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Buying a Bike this Spring?

Discussion in 'Motorcycle Talk' started by LRG, Feb 2, 2005.

  1. Well spring is here and some will be shopping for a new ride. Well if you are buying a new bike it helps to know what it costs the dealer.

    Freight and Setup- Total BS
    The bikes come basically put together- it usually takes very little time from an unskilled person to get them tegether and running. As soon as you hear freight and set up in the hundreds of dollars from a dealer its time to walk.This is where greedy dealers can make something from nothing



    Hold backs- this is a percentage of cost that is given back to the dealer in 3-6 months-say 3%


    MSRP-If you are so inclined you can purchase an invoice from
    http://www.cyclebuy.com for 13 bucks if you want to know invoice cost.The invoice cost will include any holdbacks, a setup allowance and of course the bike


    If you have more time than money you can usually peruse bike specific forums and someone will know the invoice cost.


    Finally any reputable dealer will just tell you how much they want for the bike. Not well MSRP, freight blah...-+ yea thats how much. Also a good thing to know is how much is the first service if you choose to do so. Also good to know is how long a wait if I need my bike to be repaired. Does it sit in the pen for 2 weeks while you watch your friends ride?

    There is more to buying a bike than just outright cost, find a good friendly dealer that likes its customers. Chances are you will be dealing with them far more than just the purchase. If you have warranty issues the dealer makes the call to the manufacturer. If the dealer says its just, it is. Also speak to the techs or shop manager and see if they are knowledgable or idiots-they might be working on your bike and if you have some questions down the road you would like someone smarter than a rock.Remember they have to make a living too so don't think you should get it for what they pay. Just find a fair deal with decent dealer support and it will make owning your new bike much more enjoyable.


    And -You must post up pics here if you make a purchase.
     
  2. Hey if you have accurate info, or end up going the cyclebuy.com website, please post up your results to share with others.

    The "Ready to sell cost" is the cost of the machine with NO PROFIT to a dealer. Dealers do not stay in business very long by selling machines for no profit.

    Many dealers charge additional fees for "Freight and Setup" over and above the selling price of the machine. Add the "Selling Price" to the "Freight and Setup" charges and subtract the "Ready to sell cost" to determine the PROFIT a dealer is asking to make.

    Another thing to know about is the Ichiban Rating System. Not making this up, ask a dealer about it and they'll love you or hate you. Basically there is a system that determines how much additional dollars are rewarded back to a dealer if they sell so many motorcycles. So there cost in the end does end up being a tad less, therefore giving you more room to work with. I called around, and in this region Renton Motorsports (RMC) in Renton, WA is the region/state Ichiban winner. They move an insane amount of bikes out of that place, and if you've ever been there then you will understand why. Of course, there are only one or two dealers in a region that are rewarded, and it's rather easy to find out which ones in your area. For WA, it's RMC, and that means you have more ammo when getting that price you want.

    Dont always goto the dealer and expect them to tell you the truth. Here are some dealer costs I have verified through Cyclecost and as you can see the supposed cost the dealer told me was a lot higher than the actual dealer invoice report from Cyclecost. Below is what the dealer verbally told me was their costs on the ZX-10R, and then the Cyclecost dealer invoice reports on the ZX-10R and the R1.

    ----------------------------------------------

    2004 Kawasaki Ninja ZX-10R Dealer told me this
    $9,500.00 Dealer Cost
    $135.00 Shipping (from Kaw to dealer)
    $35 Setup (who knows what this means)
    $9670.00 "Actual Dealer Cost"

    ----------------------------------------------

    2004 Kawasaki Ninja ZX-10R Cyclecost
    Dealer Invoice Report
    List Price: $10999

    Dealer Invoice: $9156
    This is the base dealer cost before the freight charge and assembly credit.

    Freight Charge: $130
    This is a standardized freight charge from the Kawasaki dock to the dealership.
    All dealers pay the same price.

    Assembly Credit: $62 - per Kawasaki dealer pricesheet
    Each dealership has its own method of figuring cost of assembly and preparation for sale.

    Ready to sell cost: $9224

    This model Kawasaki has 5% (of list price) dealer holdback.
    This holdback money is paid to dealers in April or October for units that are sold within the previous 6 months. Dealers must pay Kawasaki the full "Dealer Invoice" price and wait up to 6 months after selling the machine to receive their dealer holdback.

