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Discussion Starter #1
What's your dealer asking for both on new?

I went to one yesterday and they were asking $495 freight (Kawi says freight is $345 on the website) and $295 for prep. Seems awfully steep.

Logically I think that freight is the cost of doing business. I don't pay freight at the grocery store. I also think how are they going to sell a motorcycle that's not assembled. I'm sure it's been done but it seems like another excuse to pad the sale.
 

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I don't disagree with you and have no numbers to share. They would be different up here anyway. You do, however, pay freight at the grocery store - it's just worked into the price of the goods.

When I go to a dealership I ask for only one price - Out The Door. I don't care about whatever costs they want to add or not inbetween. Tell me how much to bring a check for and the guy with the lowest number gets my business. I'm tired of dealing with dealer BS. Buying a vehicle should be a fun experience not one that casues you stress. Most have no problem giving that price. I may pay a little more than if I played the dealership game but at least my experience is a good one.
 

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A few years ago we were buying a new van and as we were going through the final signing process I was looking at the break down of the bill and came across a $125 fee marked administrative. I questioned the salesman and he sheepishly tried to explain that it was a fee they added to all there sales both new and used that paid the secretary staff. I told them they needed to take it out because that wasn't my job to pay their secretaries. They refused and so my wife and I walked. I received a call from the owner of the dealership the next day trying to coax me back with an explanation of why they have to charge this fee. I had been thinking about going back. it was only $125 after all but with this millionaire a$$ hat on the phone trying to tell me why it was my responsibility to pay his staff my stubbornness just would not let go. I did not go back nor have I ever been back. Now if they would have just incorporated that fee into the main cost of the car I'm sure I would have been fine. I ended up with a better deal from another dealer a few months later. No administrative fees.
 

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I experiencced one at an auto dealer where they had a $150 fee tacked on labelled Nitrogen Fee. I asked for an explanantion and was told that the tires were filled with nitrogen and the fee would cover the cost of having my tires topped up with nitrogen anytime I needed it. The salesman didn't join in my laughter. I asked him if they seriously expected me to drive an hour and wait for who knows how long to have a couple p.s.i of N2 put into my tires?? I told him that if I was to buy a car there they would need to scratch that because O2 in my tires is good enough for me. Didn't buy the car there in the end. These costs annoy me but I'm sure a lot of people just pay it without even thinking about it.
 

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Discussion Starter #5
Strange dealings indeed. I don't blame them for trying but I would expect them to flex a bit more when they've built $800 additional profit into the deal.

I know when I worked for a Chrysler and Hyundai dealership the factory paid warranty time to prep a car for sale. I wonder if the motorcycle dealers are trying to double dip?
 

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I don't look at it as adding in $800 profit, I look at it as advertising a price that's lower than actual.

But it's probably a bit of both.

Like some other markets (e.g. insurance), they learned to hide the real price and work hard to make apples-to-apples comparisons difficult. Go to a different dealer and you'll find different prices, incentives, and fees.

There's lots of research showing that once a person knows they're going to buy something they will pay extra to avoid "losing" what they don't own yet. Extra fees work often enough for dealers to use them no matter if they are part of a too-low advertised price or ways to gain extra profit as you say.

As klr4evr says, get the "out the door" price. That removes all their smoke and mirrors.
 

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Looking at the last Bill of Sale I have, it says:

"Dealer Service Fee: This charge represents costs and profits to the dealer for items such as freight, set-up, inspecting, cleaning, and adjusting vehicles, and preparing documents related to sale."

Not sure how this category breaks down but the total for that item on the BOS was $943.

My dealer's sales manager sez that he can't reduce the dealer fee as a matter of policy; however, he can reduce the selling price. So, the vehicle selling price on the BOS, for a vehicle with and msrp and floor sticker price of $12,799, was $11,025.16. My final OTD price out of pocket was $12,600.

Other than the OTD, it's all funny money. :wink2:
 

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Good topic!

Once someone gets approved and is sitting at the sales droid desk
many times they have stars in their eyes. Daydreaming of
rolling into the parking lot at work or thru the neighborhood and start
signing stuff in a hurry. When people get out of the here and now it's
easy to sign up for lifetime warranties that don't include "normal wear"
(every part on the vehicle) n' such.

My local area Kaw dealer is my mom's bud and still didn't cut much slack
but was up front and honest. I too, ask for "door price". I got the bike OTD
close to the sticker price with the service manual and 16t sprocket tossed in.
Good enuff for 6 g's. MSRP at the time was 5599 USD at the time ('09).

NotCheapThatDay
 

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Has anyone looked at the tax implications of the cost break down?

For example, if I import something from the US, the cost of the product is taxed at the border while the shipping is not. It can pay to check for shipping included versus shipping extra in these cases. Just wondered if it's a way of reducing the total paid by the customer?
 
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