New bike (destination charges, dealer fees, etc.)?

[stanga5o]

I've been thinking about buying a new bike this year, but I've never bought a new vehicle. I usually prefer to buy used so I don't take the hit on depreciation and usually can't afford new, but I might make an exception for a bike. I'm trying to understand exactly what I'd be paying for if I bought new; in regard to destination charges and dealer fees. I'm also just generally interested to hear other people's experiences, opinions, etc.

The destination charge is basically the manufacturer's cost to ship the bike to the dealer, correct? One dealer I spoke indicated that this was non-negotiable.

The dealer fees are the dealer's way of making some extra money for uncrating, setting up, filing documentation, etc. right?

Then there's licensing (title) for $70, registration for ~$25, and state taxes, but these would apply to used vehicles as well. Anything else I'm missing?

Anybody have luck with negotiating cost with dealers in MA? I think $200-500 would be a fair price reduction on a ~$10K bike, assuming the listed price is reasonable and it's not a model that has a huge demand.

Ask for them to throw in first service for free or would this reduce my chance of negotiating price? I'm fine with doing first service myself, but I'm unclear whether the warranty would be affected.

The cool thing is the bikes I'm considering aren't very rare (not common, either) and I already have a bike so I'm willing to make my offer and walk, if they don't budge.

It sucks to see prices from dealers within 400 miles that are $1000-1500 less than the local dealers! I want to support my local shops, especially since they're the ones I'd go to for support if needed.

[R7]

I've bought a new bike or 2...ok, maybe closer to 15, but mostly deal with Yamaha's, so my info is based on those purchases.

$200-500 off MSRP? Yeah, go to the next dealer. Go in knowing what you want, what MSRP is, and what factory incentives are available to you AND back to the dealer. Yamaha road/sport bikes, there's about 18% of MSRP available for the dealer...so on a 10k bike, there's 1,800 on the table. The way I was taught with Yamaha, was 15/3...which means 15% off MSRP is dealer invoice, and 3% is a kickback to the dealer for set up fees and destination charges.
Until recently, I've always felt getting a bike out the door (total of all fees, registration and sales tax) for MSRP was a fair deal.
So the fees (except tax, title and DMV)b are already included in the MSRP, with Yamaha anyways. That being said, make sure whatever price you negotiate with the dealer, they separate the fee's from your purchase price on the bill of sale. They cannot charge you tax on destination charges and set up fees.

I have a deposit on a new 2015 R1, I knew most of the info ahead of time and started my price negotiations at 15% off MSRP, and ended up with a deal very close to that

[dontpanic]

When I bought my N1k two years ago (yes, I rode it home in January), I had my choices narrowed down to three bikes. I visited a couple of dealers for a test-sit and asked them for a quote... and waited. If they didn't call back, I called them and told them about the other deals.

Naults in Winham came through in a big way on the price, and Cliff there was delightful to work with. I came away very pleased (and gave them very positive comments when Kawasaki called two weeks later).

[stanga5o]

Oh, I meant $200-500 off the listed price, which have been slightly below MSRP for most of the bikes I've been checking out. I kind of assumed those were models that weren't as desirable or leftovers so they adjusted the price already. I'm sure every situation is different anyway.

Your numbers sounds good to me! Paying an out the door price equal to MSRP for a current year model sounds very reasonable to me. I'm open to leftovers too, so I assume that could knock off up to a grand or more maybe.

I actually asked a salesman if I would be taxed on the bike price only or including the destination charge and dealer fees and they told me it would be the latter..

[stanga5o]

Don't panic: I've considered requesting quotes, but thought I might just throw down an offer and see what they say.

The good thing is I've seen similar bikes at different dealers so it seems that could help me price shop a bit. The prices have been pretty different, as well as the incentives so it's making it hard to compare exactly.

[dontpanic]

Old rule of thumb in any negotiation involving money: he who mentions a price first loses. (If you think through a couple of scenarios you'll see how it can be true.)

[stanga5o]

I definitely understand your logic, but I've done deals both ways without feeling like I lost out. Then again, I'm not an expert negotiator..

[Rambunctous]

When discussing price always ask the quote to be OTD. Out the door. Some dealers don't charge for any of the bullshit and some do. Never let emotions sway you. And always walk out the door at least once. You are doing them a favor not the other way around.

[stanga5o]

Rambunctous: that's some good advice.. especially about not letting emotions sway me.

[jwm2k3]

I doubt the 18% between invoice and retail....I remember there being much less in my tenure as a motorcycle salesman....