From dealer for cash...

Egorich

Egorich

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Knowing that some people can easily manipulate the situation at the dealership and drop the price to peanuts. I wanted to ask if any fellow rider(s) here purchased a bike from a dealership for cheaper than the original price, "out the door" style, for CASH.
I have been looking around at Suzuki TU250x since I did my riding course with RTI, and now even consider getting a 2013 version. But, don't have the kind of money they ask for. (I am sure a lot of riders here went through the "all you need to buy gear, insurance, etc.)
Does anyone have any experience in that field?
 
Cash or finance makes zero difference to the dealer. If anything they may get a kickback on finance.

MSRP is only $5300, there's probably $5-600 of markup in there assuming no manufacturer's incentives. That's basically your bargaining margin. There are a couple on trader.ca for $5k, may be able to take a couple bucks off that but it's not going to be $3k.
 
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I don't think they want CASH.
It takes too long to count.
Don't chance it, you might piss them off.
 
Egorich said:
Yeah, too bad.
Although, found this page. But, that's in the states. Not sure if it will work here.
http://www.ebay.com/gds/Tips-to-Buying-a-Brand-New-Motorcycle-from-a-dealer/10000000007320526/g.html
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The way to bargain is make the sales guy believe that you're going to buy it. Remember the sales guy wants to sell you the bike as much as you want to buy it. He wants to make money! Most if not all dealers will have a minimum commission per deal. The way to make him believe that you're going to buy it, is by putting yourself in a position to buy it right then and there if the price is right. Whip out your credit card, say if I get xxx price, I'll buy it right now. Right there, the sales guy knows if he finds common ground with you (and his manager that will approve or deny the deal), he has his commission. He is then infinitely more interested in closing the deal

If you're not prepared to buy it right then and there, the sales guy won't be interested in bargaining and playing games with you.

Now the thing to watch for is additional fees. Dealers these days love to add on an administration fee for selling you a bike (or car), admin fee is basically a profit booster. You take a vehicle with a $500 profit in the deal, add in a $500 admin fee, and you have $1000 profit. The customer still sees the vehicle price as being significantly lower than MSRP but is oblivious to the additional fees marked further down on the bill of sale. They're basically redirecting profit off the vehicle price into somewhere else.

The way around this is to bargain out the door price. Figure out what price you should be paying for the product (remember markup is probably around 10% from cost), freight & pdi, and then taxes. Any additional fees like that admin fee the dealer can do whatever they want with it. Hide it somewhere on the bill of sale or remove it altogether.
 
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-D- said:
I don't think they want CASH.
It takes too long to count.
Don't chance it, you might piss them off.
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I once bought a car with $6k cash, a large part of that in $20's. Kinda embarrassed watching the poor girl at the dealer count it
 
regder said:
I once bought a car with $6k cash, a large part of that in $20's. Kinda embarrassed watching the poor girl at the dealer count it
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Best way to negotiate is to have a number that u are willing to pay before u get to the dealer. U will need to do your own research like fees and stuff. Tell them I want that on the road plated for xxxx dollars. If yes I pay now if no I walk.
 
regder said:
Cash or finance makes zero difference to the dealer. If anything they may get a kickback on finance.
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Some of them charge an admin fee for doing the financing paperwork. It was $300 for mine. Of course they didn't mention it until the day I went to pick it up even though they knew for 3 months I was going to finance it. I should've just told them to screw off and not bought it but I had already driven over an hour to the dealership and really wanted to pick up the bike.
 
Just figure out your out the door price you are willing ot pay and present it to a dealer. They will tell you if they can make it work. I could give a rats *** how they choose to manipulate the numbers (ie. $500 admin fee, $2000 discount, $200 nitrogen fee etc) as long as they meet my out-the-door price. My last car had all sorts of useless crap on the invoice (admin fee, vin etching etc), but out-the-door was less than MSRP and I was happy with the deal.

As others have said, profit margins on the vehicle itself are normally quite slim, a better negotiating tactic may be "I want a TU250X, HJC CL12 and daytona boots, I will give you $5700 out-the-door" They have way more margin to work with on the protection and may be better able to put together a package that works for both of you.
 
