It is very common notice a few RV for sale not being bought resulting to an unsold RV inventory. Consumers would like to taste the new RV models and the demand for RV trailer, campers, camper vans, motorhomes among other type of the new models would be higher than the demand for old unsold RV models making one wonder where do unsold RVs go?.
So, what happens to the unsold RV inventory that are likely to be the left overs? Several things can happen including but not limited to being loaners RVs, auctioned, market shift, and force sells among others.
It will all depend with what the dealer or the manufacturer is willing to do if patient to keep waiting for a buyer has been exhausted.
This guide will provide
- Overview of RV market
- Why did the RV not sell?
- What Happens with the unsold RVs Motorhomes that aren’t sold
- 10 tips for buying unsold RV
- Overview of a wholesale RV auction site (Video)
Overview of RV Sales Market
As market competition of RVs increases, manufacturers are put on toes to produce new models and stay competitive. As a result, every year it is likely that a new model or perhaps a newer modification of previous sold RVs is produced.
Besides, most manufacturers often produced recreational vehicles on a pre-order basis unless it is a new model that is not yet in the market. Thus, chances of a manufacturer having many dead stock is slim compared to RV dealers but manufacturers also have left overs.
A dealer can order a number of different models from various manufacturer to meet consumer demand. However, chances of having an unsold RV is high since consumers may not want to purchase what the dealer has and order another model that is not in the dealer’s store.
However, most RV dealers would also work on preorder basis and have 1 model of a brand as display. So, in the instance you get 2 similar old models then perhaps it could be because of someone defaulting before delivery.
Why Did The RV Not Sale
As new models are produced, chances of people rushing to buy the model is high especially when the features are absolutely outstanding. However, not all RVs get sold even if the seller is practicing the best selling RV tips.
Some of the reasons to have an unsold RV includes:
Unpopular Feature
Since the model is outdated the unsold travel trailer lacked a specific key popular feature that is desired by many people. Consequently, an alternate model would be chosen that has that feature that people want and a dead stock occurs.
Old Model
The fact that it is an old model, some of its features are likely to cause problems. As a result, many RVers have a fear of unknown to purchase the model since maintenance cost can be high.
Extreme Low Price
Most RVs are generally known to cost a good fortune especially the new RVs. However, imaging you go to a dealer and find a new RV that is selling below the normal price range of new RVs? Chances of you not buying the “reject” is high since you wonder why the low pricing and why it did not sale.
High Selling Prices than Its Worth
Since its an old model perhaps it lacks a popular feature yet the prices is still high. Thus, a consumer may prefer to top up a little and get a new model rather than buying that old model whose cost is slightly lower and has less desired features.
Lack of Financing
Majority of RVers purchase RVs on loans financed by banks. However, most banks rarely finance older models of RVs. Thus, a buyer will have no option but find a new model in order to get help financing the RV through the bank.
Stiff Competition
RV market has been on the rise and is very popular. Different marketing, advertising, and discounting strategies create a huge difference. Due to competition, it is likely that a competitor may sell an old model and another less competitive still remain with an unsold model.
Can’t Afford To Sell
In worst case scenario even with discounts and all the advertisement cost, the RV just remain unsold as it attracts no buyer. In the end the model has to remain behind since it cannot be sold.
Repossessed RV for Sale
The RV could have been sold on loan. However, fate occurs such as death or loss of job and the loan cannot be cleared on time. The dealer will have to repossess the RV. So it becomes unsold.
Consumer Preferences
Some consumers like tasting new models and would simply wait until a new model is released then go order the RV. Thus the RV dealer or a manufacturer is likely to have a number of unsold RVs.
What Happens To Unsold RV Motorhomes?
There are a number of options that either an RV dealer or a manufacturer can embrace when handling the unsold RV inventories. These are some likely events on what happens to unsold RV inventory? The following actions can be done:
Price Reduction
The unsold motorhome will get a much reduced price than initially quoted. The aim of reducing the price is to attract buyers who may not be able to afford buying the RV at the initial price. In this case a dealer loses as the consumer wins.
Selling as a Used RV
In worst case scenario the unsold RV has to be sold as a used RV simply to get rid of it. The technique has worked although minimal profit margins can be realized by a dealer.
Market Shift
Most of these dealers can be considered as “partners” since they sell a common commodity. As a result, in case one dealer does not sell the trailer for several years, the dealer can sell it in another country. Example, a dealer in the USA can sell unsold RVs to a dealer in Canada and vice versa.
In that manner, the consumer gets a taste of a different brand and the previously unsold RV is likely to be bought.
