Two Wheel Fix - View Single Post

PiZdETS · 09-19-2008, 01:12 AM

Is This A Good Deal?
I read all the time on here, "I just bought a Suzikawiyamda Gps 1125 and paid 12,000 rupees for it. Did I get a good deal? My friends say I got ripped off. What's the deal?" or the famous " My friend is selling his 1978 Van Veen OCR 1000 with only 123,000 miles on it for $12,400. Is this a good price?"

There are so many factors that go into bike pricing (new and used) that it is ALMOST impossible to say what constitutes a "GOOD DEAL". So many factors are subjective, and what is a good deal to one might be a crummy deal to someone else.

I used to buy a bike and literally ride the wheels off of it, racking up tens of thousands of miles in a single year. When I started looking at major rebuild money, then and only then would I start looking to replace my mount, so my motivation was to buy a good, reliable bike, preferably new with a factory warranty so I would have no worries for a while. My modus operendi was to shop the two or three dealers of the brand/model i wanted within a hundred mile range, working each of them back and forth to save a few bucks (my first Suzuki 250 was $895 list...new...not a lot of room to negotiate). I might ride up to 100-150 miles to save a hundred bucks. (Gas was $.25 a gallon, too).

Today, I buy and sell bikes as a hobby, and may change bikes more often than some folks change their underwear. So far this year, I've bought and sold 6, and am looking at 2 more. So, my motivation is different. What constitutes a good deal today, FOR ME, is anything I can turn quickly (1 to 2 weeks) and make a reasonable profit ($500-1000) selling the bike a few hundred under "book" value.

By the same token, all those folks this spring that busily threw thousands of dollars at Ducati dealers, just for the privilidge of paying several thousand dollars ABOVE MSRP for a new 1098, were thrilled to death...otherwise they never would have paid that kind of money. Status can be a powerful motivator.

Many people with no or marginal credit pay MSRP or more, because the dealer could get them financed when nobody else could. Did they get a good deal?????? They're riding, aren't they?

I read a post on here recently from someone in New Brunswick who has limited access to dealerships (hundreds of miles between them, and hardly any used bikes on the market); their idea of a good deal is going to be much different from somebody in LA, who has access to 10-15 dealers of the same brand.

Model availability, dealer access (or lack of) perceived exclusivity, status, physical location, access to credit, all play as factors in what constitutes a "good deal". Do your research, shop around as best you can, make the best deal YOU CAN....and then don't look back; keep your eyes on the road, not on the past.

ENJOY YOUR RIDE
--------------------------------------------------------

Dealer Financing
To Dealer Finance, or Not To Dealer Finance; THAT is THE Question.

TERMINOLOGY:

"Business Manager":

This is the F&I guy (finance and insurance)......this is the guy in most dealerships, whether you meet him or not, who approves or gets bank approval for your loan through the dealership. You might only ever deal with the salesman...but this or the GM are the guys who approve every deal. This is also the guy who generates most of the profit on the sales floor. I'll tell you how, later.

"Buy Rate"

This is the percentage rate APR;( Annual Percentage Rate)the bank will approve TO THE DEALERSHIP, FOR YOUR LOAN. It is based on credit worthiness, debt ratio, homeowner vs renter status and the Humbolt Current.

"Contract Rate"

This is the percentage rate (APR) the dealership puts on the contract that you sign. The difference between the Buy Rate and the Contract Rate goes to the dealership.

"Loan Insurance"

This is an insurance policy benefiting the bank...if you lose your job, die, or become disabled during the term of the loan, the loan gets paid off. Just like the bank rate, there is a "Buy" and "Contract" rate to the dealership...the difference goes to the dealership. Are you starting to get the picture?

