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Old 09-18-2012, 06:17 PM   #46
JerryH
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Joined: Jul 2009
Location: Chandler, AZ
Oddometer: 4,798
I just bought a new Zuma 125 from a dealer. They tried to charge me a $395 freight fee, a $360 setup fee, and a $326 "doc" fee. This was on a new 2012 that they had on sale for $2729. I got $800 knocked off when I called their bluff, by explaining how things work "in the business" in words dealers use. At that point they knew I was "in on it" and no way was I just "giving" them $800. Dealers are much like carnival people. They are highly skilled con artists. To avoid being conned, you have to know how they operate. They still made a decent profit on that deal. Yamaha to dealer incentives made up the difference between the sale price and MSRP, they didn't lose anything, and the dealers profit margin is built into the MSRP. Those other things are considered "overhead", the dealers cost of doing business.

It is mostly Japanese and European motorcycle/scooter dealers that try to pull that crap. When I bought my new '09 Genuine Stella, I not only got a significant discount off MSRP, but paid less than $200 in fees, which included sales tax (10% here) title and registration. Kymco is the same way, as are Chinese scooter dealers.


Back in the '90s, Harley dealers were charging several thousand dollars over MSRP, PLUS fees. Harley Davidson Motor Company went to court to try and prevent this kind of thing, as it was ruining their reputation. They threatened to yank the franchise of any dealer caught doing it. And they won. Or so they thought. Dealers quickly found a way around it by titling and registering every new bike they got in, and sold them as used. Used bike don't have an MSRP, and there was nothing Harley could do.

The entire motor vehicle sales business if rife with fraud and false advertising, thats why they have such a bad reputation, even worse than insurance companies. I think it is something the Consumer Protection Agency should look into. They have caught a few, but they don't seem to realize the massive scale dealers are doing this on. I mean, $800 worth of fraudulent charges on an under $3000 scooter?
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I won't spend more on a bike than I think it's worth, but if it's a good deal, I don't seem to have a problem buying bikes I don't need.
2002 Vulcan 750, 2013 Royal Enfield B5
2001 XT225, 2009 Genuine Stella
1980 Puch moped
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Old 09-18-2012, 06:34 PM   #47
Domromer
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Joined: Mar 2004
Location: Charleston, South Carolina
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Yeah its a pretty shitty scenario. I used to work at a bike shop and the sales game was awful. This shop didn't give a rats ass about return customers all they wanted was to get bikes out the door. The shop used to be run by motorcyclists then it was bought by a group of investors. It all went down hill from there. I actually went to a competitor when I bought my xrl, that's how shitty the prices were. I couldn't even get a good deal as an employee. The fees, other than tax and title are complete bullshit. It's all profit. This is why I won't buy a new bike. Maybe there are still good shops out there I've never been lucky enough to find one.
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Domromer screwed with this post 09-18-2012 at 08:09 PM
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