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Discussion Starter · #1 ·
I was shown this website that will sell you the dealership pricing vs msrp so that you can get your bike at the lowest price. I think that the website is full of crap IMO. The website is http://www.cyclebuy.com/suz_mc.htm#2006 Suzuki Street

Someone please tell me how the dealership is going to get a profit if you go there willing to pay what THEY paid for it? Im new at this and everything but this has me really DUMBFOUNDED! :feedback
 

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WhoUtinks_Wifey said:
I was shown this website that will sell you the dealership pricing vs msrp so that you can get your bike at the lowest price. I think that the website is full of crap IMO. The website is http://www.cyclebuy.com/suz_mc.htm#2006 Suzuki Street

Someone please tell me how the dealership is going to get a profit if you go there willing to pay what THEY paid for it? Im new at this and everything but this has me really DUMBFOUNDED! :feedback
You won't necessarily get it at dealer invoice. The idea is that you're in a better position to negotiate a deal when you know where the dealer stands. When the dealer can't BS you about his "investment" in the vehicle, you know when he's jerking you around.

As for just what the dealer makes on a sale, there's more to it than just the invoice and MSRP prices. While I'm unsure how the motorcycle manufacturers handle it specifically, I doubt it's much different from the automakers. In the car business they have what's called "holdback". Basically, if a maker has a 3% holdback, the dealer get's paid 3% of the MSRP by the maker for every vehicle sold, irrespective of the price the vehicle was sold at. Then you've got volume bonuses, finance bonuses, etc, etc, etc........

:cheers
 

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The invoice price is useful if you are willing to ask the dealer how much over cost will they accept for a new bike. As was said, be aware that the true cost is usually a few hundred UNDER invoice. The discount dealrs around here will usually sell a new bike for a few hundred UNDER MSRP out the door (full price including all fees and taxes).

I was quoted $7999 for my bike out the door with an MSRP of $8599. They only make a few hudred on those deals. It all depends on supply and demand in your area at the time of purchase, however.
 

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Discussion Starter · #4 ·
I live in FL...But it wasnt important really to me, Ill have my bf do my motorcycle purchases hehe But we were talking and he was tryin to explain to me this and it just doesnt make sense that they would do it and sell it for only a couple HUNDRED dollars profit, but I guess there are some people that really get screwed by them so they can afford to let a couple go to the people who did a little research before going there. Its wishy washy for me, but then again Im female and not good with buying vehicles...Im gettin screwed with my car now. oh well, ill just blow this over, i must be retarded, i dont get it.
 

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WhoUtinks_Wifey said:
I live in FL...But it wasnt important really to me, Ill have my bf do my motorcycle purchases hehe But we were talking and he was tryin to explain to me this and it just doesnt make sense that they would do it and sell it for only a couple HUNDRED dollars profit, but I guess there are some people that really get screwed by them so they can afford to let a couple go to the people who did a little research before going there. Its wishy washy for me, but then again Im female and not good with buying vehicles...Im gettin screwed with my car now. oh well, ill just blow this over, i must be retarded, i dont get it.
Don't be too hard on yourself. :)

If a dealer has a bunch of bikes that aren't moving, they'll be more than happy to move a few with a slim profit. It costs them money in inventory carrying costs to have the bikes on their floor or warehouse.

You're right though, enough buyers come in, pay full MSRP, add "set-up" charges (included in MSRP), buy some gear, get an extended warranty and service contract for $1600, and finance the whole thing as long as the monthly payment seems OK including gap insurance. The dealer makes money selling the loan and that buyer ends up paying $20K for their bike by the time the payments are over. Hopefully they don't wreck the bike or try to sell before it's paid off.
 

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I'll give you an example. Say you're looking at a car with an MSRP of $20,000 and an invoice price of $18,000. The dealer brags that he sells all his cars for just $99 over invoice. Therefore, this car will cost you $18,099 plus tax, title, and registration.

