Negotiating price on a used bike!
Thread Starter
|
Tourer
Joined: Nov 2008
Posts: 297
Likes: 0
From: Lexington, SC
Negotiating price on a used bike!
I was wondering what your experience has been negotiating price for a used bike. I am in sales also so I know quite a few tricks used. What kind of markup do ya'll think they have on these used bikes. I talked to a buddy of mine and he told me a local HD was offering about 9K on a trade then would turn and sell for 15K. I have got just a few bikes i'm looking at and I was wondering what were some of the best tactics you all had used to buy. I know the "walk out" tactic. I will be dealing in cash, so would ya'll let them know that or hold that info? I do remember the guy telling me the other day, "Regardless if you finance or pay cash the price is the same. Our financing doesn't cost us anything". I called BS on him immediately and said bro I'm in sales and offering percentage rate financing cost everybody something that they don't work for free. He just laughed knowing I had busted his *****. I know it was a sales tactic to not reduce the price but i didnt 'want to get too involved with him because I wasn't buying then so I wasn't about to get into a negotiating process.
Just thought I would ask what you all thought about neg. a used bike?
Just thought I would ask what you all thought about neg. a used bike?
Extreme HDF Member
Joined: Oct 2008
Posts: 15,321
Likes: 29
From: Phoenix, Arizona
I'd start with knowing the market value of the bike in question via NADA guide and also find some comparable bike in cycle trader and craigslist. Being educated on what bikes are going for is your best bet. As for cash vs financing most dealers will prefer you finance so they can pad the rate for additional profit. Know what you're willing to pay and stick to it.
Elite HDF Member
Joined: Oct 2007
Posts: 4,523
Likes: 1
From: South Florida
Be realistic on your offer, know how much the bike is worth before you get there. Being a dealer cash or finance would not matter to us we get funded by the bank within 24-48 hours, however we do make a profit on your loan so of course we will always take finance over cash. The selling price would not change because we know how much we own the vehicle for and I dictate what is the minimum profit that we will make per unit sometimes we will take a low profit deal just to move an old unit that has been in any of our lots over 60 days. At the end of the month is all about averages...
Thread Starter
|
Tourer
Joined: Nov 2008
Posts: 297
Likes: 0
From: Lexington, SC
Be realistic on your offer, know how much the bike is worth before you get there. Being a dealer cash or finance would not matter to us we get funded by the bank within 24-48 hours, however we do make a profit on your loan so of course we will always take finance over cash. The selling price would not change because we know how much we own the vehicle for and I dictate what is the minimum profit that we will make per unit sometimes we will take a low profit deal just to move an old unit that has been in any of our lots over 60 days. At the end of the month is all about averages...
So your saying that cash isn't king in buying a motorcycle? You had rather a customer finance than handing you 130 $100 bills? The finance company doesn't charge you a percentage of the sale based on the rate that they are giving you?
Example: Cost of bike $10,000
You have a rate of 11.9% for 60mths
The finance company doesn't charge you a percentage of that cost in order to give you that rate say like 4%? Which means you would pay your finance company $400 to do the deal. I know you get your money w/in so many hours but I don't believe financing is the same as cash. If that was the case finance companies would go out of business cause they would have no way to make money!
If they have a 03 Heritage with 16K miles in good condition with some upgrades that they are asking $13,995. I want to offer $11,500 cash. Is that fair? I doubt they have more than $8K in the bike. It was a trade.
Last edited by Cakalac; Nov 14, 2008 at 10:54 PM.
Ultimate HDF Member
Joined: Aug 2008
Posts: 6,235
Likes: 65
From: Joliet, Illinois
As far as negotiating a used bike... it doesn't matter what the dealer has into the bike. If they did the deal right, they may have nothing into the bike (although, probably less likely on a Harley, due to the resale value, MSRP, etc. - not enough room there usually). Anyway, you negotiate your price from what your research tells you it should cost. If you determine the bike you want should cost around $10,000, and you see one at a dealer for $12,000, you offer $10,000, and tell him that's what you have to spend on the bike.
Cruiser
Joined: May 2008
Posts: 126
Likes: 1
From: Alabama
A lot of people think cash is king but not to a dealership. The finance company makes it's money from the interest you pay them on the loan. They kick back a portion of that to the dealership who arranged the financing thru them plus the price of the bike. If you get your own financing the dealer gets the same money either way... either 10K from you or 10K from your bank.
Jim
Jim
Big Kahuna HDF Member
Joined: Feb 2006
Posts: 23,881
Likes: 34
From: USA
The finance co. kicks back to the dealer a commission. It is built into the rate charged to the consumer...the higher the rate...the higher the commission percentage. Very simple. So YES they would rather have you finance.
Trending Topics
Extreme HDF Member
Joined: Mar 2008
Posts: 14,865
Likes: 4
From: Mn.on a lake,well nxt to a lake.
we payed cash for our 01 FLHTC back in Dec 2000,but we made 5 payments and it was winter, due to the fact that when you buy with large amount of cash you need to fill out paper work for the cash so they can make sure it isnt stolen and is legit...kind of a hassel.....the other option is to take the loan out make 2-3 payments then pay the loan off this also helps your credit....Just make sure there is no penilty for early pay off.this is what we did with the 06 Deluxe we made 6 payments then payed it off.
HD Forum Stories
The Best of Harley-Davidson for Lifelong Riders
8 Best Harley-Davidson Motorcycles Ever
Pouria Savadkouei
10 Worst Harley-Davidson Motorcycles Ever
Pouria Savadkouei
Killer Custom's Jail Break Is The Breakout That Refused to Blend In
Verdad Gallardo
Crazy Bunderbike Build Looks Amazing, But Is It Impossible to Ride?
Verdad Gallardo
Harley-Davidson Reveals Super Cool Cafe Racer Concept
Verdad Gallardo
Engraved Rebellion: Inside Bundnerbike's Glam Rock II
Verdad Gallardo
10 Motorcycles You Should Never Buy
Joe Kucinski
10 Things Harley-Davidson Needs to Fix in 2026
Verdad Gallardo
Southpaw Super Glide: A Left-Hand-Drive 1979 Harley FXE Built to Fit the Rider
Verdad Gallardo
Outstanding HDF Member
Joined: Sep 2007
Posts: 2,210
Likes: 0
From: Elk Grove Village,Il.
Your in sales and don't know how to negotiate? Here's a clue,look at kelly blue book trade value,and you'll have an idea what they paid.Usual markup seems to be about 2-3 grand.
Thread Starter
|
Tourer
Joined: Nov 2008
Posts: 297
Likes: 0
From: Lexington, SC
Yes, I'm in sales an yes I do know how to negotiate. However every negotiation is different and I have never purchased a HD before. The other thing is apparently a HD finance company and GE Finance(my finance company) is completely different. I don't under stand how you can finance something through a finance company and not pay them to do it. I have about 12 different ways i can finance through GE. The only one that doesn't cost me any money is 90 days SAC. The other cost me anywhere between 2% and 9.5% of the total cost of job. I guess my finance company which is one of the biggest in the world makes their money different. I'm sure GE gives a kickback to my company as well but I take a hit in the beginning to offer the financing. That is built into the price so when they want to pay cash,I am able to discount the job if I want to. I just am having a hard time understanding why it's different for a motorcycle but I guess it is. I will find out for sure.