Tuesday, June 5, 2007

Negotiating the Price of a Moto

I started researching negotiating the price of motorcycles. About.com has some interesting advice:
What do I mean by homework? Well, find out the dealer invoice price (this tells you how much the dealer pays for the motorcycle). Use an online service such as CycleBuy.com to obtain a report on each bike. This report also tells how much the list price is (you can also go to the official Web site for the motorcycle manufacturer to get the list price). By getting the amount that the dealer pays for the motorcycle, you know his "ready to sell price." This tells you his automatic profit margin percentage. This should come out to be 10% - 15%. The dealer will do his best to make 10% total profit on the motorcycle.

All dealerships will include certain fees with the sale of the motorcycle. Most common fees are destination charges, setup fees, documentation fees, taxes, and maybe an assembly fee. The dealership also makes a profit on all these fees. There is no immediate way to find out their profit margin on these items but it should be between 5% - 15%.
Buy a Motorcycle

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