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Buying An Rv From A Private Seller
By Barry Wilder, Thu Dec 8th
b>Buying an RV from a Private Seller Just as the RV Dealer isn't your enemy - the Private Seller canbe your best friend. They don't have ANY appreciable overheadbuilt into the sale, other than the cost of their advertising,and/or any repairs or refurbishing to be done to the RV. The private seller is usually much more motivated than a dealer.They only have ONE unit on which to concentrate their efforts.Many times their sole intention is to rid themselves of theburden of their no-longer-needed RV.
In RARE cases, they are WISELY selling by owner so they can moveon to a unit more suited to their present needs and desires.This allows them to sell their RV for a higher price than adealer would allow them on trade-in, while still offering abargain to their potential buyers. Purchasing from a Private Seller can work to your advantagein many ways: 1. Lower overhead = Lower selling price. 2. Higher motivation = Lower selling price. 3. No over-pricing to allow for trade-ins. 4. More complete vehicle history. 5. A more personal transaction. Because of these benefits, buying an RV from an individual mayallow you to save thousands of dollars over buying a similarunit from a dealer. You MUST however do your due diligence prior to the actualpurchase. Any faulty systems left unchecked or untested willlikely become your own burden unless discovered PRIOR to yourpurchase. In other words: "Caveat Emptor"... or "Buyer Beware". For now, let's take a look at some of the advantages of buyingan RV from a private seller. Lower or NO Overhead Costs Most individual sellers will incur minimal selling costs whenselling "by owner". Most of these costs will come fromadvertising in local newspaper classifieds, Internetadvertisements or other forms of marketing. When compared to the costs incurred by an RV dealer, theindividual has a major advantage. First of all, they have nocommissions to pay upon the sale. Commissions in the RV industryare commonly set at approximately 20% of the gross profit. In other words, if a salesman sells an RV for an average profitof $5,000 - Then $1,000 of that is going to the salesman ascommission. This is not a concern for the private seller,therefore sales commission ALONE can be a potential gain of$1,000 or more to the buyer. (Not to mention the other $4,000the dealer gained over his price) Also, because of the minimal or nonexistent overhead of theindividual seller, profit is commonly NOT a motive for selling.In MOST cases, the sellers simply want to rid themselves of theunit. This usually translates into THOUSANDS of dollars insavings. While most private RV sellers will try to achieve a RETAIL salesprice when the unit is initially offered, they rapidly tire ofthe stresses of the sales process and lower their "perceived"value of the RV. In other words, when they start the salesprocess, they have an unrealistic impression of their RV'svalue. After dealing with prospective buyers for a minimalamount of time, they rapidly become educated on the true valueof their RV. Seriously, think about your own experiences. How many times haveyou tried to sell something for a premium price, only to accepta lower, yet HONEST offer for much less than your originalprice? It all goes back to the old saying: "One in the hand isworth two in the bush." In other words, fatigued sellers WILLaccept a bargain price if the offer is GENUINE. It ends theirsuffering - so to speak. The key is to FIND these fatigued sellers when they are weak.Just as the predator on the African Plains seeks out the weakerand slower prey, you must find the weary seller - and strikewhen they are at their weakest point. Ruthless -yes... Unethical- no.
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It's the law of the urban jungle. Live and prosper by thelaw, or live and pay a higher price... still by the law. (Ican't believe I just wrote that) Higher motivation = Lower selling price Most private sellers are very IMPATIENT. They easily tire of thephone calls and missed appointments. Many times they tire of NOphone calls or ANY appointments to view their RV. This quicklymotivates them to consider any and all GENUINE offers. Many times these sellers have found an RV that they wish topurchase upon the sale of their present unit. They worry that iftheir RV doesn't sell quickly they'll miss the opportunity tobuy their TARGET unit. This also makes for a very motivatedseller. Most of these sellers realize that if they can sell their RV fora little more than the RV dealer is offering on trade-in, theywill come out ahead. This is a win-win situation for both buyerand seller. They are willing to accept a little over wholesalefor their RV, and you able to purchase the same unit for MUCHless than if it were for sale by an RV dealer. No Over-Pricing to Allow for Trade-Ins Hopefully you realize that an RV dealer will ALWAYS take atrade-in at, or even BELOW wholesale. Also, that same dealer's"sale price" will nearly ALWAYS be set HIGHER than the actualRETAIL price of any particular unit. This is done to allow roomin the price to show the buyer a retail price for their trade-in. We know that there was a time you may have traded a car, boat,RV or something else to a dealer (of any kind) and thought youactually received RETAIL on your trade-in. You DIDN'T - EVER! If you don't accept this for ABSOLUTE truth,then we have failed in our efforts to educate you in thedealer/individual sales process. Complete Vehicle History Most RV dealers DON'T want you to contact the previous owner ofa used RV. Go ahead and try it... Next time you're looking at aused RV, ask the salesman if you can contact the previous owner.You'll be amazed how the salesman can come up with excuses NOTto contact the previous owner... at least not until the sale hastaken place. It may be reasons of privacy; it may be against companypolicy... it will, however be very entertaining. Private RV sellers normally have a much different philosophy.They're TRIHILLED to provide complete records of service work,maintenance, storage information, etc. If they don't... youmight want to ask a few more questions. This is a goodindication of a negligent RV owner. They may be passing theirheadache on to you. Do your homework and ask for as many detailsabout the unit's history as possible. A more personal transaction One of the most gratifying aspects of buying a used RV from anindividual is the personal aspect of the buying process. As aresult of your investigation of the RV, you become intimatelyinvolved with the seller. Hopefully, the RV you are considering has been the seller'sprized possession. They have loved it and taken care of it. Theyhave (hopefully) kept complete records on each and every repair,improvement and service work done on the vehicle. Selling their prized RV is practically the same as losing achild to college. In many ways, these conscientious sellers mayseem to be sizing you up as a potential owner of their pre-lovedRV. However, at the right time, and for the right price...They'd more than likely sell it to a carnival. Barry Wilder President - Best Rate, Inc. About the author: Barry Wilder has been associated with his family RV business forover 25 years. He is currently the owner of Best Rate FinancialServices, providing loans and refinancing for RVs, boats andaircraft. They also provide RV and Boat Warranties. Best Rate Financial Services RV Loansand Financing
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