Individual RV Rating Report. Report is for: Part 1 Company History

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1 Motor Homes RV Rating, Reliability & Wholesale & Retail Values Report is for: Part 1 Company History Newmar was founded in 1968 when Marvin Newcomer and Marvin Miller, left their jobs in upper level management at another RV manufacturing company to start their own company. The name Newmar is a combination of their names. The first location was an old fire station in rural, Five Points and the Kountry Aire travel trailer was their main product. In the early 70s, Newmar was at the forefront of the fifth wheel revolution, adding to its lineup the Kountry Aire fifth wheel. Over the years, Newmar has continued to add to its product line, expanding and improving as the market and the industry grow. Newmar was founded by and is owned by Mennonites and its mission statement is Newmar applies Christian principles of honesty, courtesy, morality, fairness, reasonableness, reliability, and integrity in dealing with its customers, employees, suppliers and financial institutions. Newmar's excellence in quality was recognized nationally in 1996 when the Recreational Vehicle Dealer's Association gave Newmar their first Quality Circle Award. Newmar has continued to win this award many times since. Two Newmar executives, Mahlon Miller and the late Virgil Miller have been inducted into the RV/MH Heritage Foundation Hall of Fame. Newmar s closest competitors are Monaco, Tiffin, Fleetwood, and Gulf Stream. Historically, the state of Florida has been Newmar s strongest market for RV Sales overall. The acquisition of two new dealers in California and Oregon should make a huge impact on Newmar s sales growth on the west coast. Newmar s customer service ranks among the best in the RV industry overall, perhaps only rivaled by Winnebago according to many of their dealers. Many Newmar owners (who have owned other brands in the past) would say 1

2 that Newmar is the best. In spite of this, Newmar is always striving to improve in the area of service and parts support of its customer and dealers. Newmar is marketing to both the elite and mid-range consumers, with the reintroduction of two luxury diesel coaches. The Essex and London Aire are for the most discriminating buyers, Jon Sammut says. They aren t necessarily price driven; they just want what no one else has. They want the latest and the greatest and they have discriminating taste. They want the leathers and the woodwork to be something that you won t find in other motorhomes. While Newmar is reaching out to those high-end buyers, the majority of Newmar s customers fall into the mid-range category, with price and quality both factors. 2

3 Part 2 Intended Use There are four main categories that a motor home will typically fall into. They are: Weekend use Vacationer Snowbird Full-Time Based on the standard options, overall quality, and data collected from various RV sources, we can accurately determine the overall intended use of this vehicle. This chart represents an overall average of intended use. For example, if you desire to purchase this unit for.. Confidential Weekend Use: People that fall into this category typically spend only 3 to 5 days in their unit per trip, with a combined total use of less than 21 days for the entire year. If this describes your traveling habits or desires, focus on models in the entry-level price range. Vacationer: This describes someone that plans to vacation in their RV for 7 to 21 days at a time with a combined usage of 65 day or less per year. If this describes your traveling habits, focus on RV models in the mid-range price point. Snowbirds: Snowbirds like to head south during the winter months. Snowbirds live in their RVs 3 to 6 months at a time. Serious consideration should be given during the RV selection process to ensure that the model will meet your needs. People considering snowbirding must select a durable unit that can withstand up to six months of constant use per year. Strong consideration must be given to the floor plan, quality and feel of floor coverings, durable furniture and one-piece shower units with good ventilation. Kitchen appliances need to be high-end to keep up with constant use. If this describes your traveling habits, focus on RV models in the mid-range to upper-end price point. Full-Time: When selecting a RV model for full-time use, the kitchen and appliances must support the demands of year round living. Bathrooms and plumbing fixtures must be of the highest quality. One piece tub/showers are recommended and ventilation in these areas 3

4 must be good. It may become cumbersome if the RV does not offer all required facilities, forcing the full-timer to use RV park showers or other facilities, which can become inconvenient at times. The heating system needs to be of high quality with proper amounts of insulation to keep the unit nice and toasty during cold nights. Solid wood for the interior cabinets should be considered. The roof should be made of fiberglass or a quality EPDM rubber roof with a 10 year warranty or longer. Laundry is a weekly task and needs to be considered when selecting a particular model. Full-timing requires a well-built RV with attention to detail from the chassis or frame to the roof and everything in between. If this describes your traveling habits or desires then focus on premium well-built models that are designed for full-time use. 4

