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Topic: NADA Values vs. Real World (Read 964 times) previous topic - next topic

NADA Values vs. Real World

I was reading some comments on another thread and I found this comment by Kent Speers interesting...

With just a cursory internet search, it appears that 2003 Foretravel prices range from about $135,000 to $180,000. NADA shows a value up to $207K but in today's market, NADA established retail value is usually higher than what you will actually get. If you want to move the coach quickly I suggest you call both Foretravel and MOT to discuss consignment sale. Find out what they would list it at and go a little lower. Just my opinion.

I'm curious as to others opinions on how they price buying or selling their RV?  It's still a work in progress for me, but I've found MOST listings are well above NADA value.  Most of the FT's I'm evaluating are older 89 - 93, but even those newer models I've found interesting have generally been above NADA.  A simple example is if you look at NADA value for a 93 U300 36' it lists it at about $30K, however, I can't find one below that when searching RV Oodle, RV Trader, or CL nationwide.  I tend to utilize NADA where it suits my best interests (when buying) and then utilize the market where it suits my best interests (selling).  Just curious on others opinions/comments if they care to share.
Benjie, Ashley, Zoey, Fallon, and Lake
Round Rock, TX
In search of our next monster...

Re: NADA Values vs. Real World

Reply #1 –
Benjie,

The older the unit, the less relevant is the book value.  In many cases you are far better off paying $40k for a clean, well maintained, and updated older coach than thinking you are getting a bargain on a neglected one with all original appliances for $20k.

I looked at a 1993 ORED the other day for a client what was in terrible "neglect".  While the price looked like a bargain, it would have been a very expensive final price by the time it was upgraded and there would still be questions about the mechanical integrity of a unit with years of neglect showing.

Look for the best price on a GOOD coach, not least the least expensive one.
Brett Wolfe
EX: 1993 U240
Moderator, ForeForum 2001-
Moderator Diesel RV Club 2002-
Moderator, FMCA Forum 2009-2020
Chairman FMCA Technical Advisory Committee 2011-2020

Re: NADA Values vs. Real World

Reply #2 –
NADA works great for things like cars, where there are many (tens of?) thousands of each made, equipment is standard or standard packages, and there are lots of sales from which to mine the data and get a decent bell curve, standard deviation, etc.

For RVs, especially small production ones, it's darned near useless.  There are too many variables, too few sales to garner truly representative values.  Just look at what's selectable as options - the NADA pricing is just a generic form when it comes to RVs.  It probably values all 40 ft. RVs of the same year at the same starting point, and that doesn't make sense when you could have everything from a Fleetwood or Thor product to a Newmar to a Foretravel in that range.

Much better to watch places like RVTrader and RVOnline and some dealership websites to get a feel for what real world prices are.

JMHO  ;)

Michelle
Learn every day, but especially from the experiences of others. It's cheaper!  - John C. Bogle

2000 U320 36' non-slide / WildEBeest Rescue
2003 U320

Re: NADA Values vs. Real World

Reply #3 –
Once you get to the point that you are ready to make an offer, you will see the real price.  The prices in most cases are better than they look in the advertisements.  mine was better than 10% below advertised price.  Even more below NADA.
David
2004 U320
This is my good stuff

Re: NADA Values vs. Real World

Reply #4 –
Agree with both your points. In fact, I used the sample size argument when selling my ORED. However, I do see some online listing that are just way out of line. When you're the original owner, I think many get caught up with how much they spent 20 yrs ago vs todays value.

Best Regards,
Benjie

Benjie Zeller
(512) 587-4628
Benjie, Ashley, Zoey, Fallon, and Lake
Round Rock, TX
In search of our next monster...

Re: NADA Values vs. Real World

Reply #5 –
I use NADA as a general guide, too. We're still far from making any decision about our FT coach, but NADA is useful for giving me at least some idea of whether something is anywhere close to our price range. Real-world prices will vary from NADA, yes, but I doubt that they will be more than 20% off either way, and the condition of the coach will be a major reason for the variation. I suspect that NADA prices are for an average coach.

That said, though, I've been told frequently that if one is going to finance the coach, loan value is based on NADA unless there is a very recent certified appraisal handy. That would trump NADA.

Re: NADA Values vs. Real World

Reply #6 –
I think a Foretravel or Newell which have very limited production is way different from a Winnebago or Allegro, etc. which are the higher production motorhomes.
 
Some original owners are justified in asking higher prices as they likely have stored the coach out of the sun, kept excellent maintenancce & upgrade records, etc.
 
Your apparaisal of a Foreravel may differ from someone else's established market value.  In the end the value of the coach is what it sells for...just like a real estate property.
Peter & Beth Martin
No Forrest? What have you done?
MC# 15890 until Dec 2016; FMCA #F329677
Cincinnati, OH

Re: NADA Values vs. Real World

Reply #7 –
Quote from: Peter & Beth –
I think a Foretravel or Newell which have very limited production is way different from a Winnebago or Allegro, etc. which are the higher production motorhomes.

Strangely enough we found that the Winnebagos, Itascas, etc. were actually more expensive (asking prices, at least) than the few Fortravels we found advertised (and within range). I put it down to increased visibility of the brands. We never did bother going to look at them as Sue's parents had owned at least six over 30 years so we knew most of the models.

I had decided on Foretravel years ago and specifically wanted one that was narrow and low for Mexican (and back-country USA) roads so that kept us in the late 80s and early 90s. We also don't like front-entry; but a driver's door might be handy.

We found one U300 side aisle (the only one I've ever seen) at a dealer in Spokane that had enough obvious issues that I didn't even drive it. I think the salesman was surprised.

The Foretravel is - at least in the Pacific Northwest - not a well-recognized brand; you have to be closer to the clue-train. :D

Craig
1993 U225 36' Unihome GV with PACBRAKE exhaust retarder, Banks Stinger and Solar Panels.
Toad: 1999 Jeep Wrangler 2-door soft-top.

"No one has ever had to evacuate a city because the solar panels broke."
 

Re: NADA Values vs. Real World

Reply #8 –
Quote from: kb0zke –
I use NADA as a general guide, too. We're still far from making any decision about our FT coach, but NADA is useful for giving me at least some idea of whether something is anywhere close to our price range. Real-world prices will vary from NADA, yes, but I doubt that they will be more than 20% off either way, and the condition of the coach will be a major reason for the variation. I suspect that NADA prices are for an average coach.

That said, though, I've been told frequently that if one is going to finance the coach, loan value is based on NADA unless there is a very recent certified appraisal handy. That would trump NADA.
I really don't know where NADA is getting their info for their books.  The RV dealers are not members of NADA, and normally the members report their sales, and their other source is Manheim and Adesa auto auctions.  Not that many RVs are auctioned through those auction houses.  I've heard the the finance companies and banks use the NADA loan values from the business NADA book.  But I know my credit union also uses KKB blue book in addition to NADA.  I also think that the market prices are way out of line from NADA retail prices in the book the you and I can obtain.
1994 U225
build #4514