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Negotiating Best Price on a New Bike

Discussion in 'Bike Reviews, Questions and Suggestions' started by Fragbait, Apr 1, 2009.

  1. Hi guys and gals, looking for some advice about negotiating for price on a new bike from a dealer. My understanding of the profit margin on a new bike is rather non-existent so I don't know what is reasonable to ask for and what is simply outside the realm of possibilities.

    I understand that businesses need to make a profit to keep running and I don't begrudge that at all. Of course, any money I save on the purchase of a bike is money I can use on petrol for enjoying my new purchase. Plus the economy is on a bit of a backwards slide right now so I don't want to spend more than I really need to if I can help it.

    Now I've heard a lot about the car industry which is pretty much on its knees and no doubt they are willing to cut some pretty impressive deals simply to keep stock turning over and to help cash flow, but is the same true of the bike industry?

    1. If I'm looking to spend 10-12K on a bike is it unrealistic to expect the dealership to suck up the ORC?

    2. What sort of price saving should I expect if I'm buying a 08 model instead of an 09 one?

    3. Am I better off trying to negotiate to have some extras thrown in for the same price rather than try to work the price down?

    4. Can I get everything, cheaper price, free ORC and stamp duty, plus a couple of cheap extras?

    5. How difficult is it to buy a bike from another state and then simply have it shipped down to me and transfer the rego? For example, I've seen some good deals in QLD so could I get the dealer there to register the bike and cover all the ORC then ship it to me here in VIC then transfer the registration? Is this going to cost me more than I think or be more hassle than it's worth?

    If there's anything else that I've neglected to ask about feel free to throw it out there for me!
  2. Mate, I'm in the same pickle as you. I've resorted to even sending offers to dealers via email, that are up to $900 below sticker price (in the case of used bikes). In some cases, I've actually succeeded! - Especially with out-of-state dealers.

    I think it has a lot to do with the circumstances of the dealer, i.e. whether he's pressed to move stock or not, and the bike itself.

    By the way, I use email since it's less likely that they'll remember me as a low-baller if I show up in person :LOL: :LOL:
  3. Most of you questions depend on the bike in question. If you're buying from interstate you really don't need to get it registered in the state you bought form, in fact it's probably more hassle, as when you get it back you will need a RWC for the state you're in to transfer ownership & re reg. You won't necessarily get a refund on the old rego either.

    You can use that to get the bike cheaper, as the interstate dealer doens't have to organise the rego etc. This can have disadvantages too, as it may not be roadworthy when you get it!

    If you have the money now, your best bet would be to visit a few local dealers & get a feel for what they're willing to do for you. It's your money, you should get the best value for it. You may get your on roads covered & some discounts on gear, but really it will depend on the salesman & the bike in question. If it's a popular bike you won't get as good a deal as a run out or 08 models being cleared out for 09 models...
  4. A lot of the time if you make a firm offer within the last few days of the month they will be more willing as it will normally help them make their sales budgets. I haven't bought a new bike (only just bought my first learner bike yesterday) but still negotiated a reasonable deal. Offered the price I thought was fair, said I'll give you a deposit right now. Was at the end of the day, last day of the month. Calculated a few numbers & said yes. Deal done.
    I had been to the dealership the last two days so they new I was serious also. In the end the salesman will tell you whatever he likes to get the deal. You tell him whatever you like to get the price you want. It doesn't have to be the cheapest, they still have to make something, just a fair price.
    It's really just one big game as to who will fold first.
  5. Main thing is you have to be happy with what you pay for it. If not, you will always have a little bit of hate for it, thinking 'I could have paid less, or I could have got 'x' bike instead'.

    Just walk in, ask what the best price they can do is, say you have cash and are ready to buy. If they start craping on about how much would you like to pay or think its worth, either be stupid with an amount and see how you go or just walk. If they can't give you a price walk. My opinion anyway, I really hate that tatic.
  6. I think that's the most important thing.

    The prices are small for a bike and so are the discounts on mainstream bikes. I just say give me a good price and i'll buy on the spot. If i think it's a good deal, i buy. Providing i didn't get ripped off i'm happy, if someone pays $800 less than me, good on them.

    Cars however are a whole different kettle of fish. Lots of running around, dealer against dealer because the discounts are much larger. We managed to get $10k off the new car we just bought .... i should buy another bike to celebrate :grin:
  7. I think they have at least a grand profit, they will usually put it on road for retail. Then try for some gear free or at cost price.
  8. that depends a lot on which bike and who the dealer is..

    some dealers quote their "on road costs" as high as $1500.. while other dealers will quote their on road costs as just that - 2.5% stamp duty and rego.. none of this plus p.d. and dealer delivery bullshit..

    but that will all change soon as all advertised and quoted prices will by law be required to be ride away prices.. none of this plus on road's shit which some use to increase the margin..

    anyway - back on track.. most mid price bikes i.e. around the $10-$15K range will only have around 10% profit in them.. so asking for a $1000 off is usually not going to happen.. but no harm in trying

    go get a few prices from dealers and IMO always go back to your closest dealer again for the last shot at a deal.. because dont forget that you are also buying "a relationship" with your dealer.. where they will continue to look after you with servicing and any further gear you require down the road..
  9. Just wanted to post an update and say thanks for everyone's advice. I thought that dangerous_daveo gave some very sage advice: Main thing is you have to be happy with what you pay for it.

    I know for a fact that with a little more running around I could have got what I bought cheaper but that wouldn't have made me happy. I am happy with what I paid for the package and more so, I'm very happy that I supported an independant bike shop which has a solid reputation. Additionally they listened to my needs, gave advice when asked for it, and treated me with respect.

    That last part means more to me than almost anything else. By respecting me and my needs I also respect their need to operate an effective business and then be around for the next rider looking for quality service instead of just the lowest price available. Don't get me wrong, I still got a good deal but I can also sleep soundly knowing that I'm going to have a solid relationship with this dealer in the future.
  10. Fragbait,

    I'm glad you are happy with your purchase. I agre with your sentiments exactly.

    Nowadays I don't want the absolute best price, I want to deal with someone who is friendly, respectful and simply flexible on price. I like to reward good service with repeat business.

    If only I could find a Canberra delaership other than Joes (they don't sell the brabds I'm interested in) to treat me this way. :cry:

    enjoy the bike.

  11. well done mate.. another sale stolen from the Empire :LOL: .. and you have bought into a relationship whereby you will save more money in the long term with further discounts on all purchases
  12. Really? When is this coming in? This is very exciting news to me because I always thought the accepted way of quoting prices was such a b***t and a rip off! About time someone did something about this.