[PiZdETS]

Buying from a dealership
I've previously posted about my method of buying and selling used bikes from private parties. Now we can discuss purchasing bikes from dealers (new and used).

First, some terms:

A. List.
List price, like in what the Suggested Retail Price is, if you went to the Manufacturers web site and looked up the model you want, they LIST the price.

B. Invoice.
The price the Manufacturer charges the dealership for a particular bike on an Invoice. This MAY or MAY NOT be what the dealer actually pays.

C. Overhead
What it costs the dealer to maintain the dealership and pay everybody, including the gov't. If the dealer doesn’t make enough on each unit to pay overhead, he won’t be around to service your warranty issues……

D. Front End Money
Direct Dealer or Manufacturer discounts that the buyer MAY OR MAY NOT see on the buyers order.

E. Buyers Order
In most states, this is a formal and legally binding document (binding on the dealership, once signed by an authorized manager or representative; usually not just a salesman). The dealership is required to honor the sales conditions stated on the Buyer’s Order; the consumer can get up and walk away anytime UP TO TAKING DELIVERY OF THE DEAL. Once you have driven the bike off the lot….it’s your’s, baby.

F. Back End Money
Manufacturer or other special incentives or discounts, either to the dealership, or to the salesman on the contract. Usually never seen by the consumer. These discounts can be spifs, spins, direct rebates to the dealers, discounts based on volume, rebates of regional advertising money, discounts on flooring money if the manufacturer is carrying flooring contracts. They are almost NEVER negotiable. They are the monies that operate the dealership.

G. Flooring Money
The cost to the dealership to a bank, finance company or manufacturer to "floor" the bikes. Many dealerships may have hundreds of thousands, if not millions of dollars in inventory on the "floor" (showroom and warehouse) at any given time; few dealers can afford to pay cash for this inventory, so most dealerships use a bank or other financial institution to loan them the money, like a revolving charge account, with the inventory as collateral.

F. ADDS
Add-ons, ADM (additional dealer markup); these are things like “paperwork fees”, “setup fees”(all major manufacturers rebate a standard amount for dealer prep or setup to the dealer…, charging you for dealer prep is another way to get a few extra bucks out of your pocket),“processing fees” ect. In some states these are not allowed, in some states they are MANDATED, and in others, the statutes are silent. Check your local MVA. In states where these fees are not mandated, all of these adds are negotiable.

G.FREIGHT, TAXES and TAG FEES
These are fixed costs and are not negotiable.

H. Discount
This is the amount of money you NEGOTIATE off the list price of the vehicle…. The more the merrier.

Notice that everything I mentioned here has only to do with money and expenses; that's because in order to get a good experience in buying a new bike (or used bike from a dealer), you need to know where you are, what you are doing and what you can expect. Dealerships are BUSINESSES. Good dealership managers and owners may run them like they were the local bike social hangout, rendezvous spot or biker cafe', but in the end they are businesses, and MUST MAKE MONEY TO REMAIN VIABLE.

Note also, that the salesman you get can make or break your experience or view of that dealership. If you get an a$$wipe of a salesman, (and there are some), ask for somebody else, or leave the dealership and come back when somebody else is working. If you like the guy, stick with him, even if you need to come back several times (like, make an APPOINTMENT with the guy and keep it). Most of these guys work on commission, so if you find a good one, use him, and refer your friends.

A million books have been written on the psychology of selling; go to your local library and check one out if you have interest … my goal here is for the neophyte bike buyer to understand the “mechanics” of purchasing a new bike so that he (or she) may have a better chance of getting a decent deal.

