Son crashed a bike on test ride, dealer deal legit?

[kurth83]

So my son crashed a bike on a test ride (brand new). $1600 worth of damage (low-speed drop at a stop-sign). They sold it to him and promised a buy back in 30 days at $2,000 less than the new price if he didn't like the bike.

It's a good bike for him I think, but is this deal they offered him a legit thing? I never heard of anything like it before. I also expect he eats the sales tax, so its more than a $600 loss.

This is in michigan by the way. The bike is a Harley Street 750. He is short, enough that he can't ride most bikes without significantly lowered suspension, hence looking into cruisers.

I had a Street 750 once, I really liked it except for the suspension, which doesn't seem to bother him, he's young and healthy.

 

[AhmadGSXR]

Never heard of it before but it kind of makes sense on the dealers end. They sold it to your son but if he does not like it he can return it and get a refund but -$2000. Now for the dealer, they would have to pay $1600 anyways to repair the bike (cosmetics or whatwver), but they are relying on him liking the bike and keeping it. Its a win-win for the dealer, seems to me the dealers pressured your son to buy it so they dont take the loss. And now even if he returns it, (if they are legit about this) they will repair it and sell it $2k less then msrp, they lose nothing.

 

[nakedape]

So my son crashed a bike on a test ride (brand new). $1600 worth of damage (low-speed drop at a stop-sign). They sold it to him and promised a buy back in 30 days at $2,000 less than the new price if he didn't like the bike.

It's a good bike for him I think, but is this deal they offered him a legit thing? I never heard of anything like it before. I also expect he eats the sales tax, so its more than a $600 loss.

This is in michigan by the way. The bike is a Harley Street 750. He is short, enough that he can't ride most bikes without significantly lowered suspension, hence looking into cruisers.

I had a Street 750 once, I really liked it except for the suspension, which doesn't seem to bother him, he's young and healthy.

Do they have insurance for this? If I was the dealer he would eat it. Which it sounds like he is doing. Dropping a bike that doesn't belong to you is pay up time. Were you and him expecting a different outcome? Sucks but pay your dues.

 

[bmwbob51]

I sold a new bmw to a guy that dropped it in the parking lot after test ride. Only minor cosmetic damage and he bought it after the normal price negotiation, but he did feel obligated!

 

[AhmadGSXR]

I sold a new bmw to a guy that dropped it in the parking lot after test ride. Only minor cosmetic damage and he bought it after the normal price negotiation, but he did feel obligated!

As he should. If I drop a bike I am test riding, I am buying it.

 

[Marcoose]

Dunno. A dealer is a business with business insurance. I’m thinking of the dozens of bona fide businesses I frequent. If I damage something inside the establishment, they don’t make me buy it. It’s part of doing business. And that has happened. I think at the most I’d pay for part of their deductible. Buying from a private party is different. You break, it’s yours.

 

[Gary856]

You mean your son had to pay for the $1600 repair + $600 tax, + lose another $2k if he didn't like the bike within 30 days, so he'd lose $4.2k total?

 

[HadesOmega]

I would think it would depend on what your son signed before they gave him the keys. Some dealers are more strict than other like at SF moto they have you temporarily take out some credit before they let you ride. Could his insurance have covered it?

 

[Climber]

Apparently it depends on the state statutes as to whether or not the driver/rider insurance comes into play.

"The customer's insurance can come into play, depending on state statutes and whether or not [their] coverage is considered primary or the dealership's coverage is considered primary, and that's different across the country," says Willoughby.
Source

Of course, a dealership is most likely to look for the best deal for them self and will likely try to convince somebody like the OP's son to follow their plan without any legal advise on the subject. At this point, it's a done deal and regardless of how it's supposed to work in that state, he's now committed.

 

[danate]

I was on a Suzuki demo ride when someone crashed the GSXR 1000 and totaled it. They didn't bat an eye and told the rider they were glad he's okay and sent him on his way. Either their insurance covered it or they treated the loss as a cost of doing business.

 

[splat]

It’s only legit if it’s in the contact and signed.

If not, and in 30 days your son decides he doesn’t like the bike, the dealership might offer him 5k less and he has no recourse in the matter. Your son has the answer in his possession.

 

[kurth83]

To clarify, the total loss is $2,000 + tax to my son if he takes the buy-back option. I also thought the deal was reasonable, it was just something I never heard of before.

And yes, they are obviously hoping he keeps the bike.

He has 2k miles under his belt, so a total noobie, first bike was a honda cbr250, it was substantially lowered 2" so he could ride it.

I like the bike so I think he should keep it. Trying to talk him into screamin eagle level 1 upgrade, ups torque about 20% on that bike, worth the extra grand IMHO, replaces the scratched muffler too.

Engine guards are his first priority upgrade, he is worrying about dropping it again. I am thinking about a set of clearwaters for his xmas gift now.

 

[Map8]

I was on a Suzuki demo ride when someone crashed the GSXR 1000 and totaled it. They didn't bat an eye and told the rider they were glad he's okay and sent him on his way. Either their insurance covered it or they treated the loss as a cost of doing business.

Was this a factory demo ride or a dealership? Insurance and costs would be much different for a dealer than a factory demo ride.

 

[dravnx]

I couldn't imagine damaging someone else's property and not covering the cost of repair. Insurance isn't free and the premium price is based on many factors, one of which is the cost and number of claims. You break it, you pay.

 

[maidenfan84]

Michigan born and raised. Definitely a dealership making that offer and not a state legality. It all boils down to if they're good on their word

 

[ctwo]

To clarify, the total loss is $2,000 + tax to my son if he takes the buy-back option. I also thought the deal was reasonable, it was just something I never heard of before.

And yes, they are obviously hoping he keeps the bike.

So, it sounds like he paid full MSRP for a dropped bike?

I'd bet the dealer wouldn't mind either way. Get the bike back for $2k less than they received, then file an insurance claim and be $2k ahead, then sell the bike at $1k under MSRP for a total profit of $3k over whatever their base profit would be.

 

[295566]

I was on a Suzuki demo ride when someone crashed the GSXR 1000 and totaled it. They didn't bat an eye and told the rider they were glad he's okay and sent him on his way. Either their insurance covered it or they treated the loss as a cost of doing business.

Bet you that guy ended up buying a Suzuki at some point in the future. That's good PR. :thumbup

 

[Marcoose]

I couldn't imagine damaging someone else's property and not covering the cost of repair. Insurance isn't free and the premium price is based on many factors, one of which is the cost and number of claims. You break it, you pay.

Reading OP's account, it isn't 'someone else's' property. It belongs to a corporation. (I know, 'corporation are people, my friend', right, Mitt?) Corporations carry business insurance. That's different than a private party buy/sale.

I'd like to hear from BARF auto/bike dealers how often collisions happen. There are tens of thousands new and used cars sold daily in America. Something tells me that collisions and crashes during tests happen all the time. But I don't know.

 

[dravnx]

Lots and lots of dealerships are family run businesses that are also incorporated. It doesn't matter though. It's a matter of personal integrity. You broke it, you fix it.
When a business suffers a loss, they have to weight what the loss will cost them when the deductible is factored in. In this instance, it probably would costs less to pay out of pocket, so someone has to lose.

 

[Marcoose]

It's a matter of personal integrity. You broke it, you fix it.

You're saying you go to a museum, accidentally damage a Picasso, and you pay to fix it. Sure. :rolleyes I really, really, really want to see you do that. Lol. Personal integrity ... :rofl