MSRP price normal for a dealer

[jonbailey19808]

Is it normal for a dealer to charge MSRP on a new bike or should most of them knock something off?

They all give me this crap about not charging me for unpacking and setup, is that normal too?

[dieziege]

Totally depends on the bike. Most bikes should go out the door for MSRP or less (out the door includes taxes and everything...your total cost). The cheaper bikes often go out the door for $500 over MSRP. Sought-after bikes likewise may go above MSRP I suppose... in the end the dealer will sell the bike for as much as they can. "What the market will bear."

[VermilionX]

yeah, bikes doesn't come to dealers built together. they assemble them.

but really, you should try to talk them down.

some of them say they don't charge freight and handling but it's actually included in the OTD price already.

anyway... depending on where you live, prices adjust. here in CA bikes aren't sold very cheap since the dealers know the demand is high and somebody else will agree to pay full price.

also, like anything else... the season that is best to buy is near the end of the year when the models come out.

popular bikes will also sell higher.

[Bubble Gum Jr.]

Is it normal for a dealer to charge MSRP on a new bike or should most of them knock something off?

They all give me this "crumb" about not charging me for unpacking and setup, is that normal too?

From my own experiences, it varies between the model of bike, dealership and time of the month. Supply and demand plays an important factor. Check out what the dealer actually has and that can give you some info on how far they'll budge. If you walk into a shop and the guy has 10 of the same bike; chances are they're gonna want to get rid of those fast. But if you walk into the same shop and they only have 1 bike of that model, they will be less reluctant to work a deal.

[jonbailey19808]

yes all the dealers around here only have one of every model.

a gs500f is $5120msrp and they will sell it to me for $4750 plus tax and tags

[1will]

here is my contribution to this thread.

invoice is the price that the dealer pays the manufacturer for the bike. msrp is the price that the manufacturer recommends the bike to retail at, i.e. the suggested markup. the cheaper the bike, the smaller this margin of markup and the more the dealer will try to jack you above msrp in order to turn a better profit.

the invoice price for the dealer includes the cost of shipping the bike from the factory to the dealer. this included shipping cost is a flat rate (the same regardless of the location of the dealer in order not to give dealer that is closer a competitive advantage over dealers that are farther away, or so i've read at least).

in other words, when a dealer breaks down your quote and it includes a shipping/freight/destination/magic carpet transport/whatever charge to cover how the bike got to the dealership, they are trying to jack you. keep this in mind when you are negotiating.

fin

[Sev]

I spent $10 less then the MSRP to get my bike out the door, that included taxes, fright, assembly, etc etc etc. Yours will be difference, but if the OTD price is close to MSRP you're doing pretty good.

[Randy]

I sell bikes for a living. Motorcycle dealerships all have the same rule. Is it easier to replace the customer or replace the unit. What this means is, are you worth sacraficing a profitible unit (usually being made up by service, parts or gear). If you are from out of town and trying to get the deal of a lifetime, good luck.

There is between and 8-10% net profit in a unit at MSRP. There are some fees that are added by the dealer and some that are are not, but they must be included in the price.

Fees added by the dealer are things such as Freight, Documentation, Licencing and Setup Fees.

Fees that are not, are Tax, and Registration.

You can attempt to negotiate on Tax and Registration, but I have never seen an instance where someone got any of the dealerships I have worked for to pay these (at least not without them being hidden in the overall price of the unit).

Doc and Freight fees can potentially be negotiated, but once again the dealership will mostl likely hide them in the overall price of the vehicle.

These things being said, there is also a dollar amount of rollback associated with the unit. This rollback is a dollar amount the manufacturer will pay the dealership once a specific unit is sold. Popular units typically have less rollback than harder to move units, but this is subject to the whim of the manufacturer.

You will never get anyone in the dealership to admit that there is anything called rollback.

This kinda sums up what the price of the unit will be.

As far as negotiation goes, let me give you a few tips from the sales side of buying a bike.

Attitude is everything. Most sales people are very competitive, if you come in with a "I won't pay one dollar over MSRP OUT THE DOOR!". I will personally do everything I can to make you pay top dollar.
This is not out of any personal animosity or anger towards anyone.

Let me show it to you from my perspective. Say a someone is walking around saying I am the greatest goalie(soccer or hockey, you pick) to ever exist! If you can score a goal on him/her it does two things, shuts him/her up, and makes you feel good. That is what walking into a dealership with a hard@zz attitude will get you.

Going into a dealership with some crazy low internet price will most likely not be a stunning success. There are several midwest (USA) dealerships currently undergoing litigation because of bait and switch tactics. I wont go into it here, but check out the BBB before you make a trip to middle of nowhere and find out the price you thought you were gonna pay isn't anywhere near what you thought. Think about this one, as the old addage goes "If it sounds to good to be true, it probably is"

Most people don't pay cash for a bike anyhow, so making a big fuss over 100 bucks either way on a bike is really NOT going to effect your month to month payment more than a dollar or two. It will effect the net percent of profit on the front end of the deal. The front end is where commisioned sales people make their money. (To feed their families, pay their rent and motorcycle loans).

Just to kinda sum it up, if MSRP for a popular bike is $10,000 and you get it for $10,000 you are probably a good solid negotiator with a good credit history and positive attitude.

I could be wrong, but I do this job six days a week.

[Kaiser Soze]

MSRP on a GSX-R750 is $12,999 CDN plus freight and PDI, which my local dealer put at $399.

I got mine for $12,400 including everything. Seemed like a good deal to me. I also got 15% off any accessories I bought that day, so I went for a good Shoei helmet.

It was the second bike I've bought from the dealer, so that probably helped.

[Sev]

Yeah, and if you buy a lot of accessories from them, they'll be more likely to cut you a deal. Because they know you'll come back and spend more money.

The addage is true, the dealership doesn't make much money selling the bike, but they make a lot on selling service and extra parts afterwards, so if you prove you'll come back again and again, they'll do their best to make you happy.