To get the best deal possible, pay attention to OTB’s BIKE BUYING BASICS:

1. Remember…this is a sportbike purchase: not the end of the world if it doesn’t go the way you’d like. Keep your sense of humor and have fun.
2. You will get the best price in the middle of February when the showroom is empty and the salesmen are all staring at the snow blowing by the showroom window, NOT in May when you have to take a number and stand in line to get somebody’s attention.
3. The average salesman will have done this 20 times in the last week and a half…. You get to do this once every three or four years…. Who do you think is better at it?
4. If there are four people behind you waving money at the salesman to buy that one limited edition, Ohlins suspended, Rossi signature one-off factory special, of which each dealership gets only one …. Don’t be a buttwipe and get huffy when the salesman turns down your offer of $1000 under invoice. If it’s that important to get something off of list, pick a slow moving model…..and don’t be such an a$$.
5. Don’t be a wimp… if you don’t ask, you won’t get it, and the worst that will happen is that somebody will say “no”.
6. Don’t be an a$$: nobody gets reamed at dealerships like arrogant ba$tards that treat the salesman like the “bloody hired help”. Be a prick and they’ll pack so many adds into your deal, it’ll take you a week to figure out what you actually paid (see #3). We used to call it the “nuisance tax”.
7. Be nice, no matter what happens. Ever if the dealership treats you lousy…because:
8. Not matter what happens, NOBODY CAN MAKE YOU SPEND YOUR MONEY IF YOU DON’T WANT TO. Getting treated badly?…go somewhere else, pick a different model, manufacturer, buy a good used bike instead of new…….

Negotiating;
I can only tell you what works for me; not everybody will be comfortable with the same approach.

A. Do your homework: find out what the msrp is on the bike(s) you are interested in before going. Write the number(s) down in a little notebook you can take with you.

B. Go to the manufacturer's website before you go to see what special promos they have going on; write them down in your notebook.

C. Go to the dealership website before you go, to see what promos they have going; write them down in your notebook.

D. Set a reasonable price you are willing to pay before you walk out the door...that means sit down and write out the purchase price, taxes tags and any other fees you may have to pay...setup and "paperwork" fees to the dealership ain't it, unless your state mandates them...otherwise, they are just adds and you shouldn't pay them. Note...don't be a "Payment" buyer...looking for an acceptable monthly payment regardless of the price...more than one buyer has gone home with a bike and a great monthly payment, only to discover (sometimes years later) that he'll be making that great payment for 60 or even 72 or 84 months!!!!!!! 3-4 years should be the max you want to pay for that thing....

E. Act like a complete noob at the dealership; don't try to impress the salesman with your deep knowledge. A good salesman knows more about the bike than you ever will know, so let him tell you about it. A bad one will be making stuff up left and right; that's why you need to do your homework. If you keep your mouth shut as much as possible, you will not just learn some things about the bike, you will also learn something useful about the person you are negotiating with.

F. ASK THE SALESMAN what kind of deal you can get...go into his office and sit down and have him WRITE IT OUT on a buyer's order. Most people cannot keep numbers straight in a detailed conversation of price and costs. Have him write them down. Understand that, until numbers are on a signed buyers order, everything is just TALK. That means, if they promise you a helmet and a jacket, or a free 1000 mile service, or WHATEVER...that until it's on the buyer's order, or on a separate coupon or letter...that it doesn't exist...it's vaporware. If the salesman gives you an out-the-door price and/or extra goodies, have him put it on the buyer's order...prices or terms on the back of a business card are not enforceable... a signed buyer's order is.

G. Be relaxed, be friendly....this is a big game, so go have fun with it.

H. Don't give up until you've heard "No" three times...then they really mean it.

I. After you've settled on a price, don't be afraid to ask (nicely) for that helmet or that jacket or the free first service (or all three)....be nice, but tell them you really NEED that whatever to seal the deal...and remember "H" above....

J. To take some of the pressure off, understand that IN MOST STATES (check with your DMV) that UNTIL YOU TAKE PHYSICAL DELIVERY OF THE VEHICLE (i.e. ride it away) that you can walk away from the deal at any time, with no cost to you.

Now, understand that there may be great pressure put on you NOT to walk away, but they can't force you to buy something you don't want, AS LONG AS YOU HAVEN'T TAKEN DELIVERY (then it becomes a used bike; YOUR used bike). So if you get the heeby jeebies about a deal, or find out another dealership has a better deal, you can cancel the deal and get any deposit back (in MOST states, so check first) AS LONG AS YOU HAVEN"T TAKEN DELIVERY. I AM NOT A LAWYER SO FIND OUT ABOUT YOUR STATE'S LAWS BEFORE YOU GET IN A JAM....NOT AFTER.

Remember, doing your research after you've done the deal is a waste of time.

Go have fun.