When looking at used RVs, many dealers may be cautious to drop pricing at first unless there is an obvious flaw with the trailer. You may generally get them to lower the price if you indicate that you can buy a new trailer for the same price as they are offering a used trailer.
Because most individuals are unwilling to haggle over a price, dealers can list used trailers at new prices. If you bring this up during a negotiation, though, the dealer will almost always drop the price for you. You have the upper hand because they want to sell the trailer more than you want to buy it.
Do utility trailers have any resale value?
Consider all of the applications for an open utility trailer, or all of the uses for an enclosed box trailer…
Do you need more space to store your furniture or sand toys? Will you require the trailer for business purposes? How far will you have to travel with the trailer?
If you are relocating from California to Florida and will require a trailer to transport your belongings, you may believe that your one-time need for a trailer warrants a trailer rental rather than a purchase…
This, however, is not the most cost-effective strategy! Many trailer rental companies charge by the mile, so renting a trailer could end up costing you half as much as buying one! That means you’ll have paid for half of the trailer and then be forced to return it with nothing to show for your hard-earned cash!
Unlike a new automobile, which has a sticker price that drops a few thousand dollars the moment it’s driven off the lot, trailers keep their value and resale value when it’s time to sell. Trailers, unlike cars, do not have a brake system “Used trailers in good condition tend to be priced similarly to new trailers, according to the Blue Book. What this means for you as a potential buyer is that if you buy the trailer and take care of it, you’ll be able to resell it for a fraction of the price you bought! By the time you sell it, your entire investment will be less than a rental!
If you’ll need a trailer on a regular basis (even if it’s only once or twice a year), investing in a high-quality trailer is the way to go. Investing in a good trailer, whether an open utility or an enclosed cargo trailer, will save you time and money on maintenance and repairs “You’ll save money on rent by renting a low-cost trailer instead of spending double the trailer’s value in regular rental costs!
When should you rent a trailer?
If you simply need a trailer for one day for a project and don’t want to deal with the hassle of keeping or selling a trailer you don’t use often, renting is likely to be the most cost-effective and convenient alternative.
Learning to Spot a Quality Trailer
A trailer is an excellent investment that maintains its value when it is built by expert engineers using high quality materials; however, when that quality is compromised for cost, it means more hassle and headache for you as the owner!
Are you ready to purchase a trailer right now? Norco Trailers has a large inventory of high-quality trailers in Southern California… Over 300 trailers are now available for purchase!
Why are utility trailers so expensive?
Isn’t that a lot of blacktop? You can see very little of it in a typical year. But, as we’ve seen since March, nothing is ever the same.
The trailer sector, like many others, has altered dramatically in the last year. If you’re looking for a trailer, you’re probably having problems finding exactly what you want, having to wait longer than you’d want to receive it, or having to pay more.
Every month, it seems, we get word from our manufacturers that their prices are going up. Again. They don’t want to raise costs, but they don’t have an option. Steel, wood, and other regularly used parts, such as air conditioners, awnings, generators, and more, are driving the hikes. The Covid-19 shutdowns in 2020, as well as China tariffs, have set off a chain reaction.
Many of U.S. Steel’s blast furnaces were shut down in April of last year, and while some reopened later that summer, others, like the one in Gary, Indiana, which is located in the heart of trailer country, didn’t restart until December. U.S. Steel ended the year with a $920 million net loss.
Last April, the United States’ forest industry closed mills as furniture sales fell 66 percent, and tariffs imposed by the US-China trade war have raised costs while reducing wood harvest and lumber production.
Trailer sales haven’t decreased despite steel and wood shortages. When you add in a booming RV industry as cooped-up families seek safe ways to travel, as well as an exploding housing market (new homes cost $4,600 more in October than they did at the start of the pandemic), it’s easy to see why prices are rising as so many industries compete for limited supply and labor.
That was a brief and broad assessment of the current situation, but supply and demand are the only factors that matter. We despise turning away potential customers or informing them that we won’t be able to provide them with what they want when they want it at the price they want. We’ve always been recognized as the bespoke trailer dealer, capable of turning our customers’ wildest fantasies into reality.
