Luxury Coach Lifestyles - View Single Post - 1998 bath and half at MOT
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Old 11-26-2013, 06:42 PM   #17
Dave-n-Marjorie
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Join Date: Oct 2012
Location: Hilton Head Island SC
Posts: 102
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SantaFe,

A couple things here. Prevost vs Newell was not addressed. Sure they are different in some ways, but actually the same in many more ways. Great, Prevost has a bus chassis that can go one million miles, but how many miles to RVers drive each year??? 10k? What about 24/7 support for Prevost? None! Is there a dollar figure on that? Newell floor plans? Hmm the most popular floorplan in all Class A mfg's TODAY are rear bath and 1/2 bath. I have one and its a 96....when did Prevost come out with unique floorplans like that? Newells are way ahead of their time. The rest of the components they share, series 60, aqua hot, multiplex, valid slides...ect...all just different color lipstick.

Now you talk about elusive cash buyers. Since I work for a dealer, I can tell you that most ALL banks will NOT finance ANY Rv older than 10 years. We deal with 7 different lenders. So, say you try to sell that 03 Essex, Signature, or Zephyr, good luck with that! They ALL need elusive cash buyers. Not just Newells and Prevosts. Some lenders will finance at 10 or 12%. If they pay that, they are beyond desperate, have probably overpaid on Rv and the bank will eventually get it back.

On to Values. Dealers put numbers on Rvs for trade based on the NADA Connect Dealer system. Not the NADA that the general public can see. There are no options added, and then dealers DEDUCT 30% – 40% from that number! Yes, I have seen quad slide low mileage Monaco Signatures for $90k and quad slide Newmar Essex for $80k….. I wonder what those owners paid for them in 2004? $450k? $500k? Now worth 80k in good condition….as far as MOT, no dealer wants to buy ANY RV outright unless it is below auction fire sale pricing. Why’? It would take up floorplan space as dealers finance their inventory.

Another reason that Newell Values are not stabilized are that Newells are not in the “book” or assigned any market value from any institution or bank (Prevosts are). This leads to crazy pricing all over the board, as dealers do not want to touch them like MOT!!! Dealers want comfort, knowing if they don’t sell a unit in 3 months, they can just wholesale it at dealer auction and get their money back, as there is a set value on that unit, they just pay a little curtailment.

As far as consignments, factor in the cost of the dealer keeping the unit on the lot, electricity, insurance, weekly washing, cleaning, showing, then the 20% consignment fee…hmmm…no wonder consignment pricing is low.

In my opinion, Newells are underpriced because most who own them have disposable income, do not finance them, and can AFFORD to let them go at a huge loss. These babies are not cheap to own, I think we all know that……Say you bought a Essex quad slide in 2004 and paid $400k. You financed it, and today you owe $250k. Its worth $90k on a good day! You are $160k upside down. What do you do? If it goes back to bank, it will sell at auction, then a dealer buys it, marks it up 40% and sells it retail. That is the cycle. Newell owners just sell them and don’t care about the pennies (or tens, or hundreds of thousands). Ive seen Newells sell for 1.7 million and two years later sell for 800k. Where did the 900k go? The bank wasn’t involved. The owner just took a loss and moved on. 900k was just pennies to him.

Just tellin it the way it is.

Dave
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Dave-n-Marjorie
1996 Newell #423
47' Bath and a Half
Hilton Head Island, SC
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