What the dealer ACTUALLY makes on the deal is:

The $99 over the invoice price
+ The manufacturer "holdback" (varies up to 5%), if it's 5% that'll be $1000
+ Any manufacturer to dealer incentives (these may or may not be disclosed to the public, and shouldn't be confused w/manufacturer-to-customer incentives), it could easily be $500 or more.
+ Perhaps the manufacturer is offering a "volume bonus" to encourage the dealer to move product (he'll get this for meeting a certain # of units sold in the month), let's say 1% of MSRP or $200
+ Who knows what else......
= $1799 in the dealer's pocket, for your $99 deal!!!

This is why it pays to have info on the invoice prices and any current incentives that are going on.

Cheers
 

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The real money is made in financing. You go buy a bike from ABC Sportbikes for $9000, they make around $300-1000 (just an example). Next, they offer to get you financed, come back with a 3-yr feal at 13% interest. They most likey got a loan for 10% or better and added points to your deal, and now get paid for each point above the deal from lender. These can equal hundreds if not thousands of dollars in profit for dealership.

Always negotiate a price first, they will seek to sell you a monthly payment. Have your financing before you shop, then see if they can beat your lenders interest rate.

Always negotiate a price first, not a "monthly payment. Get your own financing in adv
 

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wickgixxer said:
The real money is made in financing. You go buy a bike from ABC Sportbikes for $9000, they make around $300-1000 (just an example). Next, they offer to get you financed, come back with a 3-yr feal at 13% interest. They most likey got a loan for 10% or better and added points to your deal, and now get paid for each point above the deal from lender. These can equal hundreds if not thousands of dollars in profit for dealership.

Always negotiate a price first, they will seek to sell you a monthly payment. Have your financing before you shop, then see if they can beat your lenders interest rate.

Always negotiate a price first, not a "monthly payment. Get your own financing in adv

When I bought my last car the dealer quoted me a "special" interest rate of 11% if I went through their lender, this was "a special deal" the "lowest they could get" and all that. Out comes my preapproved car loan check with an interest rate of 5% or something like that. "Let me see what I can do." In five minutes they came back beating the interest rate if I used their lender. Funny how that worked. What this means is

1. They lied to me
2. They would have made a shitload of money if I took the initial loan.

Then they tried to get me with all that add on bullshit and I wasn't having any of that.
 

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WhoUtinks_Wifey said:
I live in FL...But it wasnt important really to me, Ill have my bf do my motorcycle purchases hehe But we were talking and he was tryin to explain to me this and it just doesnt make sense that they would do it and sell it for only a couple HUNDRED dollars profit, but I guess there are some people that really get screwed by them so they can afford to let a couple go to the people who did a little research before going there. Its wishy washy for me, but then again Im female and not good with buying vehicles...Im gettin screwed with my car now. oh well, ill just blow this over, i must be retarded, i dont get it.
Don't feel too bad about you deal on your car. Chalk it up to a learning experience. You need to understand dealers/salespeople do deals for a LIVING and they are pros at it! How often do you buy a vehicle? Well,they SELL people vehicles every day so of course they are going to be good at it plus they have a team/support system and training to help THEM make the most profit for the least amount of effort possible.

Just remember never,EVER feel bad for a dealership no matter how good a deal you THINK you got or how little the salesman made off the deal. The salesperson will give you a sob story about not making any/very little commission if they sale you a bike for this or that price. You don't sign the salesperson's paycheck the owner does. If he's not making enough that's between him and the owner not YOU! Tell them to ask for a raise then! :eek:nfloor

Also they will want(actually be all eager beaver)to work up a contract,pricing etc. and try to lay a guilt trip on you if you start to leave after they "DID all that work" They will play this game like crazy. Tell them something like "I told you can work up something for me if YOU want to."
They will also quote you a price over the phone(lie) and then once you show up the bike's price will magically go up hundreds of dollars. They tried this on my niece. When she showed up(45mi. trip ONE way)the salesman told her "Well,we thought we would get you in here and you'd like the bike so much that you would pay more". She told them to go "F" themselves,turned around and left. Fell sorry for sales people/dealers now?

Do you think the owner feels sorry for YOU when he's out on his big ass boat entertaining the ladies with the money you just put in his pocket? The bottom line is the dealer will not LOSE money on a deal EVER! They just plain wouldn't sale you the bike period if they did. If you walk out the door with a bike then they made enough on it that it was worth it for them to sell it for that price.
 
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