What is the dealer markup on RVs?
In this blog post, we will answer the question: “What is the dealer markup on RVs?” We will describe the percentage of dealer markups and how to get the best price while purchasing an RV. We will discuss the advantages of RV trade shows and discuss how RV dealerships and percentages work when purchasing an RV.
What is the dealer markup on RVs?
The dealer markup on RVs is 20 percent to 40 percent. The dealer markup can vary depending on the model, brand, or if the RV is a new one or a used one. It also depends on the dealership area and the Manufacturer’s Suggested Retail Price (MSRP). Most of the sellers make a commission of 20 percent to 40 percent.
The dealer markup price can also depend on the RV industry figures, season, and type of model you choose. If you are good enough at negotiating, you might land yourself a better deal. In some situations, the dealership markups can go as high as 50 percent. Receiving 20 to 25 percent off on the MSRP is considered a good deal.
The dealer markup can fluctuate according to the market price and demand. Other external aspects of manufacturer’s incentives, financial incentives, and dealership price can all change the percentage of the dealer markup. Some of the RV dealership markups can go up to 50 percent, which is considered way too much.
How to get the best price on an RV with a low dealer markup?
Purchasing an RV can turn out to be expensive, especially if you need some of the best features and amenities. An RV is going to cost thousands of dollars so negotiating is the best way to reduce the price. Fixing the budget for your purchase is important, but here are a few tips on how to get the best price on an RV with a low dealer markup.
Purchasing a used RV
The good thing about RVs is that you get several second-hand options that are ready to get you on the road. A new RV is certainly going to drain your wallet, but a used one can slash your budget. You might need to spend on your used rig, but you get to customize and improve according to your taste. Several people prefer purchasing a used RV and modifying it instead of buying a new one.
Research and negotiation
These are the two most important factors to consider before purchasing an RV. Researching for the best offers will land you a good deal. Take plenty of time to look around or search online for the best deal. Check on websites like Craigslist and other sources on the internet to find the best deals. There are many people who want to upgrade. Hence, it is easy to strike a good deal.
Negotiation is the best way to get you the best price on the market. Remember that there are many fishes in the sea! Negotiate with your dealer by using their competitors to your advantage. Do not settle for the first dealership. Consider several other dealers and check online for various options. Try to reduce the price as much as possible.
Purchase at the end of the season
Many people have stated that the best time to buy an RV is before the winter. RV dealers have their monthly and yearly targets to achieve. Not many people go around purchasing RVs during the winter. Make use of this opportunity and purchase an RV at the end of the season. Most dealers will try to settle for your price before the winter gets in.
Upgrade later
The more features you need, the more you are bound to spend. Buy an RV that has the minimal required features. You can always upgrade later when you have the financial part flowing. Extra features like an entertainment center can always be upgraded. Purchase a basic model and upgrade some of the best features one by one. Customization can be done at your own pace.
Join RV community forums
There are hundreds of RV community forums on the internet that are ready to welcome RV enthusiasts. These forums have several RV owners and manufacturers that provide valuable tips. People also provide pricing information and links to discussions on dealer markups and other advantages of purchasing an RV.
Attend RV trade shows
- RV trade shows are the ideal way to purchase an RV. These trade shows can help you save close to 25 percent on the retail price.
- RV trade shows have a wide variety of RVs that are available in the market. These RVs come with a special quote with nearly 15 to 40 percent off on the MSRP. RV trade shows are for people who want to purchase an RV at a discounted price.
- The manufacturer’s suggested retail price can also increase due to the price of the RV. If you are purchasing a Class A luxury RV, the MSRP can be high. These prices are set to bring the highest margin for dealers.
- Smaller RVs and travel trailers will have a lesser MSRP due to their size and their features. The more the luxury, the more the percentage. Find the right model and check for various dealers to get the best offer.
- The price range for every dealer will vary. Ask them for their best quote and try to lower the price as much as possible. If you are good at negotiating, you can save thousands of dollars. Switch between dealers and tell them that you have a better quote from their competitor.
No dealer will want to give away their sale to their competitor. Make sure you have multiple purchase options and do not settle for one dealer. Study the market and research the value of the vehicle. There is nothing wrong with requesting a discount. Remember that dealers are always ready to negotiate for a price.
How to get the best RV dealership and percentage?
RV dealerships can continue to vary on several factors. In some cases, there is a fixed percentage of the profit. This can be a flat fee since some dealerships do not pay any commission. Many dealerships often receive a factory discount. Despite your purchase, dealers are sure to make money in some way or the other. Hence, do not hesitate to bargain for a reasonable price.
Checking the resale value of the model will help you to determine the worth of the current price. There are also several factors of the dealership revenue that is not included in the gross value of the vehicle. The dealership can also modify the pricing as per their requirement. On the other hand, dealerships make money selling spare parts and other accessories.
Cast a bigger net
- Try not to restrict your purchase to one particular area. Dealerships within your stage might be expensive so make sure to check out options from your neighboring state.
- RVs are believed to be cheaper in Indiana or down south. Keep your options open since the prices can also fluctuate according to the state.
- You can always purchase your RV from another state and drive it down to your home. There are hundreds of RV dealers in the country and the listings in your area might be expensive.
- Make an effort to search to get the best deal. Check if the model you are purchasing is listed elsewhere for a better price. Finding dealers online is also another option.
Do not be in a hurry to purchase a motorhome. Purchasing an RV is like purchasing a house and it must be worth the investment. Take time in selecting the right model to suit your needs and wait for the prices to reduce. Make use of festive discount sales and attend more RV trade shows. Buying an RV is a long-term investment, ensure that you get what you want.
Conclusion
In this blog post, we answered the question: “What is the dealer markup on RVs?” We looked into the percentage of dealer markups and a few tips on how to get the best price while purchasing an RV. We also discussed the advantages of RV trade shows and how RV dealerships and percentage works when purchasing an RV.
Citations
http://www.garytilkin.com/rv-industry-5-things-rv-dealer-not-want-know-gary-tilkin/