Second Hand Camper Market.

[Stormchaser]

Hey All,

I was wondering if there is an easy way to gauge the second hand camper market and what it is currently doing without trolling thru pages on the net such as the trading post is there an easy way to work out whether supply is exceeding demand or vice versa?

I have seen a few campers on different sites that just seem to sit there and don't move this is a little concerning as we are thinking of selling our 2011 Complete Campsite Jabiru XT but were just not sure whether it is a good time to try I guess not being winter?

Cheers Stormchaser.

[D4D]

Good campers at the right price seem to be selling. With winter upon us it is the wrong time of year to be selling down south. Should pick up again around October.

[Mace]

Agree with D4D.

As with most things on wheels, its a buyers market.   If you are asking near new money for a 12 to 18 month old CT, most buyers would want a few enticements or extras, or a bit of a price discount from new price.

Some people however, IMO, have an inflated opinion of the value of their 10 year old (plus) CT thats been around the country twice.

A good CT will usually sell if its realistically priced.  We have seen that on the for sale pages here.

[Jasman]

Hey Stormchaser, I've been watching markets really closely (yeah, it takes me a long time to make a decision) since the start of this year and I've noticed that not much is selling, the same campers seem to be their every week.  I thinks this could blame the economy for this in general but I think I particularly the used market is being hit much harder because the price of new campers have been dropping as manufacturers import more components, reduce production costs and probably shrink the margin.

Take for example one of the best known Aussie camper manufacturers decision to start importing major components, in my opinion they have totally destroyed the resale value of their premium Australian built camper which retail $5 or 6k more than the new imported models. Considering that many 5 year old campers are advertised pretty close to new retail prices (I know they've probably spent money on options and modifying etc) I would argue that many buyers, myself included would rather buy a brand new walk-up camper with warranty sold by a reputable reseller than a 5 year old similar spec Aussie built version (by the same manufacturer) that will no doubt have a few problems.

[D4D]

Take for example one of the best known names in Aussie camper manufacturing decision to start importing major components

Do tell...

[Bird]

Do tell...

the thread on the hard floor, they offer a 'local made' or 'imported' with the front walk thru... I dont mention their name.. there was a thread on it a week or so ago in the "I GOT MY NEW TRAILER" kinda thread.

[Campa]

Do tell...

Is it Lifestyle campers. I know they have recently gone to an imported walkup camper.....Which is a good thing for buyers as it fills that gap in the market $$$ wise, but not good for owners looking at selling there Aussie built Lifestyle, unless a prospective buyer know's they manufactured Aussie built and know's what they are looking for in a second hand unit.....similar to Trakshak I guess.

[BigJules]

There is always a market for good campers. Take lots of quality photos and price it reasonably and it will sell.

[Bird]

..., but not good for owners looking at selling there Aussie built Lifestyle, unless <snip>

99% of people shop on price. specially when surfing websites, or ebay. 99% of those buy on price alone.

"that looks the same to me, why is it $5000 cheaper"....

Remember not all of us havfe $50,000 for that completekimberlyultimate camper

[McGirr]

Yes price is king when selling. Priced right and it will sell.

It is too hard to gauge the market in second hand campers as every camper will have different features and will be different in quality.

Get one that has the basics of what you want and then add the extras yourself.

Mark

[Jasman]

The trailers I have seen selling seem to be priced realistically, so many campers are priced unrealistically  Here's a model I would be interested in peoples opinions on:

- Start with the replacement value of the same camper trailer (manufacturer and model) without options today as in my experience people don't pay for options unless you get a very special buyer, I think you're better off to rip off the accessories and sell on ebay.
- Take off all the taxes (GST, Stamp duty, Rego and any others) as unfortunately you wore these and they have no real value to the next buyer
- Now apply a depreciation rate pa (I reckon it's probably somewhere between 5 and 20% pa of the depreciating balance depending on condition)
- Add $1,000 to the price to give you some haggle room

If I apply this model to a real life scernario, using a brand like Lifestyle as an example because they're kind enough to list their prices on the internet, I've been watching them because they're on my short list, they have a good reputation and have plenty available second hand to compare.  For the sake of my example lets consider a 2007 explorer+ in average condition that the owner has spent $2k on electricals and other customising. 

