Mexico "Powerhouse" dealers....

Discussion in 'Latin America' started by John Ashman, Jun 12, 2015.

  1. John Ashman

    John Ashman Adventurer Wannabe

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    It's actually not that big of a difference in reality. That bike is $24,000 retail, so that makes it 434,300 with the obligatory tax in Mexico, and they're listing it for 457,000. So that's about $1500 higher than it should be. You can bet that a $24,000 bike is going to get at least a $4000 tax, minimum.
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  2. John Ashman

    John Ashman Adventurer Wannabe

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    As another example, the NC750X w/DCT/ABS, less the 16% tax, is only maybe $200 more than the NC700X w/DCT/ABS.
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  3. dwj - Donnie

    dwj - Donnie Long timer

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    Are you saying the price on the website is not the sales price? Because if it is, comparing that price to the 'list" price in the US is not a valid comparison. Goldwings are heavily discounted in the US. I have owned three Goldwings in a prior life. :D I would never ride one down here unless it was the only thing I had. :deal

    BTW. I hope what you are suggesting is correct! I live in Mexico and have my KTM temporarily imported and plan to keep my major moto that way, however, having one or two other motos would be nice! I had five motos, including a Goldwing, before I moved down here.

    One other comment on behalf of Italica. They are Chinese parts assembled in Mexico as I understand it. Are they the same as all the other Chinese motos??? They are 55 to 60% of the market down here. The Mexican folks are poor, but they are not stupid, so I think Italica must be doing something right or at least better!
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  4. pax maac

    pax maac Been here awhile

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    I wouldn't count on that happening any time soon, if ever. The peso moves in one direction, and it ain't backwards. It was 8.95 when I got here in 2000 and all the old timers at my work all talk about the glory days in the 80's when it was 3 to 1. Never again I'm afraid, although I hope that I am wrong this time.

    Edit- Here's a link to Forbes Mexico that talks about why we're headed to 17 to 1 soon. It's in Spanish.

    http://www.forbes.com.mx/grecia-y-alza-en-tasas-de-la-fed-llevaran-al-dolar-a-17-pesos/
    #44
  5. John Ashman

    John Ashman Adventurer Wannabe

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    Well, sure there is more competition in the US if you can get a discount. The problem here is that there is only one dealer for the bigger bikes thus far and the Mexican business pricing strategy is generally "love it or leave it". They would rather lose a sale that offer a discount. Which is weird since poor people haggle all the time. But Mexican businesses are largely owned by rich Mexicans who were rich at birth and don't care less about your money issues. I haven't tried negotiating on a bike though, so we'll see. I need to make sure I have all of my $$$ in a row before I make the attempt.
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  6. John Ashman

    John Ashman Adventurer Wannabe

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    Yeah, it's totally about availability. I'm waiting for these things to be sold in OXXOs. They are everywhere else.
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  7. pax maac

    pax maac Been here awhile

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    I tried once. At a Yamaha dealer. I had cash, they said "great, this is the cash price." Not willing to budge one peso off of their price. They watched me walk out and couldn't care less. It was the end of the year too, just a few days before Christmas. They couldn't have cared less.

    Also they had a "special offer" of 146,000 pesos with no interest financing. Or 130,000 if you paid cash. Doesn't that mean that you're paying 16,000 in interest to finance the bike? Always seemed so sketchy to me.
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  8. dwj - Donnie

    dwj - Donnie Long timer

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    Which means the price difference is $8,000 plus, which is what I said in the first place.
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  9. dwj - Donnie

    dwj - Donnie Long timer

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    My understanding from "net" research is the same fellow/family that owns Electra owns Italica. They started it. As far as interest, the 16,000 pesos suggested above for interest is way off! When you buy from Electra and finance for two years, you will pay approximately 40% per year. For the two year period, you will pay almost double the sales price. My girlfriend's nephew needed a moto while we were away on a moto trip. Upon returning and learning what he was paying, I loaned him the money to pay off the loan and he is paying me interest free. Most of the small furniture/appliance stores down here are the same way. :deal You will pay almost double in a two year time period. And this is for the regular "poor" Mexicans that have good credit, but that a bank would not give the time of day.
    #49
  10. pax maac

    pax maac Been here awhile

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    Interest rates down here are crazy, although to finance a new BMW you'll pay about 13%, not 40%. That number is based on personal experience from a few months ago when I got a quote on a bike.

