06-29-2013, 10:23 AM
I'm the guy referred to by the OP.
I live in Central Florida where the dealers are asking list ($9,997) plus dealer prep charges (about $800). Florida sales tax is a complicated calculation based on value but is a little over 5% for this amount (varies somewhat by country), title fee is $73.50 and a new registration is $225.
Buying a new vehicle out of state worked like this: Pay no title, registration or state sales tax in the dealer's state. Pay a local tax rate of 1.4%. The dealer issued a drive-away license plate that is good for 30 days and gave me a Bill of Sale. After several weeks the dealer sent by mail a Manufacturers Certificate of Origin to present at my Florida tag office, along with an original copy of the bill of sale and various IDs to get a Florida title, registration and license plate. I bought my CB1100 outright but if I had financed it I would also have to provide lien holder information. I had previously sold a Florida-titled and registered motorcycle so I had a license plate already. That saved my the $225 fee for a new registration.
Southern Honda was offering $1,000 below list, no dealer fees and a $150 credit towards accessories for buyers traveling long distance, so it was almost $2,000 difference before taxes and State of Florida fees. HOWEVER! When we were nearing what I thought was the end of the paperwork I came under intense pressure to buy a third party service contract issued by Star Sport. Naively, I was not prepared for this and after initial hesitation I agreed to a 6 year contract that cost $1,070. Also, I had brought with me a battery tender stub which I told the salesman about upfront. He said no problem, they would install it for me. Well, somehow it got overlooked and I ended up paying $42.50 in shop charges to have it installed after all the paperwork had been done. I bought a little more than $150 in accessories.
Comparison of buying local vs traveling out of state:
CHATTANOOGA
$ 8,997 Motorcycle
$ 1,070 Service Contract
$ (1,070) Cancelled service contract when I got home and thought better of it
$ 175 Accessories
$ (150) Traveler Credit
$ 148 Taxes (Can't get away from them)
$10,247 Total to Dealer
$ 135 Plane ticket to Chattanooga TN
$ 40 Cab from the airport to the dealer (including tip)
$ 50 Gas to get home
$ 563 State of Florida Title Fee and Sales Tax
__________________________________________
$ 9,958 Total to Buy Out of State
LOCAL
$ 9,997 Motorcycle
$ 800 Dealer Prep Fees
$ 635 State of Florida Title Fee and Sales Tax
$ 300 Estimated various shenanigans by polished money-taker-outer-of-my-pockets guys
__________________________________________
$11,732 Total to Buy Local
Non financial considerations (emotional):
My local dealer played a little fast and loose with me in the beginning, luring me to the showroom by implying that I could test ride when in fact their one unit was already sold. I decided to buy in Tennessee and ride home since the gas to drive a truck round trip is at least $400 and one-way rentals are crazy expensive.The trip to Chattanooga was pleasant, the cabby was cool, the ride to the dealer took about 15 minutes. My salesman was friendly and tried to put me at ease. I felt vulnerable; way out of my familiar environment and comfort zone, fearful that I wouldn't be able to handle the bike, intimidated by the intense Chattanooga highway traffic, etc. In the afternoon, live pictures from the Boston Bombing started playing on the big screen TV in the lounge. They played on my fears to sell me a service contract I didn't need or want and I'm still waiting for the refund check. My salesman proudly handed me a Honda t-shirt with the dealer's graphics on the back. It was a large and I'm not so he offered to send me a medium. He also saved at my request a part of the white plastic wrap with the Honda Logo from my bike's crate and I ask him to sign it for me as a souvenir of my adventure. Neither the t-shirt nor the plastic wrap ever arrived.
All in all, I saved at least $1,500 and had a great time riding 570 miles on a new bike. Would I do it again or recommend Southern Honda Powersports? I don't plan to buy another new bike, well, maybe the new Honda Grom! But the price advantages of buying out of state are far less for lower value deals. They claim to be the largest volume Powersports dealer in the US. They are low key, knowledgeable and offer low prices. In my experience the low price is a strategy to sell a third party service contract which is certainly almost all profit. After I provided notice of cancellation in accordance with the contract I got a call from their sales manager. He was very persistent. When I said I was considering buying Honda's extended warranty he really dug in, trying to get me buy it from him though I could get it literally anywhere. I declined and scolded him for keeping my money so long.
So, yes. If you know what you want and can refuse the third party service contract, it could be a good experience for you.
