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sd2tj

Is this the new Dealer Trick?

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sd2tj
Hi everyone, let me get to it.
 
I'm using the Costco price to buy FX-07.
I have been to two dealers in San Diego.
Here is Dealer #1
MSRP: 6990.00
Showroom Freight and setup: 996.00
Total Price: 7986.00
Costco savings: 1218.00
Total: 6768.00
This does not include Doc, lic, and Registration.
 
Dealer #2
MSRP: 6990
F&S: 1762.00
Total price: 8752.00
Costco Savings: 1984.00
Total: 6768.00
 
In the end, Costco program gets them to drop the Freight and Shipping Fee.
 
I am shocked that the 2nd dealer can just claim that the price is the same.
 
I was given an Out the Door Price of $7450 by the second dealer. He said that no one in San Diego would beat that Price.
 
What are your thoughts???
 
 

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timjh
My understanding of the Costco program is that you'll get the same final price anywhere in town. Could be wrong, though, since we only have one participating dealer around here.

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sd2tj
Thanks, I'm starting to see that. After all is said and done I'm going to stop by the 1st dealer tomorrow and see what his OTD price is and buy the cheapest one.

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pineappleunderthesea
Freight and setup is where they make up a lot of their money, they can charge whatever they want since it is not set in stone by Yamaha (unlike cars, where freight, etc, is listed as a separate item from the manufacturing invoice). The dealer does have to pay a shipping charge to get the crate from a distributor to their store, but it certainly is not multiple hundreds of dollars, and putting the bike together is probably a 2-hour job?
 
I would focus on the final price you want to pay, and let the salesman fool with the numbers. Or ask them to throw in a few accessories, or a free service plan? I know it's hard to get them to budge sometimes, but maybe getting discounts on service and parts, etc, would be worth your time.
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Beemer
Those dealers do say a lot. I think it's a prerequisite to becoming a politician. ;) I would either just go with dealer [HASH]1 and have done with it or take the time to see if [HASH]2 can beat [HASH]1's price. Pit them against each other and see what happens. It could be interesting or [HASH]2 will simply fold.
 

Beemer

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Beemer
Or buy a good used one that has been seriously upgraded already, saving u tons of money. But I just hate buying new and watching it depreciate.
I 2nd this. Something with just a couple thousand miles or less isn't going to be too used or abused and can save you a couple thousand easy. 2k can get you a lot of nice gear, accessories, etc. 

Beemer

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peteinpa
OR...There are still new left over 2015 bikes. You can search on the Yamaha site.

Got new red 2015 FZ-07 on 7/22/16!
Black 2006 Honda ST1300 53K miles.

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yamahaha
I urge everyone to fight the freight/pdi charges. They are making money on new bikes and don't let them tell you different. I'll accept a small charge for documentation and thats about it.
 
It is more difficult to dicker on popular bikes like the 07.
 
Honda dealers are the worst for "extras".
 
This time of year you should get the bike minus freight/pdi and with the costco advantage.
 
Good luck!
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MT27

I heard dealers pay 14-16% less than msrp for the bikes (depends on brand). 
So on a MT-07  lets say the dealer pays 6600. 
6600 + tax = 7110
Tag, Title and BS  $500,  brings you up to 7610.
Anything over that is profit. 
Keep in mind the dealer has to pay rent and elect bill.

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topazsparrow
1 hour ago, MT27 said:

I heard dealers pay 14-16% less than msrp for the bikes (depends on brand). 
So on a MT-07  lets say the dealer pays 6600. 
6600 + tax = 7110
Tag, Title and BS  $500,  brings you up to 7610.
Anything over that is profit. 
Keep in mind the dealer has to pay rent and elect bill.

This is exactly why a lot of dealers in my area are pushing euro bikes over japanese.

 

The markups are higher since the base price point is higher. They also have double the maintenance intervals generally which is all money in their service shop's pocket.

