This past couple of days, I have been doing some extensive research to purchase a new sportbike. I am looking at getting either the Suzuki GSXR1000 or the Kawasaki ZX10R. I went to a cool ZX10R forum to try to find the invoice for this bike. First, let me give you a little history on how smart people purchase these sportbikes. Typically, a dealer wants to charge you MSRP (Manufacture Suggested Retail Price) + sales tax + licenses + freight charges + document fees + putting the bike together and some other non-sense cost. Sales tax and licenses are mandatory, but the other charges, especially MSRP, are a bunch of crap. Since this is a free market, what a smart person does is get the invoice price of the bike (what the dealer actually pays for) and pay around $300 to about $500 above the invoice price and then only pay tax and licenses. This is a big difference between paying this way and paying for all the other crap the dealer like to tack on for profit. You can save $2,000 to $5,000 by doing this. You might ask yourself, why don’t every one do it this way? Well, two things. First, many people don’t know that they can bargain on bikes and second, you have to be very aggressive with the motorcycle dealers to accomplish this (cash works very well). Now, since I broke all this down, lets get back to the invoice price on the ZX10R forum. On this forum, I asked do anyone know the invoice price for this ZX10R. This question lead to a battle between the motorcycle dealers (sellers) and motorcycles buyers. I will take some excerpts from the forum to show the battle between the two.
Out of all this chaos, this was the answer I was looking for.
Invoice on the 10r is $9213 the dealer still has holdback usually 3-4% of base invoice. hope this helps.
Here is where the debating starts.
So what do you plan on doing with this new found knowledge of what dealer invoice is? I wonder if there are any dealers out there that would sell one at that price. It’s funny. I get customers in my shop from time to time that are all empowered. They point to an R6 and say, I know what you paid for this bike and this is what I’ll pay. Usually they add like $300 and think that’s a deal. Hell yeah that’s a deal. But I don’t think so. Then they ask what my best number is and I say list plus all fees. They ask if there is any discount, usually angry at that point. Nope, no discount. Then they say, well so and so in LA said he’s sell me one for $500 over cost. I fire right back, why don’t you go buy it? I’d go down there right now before he changes his mind. Don’t get me wrong, I am all for people getting a good deal, but mind you, this is how I make my living, pay my bills, eat. I only ask that when you purchase a bike, if the salesman has been helpful, show him a little consideration
Now this guy is crazy. He is willing to pay all that extra BS for a good relationship.
I gladly paid $10,300 (MSRP when locked in before 1/1/04). That was not including sales tax, license, shipping, or dealer prep. It also did not include any of the OEM accessories I got tied into the purchase, like rear seat cowl, service manual, Euro f&r turn signals and a 4 year extenion of the factory warranty. I didn’t just glady pay MSRP on all of that, I DEMANDED IT! Sure, I might have been able to save as much as $2,000 if I “shopped around” or had haggled. Odds are, if I did, I might have realistically “saved” under $1,000 including all the “accessories”.
Why would someone be so stupid as pay MSRP? Easy. It’s the “after purchase bennies”. It is all the perks and benefits I enjoy with my dealer and our almost 13 year relationship. First, they waived the shipping and prep charges and I just did the prep myself (we just loaded the crate in the trailer at took it home).
I like this guy comment.
There is a sucker born everyday because some people choose not to be suckers shouldn’t make any sales people angry. When I was in sales I would glady take small deals as long as I didn’t spend alot of time on them….
another comment…
It has nothing to do with being a sucker. Sometimes people forget that business transactions by definition are “mutually beneficial”. Everyone wants to shop around for the lowest rock bottom price, nothing wrong with that. But how do you expect the dealership to keep it’s doors open when you won’t let them make any money? Plus I need to eat too. How would you feel if your boss told you that day that he wanted you to work all day, but only pay you for 4 hours? Sucks. I am not in the business of ripping people off and it’s sad that people use the internet as a venue for making people feel like they got ripped off because they paid more than the next guy. People forget what a “good deal” is. If you measure things by dollar amount, sure you can always find that good deal. But if you care about having a local dealer that will take care of you in the long run, why not pay a little more? I know there are alot of shady dealers out there, but that’s life. But when you do find a shop you like, you should support that shop, otherwise it won’t be around very long. Just my .02
Here is a guy speaking the truth. He works at a motorcycle dealer.
Well the only person that must be raking it in is the boss. I make 15% of gross profit, so for example… If I sell a ZX10R at list plus fees, GP is usually about $2k. I take home $300. I probably shouldn’t share that info, but I feel that I can here. Luckily in my area, the way the market is, I can hold alot of gross. In Vegas, There was so much competition, I was taking much smaller commissions…
Finally, my comment to all this madness…
Let’s talk some basic economics 101 here. The US is a capitalist / free market country. Therefore, supply/demand controls the prices on products and services. So, if someone can get a bike for invoice + 300, evidently it is ok from supply/demand point of view. If you are arguing because someone is trying to save money by willing and dealing on a bike, then you are tying to get over them. Evidently, invoice + 300 works since bike shops are still in business and many people are getting bikes close to invoice price. Besides, I think since there are people who purchase a bike for MSRP + tax/lic/shipping and for people who bargain on bikes average out for a dealer to make decent profit to stay into business. I seriously doubt that there will ever be point in life were everyone will only pay invoice + 300 for these bikes.
Oh, and for those who claims that they have to eat too from selling these bikes way beyond invoice, well the buyer have to eat too. And they eat by saving money… Just my two cents…
This guy agrees with me…
I agree with that!
Well, hopefully I get the bike soon… I will post pictures if I do. Wish me luck on the best deal.