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(03-13-2015, 11:10 AM)nhawk7504_imp Wrote: Actually dealers want to get rid of any old stock. They'd rather talk about and sell the latest greatest. My dealer also has SUZ. New GSX750S. New Gixxers. VStroms. All the other Hondas. Leftover Valks.
Mostly, though, they want to MAKE A PROFIT. It's why they're open.
Only a very-foolish dealer or one who's going out of business, will sell his inventory at a loss. Automobile dealers "floorplan" - borrow money by the day to pay for inventory; and if inventory sits there, they get more anal-retentive on it, not less so. There are exceptions; and sometimes a dealer may give up and sell at a loss and vow never to again have that model/type in inventory...but not many. Because dealerships are businesses and many have business managers with firm rules about what can be sold for what. The house may have less in a vehicle straight off the truck than in one that's been on the lot four months; and so a salesman may be given more room to play with numbers on something where there's no floorplanning overhead.
I don't know how it works with cycles, where inventory can sit around your a couple years or longer; but it would seem reasonable that at least some large-volume dealerships have similary operating rules.
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JPT I was in the motorcycle business for 17 years and motorcycle dealers must floor plan too. No one can afford to just pay for all that inventory up front. The bank carries the note on the units and charge interest each month that it sits there. After a certain amount of time, a dealer must go ahead and pay for the unit. The bank won't carry the unit forever on floor plan and the dealer doesn't want to be so deep into that he can never break even on it. At least thats how it worked 25 years ago.
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My first motorcycle (1974) dealer does not give anything away for precisely the reasons JPT mentioned. ("Bettencourt's Honda/Suzuki has been in business since 1948 and is proud to be New England's oldest and largest Honda /Suzuki dealer.") - But yeah, at a certain point, a line is crossed and you sink into the red. It would be nice if customers would respect dealers for being a business. So many dealers have disappeared and then you HAVE TO travel to get to one. I just said to a friend yesterday, find a way to buy from your local dealer. He wanted to buy a Gixxer out of state.
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(03-13-2015, 10:22 PM)The ferret_imp Wrote: JPT I was in the motorcycle business for 17 years and motorcycle dealers must floor plan too. No one can afford to just pay for all that inventory up front. The bank carries the note on the units and charge interest each month that it sits there. After a certain amount of time, a dealer must go ahead and pay for the unit. The bank won't carry the unit forever on floor plan and the dealer doesn't want to be so deep into that he can never break even on it. At least thats how it worked 25 years ago.
That's basically the situation that my local dealer explained to me about his shop. He has to borrow money to get and keep them on the floor.
After he explained that to me, the joke about the Honda 'DN-01' being an acronym for: 'Do NOT order 1' made more sense...
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That's still the plan for dealers today. Its true of other Honda models and other brands too. Especially if the model gets discontinued, then you see some almost unbelievable fire sales on perfectly good brand new bikes. After a model gets discontinued, the vast majority of buyers that walk in won't look at one, most buyers looking for new want the latest and greatest. And then the dealers are also in competition with the already reduced-priced market.
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I suspect that Motorcycle dealerships will follow the same path that sporting goods stores, hardware stores, pet stores, musical instrument stores, electronic stores, gun stores, grocery stores, gas stations, car dealerships, etc...
The small mom and pop shops will sadly continue, to close or go independent. Most dealer principals just don't have the ability, or desire, to open a half block sized, 15,000 sq/ft, $3,000,000 dealership that carry at least one of every model, 35 used bikes, all of the OEM accessories, clothing lines, have 125 helmets on display, aftermarket goodies and gigantic, sterile, 10 bay service departments with all the mechanics in uniform, that corporate is requiring.
The days of the smelly, character filled dealerships where you would stop in, sit on a torn couch to read a magazine, chit chat with the dealer principal (since he was a friend too), have a cup of coffee and hang out are unfortunately going the way of the dodo bird.
Honda has "powerhouse" dealers that are given special preference to order more of what they want, are given more flexibility to discount bikes, to the point of taking a huge loss on a slow selling model (i.e. $12,300 Valkyries) as long as they make it up selling hundreds of ATV's and fast selling bikes by the tractor trailer full at a profit. The small dealers, just like all of the smaller type business listed above, simply cannot compete.
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And that's sad for those of us who want or need to get servicing done by dealers or other qualified people as the overheads in these large, fancy dealers mean they charge like a wounded bull. I had my car serviced by the local dealer for a bit. I'd turn up to be met by a glamorous girl with a clipboard making sure they were clear about what had to be done. When I got it back, it had been washed and the cash register dials were smoking from spinning so hard. The work was fine, but the bills were outrageous.
As soon as the CB1100 is out of warranty, I'll either improve my own skills or find a small, local bike mechanic to do the work for me. It will be just as good and a damned sight cheaper.
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Quote:I am buying the deluxe on Saturday in Bear, DE. Even though it is $2400 more OTD, I feel that ABS, 6 speed and all of the other deluxe model goodies, PLUS around $1500 in accessories, is very well worth the extra cash.
Not too far from my neck of the woods.
I picked my 2014 up OTD for MSRP. I don't think I did too bad.
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I just picked up a brand new 2014 STD for 8200.00 on Long Island.
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I initially was looking to buy from out of state, but went to my local dealer to take a look at the bike. I ended up buying locally and got what I consider to be a fair price. I also feel I have established a relationship with a dealer that is 3 miles from my house.
I have never heard anyone say they were screwed on their purchase price whether you are talking cars or motorcycles. Have also heard repeatedly how "low" a price someone got on their purchase. I take these with a grain of salt. A good price is one you are willing to pay, and one the seller is willing to accept. The only thing that really matters is the final "out the door" (OTD) price. That is the bottom line. Some people talk of great prices, then mention thousands of dollars of "add-ons". Not sure you got as good a deal as you thought.
Bottom line, no ones thinks they got a bad deal. For those of you who got these unbelievable deals, post your bill of sale and show me the OTD price.
The CB1100 DLX is a great bike, it is what I wanted, and I am glad I bought one.
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