RVBusiness, July/August 2020

Should We Require Full Disclosure on RV Trade Ins Potential car buyers can also use services like CARFAX to track service and repair history and whether the vehicle was involved in an accident Could it be time for an enterprise to take a similar direction to protect buyers of previously owned RVs T aking trades is a big part of the sales model but it can lead to issues that can taint relationships with customers While many RV enthusiasts trade in for a number of reasons which include moving up to a new or different type of rig to meet changing lifestyle requirements there are those who dump their existing RVs because of problems And thats the rub RVs are complex machines with many moving parts Prescribed dealer inspection processes are designed to discover defects and system malfunctions but reality suggests that its virtually impossible to pinpoint all issues that need attention and make necessary repairs and adjustments prior to any sale Consequently selling a used RV can be a crap shoot A number of scenarios within my RV social group make perfect case studies providing valuable fodder for brainstorming solutions that frankly can be challenging at best Two friends last spring traded their motorhomes for high end fifth wheels because they became fatigued with fighting the system in order to facilitate the necessary corrections to make their rigs safe and function as designed The motorhomes were sidelined for most of the year Both trade ins were less than two years old purchased new Both owners made a few minor repairs before turning over the keys to the dealer but full disclosure was not required nor even discussed Its unlikely the dealer found the troublesome defects in these tradeins because spending time on the road and living in the motorhomes was not practical Therefore the aforementioned motorhomes which incidentally were in mint condition visually likely became problem children for their new owners Maybe its time to require full disclosure from owners trading in their RVs Its common practice in the real estate community and the contract language provides provisions to punish previous owners financially who fail to make full 78 RVBusiness J U L Y A U G U S T 2 0 2 0 BY B O B L I V I N G S T O N disclosures And lack of memory is not a recognized excuse for leniency Unless the real estate salesperson or broker is complicit the onus goes straight to the selling party Taking that kind of pressure off an RV dealers back should be welcome and of course personnel will have to either disclose issues in an asis sale or ensure that resale inventory is in good operating condition and meets manufacturing standards Even if such tough selling practices are implemented and I assume there would be consumer resistance to a disclosure requirement some things will fall through the cracks After all mechanics are human and are usually under time constraints and of course there is always the aware of loophole that previous owners can invoke to circumvent accurate disclosure It is possible that previous owners were not knowledgeable of problems or were just simply oblivious to proper appliance and system function I talk to numerous owners who have no clue why and how some of the features in their RV work or dont work Potential car buyers can also use services like CARFAX to track service and repair history and whether the vehicle was involved in an accident Could it be time for an enterprise to take a similar direction to protect buyers of previously owned RVs Nice thought but realistically its a much more complicated model for RVs One existing solution to the above scenario is an extended warranty that protects new owners of used RVs for a scheduled length of time Obviously aggressive selling of warranties is already a big part of any sale but maybe a new sales pitch is in order These policies are big revenue generators and perhaps making them more appealing financially at the time of the sale will encourage more buyers to partake in this type of protection A bold move would be to include the warranty cost or at least part of it as part of the selling price and market accordingly The goal is to keep customers from becoming discontented with the sale and the dealership Its too easy to pass negative comments through social media and tarnish reputations Recently a friend consummated a deal on a twoyear old fifth wheel and I suggested that he buy the warranty to protect against potential problems which he regrettably decided against While the dealer was helpful and professional he was not able to discover system issues during the PDI process and the new owner became discouraged after living in it for only a few days To be fair most of the problems stemmed from undiscovered shoddy modifications made by the previous owner that were counter to code It can be argued that a more extensive appraisal and mechanical inspection might have mitigated many of the underlying issues Of course the aforementioned disclosure would have been valuable in this example which will also help when making appraisals and deals over the phone On the flip side a more extensive appraisal procedure can help dealers better evaluate modifications and add ons that will increase the value of the RV For example I visited with an owner who traded in for a newer more luxurious motorhome The dealer pointed out the features but managed to overlook the extensive solar system which should have impacted price The owner had no idea the rig had a massive and very expensive system until he drove it home Certainly a missed opportunity The used market is vital to the health and growth of the RV industry Speaking from an emoji point of view it would be nice to have only happy faces RVB LIVINGSTON REPORT Bob Livingston is the former group publisher and senior VP for GS Media and Events publishers of Trailer Life and MotorHome magazines and their respective websites After retiring from his publishers post in 2016 he started a consulting company that focuses on product development and marketing projects in the RV industry He and his wife Lynne spend most of the year in their fifth wheel trailer