How to Buy RVs from an RV Dealer

Learn how to buy RVs from an RV dealer.

Statistics show that the 80/20 rule applies to RV sales profits, which means that approximately 80% of all RV's sold will make the dealer an acceptable profit. How much is that? I can tell you it is measured in the thousands and even tens of thousands of dollars. As you will learn, this applies not only to the sale but also to the RV financing.

How about the other 20%? Most of them will fall into the area of "just under the acceptable range." But, they are still paying the dealer several thousand dollars in profit. Only about 10% - 20% of RV sales made last year were at a profit margin that would be considered unacceptable to the dealer. In these cases, the customer won, and won BIG!

Most people walk into an RV dealership with the impression they are going into battle. They bristle with resistance as the salesman introduces himself and begins the cat and mouse game of: "I can sell you... No, you can't."

I've always believed that buying an RV at a fair price doesn't have to be that difficult. It usually depends on how well each of the parties involved has studied, and what they have learned.

Our RV dealership's salespeople have always been trained to be courteous, helpful, and, most of all, professional. They return phone calls and send thank you notes or emails. And, they treat every customer with respect.

Two Basic Principles of RV Sales:

1. 1. Make a reasonable profit. We have earned it, and we deserve it. We have to pay the mortgage, utilities, salaries, sales and financing commissions, etc. So by all means, make us a acceptable profit.
2. 2. Sell RV's. Always try to make a reasonable profit, but if you can't - at least try to make some profit. A little of something is better than a whole lot of nothing. (Especially relevant to units that have been in inventory longer than expected or unusual floor plans, colors, etc.)

It's really very easy to save a substantial amount on the purchase of your next RV if you have done your homework and know what to do. However, most people don't take the time. Here's a look at a typical outing to the local or not-so-local RV dealership.

The Gunfight at the O.K. RV Sales Corral

Most people walk into an RV dealership with the impression that they are going into battle. They bristle with resistance as the salesman introduces himself and begins the cat and mouse game of "I can sell you... No, you can't."

The salesman asks qualifying questions to hopefully keep from walking all over the lot and showing each and every RV. You are merely trying to see different styles, options, colors, models, etc. It is a tug of war, but it doesn't have to result in an all-out war.

The dealer, who has shelled out (literally) millions of dollars to provide an adequate inventory of recreational vehicles, has the right to regulate the flow of potential customers through his doors. He also has the right to dictate what type of methods his salespeople use.

The Good, the Bad, and the UGLY

When you walk through the dealership doors, many salesmen, like a cop in a bad movie, will subconsciously read you your RV Miranda Rights.

You have the right to remain uninformed. Anything you say can and will be used against you in the sales office. You have the right to speak to your spouse, and to have your spouse present during any negotiations. If you cannot afford an RV, one will be financed for you at 1% to 3% over the "buy rate." (Buy Rate is the dealer's actual interest rate charged by the lender.)

This adversarial relationship is the mentality of many, many RV dealers and salespeople across the country. They will use any means possible to sell you an RV from their inventory and their lot. They will use a multitude of tricks and strategies to "help" you buy on your first visit. They will give you formidable real or "not-so-real" reasons to buy NOW! (You should already know or have the knowledge to recognize any "real reasons" the dealer may legitimately offer. They can be BIG money-savers.)

The RV Consumer's Bill of Rights

As the consumer, you also have a set of rights that you should go over mentally as you walk through the doors of any RV dealership.

1. 1. You have the right to be informed. Use your pre-shopping knowledge against any high-pressure tactics of
   salespeople. Or over-aggressive sales managers and finance managers.
2. 2. You have the right to take your time. However, you do have the right to know how to use urgency to your advantage.
3. 3. You have the right to know the wholesale and retail book value of your trade-in, as well as the RV you are potentially buying.
4. 4. If you finance your RV, you have the right to choose the source of your RV loan at the best interest rate and terms possible.
5. 5. If you choose to purchase an RV warranty, you have the right to a fair price and a reputable company.

Clearly, the dealer is entitled to some profit... Without it, he could never survive. Many dealers make HUGE profits on the RV's they sell. Your job as a consumer is to make sure that he pays the rent on the next buyer. Not you.

Don't be Your Own Worst Enemy

Most people never take the time and/or money to learn. They don't realize that when they walk into an RV dealership and sit down, they have taken a knife to a gunfight. Dealerships spend thousands of dollars training their salespeople to make a good profit on every person they work with. Yet still, the vast majority of buyers never take the time to learn how to buy an RV at a minimal profit for the dealer.

Unfortunately, there is very little useful information out there on the subject of RV related SAVINGS! There are plenty of books on using your RV, fixing your RV, and traveling in your RV. There are even some books on the subject of buying an RV. But all of them combined seem to provide very little real-world, down-and-dirty strategies for saving money.

Your pre-shopping studies should include typical pricing and dealer cost estimates for your target RV. You should also have studied and know how to recognize the quality, or lack thereof, in your subject RV list.

One important thing to consider is the issue of a trade-in. Should you put forth the effort to sell your current RV before you purchase another one? "Effort" is a key factor. If you put in the effort, you deserve to keep the profits of your labors.

What About an RV Trade-In?

If you trade in your RV, the dealer will be the one who puts forth the effort to sell your unit. He will be the one to make interest payments on it while it sits on his lot. He will incur the advertising expense, sales commissions, etc. He will also have to fix any defects or problems and typically provide a "limited" warranty on the unit for a minimum of 30 days.

In other words, don't expect to get full retail for your trade-in. It doesn't happen. Ever. (See our article on evaluating your RV Trade-In Value.)

Some Parting Thoughts

People ask me time and time again: "When is the best time to buy an RV?" My answer is always the same: "Anytime!"

They then typically reply: "No, is Winter the best time? Or maybe at the RV Shows? What about the end of the month? I've heard that is the best time to buy an RV..."

The truth is this: RV dealers need to sell and finance RVs all year long. Some sales make a lot; some
seals make a little. Your job is to make sure you have the skills to play the game effectively.

As long you are armed with the proper tools, information, and education, you should be able to negotiate a deal that is fair to both you and the dealer. No matter what time of year, remember that knowledge is power. Use it to your advantage.

Do your homework:

1. 1. Research various models and dealer pricing.
2. 2. Leave your checkbook at home until you are ready to make an offer.
3. 3. Remember the value of the Internet and the ease of shopping it offers.

And always remember to be kind to your local RV dealer. He is the one most likely to be servicing and repairing your RV. A few dollars more - spent locally - are wisely spent.