  Used RV dealers can offer dozens, and perhaps hundreds, of recreational vehicles for sale at one location.  RV dealers are also open for extended business hours, which make it convenient for customers to search for used rvs or new rvs, and have knowledgeable salespeople that are assumed to have a high degree of expertise.   RV dealers will also be there if something goes wrong with the RV, and may be more willing to help out a customer who purchased the RV from them.

Moreover, the dealership can likely provide rv financing that cannot be matched by other  local financial institutions.  For example, a potential buyer might be able to obtain rv financing from the dealer for 2% for the full purchase price, while the best rv financing that the buyer could obtain from another source might be for 8% for 80% of the RV purchase price.   For purchasers focusing on not having to come out of pocket any money, the "zero downpayment" option may be a motivating factor to purchase an RV directly from the dealer.

RV sellers then should recognize that when they choose to sell their RV themselves, they should remember that there are other factors that buyers take into consideration when purchasing an RV other than just the purchase price.  Financing terms, selection of RV's, perceived expertise, and the ability to go to the RV dealer after the sale must also be recognized.

Does this mean that an individual seller cannot compete with RV dealers in selling an RV?   Absolutely not.  It does mean, however, that individuals selling their RVs need to consider factors other than price in selling their RV.

An individual seller then might consider purchasing an RV warranty to give the buyer assurance that he or she will be covered should anything happen to the RV.  Additionally, sellers should do their homework by finding out how much similarly-priced RV's are selling for at the dealership and what types of financing are available; both from the dealership and from local banks.

 

By being prepared with this information, a seller might be able to point out that although the dealership may be offering 3% financing vs. 8% financing available at a local bank, the monthly payment would be less from the buyer because of the lower purchase price (of course you, as a seller, would need to run the calculations to make sure that this is the case).

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