TRADES….UNDERSTANDING THE ECONOMICS


All dealers buy at wholesale and sell at retail.


Think of the difference between wholesale and retail as the service charge that the dealer is charging for liquidating your RV for you.  This is a good way to look at it since if you want to avoid the costs, you can sell your RV yourself and pocket the difference if you are willing to do the work. 


Dealers can provide financing, take trades, process title work and lien payoffs as well as provide support and warranty coverage.  They also have traffic looking for RVs everyday.




                                         CALCULATING DEPRECIATION


There is a general rule of thumb when calculating depreciation on a RV. This can be dependent on manufacturer , condition, ownership and use. Winnebago and Fleetwood are two manufacturers  that will hold more value than some others, that being said, if the unit is well maintained, can show service records and has low mileage, it will also be highly valued.


Using NADA  pricing and considering Kelly Blue Book, you can expect to loose 30% of value within the first three years of ownership, after which depreciation slows down. By year six, an RV that has had reasonable maintenance would retail for 50% of its original price.Typically it will continue to depreciate by 4-5% every year for another 6 years, then level out beyond then.


                                  WHOLESALE VALUES



The Dealer has to be able to make a profit from the sale of your trade. That number is reached by deducting (on average) 15% of the NADA price. This will cover the cost of detailing, small repairs, advertising and any overhead costs associated with negotiating, financing and offering extended warranty.


                                    GOOD NEWS


Triangle RV believes that by treating our customers fairly and respectfully, we will be recommended to their friends and family. For that reason you can expect your trade experience to be conducted with the integrity of a dealership that has been in business for 60 years!








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