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Discussion Starter · #1 · (Edited)
I am lookin at a new bike and considering saving till sept/october (maybe longer and more into winter) and buying it in cash. Was wondering what kind of profit do dealers make on a 10k bike? Need to know because the offer I put out will depend on what they usualy make off a normal bike sale. Any help is greatly appriciated.

Inlight of post below, bike would be a new daytona 675 if it does infact matter.
 

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I believe it depends on the bike and it's demand, but for the most part, profit margin is pretty low on the bikes themselves.

There's a lot of guys on this forum that are much more knowledgable than I on this subject, but I'm pretty sure this business is like any other: sell the bike for low profit and make a killing on accessories and service.
 

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I think MSRP OTD, is fair.

(they pay tax and license, no document or prep fee bs)

Of course they will be less willing to negotiate on a hot bike. Like the new 1098 for example.
 

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You can often get a new bike for a few hundred (or more) UNDER MSRP out the door. Supply and demand will determine at what price a dealer is willing to sell.
 

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if ur willing to drive to pick it up...search on cycle trader for the cheapest dealers....
 

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Dealers truely do make very little on the bikes themselves at MSRP. The pot-o-gold is at the parts dept.
 

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the service department is the money-maker for car and motorcycle dealers both.
 

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dealers cost to MSRP is 10%

Of course rebates and hold backs can take effect. . But a dealership DOES pay for shipping on bikes assembly can be different prices depends if its in house or by a setup company.
 

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like it was said above, the real money is in the parts dept. mark up for acces. and parts is normally like 40-60%. example, the owner can get stuff for $60 and sell it for $100, at least.

id say mark ups on bikes are only like 10-15% tho....
 

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don't forget marketing allowences from Manufacturer...The real money, not so much parts...FINANCING, most people do not realize that when you go through the Dealership for financing they recieve a laon package at x% and then sign you up at X +Y%. Where Y = the points paid out by lender to dealership. And those credit/card financing deals for a new bike is worse. Hence the reason they always sell you a "monthly payment" not a cash price of vehicle.

I'm sure parts helps keep the lights on as well.
 

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A typical dealer will make 10% profit on new bike sales. They make big money on trades, financing, gear, parts, accessories, and service.
 

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I would be happy buying a bike at MSRP OTD providing there are no Prep, shipping, misc fees involved. That goes for car dealerships too. Those are BS fees that go straight to profit. If the dealer pays shipping to get their bikes to the dealership, well thats the cost of doing business, why should that be passed onto the customer? Should we pay their electric bill, water bill, and insurance bills too? Prep fees can run a couple hundred bucks but in reality it takes a low end mechanic getting paid $10 hour about 2.5 hours to put it together...Not rocket science. The difference is all profit.
I do believe that a dealer should make profit, after all its business, however that profit margin is what makes them competitive with other dealers. Someone will be willing to drop there profit margin to make the sale...Just need to find that dealer...
 

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Drink! Drink! DRINK!!!
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Some manufacturers give the dealer an assembly *credit*, meaning a discount off what the dealer pays for the bike to cover the cost of putting the bike together. Of course, they'll happily show you that number and charge you it so they can double their money.

Pricing depends on the bike, but yeah, MSRP usually falls in the 10-15% profit range *after* shipping and assembly. Anything over that is just more gravy they're trying to get out of you.

If you're looking for a specific model of bike, to go http://www.cyclebuy.com and click on the Dealer Invoice Information. You can pay them $15 for a report that tells you the actual breakdown of dealer costs for a specific model of new bike. You can then add whatever profit percentage you think is fair to that number and use that as the out-the-door price to negotiate from a dealer.
 

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This topic really peaked my interest because I had been wondering about something...

This chain of dealerships in NY is running a promotion until April 21rst where you buy any one sport bike and get a 2nd sport bike of equal or lesser value FREE. Yes, FREE.

I don't know how the hell they are doing it but they have ads running on TV and radio.

www.777crazy.com is the dealerships website. They won't discuss details on the phone, they say you have to come in to discuss.

I know there has to be some sort of catch. Does anyone have any ideas how this is possible?
 

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kaptr1d said:
This topic really peaked my interest because I had been wondering about something...

This chain of dealerships in NY is running a promotion until April 21rst where you buy any one sport bike and get a 2nd sport bike of equal or lesser value FREE. Yes, FREE.

I don't know how the hell they are doing it but they have ads running on TV and radio.

www.777crazy.com is the dealerships website. They won't discuss details on the phone, they say you have to come in to discuss.

I know there has to be some sort of catch. Does anyone have any ideas how this is possible?

That's easy. They just markup the first bike. lol
 
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