MSRP - Why Bother?

[traveldawg]

Having a MSRP from the factory is good as it levels the playing field between dealers and allows you to compare models easily between dealers. Also gives you a benchmark when prices are going up. Like Scott said, some of the higher MSRP is that it feels good about getting 25% off. But factoring in supply and demand as we saw in late 2021 and early 2022, sales can be much closer to MSRP too. In the auto industry, limited edition vehicles can sell at $10K or more above MSRP. For a lot of RV dealers, truer selling price is generally posted on or requested through their website so pretty easy to get to that number as well. That price then is the starting point for negotiation not the MSRP.

MSRP may "..level the playing field..." but why 20% to 30% than what you can buy one for? Automobile dealers don't do that; it seems to me they are closer to maybe 3% to 5%.

As for the rest of the thoughts, comments, etc. here..... A lot of us know we need to shop around. We all have our tactics (walking out, low-balling, etc.). Some folks are better shoppers than others. I think those that have the time, patience, wherewithal, & stamina to shop are much, much fewer than those who blindly just go shopping and buy what looks pretty (to them, at that moment in time (so-to-speak).

I suppose the closest comparison to this RV MSRP "stuff" is the clothing retailers who are constantly marking things down to 1/2 price, 40%, etc. I remember when JC Penny started a "real price" method where they stopped all the silly discounts to make it easier for shoppers - big mistake - shoppers liked the discount pricing better; so up went the prices again and the discounts (sales) were put back in place. All that supports the idea that folks like to think they are getting deal. Not sure who is fooling who with that strategy.

I guess as much as we (I) might think the MSRP pricing is a joke it isn't going to change. I'll be at the Tampa show next week - always interesting to see how much the "show price" is on some rigs - usually on all but the most highest priced Class A's. oh - and the Airstreams, & DRVs - some manufactures just know their value/desire and price accordingly.

Good conversation.....

[trailrydr]

Never EVER buy while you sitting at the dealership !!! Your on their turf and they will win. Figure out what unit you want and then go to as many dealers as you can for pricing. You will quickly learn where the bottom is.

They created this adversarial process, not us. If they were transparent about what the price of any given unit is, then it wouldn't be necessary to compare shop. But they chose the "let me go talk with my Manager" game /process.

You do that cowboy while I rustle up a few other managers from other dealers to see what they say.

BTW the go talk to my manager thing is really to see how long you will sit there waiting. How badly you want the unit. As soon as he leaves, you leave.....see how fast they come running after you. It is hilarious to watch.


Kid

Yea.... My wife and I got that "wait" game figured out and it's not by design. She is the quintessential hater of dealership haggling. I always tell each salesman when I go in that when she gets up and starts to leave, the haggle is done! And that takes about 15 minutes typically if no progress is made on our behalf. When it happens, they usually race to the door to cut HER off and agree to a more realistic price! It's really amazing how well it works!

As for your comment of not going to a dealership without going to others first, I 100% agree! I always call around, get the best price, and work out the deal on the phone first with a faxed agreement before ever leaving the stick built. Cash deals help, along with no trades and no financing. It's the bird in hand thing that really does it, cause they don't won't to work any harder for the deal either. Always another potential customer waiting to make a deal.

And don't be afraid to travel for a better deal..... Have found better deals away from big cities and smaller dealerships.

[traveldawg]

I remember once, when shopping for a truck (it was a 6 month search because of this MSRP silliness): one dealer said I had to write a "good faith check" for $100 to get a price. I had nothing but time (wife and kids were out of town w/in-laws) so I wrote the check. Sales rep came back with price and I just got up and walked out. Of course multiple folks came to get me - seemingly more worried about me leaving the check than making the sale. I told them only if I talked w/the sales manager would I go back in. I did - I simply told him he could keep the check or return it immediately as I could simply stop it and that I was leaving. I got the check back.

Lesson learned??? - don't bother with the dealers that shout the loudest in ads or that talk fast. I probably already knew that, like I said - I had time - so I went out just to test the theory.

After the 6 month search I found what I wanted on a dealers lot, I told the sales rep he had one chance to go get a price and it had to be rock bottom (ya tend to learn along the way where the 'bottom' might be). He came back with the offer, was surprised at it, I said "deal". He was shocked at the price and my agreeing and we got the deal done in record time.

[Nrbsrsr]

50 years ago my wife was pleasantly surprised when buying her first car and the salesman offered her $300 off the sticker without her even asking LOL.

[Captcolour]

Auto sales used to be a lot more off MSRP like the RV industry until I think Saturn came around and sold vehicles at sticker price only. Took another 10 years maybe until other OEMs followed suit, so you are lucky to get a few % off any more. Maybe if a new RV company came in selling at reasonable MSRP the others would follow reluctantly.

Why 20 to 30% high MSRP? Two reasons: (1) buyers think they get a good deal when supply is up and demand is down so somewhat easier sale; (2) when demand goes up and supply goes down, they get to sell at a higher price without charging more than MSRP. Gives the dealer a whole lot of flexibility. If I was a dealer, I'd want it this way.

[Riverbug]

I too remember days before the internet and forums when you couldn't easily find out what discount you might expect when purchasing things. It's a lot easier these days to compare notes and at least feel like you have a shot at purchasing something with eyes open. And having access to see prices across the country also provides at least some perspective. I couldn't find our latest truck at or below MSRP so drove to IA where I didn't have to haggle over 2% below invoice (approx 8% below MSRP). The internet has helped immensely for those willing to do some research.

[dryfly]

[QUOTE=traveldawg;463649]
As for the rest of the thoughts, comments, etc. here..... A lot of us know we need to shop around. We all have our tactics (walking out, low-balling, etc.). Some folks are better shoppers than others. I think those that have the time, patience, wherewithal, & stamina to shop are much, much fewer than those who blindly just go shopping and buy what looks pretty (to them, at that moment in time (so-to-speak).

[QUOTE=traveldawg;463649]

A lot of the talents of dealing went out the window when extended financing came into the picture. I would suspect most vehicles and RV's are bought on "what's my monthly payment" now. With 6+ years on vehicles and 12-20 years on trailers who cares what the price is as long as I can make the monthly payment!

I agree there are still a lot of astute buyers out there as seen by posts on this forum.

Speaking of dealing, I always thought going into the deal as a cash buyer was the way to a better deal. I've recently learned that the profit to the dealer by arranging financing is significant. I will never again disclose paying cash until I'm signing the papers.

[Nrbsrsr]

Speaking of dealing, I always thought going into the deal as a cash buyer was the way to a better deal. I've recently learned that the profit to the dealer by arranging financing is significant. I will never again disclose paying cash until I'm signing the papers.

I've found that I can usually get a better price with dealer financing as the dealer gets an incentive. They usually require that you carry the financing for three months so they can get their incentive. When I bought my 2800bh for $30,000 I paid $25,000 right away to keep the interest down and then paid off the rest over the next months. I'm happy & the dealer gets their cut.

[Kanadakid]

What a great guy !!! Doe she still send you a Christmas card every year ?

[lorend]

Does anybody think that the insurance companies are part of the MSRP price? When we bought our 5er we were surprised when the insurance company had us insured for the MSRP price rather than what we paid for it. Does this mean the insurance companies are getting a 25-30% boost in their insurance rates? Just wondering.