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Interesting trade-in quote from Peter Stevens CBD

Discussion in 'General Motorcycling Discussion' started by jaguarfanster, Jan 17, 2012.

  1. Hey All,

    I went into Peter Stevens today, to check out the bigger bikes in the flesh, and get some new gear. Whilst I was there I thought of asking the sales fellow for a price estimate on my Spada. Basically he said to me that it was worth less than a $1000 since it had 34,000 ks. He also told me that a VTR250 circa 2002 was worth no more than $2000, and quote "he just bought one from a bloke a week ago". So I said to the guy my theft insurance amounts pays out $3600 on the Spada. He then said to me that insurance values, obtained from red book, are overstated, explaining that buyers generally claim higher values on sales receipts.

    .....Yeah because we all like to pay more stamp duty....for shits and giggles

  2. #2 jag131990, Jan 17, 2012
    Last edited by a moderator: Oct 24, 2015
    In my experience it has always been the opposite, I tell the insurance how much I paid and they slap 2 grand on and call that the agreed value. If the consumers are to blame for the price hikes I ain't contributing.. and I've never overstated

    I wonder who these people are that actually DO want to pay more stamp duty lol
  3. Whatever price he quoted you have to bear in mind that it will always be less than what the bike is worth. This is simply because they have to buy it cheaper than what it is worth to then be able to make money when they resell it at it's actual value.
  4. Yes of course, they're running a business. But blatant lying, cmon just be frank.
  5. No it's really not lying. It's simply a different definition of 'worth' to the one you have. I would have expected the spada to be a bit more because it now has entered the collectible phase, though maybe there's still to many of them. Simply it's not worth more than 2k to them to buy a vtr250 - I'm surprised it's that much in fact. And if you want to save the hassle of private sale to get a trade in, well that's the expense you pay.
  6. Well yes its not 'worth' for Peter Stevens to buy a vtr250 for more than 2k, because that would definitely eat into profits.

    For an idea of vtr250 pricing here's the bikesales link

    3k and upwards. They are a popular bike with learners. So yes a valuation of 2k is nothing more than a lie. Sure sellers up mark prices on bikesales but you will be hard pressed to make a seller offer a 33%+ discount, bringing the vtr to the mystical 2k.

    Also redbook values should be lower than the actual market price. This is purely due to buyers reporting lower prices to vicroads in order to save on taxes.

    At the end of the day, yes its easier to 'trade-in', and there's no such thing as a free lunch. But manipulating customers is another issue altogether.
  7. You are talking about Peter Stevens here,,, sooner or later they upset you , personaly i never belived any of the horror stories about them i heard over the years , i always figured that people don't relize there a buisness and its there job to make money .

    UNTIL a few weeks ago after agreeing on a trade in price when i went back to do the deal they changed the price , stating Triumph had dropped the price of my bike new , , but they had also dropped the price of the new bike i was buying ,
    So fair enough , i sell mine private , for a lot more than they offered , ( $ 4000 more )., so armed with the cash i rang up spoke to the salesman , and asked him to speak to his boss and gie me the BEST price they can do for a new bike ,

    I remind him this will be my FOURTH new bike in 3 years and i want a supa dupa deal , he comes back with a supa dupa price just for me because i'm such a good cutomer of excatly $1000 MORE than the advertized speciel they have on there show room floor .

    When i spit the dummy and ask him if he thinks i'm stupid , what do i get back , its , how much do you want to pay ,, what do we have to do to get your buisness .

    My answer was simple beat not match the best price i can get elswhere , why should we beat it he asks ,

    Simple i say , BECAUSE i should be a VALUED customer after buying 3 New bikes , approx 5 grand per bike in Accessories , 3 bikes serviced and no less than 3 tyre changes on one bike alone .

    Anyway when i tell him how much i can get it elswhere , he asks how can i prove it , simple i say look up on bike sales there ASKING not buying price ,

    What does he say , i spoke to the boss we cannot match it , so buy from them ,

    Err it was a Triumph there the importer , so someone they sell too, can beat them and they can't or rather WILL NOT come to the party

    Well from me its a big GET STUFFED , i will buy elswhere from now on
  8. It is an interesting point all this. All dealers want to make money, and I don't think that any particular dealership in general is worse or better than others.