5 Part 3 Comprehensive Ratings When rating a particular vehicle, our staff has spoken with RV owners, attended various RV shows and interviewed most of the RV manufacturers in North America. We have also collected data from RV websites, forums, and blogs, customer survey polls and RV related organizations. In addition to this, we have also gathered valuable insight from our bestselling publication, RV Comparison Guide, We receive customer feedback on a regular basis and we are able to put this information into our ratings. We are constantly researching the industry and listening to those in the know. While some of our evaluations can be construed as objective, we at J R Consumer Resources have done our best to arrive at our decisions based on years of research. The manner in which a particular RV model performs in the areas mentioned below will ultimately determine the overall satisfaction level of the unit. In this section of the report we are going to rate this vehicle in the areas of: Quality Reliability Drivability & Handling Payload Customer Satisfaction Style Resale Value Comprehensive Rating Chart Confidential Quality: When determining the quality of a vehicle, we focus on things like chassis, roofing materials, wall construction, insulation, plumbing fixtures and overall fit and finish. Our staff reviews the model specifications and compares this information to a set of Construction Standards that properly reflect a structurally sound product as outlined in Chapter 2 of our book, RV Comparison Guide 5

6 Reliability: There is an old saying: You get what you pay for. Some motor homes are famous for reliability; others are noted for their flimsiness and poor quality. Talking with current owners of the RV model you're considering is the best source for discerning how reliable or safe a particular unit is by. When determining the overall reliability of a particular unit, we focus on consumer satisfaction survey polls, RV forums, RV blogs, chat rooms and interviews with RV manufacturers. Drivability & Handling: When determining the drivability and handling characteristics of any motor home, we look to the chassis construction and wheelbase ratio. When you divide the wheelbase by the length for this vehicle you should have a wheelbase-to-length ratio of 53% to 55%. Wheelbase is the distance between the center lines of the primary axles of a vehicle. A motor home with a wheelbase-to-length ratio of will have excellent handling characteristic under normal driving conditions. While wheelbase ratios do provided helpful information, we also focus on customer survey polls, forums, blogs and chat rooms. By combining all sources of information, we are able to determine how well a vehicle performs in is this area. Payload: The amount of cargo a vehicle and carry without exceeding the gross vehicle weight rating, (GVWR) is referred to as Payload. The payload capacity is generally computed by subtracting the curb weight or dry weight of the vehicle from its specified (GVWR). Curb weight is the actual weight of a vehicle, including all standard equipment, full fuel tanks, full fresh water tanks, full propane bottles, and all other equipment fluids, but before taking on any persons or personal cargo. Gross Vehicle Weight (GVW) is the actual weight of the fully loaded vehicle, including all cargo, fluids, passengers, and optional equipment, as measured by a scale. Gross Vehicle Weight Rating (GVWR) is the maximum number that the (GVW) should never exceed. Based on our research, the optimum payload for any motor home is of GVWR. If below , the payload capacity could be problematic resulting in an overloaded vehicle which could put your safety at serious risk. An overloaded vehicle will have impaired handling and will impose great strain on tires and chassis, increasing the risk of a dangerous blowout or structural failure. If the payload is above this could result in a stiff-ride, placing undue stress on the suspension system and chassis. Customer Satisfaction: When determining the overall customer satisfaction of this vehicle we review data collected from various customer survey polls, blogs, forums and the manufacturers overall customer satisfaction history. The Recreational Vehicle Dealer Association, (RVDA) also conducts their own surveys by sending out questionnaire forms to their dealers. This data has also been collected by our staff and used in our ratings as it relates to customer satisfaction. Style: This is an objective rating based on staff evaluations on overall appearance, floorplan configuration and aerodynamics. We are looking for innovative technologies, functionality and overall ease of use. Resale Value: When determining the resale value of a particular vehicle we use the NADA Guides to estimate the overall resale value. The blue line represents the AVERAGE resale value for a motor home in this classification over the course of 10-years. The red line represents the ACTUAL resale value based on data we have collected for this particular vehicle. A vehicle with a depreciation factor of only from its original MSRP in five years is considered to have EXCELLENT resale value. A vehicle that has depreciated from its original MSRP in five years is considered to have GOOD resale value. And finally, a vehicle that has depreciated from its original MSRP in five years is considered to 6