"Extended Warranty"

New motorcycles come with a manufacturer's warranty; the term of which varies from manufacturer to manufacturer. Dealerships offer "extended warranties", carried either through the manufacturer (rare) or through a third party Warranty Company (most common). These extended warranties are simple insurance policies for the operation of your bike: follow the requirements of the warranty (for service and maintanence, and have the documents to PROVE IT) and the warranty company will pay for service problems AS STATED IN YOUR POLICY. THAT MEANS YOU BETTER READ AND UNDERSTAND YOUR POLICY BEFORE YOU SIGN FOR IT. If yuo ythink you are buying a "Nose to Tail" (or Bumper to Bumper) policy, and you don't read it, and you bring the bike in for service and find out that a lot of what you THOUGHT was covered was considered "Normal Wear" items....you are going to be shocked!! READ THE DAMN POLICY BEFORE YOU BUY IT!!!!
Just like evrything else you've read about so far here, there is a "Buy" rate and a "Contract" rate....the difference going to the dealership......sigh.

The point of all this is:

A. You are dealing with a business....and everything that business has to offer COSTS MONEY. Everybody in that business needs to get paid...and you (the buyer) pay them by making purchases. That's the deal.

B. The PRICE of just about everything in that dealership is NEGOTIABLE; from the purchase price of the bike, to the cost of a pair of gloves. REMEMBER that when they quote you a 19.5% APR on that loan.......

C. I can't tell you whether insurance or an extended warranty is a good idea for YOU (just ask jtemple; http://www.twowheelforum.com/showthread.php?t=17964), everybodies' circumstances are different.....just remember that OFTEN you can get it for less, if you ask.

I've heard folks on here rip a dealer for putting somebody out on a high rate...but often, the dealers' relationship with a bank is what gets otherwise poor or marginal buyers loans, who wouldn't normally qualify. Yep, sometimes a dealer will "take advantage" of an ignorant buyer...but who's fault is that...nobody throws the buyer on the floor, drugs him (or her) and makes them sign. If I sign stuff without reading it or understanding what the F##@ I'm signing: well, SHAME ON ME!!!