 

People buy Yamaha's and ride them to death and rarely ever come back for service - they make next to nothing on them.

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Cruizin
1 hour ago, topazsparrow said:

This is exactly why a lot of dealers in my area are pushing euro bikes over japanese.

 

The markups are higher since the base price point is higher. They also have double the maintenance intervals generally which is all money in their service shop's pocket.

 

People buy Yamaha's and ride them to death and rarely ever come back for service - they make next to nothing on them.

When I owned my Aprilla and Ducati's I still never brought them to the dealer, did my own maintenance and used my local suspension  guru. 

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pattonme

I've been doing this exercise with Ducati and Aprilia the last few weeks. Several of the local dealers claim their cost of goods is 13-15% off of MSRP. Freight is regional and the same to all dealers (eg. mid-atlantic is 500-550 for Ducati or Aprilia) since it's levied by the distributor.

 

Setup is about an hour's worth of effort. If they take 2 the tech will get his ass kicked. $200-350 is a figure I've seen bandied about which at my area's shop rates is 2-3 hours so they are inflating that figure significantly.

 

Doc fees are regulated by the State in the sense that whatever they charge it's the same to all customers.

 

The SD dealers from OP are playing huge games and padding their pocket. 5% margin is fitting and PROPER for motor vehicle industry. So worst case take MSRP, shave 8% off of it, add *valid* amounts for freight (Jap bikes on the coasts should be right around $300 or less) and 1.5x of posted labor rate (being generous) and that should be the cost of the bike. Add Doc fee, and sales tax and DMV registration.

 

In my case I'm trying to land a left over '16 or '17 and if you look at NADA the depreciation hit is 17% of MSRP the first year and 30% on a 2yr old. It doesn't matter that the bike is 'New', the moment it rolls out the door you should count on it's resale to take that immediate hit. If you reverse engineer the numbers, dealers are willing to discount the bike 18-25% off MSRP for leftovers (add back freight and setup) for a Net discount in the 15-20% range.

 

Locally we have a den of iniquity Doing Business As by the name of Cole***. A '17 Duc Hypermotard demo bike with 800 miles '+ Termi" advertised at $13K. A perfectly reasonable number considering it's a leftover and used even if technically they can put 'New' on the paperwork for financing and warranty purposes. Go in and they tried to add full MSRP of $2600 for the exhaust as if it was new and hid it in 'setup' fees. I can buy the same system new via Ebay (which takes a 10pct cut) shipped to my door for $2000. I wrote the head of sales and the general manager a blistering email and got a call back an hour later, hat in hand from the head of sales. Their revised numbers are still unrealistic. They honestly think they should be able to recoup setup, and full MSRP for a "sweetener" they chose to install to enhance the attraction, out of my hide. I don't think so!

 

Edited by pattonme

bannerfans_1095431.jpg

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pattonme

Based on 1200 Costco on a 7000 bike that means 17% off MSRP. Granted I don't run a dealership but the typical dealer discount for accessories is no less than 20 and typically 25 if not higher. I can't imagine the dealer pays any more than 20% off as cost of goods (or there is a 3-7% hold back at the distributor released upon sale) so under the Costco program their margin should be no less than 3%. I don't know what the terms are when a dealer signs up for the program but once you get your "member only price sheet" call up the Costco hotline and verify with them that the numbers you were quoted are legit. 

 

The dealer adding back made up freight and setup fees smacks me as contrary to the deal's terms. I tried but couldn't pry out of the Costco rep the fine print in their agreement. Add DOC fee, local sales tax and registration is perfectly valid. Even if the dealer is allowed to add back freight and setup, anything over 300+200 stinks to high heaven.

Edited by pattonme

bannerfans_1095431.jpg

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MT27

I wish it was like the old days. You could walk in , offer $200 under msrp out the door and ride it away.

Right now in my state all the shops are being bought out by one big company. Right now it's a friggin

monoply. I can't imagine how bad it will be in another 2 years. 

