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Thread: Dealer pricing and the art of negotiating

  1. #1
    Registered User h2onutz's Avatar
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    Cool Dealer pricing and the art of negotiating

    I've purchased many cars through out my lifetime and my negotiating skills with car dealerships is pretty good, however, I've never purchased a new motorcycle from a dealer and wanted to get some input. My interest is in a 2018 BMW K1600B. I live in South Florida and have about half a dozen BMW motorcycle dealerships near me. When negotiating with car dealers I start from dealer cost and try to stay as close to it as possible. Motorcycle dealers are probably different. Auto dealers in my area can move 1,000 units a month and can make their money on dealer hold back money and service, however, motorcycle dealerships probably don't move a 1,000 units in year so their pricing structure is going to be different. Do motorcycle dealerships work on hold backs? Can you find dealer cost on motorcycles, and do dealerships sell at or near dealer costs? Is is common for motorcycle dealerships to add a dealer fee to the invoice? A quick check on Cycle Trader shows the price of this particular model for $25,000. Is that the actual selling price in most cases or will most dealerships negotiate a lower price OR will they add a dealer fee on top of it?
    If anyone can shed some light on this subject it would be most appreciated.

  2. #2
    Quote Originally Posted by h2onutz View Post
    I've purchased many cars through out my lifetime and my negotiating skills with car dealerships is pretty good, however, I've never purchased a new motorcycle from a dealer and wanted to get some input. My interest is in a 2018 BMW K1600B. I live in South Florida and have about half a dozen BMW motorcycle dealerships near me. When negotiating with car dealers I start from dealer cost and try to stay as close to it as possible. Motorcycle dealers are probably different. Auto dealers in my area can move 1,000 units a month and can make their money on dealer hold back money and service, however, motorcycle dealerships probably don't move a 1,000 units in year so their pricing structure is going to be different. Do motorcycle dealerships work on hold backs? Can you find dealer cost on motorcycles, and do dealerships sell at or near dealer costs? Is is common for motorcycle dealerships to add a dealer fee to the invoice? A quick check on Cycle Trader shows the price of this particular model for $25,000. Is that the actual selling price in most cases or will most dealerships negotiate a lower price OR will they add a dealer fee on top of it?
    If anyone can shed some light on this subject it would be most appreciated.
    I heard that each dealer got or will get one Bagger, and then more can be ordered. Given that, I would be surprised to see much deal making except at the rare dealership that can't even sell one. This may change over time but that is an unknown right now.

    My experience has been not a lot of wiggle room on the bike, but maybe a lot on accessories to go with it.
    Paul Glaves - "Big Bend", Texas U.S.A
    "The greatest challenge to any thinker is stating the problem in a way that will allow a solution." - Bertrand Russell
    http://web.bigbend.net/~glaves/

  3. #3
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    From Miami but never bought a bike there. I've bought 15 new BMW's since 2001 and have gotten at least $1.2k off list on all but the first one. I never went back to that dealer.
    Marty Hill
    7 GS white

    Ride till you can't

  4. #4

    Seems reasonable

    IMHO - $1.2 to 1.5 off of retail seems reasonable given the situation - kinda rare bike, new (maybe desirable) model - if you can get it. May have to 'bundle' accessories?

    At the end of the day, we need these dealerships to stay in business - not everything can be purchased on-line. Monitor the 'vibe' of the staff and determine if it's someplace you want to spend a social Saturday morning at drinking coffee.

    Good luck with your purchase.

  5. #5

    Deals

    Quote Originally Posted by h2onutz View Post
    I've purchased many cars through out my lifetime and my negotiating skills with car dealerships is pretty good, however, I've never purchased a new motorcycle from a dealer and wanted to get some input. My interest is in a 2018 BMW K1600B. I live in South Florida and have about half a dozen BMW motorcycle dealerships near me. When negotiating with car dealers I start from dealer cost and try to stay as close to it as possible. Motorcycle dealers are probably different. Auto dealers in my area can move 1,000 units a month and can make their money on dealer hold back money and service, however, motorcycle dealerships probably don't move a 1,000 units in year so their pricing structure is going to be different. Do motorcycle dealerships work on hold backs? Can you find dealer cost on motorcycles, and do dealerships sell at or near dealer costs? Is is common for motorcycle dealerships to add a dealer fee to the invoice? A quick check on Cycle Trader shows the price of this particular model for $25,000. Is that the actual selling price in most cases or will most dealerships negotiate a lower price OR will they add a dealer fee on top of it?
    If anyone can shed some light on this subject it would be most appreciated.
    I read thru your post. I know someone in a similar situation looking for a specific bike. he did the following. you say you have several (6) dealerships around you. He emailed all the dealerships together, said he was looking for specific bike x and was buying this week or whatever timeline you have. he asked for out the door prices and he waited for replies.
    He got the best deal he could and let the other dealers try to sell a unit, if they had one.
    my 2 cents. good luck.

  6. #6
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    Try contacting BMW Motorcycles of Las Vegas. They seem to have some of the best prices. That'll give you an idea of a bottom line price, and then see how close your local dealer can get to that. I'd also be sure to add in your discussion with the local dealer that you'll be getting your servicing done there too. What they might not make on the sale for profit, will be made up in the servicing later.

    Chris
    Elnathan - 2014 BMW F800GT
    IBA# 49894 True Rounder = 0-20's - Rounder -- to -- 100's+ Red Hot Rounder
    John 14:6

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    One could always find a dealership where you feel confident in their service department and where you can count on being regarded as a valued client. Saving a thousand bucks means nothing if the dealer is crap.

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    If you find the service department isn't good, then you go elsewhere. Simple. But reminding them that there is profit still to be made after the sale is just good negotiating.

    The OP has never bought a new motorcycle from a dealership. Since he doesn't mention what kind of motorcycle he currently rides, there's a good chance he has no idea of what the service department is like in any of the local BMW dealerships. Therefore paying $1000 more on the assumption the service department is better than the service department at the place willing to sell for less money, is not a logical assumption.

    Chris
    Elnathan - 2014 BMW F800GT
    IBA# 49894 True Rounder = 0-20's - Rounder -- to -- 100's+ Red Hot Rounder
    John 14:6

  9. #9
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    Wouldn't count on any type of discount on bagger, very limited production model
    If you were purchasing a standard 1600 $1000-1500 discount may be in order
    I would ask for the 600 mile and 6000 mile service to be included and a healthy discount on any accessories I purchase from dealer within a certain time period, never hurts to ask
    FYI: try getting a discount on a new Raptor truck!!!

  10. #10
    Left Coast Rider
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    Quote Originally Posted by daboo View Post
    ...Therefore paying $1000 more on the assumption the service department is better than the service department at the place willing to sell for less money, is not a logical assumption.

    Chris
    That's not what I said, Chris. What I said was, "Saving a thousand bucks means nothing if the dealer is crap". And a dealership is much more than a sales and service department.

    Hope that clarifies things for you.

  11. #11
    Registered User h2onutz's Avatar
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    Thanks

    Thanks everyone for your valuable input. We're in the process of moving now so the new motorcycle will have a wait until the first of the year. I'll post what I was able to negotiate from the dealer.

  12. #12
    Registered User lkchris's Avatar
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    The best answer is to contact members of the local BMW club to get their feel for nearby dealerships.

    Way more important than a few dollars saved on the bike purchase is your ongoing relationship with the dealer in terms of follow-on service and in purchasing parts and riding gear. Believe me, you cannot survive owning a modern BMW--motorcycle or car--without dealer service support. Know also that the best service department there is will still favor those that bought the bike from them.

    Just assume life is a self-fulfilling prophecy (rather than a war) and that if you expect the worst, you'll get the worst, and if you expect the best you'll get the best. Expect to pay for the best.

    And, in the case of BMWs, it's probably best to avoid multi-line motorcycle dealers ... although again consult the locals.
    Kent Christensen
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    Quote Originally Posted by lkchris View Post
    The best answer is to contact members of the local BMW club to get their feel for nearby dealerships.

    Way more important than a few dollars saved on the bike purchase is your ongoing relationship with the dealer in terms of follow-on service and in purchasing parts and riding gear. Believe me, you cannot survive owning a modern BMW--motorcycle or car--without dealer service support. Know also that the best service department there is will still favor those that bought the bike from them.

    Just assume life is a self-fulfilling prophecy (rather than a war) and that if you expect the worst, you'll get the worst, and if you expect the best you'll get the best. Expect to pay for the best.

    And, in the case of BMWs, it's probably best to avoid multi-line motorcycle dealers ... although again consult the locals.

    Wow, to me that seems like a particularly thoughtful response, and one tailored to BMW motorcycle ownership.

    I recently bought a '17 GS and never considered purchasing from any dealership other than "my dealership". However, rather than me asking them for their best price, I offered them the opportunity to sell me a bike, that day, at my price (which was low). This happened to succeed, but they did understand that I was truly willing and able to buy that day - and was not just talking. Otherwise the money would have stayed in my pocket, I guess.

    So yes, for BMW's, work hard to find a good dealership and then let them be the ones who sell you the bike, at your price. IMO, YMMV.
    '17 R1200GS.
    Priors: '16 R1200R, '14 R1200GS, '13 K1600GT, '08 R1200RT, '04 R1150RT, '05 R1200GS, '73 R75/5 (LWB).

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    Wow...I guess I've missed out on the true BMW buying experience. I bought my BMW used, or some would say "pre-loved". $aved thou$and$. The seller didn't have a service department at his home, so I couldn't inspect it or ask opinions. I merely took my new-to-me BMW to the local dealership to get some tires put on. They treated me pretty decently I thought, even though I bought my BMW from somewhere else. They willingly give me a military discount on parts as well.

    I suspect they'd act this way, even if I brought in a Yamaha or Kawasaki or any of the other brands they sell and service.

    Chris
    Elnathan - 2014 BMW F800GT
    IBA# 49894 True Rounder = 0-20's - Rounder -- to -- 100's+ Red Hot Rounder
    John 14:6

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    Registered User h2onutz's Avatar
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    Quote Originally Posted by sailorlite View Post
    Wow, to me that seems like a particularly thoughtful response, and one tailored to BMW motorcycle ownership.

    I recently bought a '17 GS and never considered purchasing from any dealership other than "my dealership". However, rather than me asking them for their best price, I offered them the opportunity to sell me a bike, that day, at my price (which was low). This happened to succeed, but they did understand that I was truly willing and able to buy that day - and was not just talking. Otherwise the money would have stayed in my pocket, I guess.

    So yes, for BMW's, work hard to find a good dealership and then let them be the ones who sell you the bike, at your price. IMO, YMMV.


    How did you determine what "your price" was going to be? The purpose of my post is not to beat the dealer to death over a few hundred dollars, but, to try to determine what a "fair price" would be. I've seen ad's on Cycle Trader for the model of the motorcycle, but, was informed that many dealers add a dealer fee to the full list price of the motorcycle. I don't want to walk out of the dealership paying full list plus a dealer fee of somewhere between $500 to $1000.
    Steve

    2015 BMW F800R

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