State of motorcycle industry, business,sales today

[DSD_imp]

I have been absent from motorcycles for a few years. Recently I started riding again. I went to a few local dealers to catch back up on the current state of the motorcycle business and found the dealers were almost devoid of bikes but still well supplied with BS. What's going on?

[the Ferret]

Covid has driven motorcycles sales thru the roof. It seems all dealers have run out of bikes and are having a hard time getting resupplied from the manufacturers.

[DSD_imp]

Covid has driven motorcycles sales thru the roof. It seems all dealers have run out of bikes and are having a hard time getting resupplied from the manufacturers.

Thank you

[Jfro5687_imp]

Not forgetting of course that whatever it is you happen to be riding at the time or how well looked after your bike is, should you mention the word part exchange in a conversation you will probably be told it’ll be hard to shift and offer you peanuts......or is that only me. BTW did a quick check a moment ago and it looks like there are no unregistered EX models left and only a handful of black RS. There might be an odd straggler still in a crate somewhere but pretty much that’s it.

[jimgl3_imp]

I'm currently shopping for nc750x and dealers want msrp+$380 honda freight +$300 dealer prep +$199 doc fee + TVAT

And they will flat let you walk out the door without batting an eye.

It's ridiculous!

[decarmine_imp]

I'm currently shopping for nc750x and dealers want msrp+$380 honda freight +$300 dealer prep +$199 doc fee + TVAT

And they will flat let you walk out the door without batting an eye.

It's ridiculous!

Harley dealers used to add an "opportunistic markup" to MSRP. "Opportunistic markup?" I asked. "What the heck is that?"

"We had the opportunity to mark it up, so we did!" was the oft-repeated reply...

[pekingduck]

New bike sales have suffered under Covid-19. Assembly plants everywhere are affected by interrupted supply chain and irregular labor force patterns. Nobody is working at anything near full capacity.

Margins on new bikes aren't as large as you might think. For something like the NC, it's about 10%-12%. Aside from any inherent dealership overhead, freight and assembly and dealer doc are real expenses, though not as much as what you were quoted.

So, is a business allowed to make money on those expenses? Are plumbers and electricians allowed to make more on parts they carry on the truck than what he paid at Home Depot? Every business does this, no one incurs expenses without seeking compensation. It's like saying a bottle of beer at a bar should cost what it does at Bevmo.

We often think there are huge profits made by the dealer, such as when we see the MSRP of a 2014 CB1100 drop from over $10k to $6k. Not so. After a few years, Honda drops the MSRP on remaining unsold units drastically, and the dealer's cost too. Any bikes the dealer bought at the initial cost and is unsold if/when the price drops means he is largely upside-down on the bike.

[GoldOxide_imp]

Sometimes I wonder about product quality on disrupted production lines during Covid-19 out-breaks.

[redbirds_imp]

I'm currently shopping for nc750x and dealers want msrp+$380 honda freight +$300 dealer prep +$199 doc fee + TVAT

And they will flat let you walk out the door without batting an eye.

It's ridiculous!

I purchased my 2018 NC750X from the Honda dealer in Macdonough, GA. in Oct last year. Untitled left over out the door price $7000.

[LongRanger_imp]

Doubt you’ll get a break on freight charges but dealer prep is usually negotiable and doc fees, above and beyond what the dealer pays to the DMV, is profit. Around here, dealer prep on current-year, sought-after bikes can be over $1000, but zero if you buy a 2-3 year old leftover that’s been languishing in the corner. How good are your negotiation skills?