Manufacturer lead times are now double, quadruple, or even more than they were previously! Some trailer manufacturers aren’t even making particular sorts of trailers right now, and the majority are focusing on conventional models that they can create and transport fast in order to keep up with demand. Custom choices are even more difficult to come by, so if you can get by with a simple trailer with standard amenities, you’ll have a far greater chance of acquiring it sooner. Be prepared to wait considerably longer if you require customization.
We’re adapting to the pandemic and working through the issues our industry is facing, just like everyone else. It’s not unique to our dealership or the trailer industry, but we’ve managed to keep our prices low without overcharging our clients. Manufacturers must raise their prices when suppliers raise theirs, which implies we must raise ours as well, or we will not be in business for long.
We will never take advantage of a consumer, but we do want you to be knowledgeable about the industry so you can make an informed decision. As a result of supply chain issues that result in product shortages and longer lead times, there is increased buyer rivalry for the limited product that is available.
What percentage of the MSRP should you spend for an RV?
For an RV, you should anticipate to pay up to 25% less than the MSRP. This is a fortunate circumstance, as many sellers are hesitant to offer excessive discounts, especially on new and expensive RVs. It’ll all come down to your negotiating skills.
When it comes to negotiating, start with your advantages:
- Your initial offer, based on the dealer’s pricing for the vehicle or what you believe is a reasonable price.
- Offers from other local dealerships or RV-buying websites are competitive.
The seller will likely begin the discussion by focusing on the vehicle manufacturer’s suggested retail price or the monthly fee. That is not the way to go. If the vendor starts with a price, start with the lowest price and work your way up from there, rather than starting with the manufacturer’s suggested retail price (called the MSRP).
What are the advantages of purchasing a travel trailer?
Because travel trailers are simply homes on wheels, any maintenance work that is required will be similar to that which you would perform on your own house! Travel trailers are ideal for anyone wishing to save money while camping, be comfortable, and have a dependable RV that doesn’t require a towing expert to maneuver.
How do you make money with a trailer?
Learn how to make money with a truck and trailer in 17 different ways.
- Start a towing company.
- Begin or join a moving company.
- Start a snow removal business.
- Hotshot Trucking is a company that specializes in trucking.
- With Your Pickup Truck, You Can Deliver Food.
- Use Gigs or Ads to find odd jobs.
- With a truck and trailer, provide landscaping services.
- Place advertisements on your truck and trailer.
Is it profitable to make trailers?
You have the option of working with a small number of devoted clients or hundreds! There is no limit to how much money you may generate if you start a utility trailers selling and manufacturing firm. The more you put into your profession and the stronger your business abilities are, the more money you’ll make.
What kind of trailer is the most profitable?
The six most profitable trailer types
- Car Hauler Trailers are trailers that are used to transport cars. The demand for this type of trailer has risen dramatically in recent years, as transferring cars from one side to the other can result in significant profits.
- Refrigerated trailers are trailers that have been refrigerated.
- Trailer with a cover.
- Trailers with flatbeds.
RV Pricing and Value Guide by NADA
When it comes to comparing alternative pricing guides to the Kelley Blue Book, I think the NADA RV pricing and value guide is the closest match. For trailers, motorhomes, truck campers, vans, and pop-up trailers, it is today’s Kelley Blue Book.
The RV Pricing Guide from the National Automobile Dealers Association (NADA) is one of my favorites. It’s the most user-friendly RV value calculator. NADA also provides the most up-to-date prices for RVs and travel trailers.
- Select the type of RV you’re looking into.
- Indicate the unit’s maker.
- Examine the models, physique types, and years on the list.
- Examine their current pricing and worth.
NADA has the most up-to-date information on RV valuation guides from most manufacturers. Some, however, are not. If you want further information on a Coachmen model constructed after 2009, for example, you’ll be sent to the Forest River website for RV valuation information.