The Only Reason You Should Pay More Than You Have To...

[the Ferret]

Something else that must be factored in.. The dealer does not pay for bikes per se, at least not outright. He buys them thru a lending institution on what is called a floor plan..he finances the bikes and pays interest on them every month..probably a couple hundred dollars per unit. The longer that bike sits in the showroom, the more it is costing the dealer. When he sells the unit he then pays off the remaining floor plan due on the bike to get the title. On a bike that has been on the floor a week, the dealer basically has nothing in that bike. When it has been there 3 months then he is starting to have an investment in that bike. When it has been there a year, he wants to get rid of that drain on his budget pretty badly. I have bought brand new 2 and 3 year left overs at a song (as compared to a current model year models of the same bike) because the dealer is tired of paying floor plan interest on them. Conversely a 2 or 3 year old model is only worth as much as any other 2 or 3 year old same model in the used market, so the buyer has to take that into account and not overpay even though it is brand new.

Both buying and selling vehicles is a form of black magic lol