Hello all...

I'm thinking of trading my current bike for either new or late-model-used.

Yesterday I stopped by a NYC metro area dealership that I'd never visited before.

I was amazed at the number of bikes they had, inside and outside, particularly the number of touring models. Must have been 30 (or more) new tourers parked outside, not to mention a couple of dozen inside. Not many customers in sight, however.

Told ya that to tell ya this:
I was talking to the sales guy, and mentioned trading. I also had noticed a couple of late-model-used bikes sitting there, that I might be happy with.

The guy said that he could offer better trade-in value on a new bike, than on one of the used models.

Now I'll be the first to admit that I'm not an inherently good negotiator, and dislike the routine of bargaining leading to a sale.

But why can they offer more trade-in value for new vis-a-vis used?

Or was that itself part of the sales pitch?

 

It is all a numbers game. They can give a higher trade in value if they are selling something with higher markup / profit margin.

They want to sell new bikes more than than used ones. Offering higher trade in on a new bike helps accomplish that.

You are almost always better off selling your bike yourself than trading it in. The exception to this is if you save enough money by paying lower tax on the new bike to make up what you could sell your old bike for. When you trade it in, they are going to sell it for more than they gave you for it. That means you could have sold it for that amount instead.

 

They make more on a new bike sale than on a used bike sale and then they'll also make money on your trade-in.


In my entire life, I've only traded-in one bike and I wish to this day that I hadn't done that.


However, if you're happy with what they're offering you for yours as a trade-in, go for it.


Selling a used bike can present problems but you will probably get more for it than trading it in. It may also take a while to sell and trading it in will put you on a new(er) bike instantly.


Good luck with whatever you decide to do.

 

The moco is in the business of selling new bikes, not used. They get better incentives as do you.

older vehicles carry more risk, just the way it is. There's lots of reasons.

 

Yeah, this is the answer.

The sales guy offered you the most on trade-in on the bike he wanted to move the most -- the new one.

Hard to say why exactly that is. Maybe there's better margin on a particular new bike, maybe there was a Factory incentive that month, or maybe the dealer has too much new inventory and has to move some due to the high carrying cost?

 

At least he was up front with you on a common practice. My local dealer gives a trade in value based on what you are going to buy. From the consumers standpoint, it's a bs way of doing business. From the dealers standpoint they would rather have a sale than a lifelong customer.

On the other hand, my local Ducati/Triumph/Honda dealer gives you a trade in value. New, used, big, small, that is your trade in amount. They are much better to deal with than the Harley dealer that works you over like a cheap used car dealer.

 

There is a difference between Trade In Value and Trade In Allowance. The short explanation: Your bike has a certain Trade In Value (wholesale) to the dealer. That number doesn't change whether you're buying a new bike or a used bike.

Trade In Allowance is equal to the Trade In Value of your bike plus any discount on the bike you're buying, whether it is used or new.

Example: Trade In Value is $10000
Discount on bike being purchased is $1000
Trade In Allowance is $11000

Too many variables to discuss here as to why the salesperson said he could give you a better "Allowance" toward a new bike.

 

There are interesting answers here Fishrrman but in a practical sense the "Dealer's" end is largely irrelevant.

Shop, determine what a constitutes a fair price difference between your ride and its replacement, then negotiate toward that. The Dealer won't divulge what his pricing model is and, beyond curiosity, you don't really care. Due to volume bonus initiatives, financing kick-backs, flooring rates, etc. etc, it is nearly impossible to guess what the Dealer is working toward at any given time.

In my school days I worked PT in sales for a major car dealer. Back then, their accounting system allowed for showing final "wash out" profit on a new vehicle (to the bank) only after "all" the trade in(s) subsequently taken in on it had been converted to cash. Sometimes the 3rd or 4th in a series of trades against a new car sale would be moved at a loss. Plenty of profit had been made on the initial deal plus its 1st and 2nd trade ins and they just wanted to close the initial deal on their books asap to free up credit lines and lot space for new inventory carrying a higher margin. All this to say, it can get complicated and be dependent on situations having little to do with your deal.

 

do not forget the moco's MAP policy, dealers MUST sell their bikes for MSRP

So, you may have a 10g bike, but to sell the new bike they can show you a little more on paper as they have the margin to use for it

Sell it yourself, you are taking THOUSANDS of dollars out of your pocket by going thru the dealer

You can sell your bike for several thousand more, and then find your new bike for many thousands less from a private owner

Just DO NOT get in a hurry, it can take 90 days to sell a nice Harley

they are BIG investments, and some people take up to a year or longer before finally pulling the trigger

Be patient, it will work out

 

You are looking at the 'difference' between 2 bikes. A new bike allows for a higher difference, thus more wiggle room. Don't get caught up in they are giving you xx amount for your bike and paying xxx amount for new/used bike. The numbers can be shifted either direction so it either looks like they are really coming down on their bike, OR giving you a lot for yours. You won't get both.