[bmparis]

Unlike motorcycles, new cars have tons of websites and buyer reports to help with haggling the price of a new bike down. I want to buy a new bike and my questions are:

1) how much have you been able to talk the dealership down on a new bike?
2) what throw-ins were you able to get?
3) is there a way to know how much markup is on a bike?
4) what other tips do you have to getting the best deal
5) what pitfalls should I look out for?

I know its a lot but anything you can give me to keep from getting screwed would really help!

 

[Trip]

1) I got mine $1000 cheaper than MSRP which was also $150 below cost
2) None, it was below cost so they already didn't like me
3) Have a friend that is a dealer
4) If they match prices, search cycletrader.com for the best price on the new bike
5) Financing is a pain in the ass and go to several dealerships and find nice people to deal with

 

[jeeps84]

Cash talks. If all they have to do is title work, they will be much easier to deal with.

I your shopping around, don't apply for financing but once maybe twice.
They will tell exactly how much money they will loan you on the bike you chose. Running credit apps many times show up on the report and could represent desperation.

Defiantly shop around. If they want your business. They will price match and or offer free gear.

 

[Gas Man]

Check NADA it is what the dealerships use to price out trade in. That will be what you can use.

However, why are you buying it from a dealer? Just like cars, the dealership is the last place I would uy a motorcycle. Too much mark up and crap like that. Plus it is easier to talk down a individual than a dealer.

 

[jeeps84]

You defiantly get better deals from private sales. But as we all know. Its very hard to get good financing with out the help of a dealer on used bikes. Cars aren't much better.
Its also easier to finance a new car for twice as much money than a bike. :crazy:

 

[Bandit 6S]

I went through a credit union to get my financing on a new bike. The finance rate was about 5%. The see a new bike the same as a new car. Best way to deal is when you don't have to buy and are prepared to walk away. Make sure you are approved for the loan and name your price. If they won't deal, walk away. There's always a better deal around the corner anyway. Usually you don't find it until after you're already committed. Good luck.

 

[jeeps84]

Aint that the truth.
Like I said Cash talks.

If you have the luxury to get preaproved from a bank or credit union. That's the way to go. Its like having cash when you buy.

The walking away can be tricky. You need to price straight up at different dealers to get a starting point. Then be reasonable with your offers.

Sometimes you can get away with low-balling on used stuff at the dealers. Especially in the winter months.

 

[drewpy]

:iagree:

 

[Beau]

I can't comment on haggling, but financing a play toy is never the best option, unless you get 0% or near 0% financing. Even then, I'm a big supporter of putting at least the first 2 years expected depreciation plus tax cost and dealer fees if any down on the purchase. If you ever need to sell the bike, you don't want to be "upside down" on the loan.

I want a bike really bad, but I refuse to let myself finance the purchase.

 

[jeeps84]

I can't comment on haggling, but financing a play toy is never the best option, unless you get 0% or near 0% financing. Even then, I'm a big supporter of putting at least the first 2 years expected depreciation plus tax cost and dealer fees if any down on the purchase. If you ever need to sell the bike, you don't want to be "upside down" on the loan.

I want a bike really bad, but I refuse to let myself finance the purchase.

You got the right idea. Sometimes our wants overpower our reasoning. Ill finance most anything if I want it bad enough but, Ill search for the best interest rates and double up or more on most every payment.

 

[Beau]

Your effective interest rate goes WAY down when you pay double the minimum monthly payment.

 

[Trip]

I financed my new bike, but that is because I have no credit and wanted something to start building credit, so I can get a home loan eventually. I never really had a need for a credit card, so I never got one and now I am paying the price for that by having to build credit before I can begin to look at houses. I could pretty much pay off the bike now, but just going to let the loan sit for at least a year then pay it off completely. I usually pay about double if not more each month though.

 

[bmparis]

I financed my new bike, but that is because I have no credit and wanted something to start building credit, so I can get a home loan eventually. I never really had a need for a credit card, so I never got one and now I am paying the price for that by having to build credit before I can begin to look at houses. I could pretty much pay off the bike now, but just going to let the loan sit for at least a year then pay it off completely. I usually pay about double if not more each month though.

If I can ask; what was the rate and the term of your note? In looking at the different forums, it seems as though people turn over bikes faster than they do cars. I wanted to get a 5 yr note to lower the min pymt amt but intended on doubling up on payments as able.

 

[jeeps84]

The interest rate depends on the specific borrowers credit. The better the credit score, the lower the rate will be and visa versa.

 

[Trip]

I got mine through TVA Employees(my company) for 4.95, Suzuki was going to give me 6%. Only did it for two years and probably will pay it off in a year once I got my credit established. I also only got the bare minimum loan of $5000 that the credit union would allow and paid the rest up front to the dealership.

 

[Mojo]

As someone who owns a dealership, I'll answer these questions from the other side.

Unlike motorcycles, new cars have tons of websites and buyer reports to help with haggling the price of a new bike down. I want to buy a new bike and my questions are:

1) how much have you been able to talk the dealership down on a new bike?

I don't haggle. The price is the price. If I really like you, I might knock a few bucks off of the destination charge. Mind you, that's being generous. These are hard costs that I pay out of my pocket. Also, I don't charge the ridiculous destination charges that most dealerships do. I charge just about what it costs me to have it shipped and assembled. I'm confident that our price is lower than anyone else in town. I refuse to lose money to make a sale. That's just not good business.

2) what throw-ins were you able to get?

Our profit margins are low enough. I *might* throw in a helmet if you buy a full set of gear.

3) is there a way to know how much markup is on a bike?

Only if the dealer is willing to divulge that information. We don't.

4) what other tips do you have to getting the best deal

Be polite, and buy more stuff. The more stuff you buy, the more I'm willing to deal. We've had customers buy three bikes at a time, and in cases like that I'm willing to go close to cost on at least one unit.

5) what pitfalls should I look out for?

Be sure to *thoroughly* look over any used bikes. Look over the new ones too. Be sure you're clear on any and all warranties. Also, financing is just a bad idea if you can avoid it. Some dealers get kickbacks from finance companies for sending them your business. Remember, when a dealer is arranging financing, he's not shopping for the best deal for you, he just wants to move his merchandise.

Get as much information as you can on the service department? Do they have a good reputation? Do they charge over retail for their OEM parts?

I know its a lot but anything you can give me to keep from getting screwed would really help!

 

[bmparis]

As someone who owns a dealership, I'll answer these questions from the other side.

Very good information! I REALLY appreciate it! :dthumb:

 

[Gas Man]

I really understand all of that Mojo... and I like the insight on the finacing... sense I'll be doing that soon... I will take that into consideration.

 

[Mojo]

Another quick note on the destination charge, or 'crate fee' as some dealers call it. That's honestly where there can be the most room for negotiation. I've seen dealers charge upwards of $800. I charge $200, and it breaks down like this: I pay from $75 to $150 to have the unit freighted to me from the distribution center. My shipping costs aren't too bad, because all of my current vendors ship out of California where I'm located. At that point, I have to pay my mechanic to assemble and prep the unit. For the area I'm in, he's paid a bit better than most motorcycle mechanics. Also remember that any time he spends assembling a bike is time that he's not spending on customer bikes that bring in the shop rate of $75 per hour. That means that my hard cost to get the bike to the customer can actually be above the $200 that I charge for it.

Other dealers, however, turn it into a huge profit center. Were I charging the $800 that I've seen some of the dealers in my area charge, I'd be making more on average on the destination charge than I do on the sale of a unit.

 

[Gas Man]

That (being the $800) is where the dealerships get their aka as stealerships!!!