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norcal616

I have always had decent luck with using cash instead of finance...with financing they tend to charge more... I usually ask for the best deal- they usually come back with a finance offer...thats when I show em the cash and say this is my offer or Im out the door... 


2015 fz-07- Hordpower Edition...2015 fj-09- 120whp- Graves Exhaust w/Woolich Race Kit- tuned by 2WDW
 

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topazsparrow
14 hours ago, norcal616 said:

I have always had decent luck with using cash instead of finance...with financing they tend to charge more... I usually ask for the best deal- they usually come back with a finance offer...thats when I show em the cash and say this is my offer or Im out the door... 

I bought my 2015 in feb 2016 with "cash" for 6800 CAD. It's hard to convert motorcycle costs across the border, but the MSRP at the time was 7600 or something. I paid 8000 OTD.

 

The math on the financing at 1% was actually about the same as my 6.5% interest from my Line of Credit. My PLOC was much more flexible with early payments and if you do more than minimum payments, the interest payments decrease - not like an auto loan where the interest is amortized and fixed. You pay the entire term's worth of interest no matter how fast you pay it off.

 

The 1% ended up costing more due to the 500 dollar administrative fee Yamaha charges (not the dealer) plus those fixed amortized interest payments. 

 

I found that to be shocking. I can only imagine the savings on a more expensive bike. Sadly my bank increased my limit to 15k and is tempting me into buying another bike!

Edited by topazsparrow

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pattonme
4 hours ago, topazsparrow said:

You pay the entire term's worth of interest no matter how fast you pay it off.

that's a seriously shitty deal! I don't think that's legal in USA.


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topazsparrow
8 minutes ago, pattonme said:

that's a seriously shitty deal! I don't think that's legal in USA.

I could be wrong about that actually.

 

I might be confusing it with the minimum payments always remaining the same. So lets say you pay 50% of the principle right away, your payments would still be the same as if you just paid the minimum every month.

 

I don't really recall as I never saw the point in paying more for more restrictive payment options.

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mjh937

Generally the payments will remain the same, but if you pay extra you will be done sooner.  Most loans (but not all) have no penalty for paying them off early.  That is something I always ask about and I would not take out a loan with a penalty for early payment. 

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pattonme

As I posted elsewhere, 20% off MSRP on a (not as popular as the factory likes) bike is apparently possible even in the middle of the model year - Kaw Z900RS. Granted the MT07 is very popular so not likely to run across that kind of deal. Freight with prep was $545 which again is believable number. So don't buy the dealers whinging about how he's losing money.

 

Try $6850 for a '18 FZ07, pick your color. Just add sales tax and DMV registration, or do it yourself. On an Apples to Apples basis that is a 10% off MSRP deal. PM me if you want to know who/what/where.

Edited by pattonme

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wrxer

 I have never & would never pay anything for "freight" or "setup".

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markstertt

My brother went down to his local (Las Vegas) Yam dealer yesterday and said the 2018 Mt-07 was listed for $5995...what the heck? I don't know what the OTD price was but sure wish they were priced  as such when I was looking in 2016...Cali dealers were brutal back then.

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DewMan
2 hours ago, markstertt said:

My brother went down to his local (Las Vegas) Yam dealer yesterday and said the 2018 Mt-07 was listed for $5995...what the heck? I don't know what the OTD price was but sure wish they were priced  as such when I was looking in 2016...Cali dealers were brutal back then.

My guess is that's the price before the overly inflated shipping & setup charges are added.


DewMan
 
Just shut up and ride.

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mjh937
On 7/13/2018 at 11:01 AM, markstertt said:

My brother went down to his local (Las Vegas) Yam dealer yesterday and said the 2018 Mt-07 was listed for $5995...what the heck? I don't know what the OTD price was but sure wish they were priced  as such when I was looking in 2016...Cali dealers were brutal back then.

OTD is the only number that matters.  As @DewMan says they will just add fees to make up the difference. 

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