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Old 01-29-2009, 10:17 PM   #1 (permalink)
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Dealer Cost

Anyone have any idea what dealers pay for Ultra Classics from HD? Was curious on how much money they make on a sale.
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Old 01-29-2009, 10:23 PM   #2 (permalink)
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Unless you own a dealership, you'll probably never really know the total truth.
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Old 01-29-2009, 10:29 PM   #3 (permalink)
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True. There's all kinds of factory incentives and agreements, depending on a host of factors, including I believe, results from owner surveys / research -- what they think of the dealership.

Regione... I can tell you are angling for the very best possible deal from your posts. Understandable. Would mention fwiw, a relationship with a dealership, not just based on price alone, can have its dividends over the long haul.
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Old 01-29-2009, 10:37 PM   #4 (permalink)
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Quote:
Originally Posted by sfarson View Post
True. There's all kinds of factory incentives and agreements, depending on a host of factors.....
Every month a bike sits on the floor, a dealer has to pay interest. Every month, the amount a dealer has in a vehicle, unless he owns it outright, increases. As the price increases, (total in that vehicle) the dealer needs to move it, cutting his profit margin.

If dealers didn't make anything, they go out of business. Volume and what bikes he sells makes a difference as well. It almost depends on each vehicle.....and that month's sales, I guess....
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Old 01-29-2009, 10:48 PM   #5 (permalink)
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Yeah. I think there's also incentives for the dealership facility... quality and location. A dealer told me several years ago they had to relocate out to the suburbs, and no longer be in the cramped confines of the inner city, that they would face certain wrath from Milwaukee if they didn't do so. Also, buying a new bike or two the past several years, they were very nervous about what I would say on the owner satisfaction survey following the purchase. They wanted to know if there was anything I was going to note that wasn't the highest score, for it was going to effect the financial relationship (and product availability) with Milwaukee.
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Old 01-30-2009, 12:33 AM   #6 (permalink)
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Dealer hold backs, wholesale finance and interest to include curtailments there is certainly a lot to it..
Note "curtailments"
In wholesale or inventory finance a dealer can finance 1st years finance charges on order inventory and has a year to try to move the product before payment on principal is due (usually 10% each month till the unit is paid off should the dealer not sell the inventory) and of course out of pocket or bottom line profit to interest.
I tell you this as you look at a bike try to find out what is aged inventory IE 08 model still on the floor for 09 cause a dealer will more apt to work with you on that bike than say an 09 with 2 mos on the floor.
This is how I buy all my vehicles so I can get a mini deal on the sale, regardless of what they say if you pick out the right vehicle you can negotiate "below dealer cost" cause if the dealer is worth a damn and moves inventory they make the majority of their profit on back end monies.
Factories bonus the dealers on volume sales annually IE back end money and the figures are astronomical..
That being said you have bargaining power on units coming due for curtailments or principal payments.
The only place I could find on the net where you could get dealer cost on HD anything charges $20 a report for the bike you are interested in.
Normally I wouldn't waste the $$ but in today's eco climate coupled with HD's crappy position 72% (?) income from financed receivables they can't sell (securitize) having your own finance source and looking for aged inventory you might just save a few grand..
Or at least get some free goodies!
http://www.cyclebuy.com/invoice.htm
Good luck and let us know how it turns out
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Old 01-30-2009, 05:20 AM   #7 (permalink)
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thanks for all your input, yes i am trying to get the best deal possible, hard to put out 27k for an '09 out the door when i can get a used '08 with 4k miles and 4 yrs left on extended warranty for 19k. was trying to figure if i could "negotiate" with the dealer to get an '09 at msrp but somehow get them to roll in the extended warranty (7 yrs). It wouldnt feel so bad getting an '09 out the door for 25k. I really hate negotiating (not very good at it) so want to get as much info as possible.
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Old 01-30-2009, 06:00 AM   #8 (permalink)
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Noting some of your previous posts I can tell you the 08 you mentioned is gonna handle better in "Slow speed manuever". Especially as it applies to turn radius.
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Old 01-30-2009, 09:24 AM   #9 (permalink)
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Quote:
Originally Posted by Regione View Post
thanks for all your input, yes i am trying to get the best deal possible, hard to put out 27k for an '09 out the door when i can get a used '08 with 4k miles and 4 yrs left on extended warranty for 19k. was trying to figure if i could "negotiate" with the dealer to get an '09 at msrp but somehow get them to roll in the extended warranty (7 yrs). It wouldnt feel so bad getting an '09 out the door for 25k. I really hate negotiating (not very good at it) so want to get as much info as possible.


check out this thread - and my post -
Negotiating with a H-D dealer.
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