The Pros and Cons of RV Consignment
Many people like the idea of consigning an RV. It is a hassles and worry free way to sell their RV and even though they know they will not get as much money for their rv they are fine with that.
The advantages of consigning an rv are as follows:
1) The dealer spends their advertising dollars to advertise to customers. If they sell it they make money, if they don’t sell it there are not very many direct expenses.
2) If the dealership as an on-site shop, they can offer RV maintenance and repair programs. However they often composite for this in the rv mark up.
3) The RV dealership can offer financing to prospective buyers. This allows them to appeal to a wider base of potential buyers. Even if you do own your Rv outright, carrying the financing on an RV is not something you want to do because of the high risk liability.
4) Dealerships may have access to a repeat base of customers looking to trade or upgrade their motorhome.
Disadvantages of RV dealer consignment.
1) You no longer have control of you rv when you consign it. You can’t typically use it for one week end and bring it back and you can’t sell it to your neighbor down the street for a lower price. Usually a consignment agreement is a contract that lasts 3 to six months.
2) You may only be able to consign an rv for a lot less then you owe. Typically consignment amounts are only slightly higher than the trade in value. They want you to take a discount of 20-30% off of the private party value. But the dealer isn’t paying you anything upfront for the RV. If they don’t sell it your RV or trailer could have dropped in value and you weren’t able to use it the whole time.
3) You may also be asked to pay a stocking or cleaning fee upfront to let them consign your RV.
4) They may be more motivated to sell newer RVs.
Decide whether the idea of RV consignment is for you or not. If you are interested in selling for RV for sale by owner we can help. We have a done of information available at rvsalebyowner.com
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How does rv consignment work