Does anyone know facts on dealer mark up? - Sportbike Forum: Sportbike Motorcycle Forums
 
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post #1 of 9 (permalink) Old 08-23-2002, 10:38 AM Thread Starter
 
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Does anyone know facts on dealer mark up?

I have been scowering the internet looking for solid dealer mark up values, but it seems motorcycle mark ups are more secretive than car mark ups.

I know destination and shipping charges are not negotiable, but what is the value of the bike itself usuakky marked up?
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post #2 of 9 (permalink) Old 08-23-2002, 11:01 AM
 
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Actually, everything is negotiable. Some dealers will say "shipping and set up not negotiable." Well, if you hear that it is time to go to another dealer, or get them to mark down the price of the bike enough to negate the "fees".
When I bought my bike we didn't even discuss set-up or anything. It was all "out the door" price.
There are services that offer information on dealer markup for a fee. It's like 10-20 bucks, but it is very good information to have. I don't know the site specifically, but I'm sure Google will turn something up.
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post #3 of 9 (permalink) Old 08-23-2002, 11:13 AM
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Ahem I can speak with authority when I say that the profit margin on bikes is actually very slim. For example the dealer will makes rougly $1000-$1500 on sportbikes if they sell at MSRP.

Dealer freight & prep is a joke & is just to get more money out of you & pad the dealers bank account...

Then again so is the cost of the first service etc... as most dealers just take full advantage of the unsuspecting new owner by telling him BS like "not letting the dealer do your first service will void your warranty" & then they go on to charge $120-$300 for nothing more than an oil change...

One big giant scam for the most part.
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post #4 of 9 (permalink) Old 08-23-2002, 12:46 PM
 
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Actual Cost or Estimate?

Okay, do you want the actual figure that bikes cost dealers, or a pretty good "rule of thumb?"

RULE OF THUMB: Basically, on Japanese bikes the MSRP includes a 16% return to the dealer. So if you divide the MSRP by 1.16, you'll get pretty close to dealer cost.

ACTUAL INVOICE COST: This one costs money, but not too much. Just go to bikesatcost.com and you can buy a dealer cost invoice (or so I've heard).

Hope this helps, Larry
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post #5 of 9 (permalink) Old 08-23-2002, 02:33 PM
 
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A lot of times if you can't talk them down to what you think is a fair price you can get them to throw in accessories to sweeten the deal. They make a ton more markup on accessories so if it was stuff you were going to buy anyway you can get it put into the loan so it won't come out of pocket and put that tward a bigger first payment.

Just make sure you know what you want going in and never take the first deal they offer. If possible leave and come back two or three times. Get offers from other dealers if you are lucky enough to have one close or get a price from someplace like Theil's Wheels and find out what shipping is and hit them with that. Don't forget you save sales tax on an out of state purchase so that should easily cover freight.

Those are my big ticket item shopping tips but to actually answer your question . . . I have no idea
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post #6 of 9 (permalink) Old 08-23-2002, 02:58 PM
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Quote:
Originally posted by Black_Snowman
A lot of times if you can't talk them down to what you think is a fair price you can get them to throw in accessories to sweeten the deal. They make a ton more markup on accessories so if it was stuff you were going to buy anyway you can get it put into the loan so it won't come out of pocket and put that tward a bigger first payment.

Not the brightest advice in my book... LOL

So you have them add in, let's say a helmet and tank bra or maybe an exhaust system... Well now you are going to be paying interest on that (or those) items for the entire time you are paying for the bike...

I suggest getting the best deal you can on the bike out of the dealer (not neccessarily your local one btw) & buying your extra's on the side at your own leisure & expense, but hey that's just me talkin out loud
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post #7 of 9 (permalink) Old 08-23-2002, 03:35 PM
 
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True but for those who can barely afford the down payment on a bike, its a good way to get safety gear right away that they cant pay for out of pocket and would otherwise do without until they can save the money. And if they throw in enough stuff it may even the deal enough to make every one happy.
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post #8 of 9 (permalink) Old 08-23-2002, 04:45 PM
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Good point, but I think people that are that tight on money should probably wait until they are a little more financially ready for bike ownership. That way they can help insure that their experience is a pleasant one. Motorcycles certainly aren't a neccessity in life & I figure if you aren't in a position to be able to pay for basic maintenance upkeep & riding gear then you probably need to concentrate on other things in your life first.

What most newbies don't know is that there is more to riding a motorcycle than buying gas... Proper safety gear should be a pre-requisite. What concerns me the most is someone taking the aforementioned advice & instead of buying a jacket & gloves they tack on an exhaust system to their bike payment & ride out with a brand new loud exhaust system & an $89 Nolan helmet that matches their T-shirt, but again it's their money I guess they can spend it anyway they choose.
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post #9 of 9 (permalink) Old 08-23-2002, 07:16 PM
 
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My intent was aimed more at riding gear other necessities. Even if you have the money financing it and putting more money into the initial payment can actually save you interest in the long run. Basicly because you end up financing the same amount after putting it back in but are forced to make larger payments on subsequent months. So, 6 of one half dozen of the other.

I'm kinda riding the edge of my finances right now but I'm still trying to scrouge up for a bike. My disposable income should skyrocket in a bit here as I sell off my expensive car and get a roommate who pays rent. Then it's bike time! It looks like I'm going to be buying from a private party. Friend of a friend deal for about $2000 under list. I figure with full insurance it will be hard to lose money on the deal
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