RV Pricing - Determining Fair Market Value (2024)

FAQs

RV Pricing - Determining Fair Market Value? ›

The dealer cost is typically about 70% of the MSRP. So, to calculate fair-market value you will take 85% of the MSRP (which, again, is halfway between wholesale and retail). Don't pay more than this figure. In fact, RVs can often be purchased at 75% to 80% of the MSRP.

A local RV mechanic or dealership might offer appraisal services, and multiple opinions is the best way to really understand how much your unit is worth. Keep in mind, these appraisals may cost you a couple hundred dollars. Therefore, this method is probably better if you're looking to sell or trade a high-end RV.

Kelley Blue Book is a trusted resource for determining the value of traditional automotive vehicles. However, unfortunately, they do not offer a dedicated valuation service for RVs on their website or in their printed guides.

NADA, as well as the dealership, will base the price of the RV on age, condition, options, mileage, and whether or not it is motorized. All NADA prices assume that the RV is in good condition and in proper working order.

In order to determine the worth of your RV consider the following: NADA Value - it's like a Kelly Blue Book for RVs. It is used by banks and dealers to determine the national value of your RV.

Stated Value – market value/actual cash value of the RV. Agreed Value – the insured amount, regardless of the current market value.

How fair market value is calculated. There's no absolute formula for calculating fair market value. But is often calculated by taking the value of three or more comparable homes, or comps, that have recently sold and obtaining an average, Garrity says.

Fair value formula = Cash [1 + r (x/360)] – Dividends

Here, Cash is the security's current value. r is the current interest rate that the broker charges. x is the remaining days in the futures contract.

Most dealers do not use KBB for trade-in (wholesale) values. Instead, many rely on National Auto Research's Black Book or the Manheim Market Report, neither of which is available to the public.

Pricing Classifications: KBB provides private party value, trade-in value, suggested retail value, and certified pre-owned (CPO) value, while NADA provides trade-in values, retail value, and CPO values. NADA does not provide a private party value.

How much do RVs depreciate per year? ›

A quick overview of how RVs depreciate by type; class A RVs have an average depreciation of 36% after 5 years, class B (trailers and fifth wheels) RVs have an average depreciation of 37% after 5 years, while class c RVs have an average depreciation of 38% after 5 years.

NADA, or the National Automobile Dealers' Association, provides values for used RVs. They list prices and values for motorhomes, travel trailers, and even truck campers and park models.

Fair-market value for recreational vehicles is halfway between wholesale and retail. Retail is the manufacturer's suggested retail price (MSRP) for new RVs, and average book retail price for used RVs. The fair-market value serves as a benchmark when calculating how much you should pay, or sell an RV for.

Brand-new RVs start losing value as soon as they're driven off the lot and continue to lose value throughout the first year rapidly. The RV depreciation rate increases at a steady rate after that until your RV hits double digits in age. Once an RV is ten years old or older, its value drops more rapidly.

The Kelley Blue Book is a widely recognized and trusted resource for determining the value of cars. There is no specific Kelley Blue Book or RV Blue Book for the RV industry, but you can get a free RV Valuation here.

Actual Cash Value (ACV)

Actual Cash Value or the ACV of your RV is the actual market value of your RV. This number should come from a third party source such as the National Automobile Dealer's Association (NADA), or other similar source.

Like with motorhomes, brand recognition can matter when it's time to sell. Brands that tend to hold their value the best include Jayco, Airstream, and Winnebago. At Lazydays, we carry a wide selection of the best RVs of all types, and we can even help you when it's time to sell your RV.

RVTrader.com. Check your RV's price based on other RVTrader seller prices in the market. Search for RVs such as Airstream, Fleetwood, Forest River, Gulf Stream, Keystone, Winnebago, and more. Check prices by MAKE, MODEL, and YEAR.

ACV is the market value of the RV as decided by third party sources. Agreed Value means that the company agrees to an amount up front with the policy holder; and TLR means the company will provide the insured with a replacement RV if yours is lost or stolen when it is under 5 years old.

Actual Cash Value: This is the most basic level of protection and pays out a fair market value based on what the RV was deemed worth immediately before the event, so depreciation is taken into account. All else being equal, ACV offers the least amount of coverage, with the lowest premiums.

How do you evaluate a used RV? ›

Thoroughly inspect the vehicle's roof, walls, floors, tires, plumbing, electrical systems, and appliances. Obtaining a professional inspection is highly recommended, in addition to checking for a valid title and vehicle identification number (VIN).

The expected value of random variable X is often written as E(X) or µ or µX. The expected value is the 'long-run mean' in the sense that, if as more and more values of the random variable were collected (by sampling or by repeated trials of a probability activity), the sample mean becomes closer to the expected value.

You can expect the average car to depreciate 20% within the first year and around 40% after five years. That means an RV can hold its value better than a personal use car five years later.

You can find the actual value of your car by going to a library or bookstore and referring to a Kelley Blue Book. Or, you can find similar vehicles that are being sold in your area (within 50 miles of your zip code) with local auto trade magazines, or online.