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sirthumpalot

dealer fees, shipping, etc..

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I'm price shopping for a new 426 :) and I've been given the initial ok for $5600 here in Florida over the phone. This seems like an OK price in for this area (someone please let me know if you have found one near WPB FL for less!). However the salesman mentioned that there are 3 fees that are "pretty much standard", a dealer fee, a setup fee and freight charges. It was a short conversation and I didn't ask for amounts for the charges, but are these really common charges or is this guy trying to make up the difference between $5600 and the MSRP of $5999?

Thanks!!

[This message has been edited by sirthumpalot (edited 04-27-2001).]

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Sirthumpalot,

I bought an 01wr4 recently after spending a few weeks shopping around. Check the follownig threads:

"wr price" and "dealer satisfaction". From what I learned, fees are normal in some geographies, and not in others.

deFYI: Price Quote for 2001 YZ426F from www.greatoutdoor-yam-kaw.com

Just quoted me $5388 OTD

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For comparison. I paid $5199 out the door in Natchez Mississippi. Your price seems exorbitant to me, considering that it's known now that Yamaha is making a drastic change to the big "F" model next year. Maybe the demand for these bikes keeps the price so high? I would have thought that after it became known that the new model would be lighter with a more powerful engine, the current 426's would become a bargain. What do I know? I'm not in marketing.

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I wonder if all dealers pay the same price from Yamaha? Was it a very large/high volume dealer that you got yours from for $5199? I wonder what it would cost to order one of those things and have it shipped COD?

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sirthumpalot,

I was shopping for a new bike this winter and I found that most of those charges were bogus charges. They were only applied to Yamaha and KTM thumpers. If I bought anything else, they weren't even mentioned. It's all about the demand for these bikes. Finally one salesman that I've dealt with for years fessed up. Just take your time and see about buying from a large volume dealer. In know - I know - large dealers suck. But they'll usually wave those bulls$#t fees just to sell another bike. Or they'll lower the price of the bike to absorb those fees. Anyway, good luck.

Odie

[This message has been edited by Odie (edited 04-30-2001).]

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I asked the dealer why he was selling these bikes at such a low price and he told me that he feels that by giving a good price, the buyer will return for parts, service and accessories. Besides, he himself, still races and just likes the idea of helping other riders out. If it weren't such a long drive, I'd like to give hom more of my business.

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To answer your question, those fees sound standard and do vary. However, it wouldn't surprise me if the dealers still make some margin off of those as well.

It's normal business, so don't feel as though you're getting ripped off.

And out the door I paid a little over 6k for my 00, (now that's getting ripped off), but that's California.

DaveJ

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I worked in a Honda /Yamaha dealership all through high school and college, so I know a bit of what I'm taking about here. All of these fees are just another term for "additional dealer profit," but they do help pay some of the costs incurred by the dealer. They (the dealers) do get charged a small amount (about $50) for freight. Set up can be anything they want it to be. Usually dealers will have standard prices for all of these fees which are high. Like just about everything else in a dealership they are negotiable. On bikes that they need to move, they will sometimes sell them below what they pay for them, and re-coup the costs in the fees so they make a little on the bike. They are hoping you'll buy parts/accessories too, so they'll make a bit more (warantees are where they can make a lot!!).

All dealers pay the exact same for each bike, but the dealer's flooring percentage is based upon the volumn he buys. Flooring is the interest percentage the manufacturer charges the dealer for the unsold units on his floor. Usually, dealers get free flooring for the first three or so months, after that they pay for the bikes that sit on the floors. Again, the fees help to off-set this cost.

The bottom line is this: if you feel you got a good deal, then that's all that matters, because someone, somewhere, somehow always got a better one. Just go ride and enjoy your new purchase.

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Thanks everyone for your replies! For you guys who have worked at dealerships, how much did/do your dealers like to make as a minimum on each sale in proffit for a bike which has not been there to long (a couple of weeks on the floor)?

Does anyone know of a site (something like kellybluebook.com) where we can get the price that the dealers pay for these things? I found the 2001 426 listed as used on kellybluebook, but I didn't find it new.

Thanks!

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