    Wholesale Incentives: none at this time

    Retail Incentives: none at this time

    ----------------------------------------------

    2004 Yamaha R1 Cyclecost
    Dealer Invoice Report
    List Price: $10599

    Dealer Invoice: $8923
    This base dealer cost includes freight to the dealership.

    Assembly Cost: $50 per Yamaha pricesheet
    Each dealership has its own method of figuring actual cost of assembly and preparation for sale.
    There is no reimbursement by the factory for this cost to the dealer.

    Ready to sell cost: $8973

    This model Yamaha has 3% (of list price) dealer holdback.
    This holdback money is paid to dealers in at the end of the model year for units that are sold within the previous 12 months. Dealers must pay Yamaha the full "Dealer Invoice" price and wait up to 12 months after selling the machine to receive their dealer holdback.

    Wholesale Incentives: none for this model

    Retail Incentives: none for this model

    ----------------------------------------------

    Most people ask me is the holdback 5% of the MSRP or is it 5% of the "ready to sell cost"?

    It means that actual dealer cost AFTER the holdback is paid to the dealer at the end of the year is 5% less than the about the dealer must may the manufacturer at the time the bike is sold (which technically is the "cost to the dealer of the unit). Holdbacks are not usually "assigned" to the unit at the time of sale. When the bike is sold, the accountant usually books the income as "Sale Price", and the "Cost of Goods Sold" as the cost with the hold back being recorded an "Account Recievable" due from the manufacturer at a later date. It really isn't figured into the deal as a rule. To be specific on basis of the percentage, if the Profit Margin is 17% on a bike using "List" minus "Invoice", the actual Profit Margin after recieving a 3% holdback would be 20%.
     

  3. Since Perferd brought it up, thought I'd bump this thread up.

    From a reliable source, the dealer's cost on a brand new 2005 636 is around the $7,000 mark. Dealers and manufacturers make more off the 600 middleweight class than the liter and above bikes.

    Also, if you can get away with a motorcycle under an MSO, you make more. Most dealers charge $95 for the paperwork/title fee, when essentially you can do it with an MSO and just pay the standard $35 fee. The dealer makes money off this too. Not all dealers do this...I dont want to stereotype them all.

    The freight and setup is bs I think, especially when a dealer wont let you pick up the motorcycle still in the crate. Some dealers will let you take the motorcycle home still in the crate, which is what I prefer. They forklift it in and you drive off in it.
     
  4. snake

    snake Paralized with excitement

    Looks like some good info.
     
  5. Talk about thread ressurection- crackup: crackup:
     
  6. Heh i think beans is going insane without his bike. Beans i told you man ill tow ya behind the busa with you schwin and we can pretend its a new kawi.
     
  7. Alittle here and alittle there and the price adds up fast :scared
     
  8. I am curious to read the cyclecost.com report of the dealer's invoice on the new kawi zx-10r and the zx-14.
     
  9. james1300

    james1300 Track School Dazed

    Hey! I dont want an untrained kid putting my investment together!

    And I want a Factory trained Tech. Given it the Top to Bottom
    inspection I deserve . Before I plant my Butt on the seat!.

    I want a Service Dept. with the correct tools for the job, if theres a problem. A Tech whos been to school,too.

    And I want a Knowledgable parts Dept., staffed by Quality people, open 6 days a week, with the basic stuff on the shelf to service my bike. (I do my own service).

    I will pay for this. Not what MANY Dealers expect us to put up with.

    Lack of service, people that dont know, and could care less.
    And a parts dept. that doesnt stock basic parts, staffed by a guy that cant find anything else to do. "The battle cry is always, 'I can order that". Well, I can too, at home, and have it deliverd to my front door, when its convenient for ME.
    Whats with shops that stay open until 6:00? What happened to taking care of the customer?

    I will pay more, but they are going to earn my money.
    And you should make them earn yours,too! :301
     

  10. "Factory trained Tech"............ crackup:

    When was the last time someone actually talked to a "factory trained tech"? :roll:
     
  11. james1300

    james1300 Track School Dazed

    SunnySide Yamaha, just before Eric went back to school! :301
    Thats Sunnyside, Wa. not AZ!
     
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