I understand that I'm at the dealers mercy when buying a Harley, especially while isolated in Hawaii.I'm set on getting a 08 Street Bob as my first Harley and I found the color I was looking for at a dealer today... After talking about price, the calculator started clicking, adding the expected tax and tags, but I wasn't expecting the $500 set-up and $300 for crating or something like that. Is this a normal after MSRP charge for new bikes? or do I figure this as part of his profit? I understand the price of living is a bit higher in Hawaii and I may have to spend a little more than the mainlanders, but I also want to be sure the dealer is being honestabout his profit.


Telly

 

Telly, It's been my experience that it varies from dealer to dealer. There always seems to be the $290 freight fee and some dealers charge more or less for what they call "set up". I've seen it as high as $500 like you mentioned. My local dealer is typically about $400 over MSRP on a new bike and in that amount the set up and freight is rolled in. Most folks on here will tell you to shop around and find a dealer willing to sell it at MSRP but as you're in a unique situation you're almost at this guy's mercy. Maybe see if he is willing to deal on that set up fee...or if not... inquire about getting some parts or labor tossed in at no cost. Remember, its not like it was years ago with the long waiting lists. The dealers actually have to try to sell these days. I picked up an 07 Bob last month for $1100 cheaper than the 08. See what he'll do for you if he really wants to make the sale.

 

You could probably find a good deal mainland then have it sent over for 800 bucks, depending on the initial price he selling it at.

 

The freight is not padding. It's something both bike and car dealers have to pay for the bike to be shipped to them and they normally pass that along to the consumer. I've seen some dealers willing to eat that cost, depending on how much they want/need to unload the vehicle, because they still are able to sell the vehicle at what they call "full tilt" or full price/sticker. The setup fee is, however, padding somewhat. I've talked to dealers that don't charge a setup fee but it seems most do. However, many that do turn around and offer you an "incentive" such as store credit normally and "ironically" around the same amount as the setup fee. It's a "fuzzy math" way of getting you to spend a few hundred more dollars in their store one way or another. I bought my bike from a dealer that didn't charge a setup fee but they gave no incentives either. They told me they didn't do business that way. But, 2 months later, I saw an ad where they were giving 500 to 1000 dollars in credit depending on the bike purchased and I've seen several similar ads from them since. I don't know if they also charged a setup fee on those bikes to compensate for that "incentive" or not.

You may not be able to haggle over the freight/crating since that is a true cost to the dealer. But, I would try to get something back on the setup if at all possible even if it's just store credit. Keep in mind, though, that store credit wouldn't truly be a 1 for 1 trade. Typical retail markup is what they call "keystoning" which is a word they use to mean 100%. I don't know but suspect HD's markup is at least that and most likely more. For example, that $350 leather coat may have cost the dealer a maximum of $175 and possibly even less. So, if you pay $500 for setup and they give you a $500 store credit, they still win to the tune of $250 minimum over cost plus they move some merchandise.A true trade-off would be $500 setup and in return you get $1000 credit to spend on motorclothes and accessories. I doubt you'll get that but that's how the math works.

 

Telly, I got my first bike from South Seas. I was just returning from Iraq and had the money so I wasn't really too worried about pricing, but they walked me through everything step-by-step. VERY good people!! I got my 05 DWG for the same price as any store in the mainland!

 

My dealer is waiving set-up fee and giving me a $500 Harley gift card to use on anything I want.

 

Is that on a 07 or 08? If 07, not surprising. If 08, good deal. Let me guess, though, he is charging youa "doc fee"?

 

'08 no, no junk fees

 

I'm in the same exact situation, as close as you can get, except here in Wisconsin. I just ordered mine and they saved me over a grand by eating the delivery and setup. There is a small "DOC" fee, I think $20 or $100??
YOU'RE the guy in Hawaii, how much would an islander pay to transport a vehicle from the mainland back home? I'd start contacting CA dealers and see if you can get a good deal on an in-stock 07 and bring it back with ya. Unless you think the local dealer will stick it to ya when you need warranty work or something like that.
I could understand the delivery fee being higher there, but maybe talk them out of the setup, tell him to throw ya a bone fer petes sake.
Gilly

 

The dealer can pretty much ask what he wants. He can charge $3000 more than MSRP if he wants. You can pay what he wants, make a counter offer, or walk away. A bike is worth what someone is willing to pay for it, not the MSRP. 6-8 years ago, very few could buy a bike for MSRP because the demand was high and the supply was low. Hawaii would have its own market adjustments.

Good luck.