A guide to buying a bike.MUST READ

Im new to VFR world, purchasing mine about a week ago, and I see alot of threads out there regarding buying a bike from a dealer. Should I, Shouldn't I's. I'd like to provide some insight into buying a new bike which might help some people get the best deal possible and help others fully understand the whole process of a purchase.

First off, I am a bike dealer myself and have had numerous experiences with an array of different people. Many customers believe they are getting "worked over" or "screwed" at a dealer. Fact of the matter is there are certain steps to a sale, but there are equaly certain steps to take as a customer to ensure you are getting a fair price.

Always be ready to walk out. Even tho YOU know what bike you are looking for and are dyuing to get out on that first ride, you must be ready to get up and leave during negociations. If don't have the will power to leave than you are an easy sale as you will buy it no matter what it takes.

Don't reveal any credit history if financing. Don't get sold on payments. Let the out the door price be your bargaining tool. Loans can be structured to fit into a certain payment, tho the final price may be much more than you'd like to pay. Your credit is your buisness. Don't lead on to the salesman of your situations. Let the financing bank handle that. When you get the interest rate you're approved for, ask that it be lowered. Say you have a better interest rate somewhere else. Alot of dealers make money buy bumping points. Example...you qualify for 5% but they give you 7% increasing your payment. Dealers are only allowed to bump points 2%. If you want a 4 yr loan, take out a 5 yr and make the 4yr loan payments. The longer loan will have less interest in each payment, allowing you to pay less for the loan in the long run. Just make sure you make larger payments than they ask for or you will fall behind in interest.

Understand what you are a paying for. Dealers make money in many different ways. At most shops, there are 4 things you will pay for. Price of bike, tax, freight & setup (aka destination fee), and Documentation fees.

1st off, bike price... most bikes have a 12-17% mark up. If a bike retails for $10,000, it cost the dealer anywhere from $8800 to $8300. Of course these numbers can differ from bike to bike, but use this as a reference point. Ask to see the cost. Most salesman aren't this dumb, but hey you might get lucky, it never hurts to be upfront and ask. The manufacturer often puts certain sales promos on bike in which the dealer might or might disclose to you. Say you are buying a VFR, and Honda put $300 Bonus Bucks on it. The dealer can or cannot lower the price by $300 at their own discrestion. Either way Honda would reimburse the dealer for the $300 so this can be a tool they use to make more of a profit on your purchase.

2nd is tax. Sorry....can't really help you here. Except if you buy out of state, and the vehicle does not require registration, you will not pay tax (unless you register) saving hundreds. Again unless the neighboring state is at the same tax percentage as your home state.

3rd is Freight and Set-up or Destination. For the most part this charge is a bunch of bull. Bike are received at a dealer in crates. The wheels (in some cases), handle bars, mirrors, and some other minor cosmetics need to be installed. Along with gas and a battery charge. A typical bike build from crate is 1 to 1 1/2 with a regularly skilled builder. Some dealers add the cost of this (mechanic's hourly rate) to the deal. Taking away from some profit. Other dealers don't transfer this cost as an internal charge. Meaning the service department does not bill the sales department for the build. In this case the whole charge is just another way for the dealer to profit. If they DO bill internally than expect the charge to be real. Well at least $50 to $100 dollars of it. Be outright in asking if the Service bills sales internally. It will knock the saleman off his game and give you insight.

Lastly, Documentation fee. This fee involves your motor vehicle paperwork only. Don't let the dealer fool you into believing its anything else. If possible do your own motor vehicle (license, reg.) if not check check the local prices before you purchase.

When you are at the dealer, make sure you are always in control of the deal. If the salesman has no control it's hard to make a sale. Veer off to another bike while he's showing you the one you want. Don't act too interested. Change the subject constantly. When he wants to sit, you stand. Always make direct eye contact. Always say you are ready to buy today....true or not.

Most importantly be very vague in answering any of the salesman's questions. He is looking for answers to use against you if you object to the purchase. The less he knows about you the better. It's HIS/HER job to answer YOUR questions.

I hope this guide has been insightful to you all. Please leave me some feedback if it is or isn't. Remember some of these key elements on your next purchase. You will benefit from knowing much of this info thus getting yourself the best deal possible.

And also, if you are buying a bike off me....then forget all I've taught you. I have a wife and kids to feed....and a dog....and your hammering me on price...and... well.... just get the hell out of my store!:biggrin:

 

Great Post!!! You got good Karma for sharing business insight.I bought my SV650 new in NH and they didn't charge me set up,duc BS but here in MA specially Harley dealers you'll get raped if not aware.
Metro Boston dealers all without exception suck in regards to service and sales.I have to go NH to get decent mechanic and general honesty.Sadly I hate moto dealers in MA.

 

true. hard to find a good tech. try asking the service manager the tech's background. If, or if not they went to school for bikes. Many, sadly, have no formal training. Service dept. with glass windows where you can watch are always nice. The techs love that! ha ha ha:biggrin: