LoveToKnow Buy:AllComments

From LoveToKnow Buy

Comments

Thanks for the additional information, Morgan!

-- Contributed by: CrystalSchwanke

Not considering any factory rebates or cash incentives, the dealer invoice pricing of cars have a profit margin built into them, known in the trade as a "dealer holdback". This info is never volunteered by the dealer, since they want you to feel like you're getting the best deal possible. If you ever buy a vehicle under invoice, you're likely buying a "loss leader", the few vehicles sacrificed below invoice to draw a weekend crowd. Even loss leaders are profitable, since they're usually a couple of hundred below invoice, and holdbacks are typically 2% to 3% of the MSRP. If these insider terms are used in the sale of new motorcycles, please share the info.

-- Contributed by: Morgan

"Dealer Invoice" is exactly what the article says it is: the dealer's purchase price to get the bike in house. This does not include assembly fees, dock fees, destination fees, and other possible fees from the manufacturer.

I went to go buy a 2008 Ninja 250R. MSRP: $3499 Dealer Invoice: $3033 Price at the dealer: $5400 out the door.

I told them I had cash to pay $4000, and that a $2000 markup on a $3500 bike was ridiculous, and I walked out.

-- Contributed by: Brian

That's too bad, jtstahl, but at least you know that you can take your business elsewhere and still get the deal you're looking for. That just goes to show you: always check around for a better price!

-- Contributed by: CrystalSchwanke

Thank you so much for that tip, Mark! Our readers will love the fact that they may be able to save even more.

-- Contributed by: CrystalSchwanke

Article is not accurate. Dealers invoice is not the price the dealer pays, it is a target price with the profit margin already in it. That is why sometimes you can get a car below dealers invoice, which I have.

-- Contributed by: Mark

Not all dealers accept offers or will even attempt to negotiate on the price of a new or used motorcycle. There is dealer here in Dell City, Oklahoma, that I've gone to on numerous occasions, who WILL NOT come down from the MSRP on his bikes. I even tried to negotiate on a used bike from him and again they would not budge from their price. It's not like they were a small dealer, this guy was loaded with inventory, so I guess they figure they were the only game in town. I called other dealers just outside of my city where they will negotiate on a new or used motorcycle, so it's was obvious to me the dealer in town was out to rip off the locals for the highest price, not matter what. Bottom line some dealers just don't care. My advice is to just walk out, they obviously don't know the definition of the word, DEALER.

-- Contributed by: j.stahl

THANK YOU VERY MUCH FOR HAVING THIS WEBSITE, AND THE INFORMATION THAT YOU;VE GIVEN ME. IS CYCLEBUY.COM THE ONLY SOURCE FOR FINDING THE DEALERS INVOICE REPORT?

-- Contributed by: Roger Miller

Regardless of the seller's motivation to sell, always make sure you do your homework beforehand. That way you'll know a fair asking price. Even if you don't think the seller is working on commission, if the price isn't what your research tells you you should pay, attempt to negotiate. Salespeople who don't work on commission will often have sales goals they need to meet, so they will still (hopefully!) be motivated to sell you your bike. If they are allowed to negotiate the price, meeting that next sales tier will inspire them to listen to your requests.

-- Contributed by: CrystalSchwanke

What if they are not working on commission?

-- Contributed by: Jay
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