Dealer Cost



10 replies to this topic
  • tctrailrider

Posted January 04, 2003 - 11:33 AM

#1

I read posts from time to time about dealers being greedy. I have a good feel with the costs and markups for auto dealers but on bikes I have no idea. If a bike lists for $6,000 I would suspect the dealer paid approx. 5,000. Anybody know how this works, does the dealer get rebaits etc from the manufacturer. Retail in general, consumers think the markup is much higher that reality. Clothes and some others the markup is twice cost, cars much less. What about bikes?

  • Motorod

Posted January 04, 2003 - 07:43 PM

#2

You can figure about 15% IMHO. Then your friend, the dealer, will give you the 5% discount. :)

  • endurodog

Posted January 04, 2003 - 08:08 PM

#3

My understanding on this issue, that is talked about all over the web, is that the dealer doesn't make a large profit on bikes, they make it in the accesories they sell after.

  • RCannon

Posted January 04, 2003 - 08:48 PM

#4

enduro, if your right ( I suspect you are) How can the dealers do the great after season prices and offer giant discounts on prior year bikes??? Do they lose money on these???

  • endurodog

Posted January 04, 2003 - 11:00 PM

#5

Most bikes they mark down are only a few hundred dollars, that I have seen. Most dealers will work with that amount in the deal, maybe not that much but close. So they are just taking the dickering out of the deal. I have never seen a $6000 bike go for $4000, even if its a year old.

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  • MN_Kevin

Posted January 05, 2003 - 05:31 AM

#6

Dealer incentives from the manufacturer is how they sell older models / year end clearance.

The manufacturer will reimburse the dealer $X amount on unsold bikes so the dealer does not eat the loss.

  • dmp437

Posted January 05, 2003 - 06:37 AM

#7

Check out www.cyclecost.com I did this when I bought mine just to give me another perspective since I still haven't found a dealer I trust.

  • endurodog

Posted January 05, 2003 - 06:41 AM

#8

dmp437, what did you find out about mark up from your report? They are pay for reports so I hate to pay for just curious sake.

  • comp182

Posted January 05, 2003 - 07:16 AM

#9

You may want to try bikesatcost.com. This is another site that tell you what the dealer actually pays for the bikes. Please Please what ever you do do not pay the shipping or the dealer prep/set up fees. These are just pure profit for the dealers. I will tell you I have a 2002 WR 426 that I payed $5399.00 out the door plus tax. I paid no dealer set up or shipping. Keep in mind that I had to argue for a while but I have a blast doing it. I believe that The actual dealer cost on my bike was $4850.00. My advise is that I would not pay more that 10% more than the actual dealer cost, but I would start at 5%. DO NOT PAY DEALER SET UP OR SHIPPING.

  • PUMPKIN_HEAD

Posted January 06, 2003 - 10:45 AM

#10

Pay the cost of the report. I did and it saved me more then the $9.99 I paid for the sheet of paper.
For Example: When I was looking to buy a new ride I went to my local dealer and looked a a new "02"KTM 520MXC and this was in September of this year. They had new "03"s sitting right next to it. So I went to the sales person told him what I wanted to pay out the door and he started his sales pitch. The end result of the conversation that day was let me talk to the manager and see what I can do. !0 minutes later he came back and said "sorry we can't do it for that price we'll loose money". So I left.

Two days later I paid for the sheet, printed it out and got my numbers togather. On the one for KTMs it had all of the info on it that all the dealers pay. This number include what the dealer should charge for shipping and what they should charge for setup with a bottom line "No Money Made price". Also keep in mind that dealers on the east coast pay the same as dealers on the west coast, by law.

So I take my handy little piece of paper back with me and my new price that I recalculated(taxes and bottom line price, which was actually lower then my first attempt). I tell him my new price and he tells me no way. I then show him the paper and prove to him that he can sell it to me for that price and make more money keeping me buying acces. and crap then losing me over price of a new ride. He takes it to his manager and 5 minutes later he comes back and asks me when I want to pickup the bike?

So don't be afraid to spend some money to save some money?
P.S. I also love to grind these guys over price, it's just plain fun.
:)

  • Motorod

Posted January 06, 2003 - 11:17 AM

#11

Shop and get the best price you can get between the dealers you like. They will sell it for what they want anyway. They already know what they got in it. I'm glad the paper help you, but I think you can get that price without the paper. On the other hand, what's 10 bucks when your spending 6 grand :) I'm lucky, I'v got a dealer that gives me and everyone the best price he can, and does no BS about it. Also he sells parts for his cost the day you buy it (apearal also).




 
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