READ EVERYTHING BEFORE YOU SIGN

09-19-2008, 01:12 AM	#5
PiZdETS ⎷⎛⎝ ⎝⏠⏝⏠⎠ ⎷⎛⎝ Join Date: Feb 2008 Location: ⎷⎛⎝ ⎝⏠⏝⏠⎠ ⎷⎛⎝ Moto: ⎷⎛⎝ ⎝⏠⏝⏠⎠ ⎷⎛⎝ Posts: 990	Is This A Good Deal? I read all the time on here, "I just bought a Suzikawiyamda Gps 1125 and paid 12,000 rupees for it. Did I get a good deal? My friends say I got ripped off. What's the deal?" or the famous " My friend is selling his 1978 Van Veen OCR 1000 with only 123,000 miles on it for $12,400. Is this a good price?" There are so many factors that go into bike pricing (new and used) that it is ALMOST impossible to say what constitutes a "GOOD DEAL". So many factors are subjective, and what is a good deal to one might be a crummy deal to someone else. I used to buy a bike and literally ride the wheels off of it, racking up tens of thousands of miles in a single year. When I started looking at major rebuild money, then and only then would I start looking to replace my mount, so my motivation was to buy a good, reliable bike, preferably new with a factory warranty so I would have no worries for a while. My modus operendi was to shop the two or three dealers of the brand/model i wanted within a hundred mile range, working each of them back and forth to save a few bucks (my first Suzuki 250 was $895 list...new...not a lot of room to negotiate). I might ride up to 100-150 miles to save a hundred bucks. (Gas was $.25 a gallon, too). Today, I buy and sell bikes as a hobby, and may change bikes more often than some folks change their underwear. So far this year, I've bought and sold 6, and am looking at 2 more. So, my motivation is different. What constitutes a good deal today, FOR ME, is anything I can turn quickly (1 to 2 weeks) and make a reasonable profit ($500-1000) selling the bike a few hundred under "book" value. By the same token, all those folks this spring that busily threw thousands of dollars at Ducati dealers, just for the privilidge of paying several thousand dollars ABOVE MSRP for a new 1098, were thrilled to death...otherwise they never would have paid that kind of money. Status can be a powerful motivator. Many people with no or marginal credit pay MSRP or more, because the dealer could get them financed when nobody else could. Did they get a good deal?????? They're riding, aren't they? I read a post on here recently from someone in New Brunswick who has limited access to dealerships (hundreds of miles between them, and hardly any used bikes on the market); their idea of a good deal is going to be much different from somebody in LA, who has access to 10-15 dealers of the same brand. Model availability, dealer access (or lack of) perceived exclusivity, status, physical location, access to credit, all play as factors in what constitutes a "good deal". Do your research, shop around as best you can, make the best deal YOU CAN....and then don't look back; keep your eyes on the road, not on the past. ENJOY YOUR RIDE -------------------------------------------------------- Dealer Financing To Dealer Finance, or Not To Dealer Finance; THAT is THE Question. TERMINOLOGY: "Business Manager": This is the F&I guy (finance and insurance)......this is the guy in most dealerships, whether you meet him or not, who approves or gets bank approval for your loan through the dealership. You might only ever deal with the salesman...but this or the GM are the guys who approve every deal. This is also the guy who generates most of the profit on the sales floor. I'll tell you how, later. "Buy Rate" This is the percentage rate APR;( Annual Percentage Rate)the bank will approve TO THE DEALERSHIP, FOR YOUR LOAN. It is based on credit worthiness, debt ratio, homeowner vs renter status and the Humbolt Current. "Contract Rate" This is the percentage rate (APR) the dealership puts on the contract that you sign. The difference between the Buy Rate and the Contract Rate goes to the dealership. "Loan Insurance" This is an insurance policy benefiting the bank...if you lose your job, die, or become disabled during the term of the loan, the loan gets paid off. Just like the bank rate, there is a "Buy" and "Contract" rate to the dealership...the difference goes to the dealership. Are you starting to get the picture? "Extended Warranty" New motorcycles come with a manufacturer's warranty; the term of which varies from manufacturer to manufacturer. Dealerships offer "extended warranties", carried either through the manufacturer (rare) or through a third party Warranty Company (most common). These extended warranties are simple insurance policies for the operation of your bike: follow the requirements of the warranty (for service and maintanence, and have the documents to PROVE IT) and the warranty company will pay for service problems AS STATED IN YOUR POLICY. THAT MEANS YOU BETTER READ AND UNDERSTAND YOUR POLICY BEFORE YOU SIGN FOR IT. If yuo ythink you are buying a "Nose to Tail" (or Bumper to Bumper) policy, and you don't read it, and you bring the bike in for service and find out that a lot of what you THOUGHT was covered was considered "Normal Wear" items....you are going to be shocked!! READ THE DAMN POLICY BEFORE YOU BUY IT!!!! Just like evrything else you've read about so far here, there is a "Buy" rate and a "Contract" rate....the difference going to the dealership......sigh. The point of all this is: A. You are dealing with a business....and everything that business has to offer COSTS MONEY. Everybody in that business needs to get paid...and you (the buyer) pay them by making purchases. That's the deal. B. The PRICE of just about everything in that dealership is NEGOTIABLE; from the purchase price of the bike, to the cost of a pair of gloves. REMEMBER that when they quote you a 19.5% APR on that loan....... C. I can't tell you whether insurance or an extended warranty is a good idea for YOU (just ask jtemple; http://www.twowheelforum.com/showthread.php?t=17964), everybodies' circumstances are different.....just remember that OFTEN you can get it for less, if you ask. I've heard folks on here rip a dealer for putting somebody out on a high rate...but often, the dealers' relationship with a bank is what gets otherwise poor or marginal buyers loans, who wouldn't normally qualify. Yep, sometimes a dealer will "take advantage" of an ignorant buyer...but who's fault is that...nobody throws the buyer on the floor, drugs him (or her) and makes them sign. If I sign stuff without reading it or understanding what the F##@ I'm signing: well, SHAME ON ME!!! READ EVERYTHING BEFORE YOU SIGN __________________