Motorhome pricing by dealers, exchange rates and seasonal pricing.

[Gerbilman]

I would like to know when dealers pay for the new motorhomes that they sell, at the time that they order or receive them? Does this affect their pricing during the season? A large local N Ireland dealer had a new 2016 van arrive relatively late during the summer. It is a continental brand and is one of his dealer brands. He had priced it on the site at 46k but he suddenly put the price up to 49k.Yes at the end of the season when you would expect lower prices. He has also raised prices on several other continental main dealer motorhomes that he has unsold in stock for one or even two years, each by £5k. One motorhome at 48k, which he offered to me at £45k last winter has suddenly been given a 4k price rise to £52k. The dealer is in N Ireland and with the fall in the pound will want to sell to Euro Ireland customers. The vans are also priced in Euros. The whole business is undermining my trust and I feel that I would struggle to give them my business now. I am more likely to travel to GB to buy there where prices seem to be more reasonable with greater competition. What do you think about my experience?

[Derek Uzzell]

Welcome to the Out&AboutLive forums.

 

Dealerships do not have a single standardised way of financing motorhome purchase and motorhome manufacturers also don’t have single standardised policy regarding how they sell to their dealerships.

 

As you had contact with the Northern Ireland dealership last year and you are aware that the price of the motorhome you refer to has risen since then, why not ask the dealership about the mysterious increase? If the dealership is unable to give you an answer that you are comfortable with, this might further discourage you from buying from them.

[John52]

If you put your house up for sale, would it be at yesterdays (lower) prices, or current market (higher) prices :D

[Gerbilman]

Thanks for the reply. I think that a comparison with house prices does not really work. Vehicles, mainstream ones, always depreciate. Houses don't. The reality is that motorhomes lose value year on year so a 2016 year model for sale in September towards the end of the season should be worth less than it was the previous September and certainly less than the same model in September 2017 guise. That presumably is why delears have end of season sales. The dealer in question appears to be moving in the opposite way to the norm by significantly raising prices on current year and old stock models. The same van that I am interested in was recently sold in GB for less than 45k. His original price for the same van was 46k which was then suddenly raised to 49k. Not a surprise that it isn't selling.

[Billggski]

Don't be surprised if he has an end of season "sale" with prices going back to what they were in the summer. ??

[Knauser]

Many dealers use finance consignment plans. Basically they take a vehicle into stock and a proportion of it is paid by a finance company to the manufacturer. The vehicle will then have a date when it has to be adopted, i.e. paid for! it may be as little as 90 days but could go to 270 days, companies such as Black Horse Finance provide these kind of facilities.

 

Dealer discounts are often bigger when adoption dates becomes close as they know they are going to have to pay for it in full, unless its sold. But then its paid off with the proceeds of a sale rather than using the working capital of the business.

 

Depending on the size and credit worthiness of the dealer these facilities can be quite large running into Millions of £'s.

 

It looks in this case the dealer may have a consignment plan with the manufacturer and has had to pay for a vehicle when the euro/sterling rate has altered and therefore in order to protect his margin he has had to put the price up on the forecourt.

 

Hope this helps