RV ownership can be a lot of work no matter your experience level. There is a lot of maintenance you need to do, and it can get quite expensive as well. As a result, there may come a day when you no longer want to own your RV. Instead, you would rather sell your RV and make back what money you can. However, you might not know how to approach the sale. After all, you probably are not a salesman, so you are not equipped with the skills you need to make as much money as possible. As a result, you may turn to RV consignment as a way to make as much money as you can.
RV consignment is taken advantage of by many RV owners that are not very experienced in selling property. It is a great method to make as much money as possible. It also means that you do not need to spend as much trying to make the sale. Instead, someone else will do all the work for you. So, you can sit back, relax, and make your money.
Getting rid of your RV is a big decision to make. You probably have owned this RV for years, so selling it will not come easy. However, if you believe it is the right decision to make, you should not hesitate. You could have many reasons to sell your RV. You may want to upgrade to a new one, or you might just want to move on from the RV lifestyle. No matter your reasons, you do not need to explain yourself. However, you should do what you can to make as much money as possible. One of the best ways to do that is through RV consignment.
What Is RV Consignment?
If you have heard of the consignment of other items, RV consignment is no different. It is when you turn over your RV to another party to sell while you retain ownership. The person you give custody of your RV will handle the phones, appointments, and financing. Then once the sale has made, the person you hired will take a commission or percentage of the sale as payment. So, you will not get 100% of the sale, but if you hire the right person, you will profit more than you would if you did the job yourself.
How Does RV Consignment Work?
When people choose to use RV consignment as a way to sell their RV, they could have several reasons. They could not want to go through the trouble of selling the RV themselves, or they might not be confident they could do a good job. Alternatively, they could live in a rural area where they would have trouble finding customers. So, turning over your RV to a dealer where they have better foot traffic and marketing means that more people will see your RV. As a result, there is a better chance that you get a good offer.
Typically, when you hand over your RV to a dealer, they will give you a one to three month consignment period. This is the amount of time they expect it will take to sell your RV. So, if you need to sell your RV immediately, this is not the selling method for you. However, if you are ok with waiting a few months, you should be perfectly fine with this method.
Once your RV is in the custody of the dealer, they will get to work advertising and showing your vehicle to customers. They will deal with all operations and only contact you when they have offers for your vehicle to see if you are interested. Once the RV is sold, you will have the money transferred to you with a percentage taken out as commission.
How Much Does RV Consignment Cost?
A big question many people have before they choose RV consignment is, how much does it cost? After all, since the dealer takes a percentage of the profit, there is a worry that the expenses are not worth it. Many RV owners would prefer to sell their RV themselves and make all the money they can. That is a totally valid way of selling your RV if you are willing to put in the time. However, you probably do not have the resources of a dealership, so you will probably be unable to sell your RV for as much money as a dealership could.
RV consignment costs can be difficult to calculate as there are several factors that influence their rate. It obviously varies based on the dealership and how they structure their consignment fees. Before you can get a price for consignment, you need to figure out what the fair market price for your RV is. You can get a suggested listing price from NADA Guides.
Typically, there are two ways consignment fees can work. The first is that you will pay a flat percentage of the sale price, usually between 10 and 15%. Alternatively, you and the dealer will agree on a target sale price and the dealer will collect the extra as commission.
So, let’s say that you agree to list your RV for $85,000, but it sells for $92,000. In the first scenario the dealer gets $9200, and in the second they get $7000. So, in this scenario the second option is better for you. However, you can see how this could switch in different scenarios.
Are There Other Fees When Selling an RV on Consignment?
If you do not want to do anything else to your RV, there are no other fees. However, there are things you can spend money on to up the price of your RV. Many dealerships offer services such as detailing and tune-ups. These services will obviously cost you money but getting them done could result in your RV being sold for more money. A lot of the time you can make more money back on the sale than you spent on the tune-ups. There are also fees for insurance that you may want to consider depending on your situation.
Do You Need RV Consignment Insurance?
Many RV owners will probably be confused by the idea of RV consignment insurance. After all, if you already have RV insurance, why do you need RV consignment insurance? Unfortunately, in most cases, insurance companies do not cover RVs while they are in consignment. As a result, you are left in a difficult situation.
