The average car dealer makes 2–4% gross profit on a new vehicle sale. The average RV dealer makes 20–35%. That is not a typo. RV pricing is one of the least transparent transactions a consumer will ever make — and dealers count on you not knowing.
The Real Markup Structure
On a typical RV, the money flows roughly like this:
- MSRP — what's on the sticker, essentially a suggested retail number
- Dealer invoice — usually 58–68% of MSRP (varies by brand and unit type)
- Holdback — 1–3% rebate the dealer receives after the sale that never shows on invoice
- Volume incentives — additional 2–6% back for hitting quarterly targets
- Floor plan financing — the longer a unit sits, the more the dealer wants it gone
The net effect: a dealer's real cost is often 55–62% of MSRP. On a $100,000 unit, that is $38,000–$45,000 of margin.
Markup by Category
- Travel trailers: 30–40% gross margin available
- Fifth wheels: 30–40% gross margin available
- Class C motorhomes: 20–28% gross margin available
- Class A motorhomes: 22–32% gross margin available (more room on gas, less on diesel)
- Class B (camper vans): 12–18% gross margin — much tighter
How to Use This Against Them
The mistake buyers make is negotiating off MSRP. That number is essentially fiction. Instead:
- Find out what the same unit is transacting for nationally
- Target a price 3–7% above dealer's real cost
- Present that as your out-the-door number
- Be willing to walk. There are 3,000+ RV dealers in the U.S.
See the Real Numbers on Your Deal
SmartBuyers pulls real national transaction data on the specific unit you are shopping. No guessing at markup — you see what the market pays. Use code RIO10 for $10 off.