Local dealership is currently offering" full NADA retail value, minus reconditioning, for trade-ins toward the purchase of any new Harley Davidson motorcycle or three wheeler. "

what kind of a hit could i expect on such trade? I've already told the salesman that he needs to give me some numbers in writing before i even consider it, because i have a hard time believing they'd give me more for a trade-in than i paid them originally when i bought it used from them.

any thoughts?

 

Get their numbers in writing before you sign anything. A "reconditioning fee" sounds like a back-door way to increase their profits.

I have no problem with a business making a profit, they have to to stay in business, but this "fee" sounds like a sleazy way to hide what they are really giving you for your trade-in.

 

yeah. the way they're pitching it is basically claiming "we'll give you 18k for the bike you just paid us $12k for if you buy a new model"

i'm sitting here thinking, there is literally no way you'd willingingy put yourself over $6000 in the red on a trade unless there was a MASSIVE catch.

 

A reconditioning fee is what they charge you to basically get your trade-in ready to be put back on the floor and sold again. It could go to cover things like getting it safety checked to doing some of the routine maintenance to getting it washed and detailed. Most dealerships have a reconditioning fee, but they don't call it that, it's just added to the price of any used vehicle. Now in your case it sounds like the dealership is looking to make his money twice by offering you less on your trade-in and then by including it in the price of the bike when he puts it on his floor.

 

Instead of trade or actual cash value they are offering full retail. The reconditioning fee is likely, as was said the amount of money required to get the motorcycle on the floor. Like a new tire, or brake pads etc. As long as you are not paying over MSRP, for a new bike it does not sound like a bad deal. Sounds like your local dealership has decided to move new inventory and instead of lower the prices on the new, frowned upon by the mothership, they are taking profit from the new to increase the trade in value.


I can sell you a bike for 23000MSRP-(13500 (full retail for trade) -500 (new tires/reconditioning fee)=13000) 10000 Price for new bike. Versus the normal of 23000MSRP - 11000 Trade value with no reconditioning fee = 12000 Price for new bike. Dealerships do this when either trying to move stock or increase allotment for the next year/quarter.


As long as the reconditioning fee doesn't make the trade in lower than the normal trade in value, sounds like a good deal.

 

Chances are that they don't remember you buying the bike from them in the first place. That is why you are getting a trade-in price higher than the original purchase price.

At least that was the plan until you told them you bought it there and they checked the records.

 

This stuff goes on whether you're buying a car, truck, tractor, or Harley. Your present bike has a wholesale value, what's normally referred to as ACV (Actual Cash Value). That value is someone's opinion & may vary from one dealership to another, but usually the so called experts are pretty close on that value. What the dealership gives you for a trade-in allowance is the combination of ACV + the amount of discount the dealer gave on the new bike. You don't see the discount on the paperwork, because the new bike's price is written up at MSRP & the discount is hidden in the trade allowance figure. So, if you have bike with an ACV of $10000, the paperwork may show you an allowance of $12k, $13k, or whatever, but the bike is still a $10,000 wholesale piece of metal, leather, and rubber.


Dealers who sell a lot of used bikes generally will put a bit more money in your trade-in because they are going to retail it, as in make thousands more in profit. If they're off by $500 its not a deal breaker. Dealers who do not sell a lot of used bikes have to be "more on the money" because they will be taking the bike to an auction, so they have to be accurate.


The above descriptions of the Reconditioning charges are accurate and take place on all deals whether you realize it or not. I'd be interested to know what model was bought new for $12k that now has a NADA Used Retail Value of $18k. There was a time in the early 90s when stuff like that could happen with hot selling models, but I haven't seen that market in awhile.

 

Check Craigslist, with a few of ***** G's ugly skulls added it's now considered a "Custom." There are plenty of 10 YO bikes with asking prices that are crazy, like almost what they paid when new.


Not saying they are going to get what they are asking but when they state that "They know what it's worth, no lowballers" I move on.....

 

Lol, I get what you're saying. But Craigslist, or even a dealer's asking price, is not the same as the NADA Retail Value. That NADA Retail Price is supposed to reflect an average of actual sale prices on a given model.

 

If nothing else, they are going to change the oil and filter. They are going to wash and possibly wax it. They are going to adjust the clutch, check the brakes, grease everything that needs greased. They are going to make sure that the bike they sell runs and doesn't require anything routine now or in the near future. They aren't going to sell a bike that needs a 5K, 10K, or whatever K maintenance in a couple hundred miles.