2015 new @ dealer? How would you negotiate?

[JakesKTM]

I know this sounds remedial, but in 30 years of riding I have never bought a bike at a dealership lol.

I found a 2015 DL650 brand new at a local dealership. They knocked $2500 off MSRP and asking $7900 - but I think it is still priced too high. There are Gen 2 DL's all over the internet for $5k.

What is the profit margin when the bike has been sitting 4 years? Would they take a loss at any point? How does surplus inventory hurt their bottom line?

 

[ScottRNelson]

They are already taking a loss on the bike. All you can do is go in there and offer what you're willing to pay and wait for them to say yes or no. A good dealer will then explain why they can't go quite that low and come back with their counter offer.

So why don't you just buy one of the $5000 used ones from the internet?

 

[fubar929]

If they were willing to take a loss, the bike would have been sold 2-3 years ago. Clearly they don't understand, or don't care about, sunk costs and/or cost of inventory.

As with any negotiation, your best bet is to figure out what the bike is worth to you, offer that amount, and walk away if they won't meet your price. But do be realistic: if your goal is to buy a brand-new bike for the same price as a 4-year old used bike that isn't likely to happen.

 

[sckego]

They are already taking a loss on the bike. All you can do is go in there and offer what you're willing to pay and wait for them to say yes or no. A good dealer will then explain why they can't go quite that low and come back with their counter offer.

Pretty much this. Figure out what you think is a fair OTD price (recognizing that that is going to include the tax and title fees that you'd otherwise pay at the DMV on a used bike), go in, and make an offer. They'll make you wait around 20 minutes and then give you a yes or no.

The only two bikes I've ever bought new at a dealer were 2/3-year old models at steep discounts. It's a great way to get a new bike!

 

[JakesKTM]

So why don't you just buy one of the $5000 used ones from the internet?

I'm considering it now. I like the XT and there aren't many used because the DL650 XT (obviously) was not a popular model. I might opt for a used farkled DL......

 

[mototireguy]

Work your realistic price number.

Go there in person, no negotiations over the phone.

Find the boss, sit down at desk. Politely drop pre-measured roll of cash on the table. Smile.

Keep talk to a minimum. Be ready to say thanks for your time and walk out without or with bike.

 

[jwb]

Work your realistic price number.

Go there in person, no negotiations over the phone.

Find the boss, sit down at desk. Politely drop pre-measured roll of cash on the table. Smile.

Keep talk to a minimum. Be ready to say thanks for your time and walk out without or with bike.

I know a guy who bought a Lambo this way. He worked out what he wanted to pay and dropped off the check and his offer at the dealer. It was almost six months later but they eventually accepted it.

 

[TheRiddler]

I've only bought cars from dealers, but it's always been pretty simple. Go in with a set dollar amount and don't change unless a variable changes. I usually have a trade in, go in telling them, "I want X for my trade in, and I'm willing to buy your car for X." My last car I bought this week. The dealer was able to meet me within $300 of what I wanted, so I bought it. If they were off by $500, I was going to walk.

 

[cheez]

Work your realistic price number.

Go there in person, no negotiations over the phone.

Find the boss, sit down at desk. Politely drop pre-measured roll of cash on the table. Smile.

Keep talk to a minimum. Be ready to say thanks for your time and walk out without or with bike.

+1. My father in law taught me the same technique- walk in with an offer in mind, write down a stock number, your offer, your name, and your phone number on a piece of paper, and say "Call me when you're ready to sell me this car at that price." He never once had it fail, and I haven't either (got my Jeep for nearly $5k off MSRP that way.) If they call and try to talk you up, say "my offer stands, call when you're ready to accept it." Don't be rude, just don't negotiate.

Good luck- sounds like a deal to be had to me.

 

[jumph4x]

LOL at those 2015 DL650 prices. Catch me sponsoring the lack of R&D on that with my wallet, hahaha...

 

[Izzy_C]

Make sure they come down a fair bit, cause that face

is truly only something a real weestrom enthusiast could love... :teeth

 

[dmfdmf]

I know this sounds remedial, but in 30 years of riding I have never bought a bike at a dealership lol.

No shame, despite the posturing by some... we all start from zero.

I found a 2015 DL650 brand new at a local dealership. They knocked $2500 off MSRP and asking $7900 - but I think it is still priced too high.

