MSRP, INVOICE and PROFIT

MSRP, or Manufacturers Suggested Retail Price, is the price manufacturers post on their RV,s. It is the "suggested" price and gives dealers a common number to start from.  Profit is the amount of money the RV sells for above the true cost. It is best to remember all RV Dealers need to make a profit! Profit is not a bad thing, after all, you would like them to stay in business to service your RV. You also want to pay as little for the RV as possible! To get a good deal, both the RV Dealer and you have to perceive VALUE. Every deal can be a good deal when both parties understand the facts. No one has to get hurt or taken! Good deals come from good communication, understanding of the issues and values, a keen sense of fairness on both sides, buyer and seller.

Learn how to maximize your value and save money  in our book.  

Step 1 Up Front Discussion

Once you have selected a type of RV, possibly even the make and model, select a dealer. When you first get to the dealership sit down with your salesperson, get to know that person and when you are comfortable in your mind that you are dealing someone you can work with then move the discussion to the RV. Discuss every aspect of what you are looking for. Some, but not all items are listed to give you an idea of the discussion.

 Learn how to pick a dealership and a salesperson in our book "What is an RV and How Do I Buy One?"

Step 2 RV Selection and Walkaround Presentation If your salesperson listened to you the next step is very exciting and fun. First, you should be shown RV's that fit your needs, if this is not happening, then your salesperson did not listen. The salesperson should take you to RV's that fit the requirements that you outlined. At each RV you should get a throrough walk around presentation.

Step 3 RV Demonstration This may or may not be necessary. For example, there may be no need to hook up a travel trailer to your rig to see how it tows if you already tow a similar unit. Even popup tent trailers can and should be fully demonstrated. You and your salesperson should take the popup from stowed to fully set up and back again to see how the process works and how difficult or easy it may be. When buying a motorhome, you should always take a good test drive. You need to see for yourself how the unit handles in traffic, on the open road and around a campground. Will it fit where you go? Can you get it into your normal storage location? How will you feel at the end of the day when driving it?

Step 4 The Purchase

You do not want the saleperson to apply pressure to get you to buy something you do not want. You should only get to this stage when you are sure you are ready to buy. We will not get into negotiation strategies and tactics except to say most people have their own methods. What people are trying to find is the point where both can feel they got a good deal - the dealer made a fair profit and the buyer received value for price paid.  This often gets confusing when there is a trade involved. 

Before you sign remember that everything you talked about is replaced under law by what you signed (the parole evidence rule). Be sure you get everything in writing on the purchase agreement . 

These steps can cost you a lost of money if done incorrectly.  We cannot give enough information here to cover the subject fully, but if you wish to know more, we go into these processes in great detail in our book . 

Step 5 Delivery This step is more than signing a bunch of papers and getting the keys. You should be introduced to key people in the service department and given a very thorough walkthrough of every system on your new RV. This should take from one to three hours to complete.  Take your time, ask lots of questions.  Of course, if you are a seasoned veteran you may only want to see certain items, but we still caution every buyer to get the full benefit of the hands on training. Get important phone numbers: service manager, parts department, service contract numbers, association numbers (owners clubs), manufacturer's hotline numbers, etc.