bentsprocket, on 14 July 2011 - 02:53 PM, said:
I hear you buddy! But, When I bought my wife her new '09 150RB. I walked away from the deal saying I won't pay for a snot nosed kid to put on a front wheel, handle bar, pegs, and controls together.
The whole sales and parts area said "We can't and won't sell it then". "It has to do with a liability control". Honda had informed the (Amarillo) dealership they would lose their dealers license if they sold a crated or unassembled unit.
I waited almost two weeks before going back to call their bluff but they stood firm. I can't complain. We got a heck of deal.
I think you misunderstood. It is true that the dealer must assemble and test the bike. It is to minimize future warranty claim s and liability for a accident caused by prep. However, the MSRP of a bike has several hidden numbers.
This means the bike with a 7,000 MSRP, the dealership is getting the costs of setup, frieght and holdback refunded to them after the sale of the bike. If the dealer sells the bike for less than the MSRP, those items are still refunded. The only difference is the profit spread between actual invoice (cost/price from the manuacturer to the dealer) and MSRP.
A high volume dealer can make a profit even selling at invoice. Setup allowances are nearly excessive, Holdback amounts are larger the less time the bike sits in inventory and actual shipping costs can be less per unit if a half or whole truckload is delivered. There is another item not listed that is a further incentive to the dealer and it is a negotiated performance return. The manufacturer determines how many bike (conservative) a dealer can sell in a year. If the dealer beats those nubers, they get a percentage back on the dollars spent. Simmilar programs are run on parts sales too.
So.... That $7,000 MSRP bike probably could be sold at $6,000 plus tax and title. Any redundant charges the dealer adds on is simply a way to make you pay extra.
Ever seen 'shop materials' on your repair
invoce? Same deal. Just another way to milk a few more bucks out of you. You may notice they never show when warranty work is done.