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How much over dealer invoice should be charged?

  • 0-$100

    Votes: 0 0.0%
  • $101-$200

    Votes: 2 7.1%
  • $201-$300

    Votes: 4 14.3%
  • $301-$500

    Votes: 16 57.1%
  • $500-$800

    Votes: 5 17.9%
  • $801-$1100+

    Votes: 1 3.6%
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Premium Member
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Discussion Starter #1
What do you feel is fair for a dealership to make on a bike? Post your comments
 

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Im saying 300-500. Even though they make most of their money through warranty work anyway... It's a shop, and they don't make a killing as it is... And I think 300-500 is much better than the usual 1000+ they usually charge.
 

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Back in Black
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Most of their money is made in service, but not off of warranty. Warranty time (for labor) pays LESS time than the normal time. For example... Doing a clutch under warranty, might pay, say, half an hour. Having it done as a paying customer, and it's closer to an hour (not actual times...only an example).

Dealer markup on most bikes (japanese anyway) is only around 3 - 5 anyway. However, they can sell you the bike for LESS than they paid for it, and STILL make money. Whenever they sell X amount of bikes, they get a bonus. That said, never expect to buy a bike and pay less for it than they did....it'll only happen on leftover new bikes.
 

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Official SBN Party Pooper
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I picked 300 to 500. Obviously I wouldn't want dealers to make a killing off of me but I know they need to do business as well.
 

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I think it should a few hundred around the MSRP price. Anymore and I would go find a better place to shop. Best thing though is to settle with last years model unless they changed it a lot.
 

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Some dealers pay alot less for bikes than u may think. It really depends on if they are high volume dealer if they commit to buy x number of bikes in a years time they may get a cheaper price than the dealer thats only gonna buy a smaller quantity. I put 300-500. They have overhaed and they have to pay salaries as well.
 

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TRaGiK said:
Most of their money is made in service, but not off of warranty. Warranty time (for labor) pays LESS time than the normal time. For example... Doing a clutch under warranty, might pay, say, half an hour. Having it done as a paying customer, and it's closer to an hour (not actual times...only an example).

Dealer markup on most bikes (japanese anyway) is only around 3 - 5 anyway. However, they can sell you the bike for LESS than they paid for it, and STILL make money. Whenever they sell X amount of bikes, they get a bonus. That said, never expect to buy a bike and pay less for it than they did....it'll only happen on leftover new bikes.
Thanks for the info on warranty work, I wasn't certain about that. What I am certain about however is that most dealers usually charge 1000+ above what they get them in for. Atleast at a few dealerships around me, most dealerships are paying 7-7.5k and selling for 8-8.5k on 600's. Some dealerships can even get away with selling 600's for 9k
 

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Ducati Twins Rock
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$300-$500 but get rid of the bogus freight and setup charges. The freight is included in the invoice price of the bike and the dealer gets a setup credit with every bike purchased.
 

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as much as people are willing to spend

if someone doesnt like the price, go somewhere else, and make sure you tell the more expensive dealer why.

I dont feel that sorry for someone that walks into a deal with blinders on and doesnt do a little research first.
 

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Discussion Starter #10
Lots of good feedback thats for sure.

I can say this.

Service does make good money. but never in Warranty work. Why Warranty work always gets put to the side it seems.
 

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Fred for me it isn't about how much over invoice, because that is going to very from unit to unit. ie, on a goldwing, you should make more then a few hundred bucks, but on a 125cc dirtbike, you shouldn't...

here is what I want from a dealership when I go in. I want a price on the bike plus tax title and license, NO BS setup or freight, no conditional prices (like you only get this price if you agree to a service plan or extended warranty) This is the price for the motorcycle, add to that tax, title, and license, and you are done. and when I get into F&I, nothing fancy, explain to me my options for Gap (if it's avail on bikes) extended warranties, service contracts, etc, but don't assume I want anything, don't automatically apply it, and don't force it on me.

I want a simple deal, and I will pay a little more for that
 

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Good post

Good reading and info in this post. I too agree that the dealers should make 300-500 per bike. I do dislike the way some try and stack on hidden fees such as servicing and shipping that are never mentioned until you sit down to actually buy the bike. On my last purchase I asked the out the door price and then had the dealer explain exactly what the tally consisted of.
 

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clearwaterms said:
Fred for me it isn't about how much over invoice, because that is going to very from unit to unit. ie, on a goldwing, you should make more then a few hundred bucks, but on a 125cc dirtbike, you shouldn't...
Good point


On my last purchase I asked the out the door price and then had the dealer explain exactly what the tally consisted of.
I've had that happen to. Or I ask what the OTD is and they'll say oh 8900 + fees comes out to say 10k...well what are the 1100 bucks in fees, dealers response "i'm not sure" Well if you don't know then don't charge me.
 

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KH, Rest In Peace Brother
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I have had similar things happen. I went to buy a bike once and got the final price, there was an additional $2k in it. When I asked what that was for they tax, title and license and dealer prep. Close to $1k was the dealer portion! I asked what did they do paint the thing gold or something. They said they had to assemble the bike and add the fluids. It just so happened they were uncrating a new bike and we watched......all the did was add the fluids and apply the handlebars. Made me think I should quit being a cop and assemble bikes! They came off $100 after some raising hell. I finally got ticked and left and went to one of my sponsor shops and bought the same bike for $500 less than the first one, paid my own tax, title and license and paid $0 for dealership costs! I tell everyone to only finance as little as possible, that $1k for tax, title and license may cost you a few Ks in intrest.
 
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