General Observations re Depreciation (advice for buying used)

[jgr]

In looking for a used pop up, I'm trying to determine if there's an age at which a pop up has done most of its depreciating.  For example, it seems like they take a good hit in terms of value when they leave the dealership.  But it also seems like at the 4 to 7 year mark they hold steady with their value for a few years -- and then take another hit.  

I haven't yet figured out whether certain mfr.'s pop ups depreciate faster or different from others.  

This isn't scientific and I admittedly don't have much experience in this area.  But if you have any general observations or advice, please share.

[SpeakEasy]

In looking for a used pop up, I'm trying to determine if there's an age at which a pop up has done most of its depreciating.  For example, it seems like they take a good hit in terms of value when they leave the dealership.  But it also seems like at the 4 to 7 year mark they hold steady with their value for a few years -- and then take another hit.  

I haven't yet figured out whether certain mfr.'s pop ups depreciate faster or different from others.  

This isn't scientific and I admittedly don't have much experience in this area.  But if you have any general observations or advice, please share.

My opinion is that one popup will vary so much from another that any general trend that you note will be outweighed by individual variation. Popups are VERY delicate, and their condition will be determined by the amount of care that has been given to them.

Although boats are somewhat different, I have a boat story to tell that will help make my point. Earlier this summer I was in the market to buy an inexpensive used boat. I found exactly what I wanted, and it was a cream-puff. The original owner had kept it for 19 years, and he loved it like a baby. This was reflected in his asking price. He was about 35% over the NADA "value" for this particular boat-motor-trailer combination. I took that fact into my negotiations with him. He knew what he was selling, however, and he knew that the NADA values are averages. He wouldn't budge much on his price. I walked away, thinking I was smarter than he was. After about a week, however, I was back - paying his slightly reduced price. Why? Why would I pay 30% or so above NADA value? Because there was nothing else available in that condition at that price. Other boats that were selling closer to their NADA value were in what I considered to be horrible condition. I was willing to go for a higher price to get a well-cared-for boat. I think you'll find it to be the same with popups.

Just a thought.

-Speak

[wavery]

The depreciation is not only dependent on age alone.

When I was shopping (a couple years ago), I noticed that PUs with slide-outs and built-in bathrooms seemed to hold their value better. Owners also seemed less willing to "Deal" on them.

The interesting thing that I found was that AC didn't seem to make much difference in the price of a 2nd hand PU.

I did a lot of research at the time and found that PUs lose a higher portion of their value in the 1st 3 years (as you stated). They seem to go down gradually from there.

The key, for us, was waiting until there was far more sellers than buyers. This seemed to occur in October and continued through the winter. Sellers are well aware of competing campers on the market and realize that they need to compromise in order to make a sale. Just make it perfectly clear to the seller that he is one of several that you plan on seeing that day and at the end of the day, you intend to own one of the ones that you looked at. A motivated seller will not let you leave without towing away his camper.

There is an advantage of buying in October because sellers don't want to be stuck storing the camper through the winter. Most buyers start looking in the spring and sellers know that. They will be much more willing to deal then, than they will be toward the end of winter (beginning of camping season).

Also, the asking price really means little. If a seller is motivated (for whatever reason), they will often take far less to move the camper off of their property. Sometimes, you can do quite well by looking for a motivated buyer and have cash in pocket when you finally decide to go shopping. Telling a seller that you are willing to tow the vehicle away on the spot can sometimes make a big difference.

In the end, it's all about supply and demand. :U

[wavery]

inexpensive used boat.
-Speak

 :J  can you say.....oxymoron :J

[SpeakEasy]

:J  can you say.....oxymoron :J

Heh, heh, heh. I hear ya, man.

-Speak

[AustinBoston]

Used prices are as much about three things as anything else: 1) location, 2) location, and 3) location.  In some areas, there are only one or two dealers.  They set the price for new, and that defines the used market.  In other areas (such as where I am), the RV dealers seem to outnumber the gas stations, and every block has at least one used pop-up for sale.  In this area, if you want to sell, you have to expect to offer free delivery, etc.

Austin