I live in Central Florida where the dealers are asking list ($9,997) plus dealer prep charges (about $800). Florida sales tax is a complicated calculation based on value but is a little over 5% for this amount (varies somewhat by country), title fee is $73.50 and a new registration is $225.
Buying a new vehicle out of state worked like this: Pay no title, registration or state sales tax in the dealer's state. Pay a local tax rate of 1.4%. The dealer issued a drive-away license plate that is good for 30 days and gave me a Bill of Sale. After several weeks the dealer sent by mail a Manufacturers Certificate of Origin to present at my Florida tag office, along with an original copy of the bill of sale and various IDs to get a Florida title, registration and license plate. I bought my CB1100 outright but if I had financed it I would also have to provide lien holder information. I had previously sold a Florida-titled and registered motorcycle so I had a license plate already. That saved my the $225 fee for a new registration.
Southern Honda was offering $1,000 below list, no dealer fees and a $150 credit towards accessories for buyers traveling long distance, so it was almost $2,000 difference before taxes and State of Florida fees. HOWEVER! When we were nearing what I thought was the end of the paperwork I came under intense pressure to buy a third party service contract issued by Star Sport. Naively, I was not prepared for this and after initial hesitation I agreed to a 6 year contract that cost $1,070. Also, I had brought with me a battery tender stub which I told the salesman about upfront. He said no problem, they would install it for me. Well, somehow it got overlooked and I ended up paying $42.50 in shop charges to have it installed after all the paperwork had been done. I bought a little more than $150 in accessories.
Comparison of buying local vs traveling out of state:
CHATTANOOGA
$ 8,997 Motorcycle
$ 1,070 Service Contract
$ (1,070) Cancelled service contract when I got home and thought better of it
$ 175 Accessories
$ (150) Traveler Credit
$ 148 Taxes (Can't get away from them)
$10,247 Total to Dealer
$ 135 Plane ticket to Chattanooga TN
$ 40 Cab from the airport to the dealer (including tip)
$ 50 Gas to get home
$ 563 State of Florida Title Fee and Sales Tax
__________________________________________
$ 9,958 Total to Buy Out of State
LOCAL
$ 9,997 Motorcycle
$ 800 Dealer Prep Fees
$ 635 State of Florida Title Fee and Sales Tax
$ 300 Estimated various shenanigans by polished money-taker-outer-of-my-pockets guys
__________________________________________
$11,732 Total to Buy Local
Non financial considerations (emotional):
My local dealer played a little fast and loose with me in the beginning, luring me to the showroom by implying that I could test ride when in fact their one unit was already sold. I decided to buy in Tennessee and ride home since the gas to drive a truck round trip is at least $400 and one-way rentals are crazy expensive.The trip to Chattanooga was pleasant, the cabby was cool, the ride to the dealer took about 15 minutes. My salesman was friendly and tried to put me at ease. I felt vulnerable; way out of my familiar environment and comfort zone, fearful that I wouldn't be able to handle the bike, intimidated by the intense Chattanooga highway traffic, etc. In the afternoon, live pictures from the Boston Bombing started playing on the big screen TV in the lounge. They played on my fears to sell me a service contract I didn't need or want and I'm still waiting for the refund check. My salesman proudly handed me a Honda t-shirt with the dealer's graphics on the back. It was a large and I'm not so he offered to send me a medium. He also saved at my request a part of the white plastic wrap with the Honda Logo from my bike's crate and I ask him to sign it for me as a souvenir of my adventure. Neither the t-shirt nor the plastic wrap ever arrived.
All in all, I saved at least $1,500 and had a great time riding 570 miles on a new bike. Would I do it again or recommend Southern Honda Powersports? I don't plan to buy another new bike, well, maybe the new Honda Grom! But the price advantages of buying out of state are far less for lower value deals. They claim to be the largest volume Powersports dealer in the US. They are low key, knowledgeable and offer low prices. In my experience the low price is a strategy to sell a third party service contract which is certainly almost all profit. After I provided notice of cancellation in accordance with the contract I got a call from their sales manager. He was very persistent. When I said I was considering buying Honda's extended warranty he really dug in, trying to get me buy it from him though I could get it literally anywhere. I declined and scolded him for keeping my money so long.
So, yes. If you know what you want and can refuse the third party service contract, it could be a good experience for you.