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Fees on dealer bike

Discussion in 'General Motorcycling Discussion' started by Bernard17, Apr 5, 2016.

  1. Ok so after reading the thread about the establishment fees it got me thinking. What other fees are there involved ontop of the bike itself when buying from a dealer. Im about to get my first bike (second hand drz400) from a dealer with finance and im sure there would be a few people wondering what they would be up for in fees and that when buying from a dealer. If you have brought from a dealer and dont mind posting. What woyld a list of fees and prices for them that you paifinanceyou got your bike. See if we can get a list going so people can see if they are getting reamed or a good price on them.

  2. I don't know if there are that many hidden fees from the dealer side. Just ask to see the entirety of the paperwork to do with the finance side. Usually it's financed through an outside organisation or bank partner so you'll probably be directed there.
    I'd be doing my homework on the finance terms, any penalty for early pay out and what your obligations are in terms of payments and what should happen if you default.
    Check if there are extra on road costs that the dealer hasn't included in the sale price like registration transfer fees or stamp duty.
    I've never got a bike on finance but have had loans before and I imagine it's very much the same thing.
    • Agree Agree x 1
  3. I bought my last couple of bikes from dealers (no finance) and there haven't been any additional fees on top of the purchase price. Mind you, they were both used and I did the registration myself so transfer and stamp duty was all between me and the RMS.
  4. I have never financed a bike, but I have financed cars, and I actually have run the finance department at the car dealership that I work for.

    Be aware of things like Origination Fees. This is a fee that is charged by the seller of the vehicle and is essentially just a "free hit" and an opportunity to get a bit of gross back into a deal. Quite often there will also be transaction fees on a monthly payment. E.g., monthly payment is 256.63 + 6.00 ( just as an example ) so you might be paying 262.63. They call these bank fee's or account keeping fees. You usually cant do much about these ones

    If they try hitting you for loan protection insurance, GAP insurance or extended warranty, be aware that these items are added onto your loan BUT there is a large profit margin built into these policies and you can quite often negotiate a lower premium ( equals less profit for the dealer ). Also be aware that if they are added onto your loan, then you are financing not just the bike, but the insurance premiums as well - so then ponder my next point.

    Gap insurance is however sometimes a good product to buy. It protects you in the event of writing off the bike and the financed value being greater than the market value of the bike - so worthwhile considering especially if you are putting a heap of accessories ( or loan protection insurances ) on the bike at original purchase.

    Ask about early termination fees and how they are calculated. In the case of cars, loans are normally done over 5 year terms, and the early term fee ( that I know off the top of my head how is calculated ) is $550.00 at the end of the first month, and then pro rata's down by 1/60th of that each month ( so in this example about $530.00 by the end of 3 months )

    Sorry that its not more bike finance related, but its still all good info and shows some of the stuff that can be seen easily if you do enough digging.

    Oh, and if you see an origination fee ( or words to that nature ) you could always try pointing it out to the dealer just before you sign the contract. Odd on, the bike is already registered in your name at that point, and its gonna be more hassle than its worth for them to cancel a sale at this stage.
    • Like Like x 1
  5. Thanks. Thatll be pretty useful. Ill be doing the deal over the phone since im about 300km away from there but ill be sure to see how much i can knock off or get thrown into the deal. Good to know where they have their margins and what can be haggled down
  6. I reakon that bike is about $1000 over priced compared to what u could get it for privately. Have u thought about getting finance yourself and buying private ?
  7. I did look at that but being a first bike i am ok paying more for the idea that i can be pretty much sure it will be mechanically sound and probably get a warranty with it (not sure if you usually get one on a used bike) or buy one. Even though ill be doing my own maintenance on it if i get a lemon atleast it will be covered
  8. Up to u mate but on gumtree there are newer bikes than that with over half less klms. A bike like that would be better mechanically regardless if it's coming from a "dealer" or not.
  9. Well ended up making a deal at 4800 on road with 6months warranty. They were going to do the on roads at cost (approx 200 but didnt have rego to pay because it has current rego). They wanted 500 for a 12 month warranty (was not going to pay that). So got them to throw it in with a discount. Not too un happy about it. But probably go with a personal loan from a bank rather than through them since they want a 500 administration fwe for the finance plus about 700 for the finance company depending on who with. Westpac only want 250 establisment fee for reference