    Redbook values are very different for trade ins and private sales, more so than for cars. The redbook value for my z750 was a lot more than the price I actually paid privately, so I do agree that private sales (at the moment) are cheaper to get than 'official' values. This is also supported by insurance companies accepting higher values for bikes as agreed values than most people pay for them (if bought privately).
  9. After reading through this, there certainly seems to be a lot of confusion between wholesale and retail. they will only pay you wholesale for your bike and the price they put it on the floor for is retail.

    No dealer will put your bike on the floor with the cost of rent, staff, insurance, electricity, intertest on stock blah blah blah, without having a margin of $1000-1500, it just wouldn't be profitable.

    No profit = no business.

    As far as Redbook goes, they don't buy bikes/cars. They utilise data from a number of sources not just insurance companies.

    Also, there is not much point in quoting bikesales because that is simply the price people want to get for their bikes. It doesn't show what the bikes are actually selling for
  10. Arrr - you expected honesty and a fair go from a used car salesman??
  11. Did you discuss a new bike in detail, take a couple of models for test rides, provide the sales rep with your name and contact details? Did you commence negotiations in a serious manner for a purchase?

    If not, then it seems like you got a curbside valuation, and it seems like he was just having a bit of fun with you?

    I live in Sydney so I don't know the dealer but if the realistic on sale price is the low 3k, your bike may a have a few hundred to tidy it up, it may need service for which there is a cost, they may have an internal "load" on all used bikes of a few hundred to cover overhead and floor plan, plus he has to factor in possible warranty......this may amount to one or more thousand. Then there's a profit to factor in plus he may have considered that you may negotiate so he's lowballed you by a few hundred to give himself some breathing space?

    Maybe I've read it wrong its possible you may have been hasty in being affronted.
  12. Oh man welcome to the real world. Most bike stores arent really interested in high K machine's and wholesale value versus retail is usually quite large. He's telling you the truth from his persepctive. If he just bought one for 2k the other week that is what they are worth to him. Peter Stevens would probably not try and re-sell such a bike but wholesale it straight on. Wait till you have bought a new car and come back to a dealer a few years later for a trade in price...then you'll have something to cry about hahahahaha. 2fiddy's are always in high demand mate, just sell the damn thing privately or suck it up and accept that 2k is what its worth to a dealer.
  13. An interesting scenario from a guy who purchased a "premium" brand bike but needed to sell it after only a couple of months due to circumstances external to the bike;

    His Purchase price -$31500
    Trade In Value (8 weeks and 3000k's later) $24000 (He was trying to sell it on bikesales for around $29500)
    He asked why? I explained to him what the bike actually cost the dealer
    Retail $31500
    Deduct On roads and Dealer delivery -$2000
    Dealer Margin - $4000

    Wholesale = $25500 for the dealer to buy a brand new one in a box so why would they pay the same price/more for his second hand one?

    A hard lesson but one that makes basic business sense.
  14. you a pay a large price for bypassing doing the hardwork yourself (selling privately)
  15. No it's not. It's simply worth nothing to PS if they part with more than 2k for it. Yes the redbook comment is rubbish but the evaluation of the bike isn't. Simple economics really isn't that hard to understand, the fact that something can be worth more or less to different entities really is quite straightforward.
  16. this is worth noting,
    find a bike more then 10yrs old for sale at peter stevens (harleys and collectibles excluded)
    why would they sell something there workshop wont touch
  17. Buy a new bike off the Internet, get it serviced by the Internet and mail order your gear online.
    go look at a 3d image on the Internet and experience prompt reliable info from forums and service providers.
    soon you can find love on the Internet.

    It's a bike shop, the staff work for nothing and the building rent is free, they also have a deal with free electric and no overheads , they don't even have to buy the bikes from the distributor cos they get them for free.
    Surely that's why they are the biggest bike shop in the country ?
  18. You speak sense, but HN is the largest retailer of electrical goods, it doesn't make them the best at what they do, just the biggest.
  19. fair point all I did feel kinda jibbed...Spada less than a k....geez
  20. I don't get it. he gave you the best price, you didn't like it and had found one elsewhere cheaper...What's the issue? Go buy it where you found it, there is no such thing as good will any more in business.
    I've had people come into my premises, I quote them and they proceed to tell me they can get it done cheaper elsewhere, I promptly suggest they get it done there, why should I discount myself to meet another price for no particular reason?

    Sums it up perfect. None of us go to work for free so why should we expect someone else to.

    LOL, I'd hate to see the rent bill on Elizabeth street, surely it's got to be 150-200k per annum. That's a lot of old clunker VTR's to sell!