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Extreme Veteran
Posts: 402
Location: Valentine, NE | I don't get it. We are looking at trading trailers. Ours is 4 years old and, I feel, in great shape. Needs absolutely no recondition anywhere for a dealer to resale as we just detailed it ourselves. New tires, bearings, brakes, etc all just redone this year. Stored inside.
Dealer is giving us half of the cost of the new trailer in trade. New trailer is almost identical to our existing trailer.
In otherwords, ours has devalued in half....I understand a little inflation and depreciation but 50% in 4 years?
Have talked about selling privately, but with 5.5% sales tax, is somewhat prohibitive. And dealers know this and take advantage of it IMO.
Have others seen this on used trailers? I am a little perturbed to say the least....I know they need to make money to stay in the biz, but this is rediculious.....or is it? |
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Veteran
Posts: 203
Location: Lander WY | That is how they make money, profit margins are thin on new trailers. Dealers seem to always make money off of trades. I suggest find a nearly new trailer from a private seller ask if they are wiiling to trade. |
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Expert
Posts: 3802
  
Location: Rocky Mount N.C. | Originally written by Spin Doctor on 2013-10-01 8:49 PM
I don't get it. We are looking at trading trailers. Ours is 4 years old and, I feel, in great shape. Needs absolutely no recondition anywhere for a dealer to resale as we just detailed it ourselves. New tires, bearings, brakes, etc all just redone this year. Stored inside. Dealer is giving us half of the cost of the new trailer in trade. New trailer is almost identical to our existing trailer. In otherwords, ours has devalued in half....I understand a little inflation and depreciation but 50% in 4 years? Have talked about selling privately, but with 5.5% sales tax, is somewhat prohibitive. And dealers know this and take advantage of it IMO. Have others seen this on used trailers? I am a little perturbed to say the least....I know they need to make money to stay in the biz, but this is rediculious.....or is it? Tell us about your trailer, got to be some reason for the low trade in value.... What make is it?
Edited by retento 2013-10-01 9:34 PM
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Expert
Posts: 3853
Location: Vermont | Originally written by Spin Doctor on 2013-10-01 8:49 PM
New trailer is almost identical to our existing trailer. Then why are you selling your old trailer... |
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Extreme Veteran
Posts: 402
Location: Valentine, NE | Why we selling? Good question..might not now. My belief is that I don't want to have to replace it when it is used up in 10-15 years and have to come up with $100k+. I know, the first few years depreciation is the most, but, hopefully, we can hold our money together is my goal.
Brand is one of the top shelf trailers and nothing is wrong with it except for a scratch on one side of 1/8"x 2" inches. Has 35k-40k miles on it I would guess.
Comparable trailers on this site was hard to find, but averaged from 53k to 65k or so.
I don't want to give out to much info as don't want to consider this advertising for free....
Probably will advertise it on here when I can get some pics put together. |
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Elite Veteran
Posts: 720
| For what it is worth, one of the financing banks years ago shared with me one formula they use for valuing trailers. A 4 year old unit (which now would be a '10 unit) would be expected to bring on a dealer's yard 75% of what it actually sold for new. A '09 would 70%.
The one caveat to that would be a fair actaul selling price from then, not MSRP, or inflated number for trading.
Of course if it sells for that, what a dealer feels they need as profit is another matter. It is often a lot more difficult to successfully sell a used LQ than what one might think. And "custom" trailers are a whole new ball game. I laughed when a dealer friend told me "custom to you when you ordered it, is just wierd to the rest of us." |
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Regular
Posts: 78
| That quote about custom/weird made me die laughing, but it's the truth. I saw some strange configurations in my trailer search. And I'm finding out that people who are used LQ shopping either want a HUGE bargain, or they will nitpick half to death. I had one person not like my trailer because of the direction the mattress lays in the gooseneck. LOL The last time I traded to a dealer, I traded a 2 year old trailer in need of cleaning up but in good shape with no repairs needed for $5,000 less than I paid new. They resold it for a $4,000 profit. This was a $24,000 trailer that I traded on one that cost almost $40,000, so much smaller numbers than you're talking about. |
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Elite Veteran
Posts: 602
Location: md | I have an Adam LQ for sale. A couple came to look and said the bathroom was Too Big..???? |
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Extreme Veteran
Posts: 402
Location: Valentine, NE | So if we use the 70% stated above, that would be 49k...interesting. Thanks for the info. I knew this site would make me smarter than if I stayed at a Holiday Inn..... But, this to me, is still more depreciation most equipment lines. I think, with the accelerated inflation we have seen in the raw materials market (aluminum and labor), the used prices would be going up accordingly. I am in the ag business and most farm equipment 5-10 years old in good shape is bring what they paid for it new due to inflation.
Edited by Spin Doctor 2013-10-02 10:10 AM
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Location: A high mountain peak | Trailers are funny creatures. Area brand popularity, price, age, condition, after market repairs or adds, dealers floor plan availability, market conditions, time of year, etc. all effect price. People seem more attached to their trailers than their trucks or even bad horses. I've noticed most RV's lose 30-50% when driven off the lot, and yet resale on most brands of trailers have stayed 1/2 of that. I suspect most dealers are giving out wholesale pricing while most people with trades are expecting retail for their trade in? There's a trailer made for everyone and you just have to find that person. |
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Extreme Veteran
Posts: 402
Location: Valentine, NE | I've noticed a lot less new inventory on dealer's lots the last few years. Wouldn't this increase trade in prices on late model, clean trailers due to a lack of availability of new ones? Or is there a glut of used trailers on the market due to private sales? Wonder how the private for sale listings are now verses 5 years ago? Industry has went thru a correction no doubt, but seems that new prices haven't? We do see a lot more of the mid range priced trailers being used.... OR is it consumer mind set changing? I.E.-spend 60k on a NEW mid priced trailer or 60k on one 2-4 years old????? |
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Expert
Posts: 3802
Location: Rocky Mount N.C. | Spin Doctor... This is your 2009 Cimarron? |
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Extreme Veteran
Posts: 534
Location: Zionsville, Indiana | The market is glutted with used living quarters trailers and it is a buyer's market. Many repos on the market, both from consumers and from failed dealers in the last 5 or 6 years. If you spend the time to look, you will find 3, 4, 5 year old trailers that are new, untitled, never used. The funds that a dealer invests in a used unit may sit stagnant for many months, unusable to replace sold inventory, or may be funds for which the dealer is paying interest. Nothing is as simple as it seems. Used LQ trailers that years ago would have maintained a value closer to new cost are now competing in a price point world. Not only are used units plentiful, but there are now low- or mid-priced new LQs that make the higher quality used units seem too expensive. |
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Extreme Veteran
Posts: 402
Location: Valentine, NE | Yes it is the Cimarron that had to go back to the factory. They did an absolutely perfect job of fixing the warranty issues and as good as new.
Kay's post is what I wanted to hear. It makes sense. I am not knocking the biz/dealers, as it is supply/demand. I just wanted to hear other's opinion and experiences.
Trailer has nothing to do with our exploring a trade. We have other issues that might require us to trade.
Thanks for everyone's time! |
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