1. Many repo RVs for sale are only a few years old.
Often RVs are repossessed during the first two-to-three years of a loan and frequently were bought new. New RVs are much more expensive than used ones with the value dropping nearly a third as soon as they are bought and another 20% over the next two years. Because of this steep depreciation, it is hard to sell the RV for enough to pay back the outstanding amount on the loan, making it more likely to get repossessed.
2. It is common for repo RVs to be in good, if not great, condition.
Since typical RV use is season, many are used only a total of one or two months worth of time each year. Some even less, especially if the owner facing repossession cut back on vacations due to financial struggles. This means that they are much more likely to hardly look used at all.
3. Most RV owners are conscientious about maintaining them.
For most people, a motorhome is a significant investment and they are committed to taking good care of it. Even those struggling with money problems are more likely to not use their motorhome than use it and not take care of it correctly.
4. Repo RVs can have all the most popular upgrades and features.
Frequently it is the more expensive RVs that end up repossessed. With the high price tag of the latest RV with all the best amenities and the higher interest rate on loans for items considered to be a luxury, the monthly payments on a high-end RV can be more than a home mortgage. Some owners take out more of a loan than they can realistically afford even thought they are approved by the bank for that much. Cheaper RVs are easier to stay current on and thus less likely to be taken back by the bank for non-payment.
5. The majority of RV repos are sold for less than market value at auction.
When banks have to take back an RV, they want to sell it as quickly as they can for as much as they can. Ideally, they want to get enough to cover the remaining loan balance and another other expenses, but they don’t want to pay to store and keep the RV. The banks will take the highest bid at auction, so if it doesn’t go too much higher than the starting bid, the RV will sell at a
6. Many used RV dealerships sell repos with their other inventory.
It is common for dealers to attend auctions of repo RVs to purchase some as a way to increase what is available for sale at their dealership and to attract more buyers. Since auction prices can be very cheap, they are able to add 30-40% onto the price of the RV and make a nice profit. Dealers can also afford to offer some of these RVs at lower prices because of how little they paid for them. This attracts more buyers to their lot where the salespeople can then up-sell them a more expensive model.
7. You can buy repo RVs yourself at auction.
Though some of these auctions that feature low prices are only for dealers, plenty of them are open to the public. You can bid on and purchase a quality RV in good condition for a lot less.
Related Posts and Articles