Used Coach Prices Continue to Go Up

[throgmartin]

Just an update on coach prices in case someone is buying or selling.

While many rely on Kelley Blue Book for prices, the true and actual value of your coach is more reliable using the dealers Black Book. This gives a much truer representation of what coaches are selling for at auction. For those who may not understand the auction prices, dealers are trading ( buying and selling ) at auctions constantly. A coach sitting on a lot at Lazy days in Tampa on Monday maybe sitting on a lot at RV ONE in Orlando on Friday. Dealers buy these coaches at auction ( black book ) prices which change by the week.

What is interesting is not only are new unit dealer inventories down but dealers are also short on supply of used coaches. This issue is two fold. 1.) Fewer new coaches are being sold which means fewer used trade ins. 2.) Many coach owners are not selling their rigs and electing to hold on to them. This is why I ( along with other members ) are getting e-mails every week from select dealers asking if we are interested in selling our coach. It would be a cold day in hell BTW before I would ever sell my coach to a dealer. Selling to them at auction prices is not on my list of things to ever do.

Here are the latest Black Book numbers. I find it very interesting how the Pandemic created a buyers market a few short months ago to a now sellers market. It all goes back to supply and demand and people are finding that RV'ing vacations beats the heck out of hotels and airline travel during this Covid nightmare.

https://rv-pro.com/news/wholesale-rv-values-continue-to-set-records/?utm_source=SilverpopMailing&utm_medium=email&utm_campaign=20201021 RVP ENEWS (1)&utm_content=&spMailingID=23980633&spUserID=NjE3MjYxMTUxOTYzS0&spJobID=1841332972&spReportId=MTg0MTMzMjk3MgS2

[Jim Andrews]

Good article. I decided two months ago to sell my 02 Monaco Cayman. I finally got it all polished up and ready to sell. Where would you go to place an ad for selling my MH? Where can I get the value so I can price it correctly?  It still has an extended warranty thru next August or up to 160,000 miles and transferable on major appliances, engine, tranny and seals. I think that by itself is worth a lot, but I'm not sure how to price it. It's in excellent condition with 117,000 miles. Any suggestions? Jim

[throgmartin]

Jim:

If you look across several RV sales sites you will find listing prices. I have found RV Trader has some insane asking prices. PPL motorhomes has pricing that is more in line with the current market and are closer to what coaches actually sell for. I watch several sites including e-bay. I wholesaled our first coach off E-Bay from a dealer, drove it for 2 years and sold it for what I paid. Some coach owners get ridiculous with their asking prices which all relates back to thinking what they own is gold. The art of selling is hitting the right price point where you get a decent sales price.

What I have done in the past and what dealers do is price a rig at a slightly higher price then you want without scaring a potential buyer away yet having some room to negotiate. Everyone loves a deal so by listing slightly higher you can come down on price and give them their deal. The trick is to post the right listing price. There are some sales people at some dealers who if you ask them what wholesale is and what they would realistically sell your coach for on their lot they will give you the numbers. I have a buddy in the industry that once or twice a year gives me the wholesale price on my coach based on recent auction prices. I admit sometimes I cry. What we think our coach is worth and what reality is are always 2 different things. This is why I own a 15 year old coach that we bought brand new. What I could get for our coach and what I could buy makes me realize I am better off holding onto what we already own. It is paid for and I am not going back to payments. The depreciation on my coach has hit the level where its value goes down minimally unlike a newer coach.

I have finally reached the age where any money I spend now is going towards an appreciating asset and not a depreciating one like a coach. See if you can get a salesman to give you some accurate numbers on what to list your coach at.

 

[Guest Tim503]

I bought one of the first slide coaches Monaco made and I don't think anything since has changed what Monaco built back in 1998. Of course if your walls de-laminate and all the wood has dried out to dust then those are issues. For some people it is prudent to get rid of it at 8 years or so but for others that are not into keeping it original, a good chassis is always the most important and Monaco delivered that.

[Jim Andrews]

Well, I did follow pretty much what you said. I found a lot of dealers are selling my pristine Vintage 02 Cayman for a couple thousand more than me. Mine has been garaged (other than driving it 117k miles) all it's life, a transferable warranty on engine tranny, gen, seals and appliances as well. So, obviously, I think it has a high value because of that (I know......).  NADA is what all the lenders seem to use to value the rig and their pricing is absurdly low compared to what everyone is listing theirs for.  So, maybe I'm out of sync with the valuation or I'm looking for value in the wrong place.