Most RV dealerships have ample security features such as cameras and gated access. However, you never know could happen, and if your RV gets stolen while in consignment, you are out of luck. It could also be damaged by a fire and you would lose your RV without making a penny. So, it is up to you. Like with most types of insurance, there is a very high chance that you will never need it. However, if the day comes when you do need it, but you do not have it, you will regret it. So, the decision is ultimately up to you of whether you are willing to risk not buying RV consignment insurance.
Advantages of Selling an RV on Consignment
So, you have gotten this far and are probably running what the reasons are to sell your RV on consignment. The biggest reasons to utilize RV consignment is to avoid the hassle of dealing with advertising, handling inquiries, and showing your RV yourself. Not needing to deal with all these things is worth losing a small percentage of the money on the sale for many people.
Additionally, although you will lose a little bit of money on the sale, there is a good chance you sell it for more on consignment than you would otherwise. This is because a dealership can get more exposure for your RV than you would ever be able to. You will also be able to consider buyers who need financing since the dealer can manage that aspect of the sale.
Finally, dealers are motivated to sell your RV as quick as possible. Even if you are committed to doing that yourself, you will not be able to do it as fast as a dealer. They have more resources than you and can sell it quicker and for more money than you will be able to.
Disadvantages of Selling an RV on Consignment
Although all the advantages above may seem appealing, consignment is not free of drawbacks. The biggest downside to selling your RV on consignment is that you need to pay a commission fee. So, there is a chance that you end up with less money in your pocket than you would if you sold it yourself. You will also probably need to get consignment insurance, that is a little more money down the drain.
Furthermore, you will need to pay for extra services like cleaning and prep fees. There is also a chance that you lose a lot of money on the RV consignment sale if you are not savvy.
Additionally, while you are under contract, you are not allowed to sell your RV anywhere else. As a result, if you get a better offer elsewhere, there is nothing you can do to accept it. You will need to direct the buyer to the dealership if you want to get their business.
Finally, you cannot use your RV while it is consigned. So, if you want to take your RV out for one last time before it is sold, you do not have the ability to do that. It will stay in the dealership until it is sold, or your contract expires.
Is Consignment the Best Way to Sell an RV?
There is no best way to sell your RV. However, RV consignment is certainly one of the best options available to you. It is an especially good option if you are not an experienced salesperson and you do not have many resources available to you. If this is the case, you will probably be able to get a better deal using consignment than you would selling your RV yourself.
The best way to figure out if you should use RV consignment is to figure out whether you can make back the money you spent on fees from a better sale. You see, you will probably make more money on a sale while your RV is on consignment than you would if you sold it yourself. However, you also need to spend money on consignment insurance, the commission, and other fees. So, you need to calculate how much all those fees are going to cost. Once you have that number, you can figure out how much more money you expect to make on the sale while the RV is consigned.
If you think you are going to make more money than you lose from fees, there is no reason not to use RV consignment. However, if you are not going to make all that money back, you need to assess whether the time you gain from not needing to do the selling yourself is worth that amount of money. That is a decision you need to make yourself, and one that will be different for everyone. For some people it will be worth it, but for others they would rather make as much money as possible, and that is ok. Whichever you choose is the decision that is best for you.
Make as Much Money as You Can Selling Your RV on Consignment
After reading, we hope you have all the information you need regarding RV consignment. We know there is a lot of information to absorb, but this is a complicated subject and there is a lot for you to learn. Everything that you learned should help you make the decision of whether to use RV consignment or not.
RV consignment is something that is taken advantage of by many RV owners. For most RV owners, they are not interested in spending a lot of time selling their RV themselves. As a result, RV consignment is a good alternative where they make plenty of money without breaking a sweat. However, with all the commission and insurance fees, there is a chance you will not end up with as much money in your pocket as you would if you sold it yourself. You need to figure out if that extra money is worth the headache of selling your RV yourself.
We wish we could tell you whether RV consignment was the best option for you. Unfortunately, everyone has different preferences and financial situations, and for us to assume we knew yours would be irresponsible. However, if you do choose to go down that path, make sure that you take your time picking the right dealership. You want to make sure that you are picking the best dealer possible, so that you can make as much money as you can.
Why do you want to sell your RV? What type of RV are you selling? Do you think you will use RV consignment? Let us know in the comments!