Expected depreciation

[QCMan]

What would one expect the value of a tt to drop in the first year? Asking this question because friends bought a camper a year ago and drastic health issues that arose preclude further use. They-and I-have no idea of what to expect as far as value drop is concerned. Probably does not matter that it was only used locally on two occasions. They need to sell it and they asked me as I have had trailers for many years but the soonest I ever sold one was after five years so I have no idea what to expect. They paid about 25k for it last summer.
Thanks for any insight offered.

[flybouy]

I can't place a number or percentage but what I can tell you is that if they have a loan on it I'll bet the sale won't cover the balance of the loan unless they had a LOT of money on a down payment. Depending on the term of the loan typically the first year pays next to nothing on the principle. Typically the moment the title hits the MVA and it's titled the value is dropped tremendously. Doesn't matter if it was even towed off the lot, it's a used trailer.

The plus side is it's a sellers market, the down side is the bank doesn't care. I'd suggest they call the bank (who whomever the loan is through) and ask if the loan can be "assumed" by someone else and advertise the "take over payment" option just to get out from under it.

[B-O-B'03]

You could try the NADA Guide, they have an RV section.

Not sure how accurate it is, according to them mine is worth more than I paid for it

I have heard RVs are selling really well right now, maybe I should sell mine and get a new one.

-Brian

[NH_Bulldog]

The biggest issue with RV’s is that depreciation is very subjective. If they paid “MSRP” (which has it’s own shady definition) or overpaid when they bought it, or had any sort of customization, there will likely be a big hit on resale value. But, like others have noted, mine is listed in NADA as having a current value of more than what I paid for it 1 1/2 years ago, so who knows?

[sourdough]

I think NADA is about the only way to get an idea of a ballpark figure unless they just wanted to enter their year, make, model etc. and google what they are selling for.

Lots of variables as has been discussed, primarily initial cost (was it inflated, great deal or ??), how much was paid down etc. My recent experience was trading in and got quite a bit less than NADA shows but they show retail pricing. When the unit went up for sale NADA pricing was very close to what was being asked.

[IMASAP]

Originally Posted by NH_Bulldog

The biggest issue with RV’s is that depreciation is very subjective. If they paid “MSRP” (which has it’s own shady definition) or overpaid when they bought it, or had any sort of customization, there will likely be a big hit on resale value. But, like others have noted, mine is listed in NADA as having a current value of more than what I paid for it 1 1/2 years ago, so who knows?

You just made me look up our 2015 Bullet 243bhs. WOW ! It claims average retail is only $2,500 less than we paid new in 2015.

[flybouy]

Like anything in this world, it's exact worth is what someone is willing to pay for it.

[travelin texans]

If you want an amount that you could sell or trade for try to look up
"dealers wholesale" numbers, typically that's all a dealer will offer you sight unseen, possibly a bit more if in like new condition. The top NADA pricing is what they'll put it on their lot to sell for though.
I found when selling mine that it was worthless to everyone but me!

[QCMan]

Thanks for the ideas. If the loan is assumable it would probably be the best way for them to cut their losses. NADA does not have a used price on 2020 models yet as they are still being sold as new models. This is the very reason that I pay cash and hold onto the units for a while. The depreciation is then from my use and enjoyment of the trailer and any depreciation is outweighed by my experiences it allowed me to have.

[Javi]

I sold my 2015 Cougar 5th wheel for $6K less than I paid for it, to the first couple that looked at it.. Exactly one week after I listed it on FB... I owned it for nearly six years, but kept it in first class shape, everything worked and everything was where it was supposed to be...

[dutchmensport]

Also, if the owners purchased extended warranties, Gap insurance, and things like fabric protection, tire protection, and a list of countless other options sales people persuade folks to buy, are rolled into the overall price of the original purchase, which could add thousands of dollars to the trailer original price.

When selling the trailer, those extended warranties and options cannot be included into the selling price. And if the original purchaser rolled these extra options into a loan, the owner will never be able to sell to re-coup those amounts. The loan will definitely be up-side-down, meaning the actual value of the camper is far less than the reaming balance of the loan.