- Replacement value of same model $10,000 (rounded up a little)
- Take off GST $1,000 (I'll assume no other taxes apply), brings the price to $9,000
- Take off 10% depreciation pa for 5 years which is equal to $3,685, dropping the price to $5,315
- Add $1,000 for haggle and it brings the price upto $6,315

A quick look online revealed 4 for sale
2005  $7,500
2008  $5,000 (this one has solar, dual batteries, inverters etc)
2006  $8,990
2006  $9,500

Needless to say some of those have been on the market for a while so I reckon my model is pretty accurate but I'm interested in feedback.

I also note the same buyer can buy a new Lifestyle explorer for $7,000, not the same but not bad all the same.

[Mace]

I personally agree with your 10%  depreciation per annum assumption.(subject to normal wear and tear) for the first 3 to 5 years. 5% mite be the go for low use units.

After say 5 years the value would probably plateau out, like cars.

Some of those sellers are need to be told they're dreamin!

[GregS]

So going on the scenario above then, (I may regret what I am about to say, but...ah well I suppose the only way to know is to ask) where does our camper that is for sale sit in this. Is it over priced too. Just trying to figure out where we stand in the used market thats all. Is our ad wrong or are people just waiting to see what they can get at the caravan camping show. I thought ours is a pretty good price but who knows in this market!!

Cheers

Greg

[Kalebjarrod]

Plus once your in the market with an asset to sell you buy and sell in the same market

So you sell cheaper, accepting a lower price for your ct and you get to buy cheaper either second hand or new from a manufacturer.

Same as a house or a car

[Flemo]

Greg,
I would have bitten your hand off for that 2 yrs ago, prices have def dropped since and people are taking less just to avoid the f&$k around factor. Sold my wife's 2008 corolla for way under what it was worth after 4 weeks of tyre kickers ruining my weekends and spare time. campers no doubt the same. To me yours and the 2011 tracky extenda on here would have sold real quick when I was in the market 2 yrs ago, time will tell

[Kalebjarrod]

Three keys to selling ( and I sell alot ) and buying

Cheap - quick - quality

You can only pick two which dictates the third

Ie; you can buy a ct quick and cheap but it won't be quality

You can buy a quality cheap ct but it won't be a quick sale

You can buy a quality ct quickly but it won't be cheap

[JCOJ]

I was swaeting bricks when I listed my Aussie Swag Camper for sale as without the funds from this sale I wouldn't be able to pay for the new one I have ordered.

As a real estate agent, I know what sells a place are the 3 G's: Great photos, Great write up, and Great price.

I studied what my competition was (not just Aussie Swag but all the campers in my price bracket) to see what they offered and how much they were.

I then took what I thought were good quality photos, and lots of them, which showed the selling points of the camper,and included stuff in the sale that I wasn't going to but felt like they would be a sweetner, wrote a comprehensive write up to give people as much info as I could and at the same time avoid pointless questions, and finally I priced it very competitively.

I sold it within 3 weeks and had 4 genuine enquiries on it plus another 3 enquiries once had it been sold.  I got $200 less than what I was really hoping for, but more than I was willing to take.

Good Luck.

[Jasman]

So going on the scenario above then, (I may regret what I am about to say, but...ah well I suppose the only way to know is to ask) where does our camper that is for sale sit in this. Is it over priced too. Just trying to figure out where we stand in the used market thats all. Is our ad wrong or are people just waiting to see what they can get at the caravan camping show. I thought ours is a pretty good price but who knows in this market!!

Cheers

Greg

Hey Greg, unfortunately I can't apply the above model because I don't know what it was worth to begin with though I must say it looks awesome. Also as Mace pointed out above, the price of depreciating items tends to level out in the later years and this is reflected in the model by using a diminishing balance formula for depreciation so it might not be as bad as you think.

The other test on whether your price is meeting the market is whether or not you're getting interest from the advertising.......no phone calls/emails means your price is probably too high, but give is a while before you move because you're camper is in the higher end of the used market and their will be less buyers......if you're not getting interest update your ad and expand your marketing, it's important to let people picture themselves in your camper so remember the more photos the better as people love to point out in this forum

[GregS]

Cheers guys, thanks for the replies. I will add some more pics and wait a bit and see what happens.

Cheers

Greg