What I've heard from sales people at dealerships is cash is actually a disincentive. When negotiating, you should not reveal you're paying in cash, there is almost always a kickback from financing, so they want you to finance.
 
Dealers will not give you a deal for cash.
If you have cash, you should not be buying a new bike from dealer anyway, because if you drove it around the block and tried to resell it, it just lost 30 percent.
Buy an almost new bike for cash, you'll be much better off.

Dealers are for people who buy on credit.
 
CafeRay said:
Dealers are for people who buy on credit.
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I'd say that may be partially true, but dealers are also for people that want a new bike so they know it hasn't been messed with.

I bought a brand new Vstrom (first new bike since my XR80 when I was 13 years old) because I have heard far too many stories of used vehicles being poorly maintained or worse, and for things that would be impossible to tell by looking at/testing a bike.

I decided this time that I was going to buy a new bike and keep it long term... so I don't care about the depreciation. That, and used Vstroms that are recent and low km are being listed for nearly the same price as new!

Anyway, my strategy for buying the Vstrom was to visit all the local Suzuki dealerships to get their best prices. I got prices from Brampton Powersports, Suzuki of Newmarket, Sturgiss Cycle, and Two Wheel Motorsports. I took the best price that I got from those (Suzuki of Newmarket), and took it to my local Suzuki (Ready Suzuki) and they matched it.

MSRP on a 2013 VStrom is $9099 plus HST, freight and PDI. I got it for $8499 plus HST only and it arrived with 2km on the odometer. I am happy with that price and doubt I could have gotten much better.
 
Diesel said:
I bought a brand new Vstrom (first new bike since my XR80 when I was 13 years old) because I have heard far too many stories of used vehicles being poorly maintained or worse, and for things that would be impossible to tell by looking at/testing a bike.
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Never bought a new vehicle, never had a problem. You can find bikes 1-2 years old with almost no use, for the thousands you save, unless the engine has a connecting rod sticking out of it, it's a better deal.

BTW, new bikes get damages in transit or at the dealership and get secretly fixed and sold as new all the time.
 
When I bought my SV650 back in 2005, I just looked up all the Suzuki dealers in Ontario on Suzuki's website and cold called every single one of them. I asked what is their price out the door, financing rate and term length. I believe since they were all going through Suzuki for financing, so the rate and term length were all the same, but don't quote me on it. I had a couple of people who insisted I visit their showroom and discuss the deal. No thanks to wasting my time with your sales tactics.

I did not care what was the base price of the bike, dealer discounts and additional charges. All I cared was the price I was going to pay in the end after taxes AND interest. Once I had this information, I called the second cheapest dealer, told them what the cheapest price was, and they beat it by $100. Went to their shop, signed the papers and drove the bike away a few days later. FYI, I bought it from a shop in Milton that has since closed down...
 
My strategy when buying my bike was to search the inventory of dealers all across Canada and list the various prices being quoted by other dealers (even if they were in BC or Alberta). I found my bike advertised in Alberta for $1,500 less than my local dealer was asking. I figured out the cost to have the bike shipped to me ($450) and then discussed this with the sales manager (I figure the typical salesman has little impact on how low a dealer will sell a bike). I simply stated that I wanted to buy the bike local, but saving $1,050 (almost 10 percent was something I needed to consider). I suggested that they split the difference ($750) and I would buy the bike right there (I had a blank cheque in hand).

We talked about it for a while and I held my ground. I felt I was being fair and was actually willing to pay a little more to buy the bike from him.

He said he wanted to think about it and would get back to me in a day or two (I suspect he wanted to verify that I could really buy the bike in Alberta for the price I quoted) and eventually got back to me and said we had a deal.

All in all I thought the deal was fair and I got the bike I wanted.

As far as cash or credit, it really doesn't matter to the dealer. Cash (or cheque) ensures the dealer has a sale while purchasing on credit means you never know if the financing will be approved. The dealer will get a kickback from the bank but on a typical bike loan it won't be much.

So, do your homework and make an offer based on facts, not simply what you "think" it's worth or what you can get it for elsewhere.
 
Thanks a bunch to all the responses. Every reply I read here had lots of feedback based on experience and that is exactly what I was looking for.
I am taking my time, however, thinking that they will drop the prices a bit closer to the end of the season. (October, November times.)
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