HOW TO DEAL ON A WR (or other bike)... The Skinny

9 replies to this topic
  • Futura

Posted February 03, 2002 - 03:55 PM



Arm yourself as a consumer! Go to (NO, I don't work for or own it), and for $9.95 you can get a report that tells the following about a bike. Not every manufacturer or model is represented, but here's what I found out about a 2002 Yamaha WR426F:

(1) List Price: $6199
(2) Dealer Invoice price: $5243 (includes FREIGHT!)
(3) Assembly Cost: $20
(4) Ready to Sell Cost = (2) + (3) = $5263
(5) Holdback: 3% of list price or, $6199 x 0.03 = $185.97 -- which the dealer gets at the end of the year for selling a WR426F;
(6) Wholesale incentives: "None known"
(7) The "Ready to Sell cost" is the cost to the dealer to put the bike on the showroom floor. If you press a dealer to buy at his cost, he can't profit, and HE'LL GO OUT OF BUSINESS with too many deals like that! (So, be considerate of the dealer -- he needs to make a profit to stay in business! And more dealers = competition among dealers which, among other things, makes the market better for us as consumers);
(8) If you add the dealer's "selling price" to what he says he wants to charge for "Freight & Setup," and then subtract the "Ready to Sell cost," you get the amount of profit the dealer wants to make. So, if the dealer says he wants MSRP $6199 + $500 for freight and setup = $6699 (+ tax, doc fees, yada yada etc.) then he's wanting to make $6699 - $5263 = $1463 profit, plus any yada yada, etc. that he tries to add into your bill. PLUS, the dealer gets his holdback ($186) at the end of the year... so, he's gonna profit $1463 + $186 = $1649 + yada yada, etc. doc fees and crapola...

SO, what do you think is a fair profit for the deal? You can really DEAL with your dealer by showing him that you know what you are talking about when you go into the shop armed with your info.

Fax blast a bunch of dealers with a letter that lays out that you know what the cost is, setup, holdback... don't write it all out, just tell him that you want to buy by a certain date, that you know what the story is, you want a good deal, and then sit back and wait for replies. Or, go to several dealers and, without being a real dick about it (Nobody likes that, and you want a relationship that is good for you, the dealer, and the sport, right?), and lay it out.

Try it and I bet that you'll do a LOT better at making YOUR DEAL... Do business and then ride knowing you got exactly the right deal for you.

As a final point, remember that for any bike, market demand is going to set how much the dealer is going to flex... If you're asking for a really in-demand bike, the dealer may not flex much because he CAN sell it for a higher price to another guy who doesn't know what you know.

Do this kind of thing as your approaching the end of a month, a quarter (March, June, September) or probably best, end of the year... that's when they're trying to get those final numbers.

What do you think about this?

[ February 07, 2002: Message edited by: Steve Claus ]

  • Ronin

Posted February 03, 2002 - 04:13 PM


I think I like the info, so thank you. and I really think that I got a good deal on my bike woo-hoo.....


  • Futura

Posted February 03, 2002 - 04:17 PM


Ronin... you DEFINITELY nailed it!!! Nice work, man... All the Best.

  • Futura

Posted February 03, 2002 - 04:21 PM


Hey, I made one small error in my first post for this discussion: In item (4) of the list, I indicated to add "(3) + (4)" to get a total... However, I should have written "(2) + (3)" instead... it doesn't change anything about my statement, conclusions or recommendations... just want to make you aware so as to avoid any possible confusion by my error.

  • streamdream

Posted February 03, 2002 - 05:42 PM


Right on Futura!

Is the pricing about the same for the WR? :)

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  • huskyrider

Posted February 03, 2002 - 06:47 PM


you really made my evening.
I thought that I left with a bike which I could of negotiated to a lower price.
I made the big mistake of convincing myself that I had to have this bike right here right now and I met them halfway between my offer $5500 and their (discounted) $6500 out the door price.
after looking at my paperwork and if your info is correct they made less than $300 on this sale.
by dividing the profit dollars 300 into their 5263 purchase price they only returned a 4% margin.
my business would be out of business if I tried to live on such a small return. hopefully they sold a bunch of units at MSRP to offset this low sell price.
it's obvious Ronin got the deal of the year or they forgot to charge the sales tax to his purchase. either way my hats off to him. that is without a doubt the lowest price I've heard of on a brand new WR426.
FYI, I saw a 02WR426 listed for 5500 at in Mississippi with no sales tax to out of state buyers.
good luck on your purchase.

  • AngryCandy

Posted February 04, 2002 - 04:31 AM



Good work on finding that info. There are lots of websites that provide this info on cars & trucks, but this is the first I have seen on bikes. The only snafu is that the Yamaha Thumpers are so popular, few dealers will negotiate that much. I was on a waiting list for 6 months to buy my 250F, and when the time came to negotiate price, the dealer knew that he could sell the bike to any one of 20 other guys immediately for MSRP.

  • b-bike

Posted February 06, 2002 - 08:55 PM


I can't agree more with the idea of buying your bike at years end. I picked up my brand new 01 YZ426 last December for only $5199 out the door cost. I did'nt even have to dicker the dealer down to that price because that was what it was advertised for. I guess the "hidden" cost to me was WAITING for the a whole year before I made the deal. I have a new bike and extra cash for gas & gear.


Posted February 11, 2002 - 09:19 AM


in this area (nw penna) dealers can't sell wr's and most won't stock them unless forced. the local yamaha dealer has a new 2000 and a (barely)used 99 that he would love to deal on.

  • Futura

Posted February 11, 2002 - 02:48 PM


Hey, listen, thanks for the replies. Look, the point here is: Get your $#!+ together before you go to the dealer to buy a bike. Map it out as to what the dealer is asking you to pay him for profit.

I have seem some really cagey operations, and I've been taken by one in the past... paid too much.

Don't be fooled by the following:

(1) Freight charges
(2) Setup charges
(3) (1) & (2) indicating hundreds of dollars as a combined charge
(4) "How much would you like to pay on a monthly basis?" = A BULL$#!+ approach designed to set you up...
(5) The suggestion that there's "all this overhead to take care of"...
(6) Document fees and similar add-on fees = crapola, man...

Get down to the price of the bike and tax, period... then, work from there on whatever -- add-ons, financing, yada yada...

That's what I think at this point... That's how I'm going to approach things when I buy my next bike.

Again, thanks to everybody for taking your time to read and write for all of us.

Futura over and out


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