MSRP is meaningless, it is a negotiation anchoring price in their favor and, yes, way too high.

There are Gen 2 DL's all over the internet for $5k.

That is the proper negotiating point. That 2015 has been sitting at the dealership for 4-5 years. Apart from a wreck, sitting for years is the worse thing you can do to a bike. You'd be better off buying used or a Gen3 if you want new.

I had a 2007 DL650 (Gen1) with 90K miles and upgraded last year to a used 2014 DL650 (Gen2) with only 3K miles for $5K with well over $2K in upgrades (that I wanted or could sell). I did not know at the time but Suzuki botched the redesign. Get the Gen1 or Gen3, PM me for details.

What is the profit margin when the bike has been sitting 4 years? Would they take a loss at any point? How does surplus inventory hurt their bottom line?

This is none of your concern. Their asking price is comparable to what you could pay for a Gen3 which is a better bike and much higher than a fully-farkled, used, low-mileage Gen2 bike for $5K. As others have suggested, you could low-ball them (relative to THEIR price but not the market) and see if they bite. $6000-ish OTD (out-the-door, i.e. including tax, license, dealer prep, etc.) for a new, bone-stock Gen2 2015 wouldn't be the worst deal but a) they probably won't do it but it never hurts to ask b) for $9K-ish you could have a new Gen3 and c) you could find a better deal for $5K on the used market.

Also, these are budget (but good) bikes and unless you have money to burn there is no reason to buy new and a Suzuki warrant isn't worth that much anyway which is all your really get buying new.

 

[artyom666]

I've only bought cars from dealers, but it's always been pretty simple. Go in with a set dollar amount and don't change unless a variable changes. I usually have a trade in, go in telling them, "I want X for my trade in, and I'm willing to buy your car for X." My last car I bought this week. The dealer was able to meet me within $300 of what I wanted, so I bought it. If they were off by $500, I was going to walk.

Last 2 times I bought new cars my Credit Union got me 1.5 and 3k under of what I thought was a great deal and what I was able to negotiate myself.

Wait until after xmass, The only new motorcycle I ever purchased was almost 2 years old and I got huge discount (at Livermore bmw/ktm).

Used bikes from private seller are always better, just the sales tax thing alone can pay for fancy suspension

 

[kuksul08]

LOL at those 2015 DL650 prices. Catch me sponsoring the lack of R&D on that with my wallet, hahaha...

:x

 

[davidji]

Used bikes from private seller are always better, just the sales tax thing alone can pay for fancy suspension

I pay sales tax on whatever I buy: new or used from dealer, used from private party. For the latter, I pay when I transfer the title. Maybe that's why so many buyers skip that step, and the seller gets tickets or impound notice well after the sale.

 

[yzsofst]

I pay sales tax on whatever I buy: new or used from dealer, used from private party. For the latter, I pay when I transfer the title. Maybe that's why so many buyers skip that step, and the seller gets tickets or impound notice well after the sale.

Not uncommon for folks to fudge the sale amount on DMV paperwork to save a good amount of money on taxes. Dealers won't do that.

 

[ScottRNelson]

Not uncommon for folks to fudge the sale amount on DMV paperwork to save a good amount of money on taxes. Dealers won't do that.

Honest sellers won't either. :x

When I sold my KTM 990 Adv, the buyer asked me to adjust the price and I told him that just like I wanted to be 100% honest with him about the bike, I had to do the same on the paper work. He accepted that.

 

[Alan_Hepburn]

Another reason to be honest on the paperwork: if something goes sideways on the transaction and a court gets involved all you'll have for proof of payment is the official paperwork...

 

[banshee01]

I typically will give the seller close to 1/2 his asking price on the bike and close to 1/2 his asking price for any aftermarket parts on the bike. With the title and Bill of sale to reflect these two separate transactions

 

[Izzy_C]

Honest sellers won't either. :x

When I sold my KTM 990 Adv, the buyer asked me to adjust the price and I told him that just like I wanted to be 100% honest with him about the bike, I had to do the same on the paper work. He accepted that.

Or an honest seller would understand taxing a sale between two private citizens is bs and would help ya out.

The sole fact that vehicles and their ownership changes are documented means the Government can step in and tax the sale... if only they spent the sales tax on improving vehicle related services (DMV/roads/safety/etc) :rofl

You don't pay tax when you sell an electronic good privately... those can be expensive too, as much as some bikes :thumbup