    The numbers I posted about the Yamaha are not "way off". They are exactly how Yamaha offered it. 130k in cash, or 146k with "no interest financing". My gripe is that if they are charging an extra 16k to finance the bike then it's not interest free.
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  11. John Ashman

    John Ashman Adventurer Wannabe

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    Yes, but I was going off of retail price, because the deal you get at a dealer is obviously going to vary greatly. Unfortunately, in Mexico, rich business owners don't seem to care if you buy from them since they are already rich either way.
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  12. BobinBahia

    BobinBahia Lifelong M.I.A.

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    "The peninsula": B.C.? We live on a peninsula here in Brazil, as well. Unpaved, 90% sand, 250's here are just about right.

    But there are plenty of larger NEW bikes available here. The rate of exchange, last year R$2/USD, now R$3.10/USD- is very favorable.

    Come buy a bike and ride it back to Mexico. Might even be able to reduce the price significantly by applying to remove Brazilian IPI taxes and export it. :D
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  13. Grynch

    Grynch Long timer

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    I bought an Italika scooter last November in Acapulco for 13000 pesos ($1000 dollars at the time). It was on sale at Sams club, it is a copy of the Yamaha Zuma.We put 3000 kilometers on it in two months. We love that Chinese scooter. BTW it does an honest 95 kilometers per hour. http://www.italika.mx/Categorias/Motoneta/WS150/
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  14. acejones

    acejones Long timer

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    What the old timers didn't tell you was that before the peso was 3:1, it was 3000:1. They moved the decimal three places to create the "Nuevo Peso". Since then it has continued to fall to where it is now. I've been going to Mexico since I was about five. That's over 60 years and the peso has always been a bargain for Gringos.
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  15. Grynch

    Grynch Long timer

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    In November it was 13.5 pesos to the dollar now it is 16 pesos to the dollar.Things are not always a bargain in Mexico. Meat, milk, cost about the same.Mexico used to be a bargain.
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  16. kantuckid

    kantuckid Long timer

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    You failed on that statement and badly! Taxes are attached to vehicles in many ways and even the USA states that have the appearance of low taxes as maybe no property tax, they all get their share. Politicos work hard to get at your money !!! Vehicles are one of the main ways they do that. As this e.g. could go on practically forever I'll leave it hanging like that, as fact!
    Does that mean I'm saying the buying a vehicle approaches the many above e.g.'s-NO, not my point.
    FWIW, I've seen high priced MC's mentioned on ADV in several countries outside the Americas.
    FWIW, I was trolling here cause a son has some thoughts about a Colombian MC, kept there, rather than renting a car each visit.
    #56
  17. Grynch

    Grynch Long timer

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    My 2002 KTM 640 Adventure was about $1000 pesos for registration,and my Italika scooter was about $450 pesos. This was at the fiscal in Acapulco, last January.What I did not know at the time, is there is not a month sticker like in California, it goes by year. So when I bought the scooter in November we paid for a plate, One month later in January I had to buy another plate. Jalisco is a lot cheaper than Guerrero.
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  18. John Ashman

    John Ashman Adventurer Wannabe

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    Yes, I get that, but if you compare European and other countries' taxation on vehicles, the US tax rates are low, which is why many vehicles cost less in the US than in the country of origin. Mexico has a 16% tax on all vehicles as the minimum and many get slapped with another 5-10% or even more.
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  19. John Ashman

    John Ashman Adventurer Wannabe

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    Speeding ticket? Huh. I suppose it's possible. :huh

    I usually get that only as an excuse for attempted bribery collection. Did get stopped for running a red light and found out my license was expired by a few days at the same time. I gave the guy $7 "for lunch" and was on my way. I usually don't, but it was a legitimate stop.
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  20. John Ashman

    John Ashman Adventurer Wannabe

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    They make you use license plates? :eek1
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