How to Buy an RV Dealership: A Step-by-Step Guide for Buyers
An established RV dealership brings a buyer a visible lot, relationships with the brands it carries, a service department with warranty authorizations, a finance office, a base of returning owners and a staff that knows how the camping season moves the business. It also brings issues that rarely appear in other retail purchases: manufacturer approval of a new owner, a floor plan line that must be paid off or replaced, towables and motorhomes that may have sat on the lot through more than one season, and warranty claims still waiting on reimbursement. Anyone planning to buy an RV dealership benefits from understanding how these pieces fit together before signing a letter of intent.
This article is general information for buyers of existing, operating RV dealerships that sell new and used recreational vehicles and offer service and parts. It does not address starting a new dealership or financing inventory or equipment on its own. Dealer licensing, consumer finance and franchise rules vary by state, and buyers should work with qualified attorneys, accountants and advisors. Nothing here is legal, tax or regulatory advice.
Step 1: Define What Kind of Dealership You Want
RV dealerships differ widely. Some focus on travel trailers and fifth wheels sold to families. Others lean toward motorhomes, with larger tickets and more involved service work. Some are independent used dealers with consignment units and no new-unit franchise at all. Know whether you want new-unit brands, a used and consignment model or a mix, and whether you have the retail, service and finance experience the business demands.
Step 2: Review the Financials and Department Results
Request several years of tax returns, financial statements and departmental reports covering new units, used units, finance and insurance, service and parts. Reconcile the reported earnings to tax returns and bank statements. Our guide to RV dealership valuation explains how buyers and lenders look at those earnings.
Step 3: Understand the Dealer Agreements Early
The right to sell a manufacturer’s new units usually comes from a written dealer agreement that may require the manufacturer to approve a new owner. Approval should not be assumed, and the terms of each agreement may limit what can transfer. See our article on RV manufacturer approval.
Step 4: Plan for the Floor Plan
New inventory is usually carried on a floor plan line from a specialized lender. At closing, the seller’s line is typically paid off, and the buyer generally needs an arrangement of its own in place. Curtailment terms, audit history and lender consent all matter. Our article on the RV dealer floor plan in an acquisition covers what to expect.
Step 5: Count and Value the Inventory
Buyers frequently negotiate inventory separately from the business price. New units, used units, consignment units and parts each need a method for counting and valuing them, and aged units deserve particular attention. See our guide to aged RV inventory at closing.
Step 6: Complete Due Diligence
Review warranty receivables, customer deposits, finance office files, titles, staff, the lot and the property. Our RV dealership due diligence checklist organizes the review.
Step 7: Plan for the Team
Certified RV technicians, experienced salespeople and the finance manager can be difficult to replace. Buyers should learn who holds key relationships and certifications and consider how to keep them through the transition, with any employment matters reviewed by qualified counsel.
Step 8: Arrange the Acquisition Financing
Acquisition financing frequently covers goodwill, used inventory, parts, fixed assets and sometimes real estate, along with working capital. Depending on the transaction, options may include SBA loans for RV dealers, conventional financing and seller financing. Every loan is subject to lender approval.
Mistakes Buyers Make
- Assuming dealer agreements will transfer automatically
- Treating the asking price as including every unit on the lot
- Overlooking warranty claims that may never be paid
- Underestimating cash needed for curtailments and a slow season
- Ignoring how much the business depends on the seller or one finance manager
- Leaving the floor plan arrangement until the last weeks before closing
US Professional Funding helps buyers finance the acquisition of existing, operating RV dealerships. Learn more about our RV dealership acquisition financing.