If selling to a dealership right out, you can easily expect only 50% (maybe even less) than the original purchase price a year earlier. The dealer will then resell the camper for 85% to 90% of the price a year earlier, making a profit, which is what they are in business to do.

If selling privately, all you can realistically do is set your price and if there are no takers, keep reducing the price over time until someone does take it.

[wiredgeorge]

The retail prices are what you can expect to pay if you bought it from a dealer who bought it for far less and marked it up as high as they believe they can and still sell it. For a better sense of value, check facebook marketplace or craigslist for similar model and see what someone is ASKING and then figure they won't actually get that amount. Average depreciation is 23 percent the minute rolls off a lot.

[notanlines]

If the owner paid $25,000, take 20% off the top, having left the lot and an average of 10% of the remaining balance every year leaving a ballpark price of $18,000. This 'rule of thumb' came from a seasoned RV sales manager in the Memphis area a couple years ago. Certainly doesn't mean that I would start there, but the odds of getting much more probably aren't good.
It is a year old, warranty is gone, and it is 'used.' I might also add that very few financial institutions are big on assumable loans in recent years.
Search out like RV's on the sites online and go from there.

[Roscommon48]

retail and trade in values are miles apart.
I'd got to a RV dealer and ask them what the trade in value is. Also, I'd look at RVtrader.com.

[markcee]

Originally Posted by dutchmensport

Also, if the owners purchased extended warranties, Gap insurance, and things like fabric protection, tire protection, and a list of countless other options sales people persuade folks to buy, are rolled into the overall price of the original purchase, which could add thousands of dollars to the trailer original price.

When selling the trailer, those extended warranties and options cannot be included into the selling price. And if the original purchaser rolled these extra options into a loan, the owner will never be able to sell to re-coup those amounts. The loan will definitely be up-side-down, meaning the actual value of the camper is far less than the reaming balance of the loan.

If they did purchase extended warranties, most all of them can be terminated and a pro-rated refund offered. I think about the only one you cannot do this with is fabric/finish protection type add-ons.

[McRod]

Post the year, make model.

[Mikelff]

Originally Posted by QCMan

What would one expect the value of a tt to drop in the first year? Asking this question because friends bought a camper a year ago and drastic health issues that arose preclude further use. They-and I-have no idea of what to expect as far as value drop is concerned. Probably does not matter that it was only used locally on two occasions. They need to sell it and they asked me as I have had trailers for many years but the soonest I ever sold one was after five years so I have no idea what to expect. They paid about 25k for it last summer.
Thanks for any insight offered.

Google their brand and model for sale used and see what other folks are asking. Also try RV Trader.com and see if any are for sale in there. This might give you a ball park idea of pricing. As others have posted, extended warranty will only enhance the ability to sell it. It is not likely they will get more money for it. Fortunately it is a sellers market so chances of selling it are good. Just have to do the research to determine an asking price. You want to try to determine the “real” market price so you price it to sell but get the best price the market will allow. Pricing also depends on where you live. I’m in North Texas and I had a guy try to buy my unit for $2,500 over what I had in it including my extended warranty. Not selling though as my floor plan is hard to find. Start at the upper end of the market. You can always come down. Just don’t price yourself out of the market. RESEARCH that unit used. Thats all I have. Good luck.

[QCMan]

2020 Sunset Trail 259RL.

[JRTJH]

Originally Posted by QCMan

2020 Sunset Trail 259RL.

There are only 6 listed as "for sale/used" on RV Trader nationwide. https://www.rvtrader.com/Used-Sunset...RL&condition=U

Both 2019 and 2020 year models are included in that list. In California, looks like a $5000 + "bump" in price ($27884-29995) over the rest of the US ($18990-24950).

Keep in mind these are "retail asking prices" and not actual "sales prices".. I'd suspect a negotiated price to be several thousand below "asking price"...

Bottom line, at least to me, is not "what it's worth" but rather: What will someone pay for it?????

[QCMan]

That is the case no matter what you are selling. I was just trying to give some newbies who fell into a bad situation a heads up on what to expect. Thanks for all the help. He is still grieving so it is on the back burner for now.