My question is this, I am getting solicitations from RV & Boat Brokers that tell me they can sell my MH for what I am asking. They say they charge the BUYER the fee's, on top of my selling price at no cost to me. That is a lot to swallow and was wondering if anyone experienced that or used this type of service. Thanks, Jim

[Bob Nodine]

17 hours ago, Jim Andrews said:

Well, I did follow pretty much what you said. I found a lot of dealers are selling my pristine Vintage 02 Cayman for a couple thousand more than me. Mine has been garaged (other than driving it 117k miles) all it's life, a transferable warranty on engine tranny, gen, seals and appliances as well. So, obviously, I think it has a high value because of that (I know......).  NADA is what all the lenders seem to use to value the rig and their pricing is absurdly low compared to what everyone is listing theirs for.  So, maybe I'm out of sync with the valuation or I'm looking for value in the wrong place.

My question is this, I am getting solicitations from RV & Boat Brokers that tell me they can sell my MH for what I am asking. They say they charge the BUYER the fee's, on top of my selling price at no cost to me. That is a lot to swallow and was wondering if anyone experienced that or used this type of service. Thanks, Jim

I would run for the hills because most of those so called RV & Boat Brokers are trying to scam you. Ask yourself what they want up front? Do they want your unit on their property? Do they need to hold your title? How are they going to pay you? You better hold on to everything and demand to see a wire transfer of money in your bank account before you give them even a dented hub cap. I would guess that any cashiers check you get will be a fraud.

[throgmartin]

Jim:

I have lost track of the number of coach owners who lost their proverbial butt's dealing with brokers and were nearly financially destroyed. The list is long of the brokers who did transactions and made off with the money ( and in some circumstances the title ). For the most part, these brokers are scam artists and many are doing time in prison now for the transactions they performed.

My best advice is to stay clear of brokers the same way you would for Covid. While their maybe a few good legitimate brokers out there trying to find one is a risky move on your part. Sell it the old fashion way - List it and handle the transaction yourself.

[dl_racing427]

I agree 100% with Bob and Chris.

Most brokers will trap you with a contract, and if they don't outright steal from you, will charge hefty fees even if you make the sale yourself.

[Jim Andrews]

Thank all of you for your replies. I now know what NOT to do. Thanks for the insight.

[Just Jim]

I am just beginning the search process for the next Monaco and found one online that was about 100 miles away.  I was willing to take a drive and go see it, but it had a very high selling price...  I mean $75k over what book value would put it in the ballpark.  It was listed by POP's RV which come to find out is a broker.  They replied to my email with wanting to know what my offer was?  I guess I'm old school, but I don't make an offer on something I've only seen pictures of and to someone I have no idea who they are...  Anyway, we went back and forth for a while and the guy finally said that the owner is upside down and owes to much.  Anyway, I was just curious about what others thought about this "brokerage" idea.  He wanted me to make an offer, but it was subject to my inspection and of course they promised that I would get my 10% deposit back if I changed my mind.  I have seen lots of ads on a couple different websites with many of them being from various brokerage organizations.  I have not sold an RV yet, but for the life of me.... why would you bind yourself to one of these outfits?  Do you get tons of crank or non-qualified buyers pestering you?  Does anyone know how long their brokerage contracts last?  Thanks in advance.

[throgmartin]

Jim:

I had posted a couple weeks ago about brokers being a real headache for sellers. Several have gotten the money and skipped out. But some can also be a royal PITA for buyers. There are a few brokers in prison doing time for fraud, they take the banks money ( or yours ), never produce a title ( because they pocket some or all of the money ) and you are left paying your loan off with the bank, the seller never gets the money and his bank wont release the title.

My advice is to avoid all brokers. Deal with a reputable dealership or private owner. If you buy from a private owner then demand that the deal is closed at a bank of your choice ( or theirs ) where it is witnessed and the bank official can verify the documents.

There are a lot of owners who are upside down and underwater on their coaches. This is no excuse to sell a coach for more then what it is worth. I have seen it numerous times - A coach owner lists their coach for sale with an asking price based on what they owe which is much higher then retail value simply because they owe that much. That is their problem not yours. If the asking price is not a fair market price then keep looking. There are thousands of coaches out there for sale so don't get to eager. I spent 6 months researching and then spent a week putting a deal together on the coach we own. Patience pays off as does the willingness to walk away from a deal at a moments notice. Always make the purchase of a coach from a realistic and business standpoint and not an emotional one. In other words - Never fall in love with a coach to the point you pay too much for it.