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?
State of motorcycle industry, business,sales today
- Thread starter DSD_imp
- Start date
the Ferret
Road warrior
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.
Jfro5687_imp
Running like a top
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
Been there
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!
And they will flat let you walk out the door without batting an eye.
It's ridiculous!
decarmine_imp
Running like a top
Harley dealers used to add an "opportunistic markup" to MSRP. "Opportunistic markup?" I asked. "What the heck is that?"jimgl3_imp said:
"We had the opportunity to mark it up, so we did!" was the oft-repeated reply...
pekingduck
Road warrior
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.
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
Road warrior
Sometimes I wonder about product quality on disrupted production lines during Covid-19 out-breaks.
redbirds_imp
Road warrior
I purchased my 2018 NC750X from the Honda dealer in Macdonough, GA. in Oct last year. Untitled left over out the door price $7000.jimgl3_imp said:
LongRanger_imp
Road warrior
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?
rboe
Road warrior
The dealer I tend to haunt in Anthem, really has their stock picked through and they having problems getting stock (bikes AND parts).
I'm looking really hard at getting a CRF300L, but at this rate, I'll wait a year or two. I'm not going to pay extra for blue sky.
I'm looking really hard at getting a CRF300L, but at this rate, I'll wait a year or two. I'm not going to pay extra for blue sky.
michael1954
Been there
I read an article in this months Roadracing World & Motorcycle Technology, and they mention the decline in motorcycle sales being much worse than just the Covid Virus. It seems too few kids even ride bicycles today, about 3/4 will not even ride a bike this year, and riding bikes as a kid is a big plus factor as to whether or not you ride motorcycles as you get older. I would bet all of us rode a bicycle as a kid. I know I did for years until I hit 14 and bought my first motorcycle with my paper-route money, a 1970, Suzuki 100cc Wolf. In Ornage!
And yes, paper mags are still with us!
And yes, paper mags are still with us!
GoldOxide_imp
Road warrior
Indeed. There is some truth in the words Michael.michael1954_imp said:
Is that a two cylinder 90cc?, I thought that Suzuki only made a 90cc and a 125 Wolf/Stinger?michael1954_imp said:
And the 90 cc was only for Japan domestic market.
I love the Stinger 125 in "lime green" - will buy one if I has the chance, It was the bike of my dream in my teenage years.
peterbaron
Road warrior
peterbaron
Road warrior
Thanks PBAlain Lee_imp said:
Did you had the chance to do a quick ride lately?
According to the weather forecast the weather for this weekend should be around the mid 40's F.
No, due to part time job...but will start it today or tomorrow as I am going to spin it locally on this Sunday, +14*C, sunny and minimal wind
Also due to spark plugs, air filter replacement, USB installation, total chain clean up and adjustment +++ before main season begins, so we can :biker::biker:
Houtman_imp
Road warrior
Road Racing World and Motor Cycle Technology is the only US motor cycle magazine I am still reading ( and the AMA magazine ) It is a really good read , especially if you like Road Racing. I also get British magazines but Classic Bike is REALLY slow coming to the USA. Some back order Classic Racer magazines took 3 months to get to my house !
GoldOxide_imp
Road warrior
It seems anything shipped from the U.K. these days is a bit slow. But it may be also due to the destination country delivery system too.Houtman_imp said:
Jfro5687_imp
Running like a top
Yea. We are still on lockdown (COVID) and many people are working from home, many companies have closed (temporarily) until things improve so it is very difficult. I am very cautious ordering stuff because the seller might not actually have the item to hand or even if they do no workers to physically service the order. Anyhow, There’s a massive vaccine rollout going on, I get my jab next week (woo hoo) and it’s scheduled for things to start opening up mid April, then in further stages through May and if all goes ok full open up mid June. Fingers crossed of course.
