Reduce RV Financing – Find Low Cost Used RVs from Private Sales

Jan 5, 2011
Thomas Alan Gray

Fifth Wheel Trailer for Sale by Owner - Thomas Alan Gray

Can't get RV financing for a new RV? For a cheap RV, buy a used RV for sale by owner. But buyer beware: lowest cost is not always best value.

For a lot of folks with poor credit, finding RV financing for a new caravan, trailer, or motor home can be tough.

But the cost of a used unit is a lot lower, especially when it is purchased through a private sale rather than through a dealership. Yes, there are some advantages to purchasing a used caravan or trailer through a dealership, but for the lowest possible price, a private sale is the way to go.

Benefits of Buying a Used RV Through a Private Sale

There are numerous points that make buying an RV privately a terrific choice

Low Cost – Private sale prices are usually 60% to 70% of dealership prices for similar units. Where a dealer may have a rig listed at $9,999 plus tax, similar rigs in private sales may be $8,900, $7,900, or even $5,999. The possibility of saving several thousand dollars is an attractive proposition.
Save Money on Options – Even if the used unit sold privately lacks features or options found on a similar dealer unit, the savings in purchase price can allow the buyer to add those features or options and still have money left over. For example, a dealership has a 26' fifth-wheel with a 50W solar panel installed, priced at $9,900. Suppose that an almost identical model is available privately for $7,900. Even paying the asking price with no bargaining, if the solar panel and installation costs $1,200, the private sale still leaves the buyer $800 ahead.
No Sales Tax – In many jurisdictions, private sales are not subject to sales taxes, which can shave a significant percentage off the final bottom-line price of a used RV.
Easier Financing – In tough economic times, a buyer may not be able to finance an RV new for $25,000 but may find financing through a home equity loan or a personal loan or even regular credit for a cheaper amount such as $8,000 for a used caravan.
Fewer Fees – Buyers at a dealership may be surprised to find additional charges such as a Documentation Fee, an Inspection Fee or the like added into the final price. A private sale has no such "hidden fees".
Greater Room for Negotiation – A dealer has to have a certain bottom line for overhead and commission and may not want to discount the asking price significantly (although this will vary with the time the unit has been on the lot, the season, a need for cash flow, etc.). A private seller may be more willing to haggle or compromise in exchange for, say, cash payment on the spot.

Disadvantages of Buying a Used RV Privately

Anyone buying from private individual relies on the integrity of the seller. It may be argued that the same applies to a dealership, and certainly dealers may be reputable or shady. But consider the following points

Dealerships are likely regulated through laws or bylaws regarding their sales and marketing operations; individuals likely are not.
Dealers are often part of a professional organization that sets ethical standards for doing business and offers recourse to customers if the dealer violates those standards. Individuals selling RVs will not be part of any such organization.
Individual sellers may be quite knowledgeable about their particular unit and its benefits to them as owners but may not have the overall knowledge of the RV industry, RV construction etc. to offer a buyer.

When buying a used RV from a private seller, the principal of caveat emptor (“Let the buyer beware”) applies. The buyer must do due diligence before closing the deal. Do all the appliances work? Were modifications done by the previous owner done properly? How old are those new-looking tires? Does the owner have documentation for those “new batteries” installed last year? Are all service records available? Even after the purchase, tests may be required to ensure that all mechanical systems are sound (brakes, LPG pressure test, water pressure test) and that the unit can meet all current certifications for roadworthiness and occupation.

Although there are some risks with a private sale, recreational vehicles change hands privately each year in large numbers, and generally speaking a good unit sold privately will be the best bargain for the RV buyer.