7 have POOR resale value. Using these calculations allows us to determine how well a vehicle performs regarding resale value. If a vehicle is being introduced for the first time, (new model or new design) it will not have an accurate track record regarding valuation. In this case, we look at comparable models that manufacturer has produced in previous years to determine the resale value. Confidential Star Rating Based on the overall scores in the comprehensive rating chart found on page 5, this vehicle received a total of points out of 700. The Newmar All Star is of.. Stars would go here Superior: points = 5 star rating Excellent: points = 4 star rating Good: points = 3 star rating Average: points = 2 star ratings Poor: points = 1 star rating SPECIAL NOTE: This is not a scientific rating by which we test each model and put it through a series of grueling tests. To do so would be cost prohibitive and time consuming, making it impossible to put forth an affordable rating report. We realize that some of our customers have specific questions regarding a particular unit. For specific information concerning engine performance, chassis construction or other technical questions we have found the best source for this information to be service repair centers. Another source for obtaining information that would be considered highly technical would be from the RV Doctor at: 7

8 Part 4 RV Values Wholesale & Retail This part of the report is very popular with our customers. We have spent many years researching the wholesale and retail values for many different recreational vehicles. ALL buyers want to know what the actual wholesale and retail values are for the RV model they are getting ready to purchase. Based on our research and statistics from the NADA Guides and other resources, we have produced a depreciation chart (below) that we believe properly reflects the wholesale and retail values for your particular model. Please keep in mind that this is a general overview and percentages may vary depending on location, equipment, options and overall condition of the vehicle. 15-Year Wholesale & Retail Chart Confidential MSRP: The Manufacturer Suggested Retail Price, (MSRP) reflects the approximate price of the unit when it is brand new. The MSRP listings are furnished by the manufacturer and are assumed to be correct. MSRP does not include freight, extra *options or dealer prep. Fair Retail Value: Fair retail represents a clean RV unit without glaring defects. Tires and glass should be in good condition. The paint should match and have a good finish. The 8

9 interior should have wear in relation to the age of the vehicle. Carpet and seat upholstery should be clean, and all power options should work. The mileage should be within the acceptable range for the model year. Note: if the unit is not considered to be in Good condition, you will need to take this into consideration. *Options: To determine the depreciation percentage of options or after-market upgrades, take the original value of the option(s) and calculate depreciation by using the percentages on the chart based on the age of the unit. This will tell you how much value the options still have left. For example, if the RV you are considering is three years old, your average depreciation from retail will typically be around 30% - 35%. An RV generator that cost $5,000 brand new is now only worth around $3,300; 68% depreciation from original price. Dealer Invoice or Wholesale Value: The Dealer Invoice represents what the dealer paid for a new unit from the manufacturer. This value does not include transportation or dealer prep options. The Wholesale Value is what an RV dealer will pay for used RV trade-in. This can vary depending on the overall condition of your unit. Average Depreciation: These percentages have been calculated based on data collected from the NADA Guides and other industry related organizations. The percentages represent a unit in good condition with average to below average miles. All values listed above should be used strictly as a guide. If you would like a professional RV appraisal of a particular vehicle please visit our website at: to learn more about our RV APPRAISAL SERVICE. Disclaimer: J R Consumer Resources Inc. and its members or staff do not assume responsibility for any damage that may result from the misuse or use of this information. We reserve the right to make adjustments in data and or information that we consider inaccurate. We also reserve the right to adjust our calculations, estimates or information as we deem necessary. 9

10 Part 5 Best-Selling Models Best-selling models were selected based on overall sales for 2008 and company predictions for Each company interviewed by our staff provided us with the information below. This chart is intended to show you which models were the most popular based on sales volume only. Please don t assume the models listed below perform well in all areas. To order an additional RV Rating Report, which goes into more detail, please visit our website: Knowing which models are popular does provide some insight and hopefully gives you additional information that may help you with your buying decision. Note: Not all RV manufacturers are represented in the chart below and some manufacturers declined our request for an interview. Best Selling Models Based on Sale Volume for 2008 & Estimated Predictions for 2009 Confidential 10

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