ADM: do people actually pay markup?

[dravnx]

All that matters is the out-the-door price. Don't get caught up in negotiating fees or other add-ons.

This
OTD is the only price that matters. Many salesman will not give you the OTD price over the phone or via email. You have to stand on their toes to get them to give you the OTD price. It's part of the game.

 

[bobl]

I agree 100% about dealing with out the door price only. It's often funny, because the sales person doesn't know exactly what's involved, so they can be at a disadvantage when dealing with otd. I personally won't deal with someone that won't give me a solid otd price. The cheap advertised price, with add on, add on, etc., is bait and switch. Not the kind of people I want to deal with. The price isn't important, how much it costs you is.

 

[Blankpage]

I bought a supposedly on sale bike one time and when we sat down to do the deal they added a $750 setup fee on a $7500 bike.
I told them to drop that fee and I'd buy it. They didn't so I walked. Got a call next day and they agreed to price without the fee.
I don't knock them for trying to make a buck but if you're going to advertise it being on sale then it better be on sale, else I wasn't interested in buying it in the first place.

 

[FXCLM5]

op are you talking about the 11k brand new 17/18 r1 wheels in motion are listing on cl?

with the ADM disclaimer on the ad?

 

[R3DS!X]

Not only do I pay the mark-up, I haggle up. Someone has to keep the dealers in business.

 

[bpw]

Anyone else think it’s crazy that I can buy a bike more quickly and with less hassle on Craigslist than from the new motorcycle store?

Even buying my house involved less bullshit and hassle than what I have run into the couple times I tried to buy new vehicles.

 

[951dude]

op are you talking about the 11k brand new 17/18 r1 wheels in motion are listing on cl?

with the ADM disclaimer on the ad?

Its a Ducati dealer up here in Sacramento, but I am familiar with Wheels in motion. I went there during a convention I was attending in LA, they made laugh. Their mark ups brought the prices almost back to msrp

 

[951dude]

Not only do I pay the mark-up, I haggle up. Someone has to keep the dealers in business.

 

[951dude]

Not trying to be argumentative but I really don't recommend walking around with thousands of dollars in cash. Dealers don't really want to deal with large amounts of cash and if you don't agree on the price, that wad of cash isn't doing you any good.

Good credit will get you further than cash even if you aren't financing. Showing up in person at the dealer shows you are serious. Emails or phone calls don't carry as much weight as standing in the showroom.

I tend to finance and pay it off in a few months. I even financed my kids cfr50 because I was too lazy to bring a check.

I'm just trying to get a feel of what is considered the norm these days.

 

[usedtobefast]

I've found cycletrader.com a good place to see who is running "deals". But then you have the mark ups ... so as others have said, you need to work on OTD price.

And yes, a 2017 or 2018 should be cheaper to get than a 2019. The best is when the manufacturer is having a promotion.

Also dealers in Oregon or Washington or more remote areas of CA seem to be a bit more hungry to make a deal happen.

The fly & rides are great fun. And with most motorcycles being 50 state bikes it isn't much of an issue to do the DMV work yourself.

I have done this with bikes from Washington, Oregon, and Nevada. Got a Ducati in Reno for ~$1500 less than the Bay Area (not counting the airfare and taxi, that was about $150). People in the Bay Area have too much money ... dealers know that a cool model will be bought by someone.

For that Ducati example, was a very fun trip, and had a great ride back and saved a nice chunk of money.

Probably saved $750 - $1500 on each of the purchases compared to a Bay Area dealer.

 

[FXCLM5]

Also if you have the set price get a cashier's check made out to that dealer for not a penny more.

That is showing them you have the funds and your serious without having bundles of cash like you some drug dealer

 

[clutchslip]

I have been hunting for a new bike and have noticed many dealers have added dealer markup listed on the bike, even on leftover bikes from '17 and '18 that are supposedly on sale.

I called out a sales guy when looking at a 2018 Duc Supersport that was supposedly "1k off" but had a $650 markup and he looked at me like I was crazy. Are people actually paying these fees? Just curious if I need to adjust my expectations as a buyer

This really sounds like the setup fee. Setup is required by the manufacturers, these days. It really isn't built into the margin anymore. The margins on vehicles are pretty sparse. A couple of brands, like Ferrari, Porsche, and Ducati have higher dealer gross. It always surprises me how little consumers know about dealer business. It doesn't take much to go under with a motorcycle retail enterprise. Witness 2008-2010. Whoosh---------v-------gone.

 

[orbframe]

Buying vehicles is a learned skill.

 

[ScottRNelson]

I have been hunting for a new bike and have noticed many dealers have added dealer markup listed on the bike, even on leftover bikes from '17 and '18 that are supposedly on sale.

I called out a sales guy when looking at a 2018 Duc Supersport that was supposedly "1k off" but had a $650 markup and he looked at me like I was crazy. Are people actually paying these fees? Just curious if I need to adjust my expectations as a buyer

It all depends on how much you want it and what your other options are.

I can remember back in 1984 when I was looking for an RZ-350. The suggested list was $2300, the dealer five miles away had one (in the color I didn't want) for $2300 and the closer dealer had one in the right color for $2400. I asked them why theirs was worth $100 more than the one down the road and they instantly dropped the price by $200 to $2200. So I bought it from them.

When I was looking for a Honda S2000 at the end of 1999, every dealer was marking them up by thousands. Typically about $4000 or so. Dublin Honda at least claimed they were donating their extra profits to charity, but they had a lottery system and you were still taking a chance to be able to even buy one. I found a guy who brought one in from Oregon and sold it to me for slightly less than the local dealer wanted, but he still made a few thousand. And since they were so rare, I was willing to pay the markup at the time.

A few years later, after wrecking that car, I was looking for a Mustang convertible when the 2005 model first came out. Ford of Dublin had a $3000 markup on the one I wanted, so at the very beginning of negotiations I told them to cross that out before we went any further. I would easily fly 1000 miles to some other Ford dealer and drive back to save that markup. They agreed and made me a good deal - "but only because you're a local".

If you have other purchase options, just tell the dealer you don't like their markup and see if they're willing to make you a better deal. But it must be a bike that isn't in high demand and isn't rare. I'm thinking when the KTM 790 Adventure R is finally available, the dealers will be able to ask pretty much whatever they want for them, because there will be a demand for them for a few years. I want one too, but I went ahead and bought a 1090 R and can wait a few years until enough of them are available that I can get a deal on one.

 

[dravnx]

The dealer's job is to turn a profit and sell the bike for as high over their cost as they can get away with. Your job is to buy the bike for as little as possible. Somewhere in between is the price you will pay.