RV Auction
If no sales are made yet, auctioning the RV could be a good idea. In fact a dealer can join the wholesale auction of RV’s that is run by Penn, Recreational Vehicle, and Campground Association. However, selling as an auction comes along with a great loses.
Increase Advertisement
Doing more advertisement on the old model can actually try push the sells and reduce chances of remaining in store unsold. Both a manufacturer and the dealer can work together on advertisement until a sell is made.
Loaner RVs
In the instance a customer brings back their RVs for service or perhaps repairs by the dealer, the dealer can give the customer the RV to use for the duration their RVs will be at the dealer’s store.
As a result, the consumer especially one who is doing fulltime RVing and considers their RV as a dwelling has a place to shelter.
Manufacture Force Sells
Sometimes dealers may have sold all old RVs but a manufacturer still has old models remaining. As a result, in the instance a dealer goes to order a new model that is popular a manufacturer may decide to force a dealer to also take the old model in order to get the new model.
Example if a dealer wants to buy model X that is the most recent, the manufacturer can say you also have to buy model Y which is often an old or unpopular model that was not sold.
In addition, the manufacturer will add incentives and deep discounts to allow the dealer manage to advertise. So that is how a manufacturer can get rid of unsold RV.
Should You Buy An Unsold RV of a Leftover RV?
Leftover RVs can be described as RVs that are of previous years. Actually, if you have to buy then expect to get a good deal on the RV. Despite being an outdated model, it is actually new. Leftovers RVs are not bad although they may lack features existing in the most recent models.
If it appeals to you to buy a new leftover RV, then this 10 buying RV tips can help you a lot in making an informed decision.
10 Tips For Buying Last Year’s RV Model
Have an Idea of What’s Coming Next Year
Despite slight modification of new changes in new models, knowing what is coming can help you make decisions. If the new feature is not a necessity to you then go for the old model since the prices would be pocket friendly compared to the newly released model.
Trade-Offs Evaluation
Make tradeoffs between a new model and a previous model including key improvements such as connectivity, safety equipment, and other areas of interest. If the latest modifications is worth the extra additional cost then old model is not for you.
Be Flexible
Shopping for leftover needs you to be very flexible since your options are limited. Actually, you may not get perhaps the colors you love, or lack of an RV air conditioning. Good thing is most of the missing items can be added as an addition to RV improvement.
Do Your Research
Have clear picture of what you want. Also, you can inquire in a dealer of your dream RV and you may be lucky to get your RV in the old model at a much discounted price. Also, enquire more of leftover inventory so you can go through to see if you can get something good.
Once You Find Your RV, Buy It
After doing your investigation and you are satisfied that the leftover RV suits your needs, then buy it. Do not hesitate since someone else somewhere is also looking for such. So, be ready to buy once you get it.
Plan to Have Your RV for A While
Problem of purchasing a leftover model, it is a year or years old meaning it has already depreciated. So, if you intend to sell in near future then buy a new model to reduce depreciation factor and you will be much better.
Also, keep in mind that you can also stay with your RV for some years before selling since depreciation levels off after few years and keeping it for six or more years makes no difference.
Ensure the Leftover RV Is New
Remember a dealer may claim the RV is new yet it has been used as a loaner and already has miles on it. So, the RV is not just a leftover but a used leftover meaning possible need for maintenance is high.
Warranty
When you purchase a leftover RV check the warranty and ensure it takes effect from the date you purchase. Despite being a year old, it is still new and you should enjoy warranty for new RV just as a newly model of RV.
Negotiate
Despite leftover RVs having an already discounted price, learn to negotiate to get better deals. In fact , the fact that it is a leftover you can have good deals.
However, if you do not know how to negotiate then chances of getting low discounts is high. Keep in mind that you are helping the dealer get rid of the RV that he desperately wants it out, take the advantage and negotiate.
Check the Total Price Not Payment
Some people concentrate on payment more than the total cost. Taking the RV with a loan may make you pay too much especially if you are impressed with minimal monthly payments plans at the expense of the total cost.
Do not end up to pay more for a leftover RV at a cost you could simply buy a new model. The key point is check the total cost first.
Have Alternative
A leftover RV can cost similar to a used RV. So if the features you are looking for are not in the leftover model, why not buy a used model? All the same both have depreciated and you need a good deal.
Check more on RV brands that you can include in your research to come up with an informed decision of what to buy.
An Actual View to an Auction Dealer Place
Some of us may not be lucky to have gone to an actual auctioning place of perhaps cars or RV. Have a look and see the huge numbers of unsold cars and unsold RVs inventories. By the way, if you have low budget an action center is a good place to buy RV for cheap price.