OR… what you CAN and CAN NOT add when using JD Power to establish the value of an RV Camper…
I was trying to learn for one of my clients the REAL condition of a camper and whether the selling dealer was prepared to sell at a realistic price. What he told me both floored me and honestly made me feel dirty!
Allow me to begin my story here… Perhaps one of the most valuable services I perform for my Concierge RV Buying Clients is to conduct an extended “interview” with the seller. This interview, perhaps better described as an in depth fact finding mission provides me and ultimately my client with the information we need about a particular RV camper and ideally the price we can obtain it for.
In this particular situation, my conversation with this dealer was less than optimal. I’m sharing it here as there’s a lesson to be learned for all RV buyers and sellers.
Why do I feel like I need a scrubbing shower after speaking with some RV dealers/sales lots?
While conducting my fact-finding session, I always ask about the sellers asking price and whether they’re “negotiable.” This is where I was floored by what this General Manager at a “two-bit” sales lot had to say…
The dealer was asking nearly $23,000. for a 10 year old travel trailer. This travel trailer, a Creekside 27BHS has a current book value of $15,800. Knowing the current state of the RV industry, I was surprised to find a dealer with the chutzpah (audacity) to ask that much over book value. I addressed the discrepancy between JD Power’s book value and his asking price. His next statement then floored me (and made me feel dirty!)
He defended his ridiculous asking price by stating they made several “adds” to their camper’s value beyond the basic book value price. That is, he added the value of options to the base value of the trailer. This is generally regarded as fair and reasonable. The problem was this trailer had NO options!
This is where the “teachable moment” arrives…
Establishing fair value for a used RV Camper
JD Power is freely available for all RV buyers and sellers to review. It’s worth the visit as JD Power (formerly NADA) is regarded as THE industry standard in establishing the value of a used RV camper (of any type.) JD Power is regarded as the industry standard if for no other reason than lenders use it to establish value to determine what they’ll lend to a borrower seeking a particular year, make and model camper.
To establish an RV camper’s fair value, JD Power gives you the base price and enables you to click on a number of options. The problem however is JD Power allows you to click on many things that are NOT true options (or “adds” as they are referred to in the RV industry.}
The rule of thumb when choosing what is fair game to add to the base value of a camper is this: IF the manufacturer’s base model includes (for example) fiberglass on the outside, an air conditioner, and a queen bed – these ARE NOT legitimate options that add value to the camper. It is up to the end user to know what is and what is NOT a legitimate “add.”
Consider this example…
For example, where the camper in question has a book value of $15800, this (shyster) dealer added fiberglass walls, air conditioning and a slide out as OPTIONS. This jacked the campers value up $2700. to $18500. and he wasn’t done with the adds there (though I was!)
ALL of his claimed options are COMPLETELY bogus however as the camper in question (a 2015 Outdoors RV Creekside) came standard with all 3 – fiberglass walls, an air conditioner and a slideout! Therefore JD Powers valuation of the camper as it is includes all three “features” or aspects of this camper.
Incidentally, it is CLEARLY stated by JD Power what you can and CAN NOT add as they attempt to educate users on how to establish a fair value for their camper.
After my conversation with the General Manager of this (shifty) operation, I advised my client that we should pass on this camper – if only because the dealer is NOT an honest broker – and who knows what else he was being fraudulent about!
**Winter is coming sooner than you think! IF you camp in your RV in cold weather, an RV skirt is VITAL to have! My own RV skirt is now approaching its 7th season of use. In most ways it is still in “like new” condition. I first wrote My Great RV Skirting Solution back in 2017, but updated it last year. Again, if you RV Camp in the winter in cold weather, you NEED to review this info!**
Genuine Options that add value to a camper
With most towables, it’s not an extensive list! Solar panels (and related electronics) head the list. A generator*, high end batteries, a fireplace, and a weight distribution hitch are typically the only other options that add any value. Ultimately, it’s really the solar and generator that move the “value needle” significantly.
*Generators are often standard in toy haulers but are rarely standard otherwise. Bottom line: Know what is standard on a given camper!
Is JD Power the “final say” when it comes to valuing a camper?
Bottom line: No.
I view JD Power as a good starting point however. Additionally, there are factors that may cause me to value a camper at a higher or lower value than JD Power. These factors include the camper’s condition, market conditions, location, type and more. When I’m establishing a fair asking price for a camper, I consider all of these and explain my thinking thoroughly to my client.
Closing Thoughts
This conversation was a brief and necessary one! I hope it helps you to better understand how a used campers fair value is established. I’m writing this on August 15th. We continue to enjoy below normal temperatures – AND – above normal rainfall! This is unusual for August. If nothing else it has helped to clear the smoke thanks to the smoke coming from the far left … errr… west states.
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