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Knowledge is Power When Buying a New Motorcycle
So you've decided to buy a new motorcycle! What an exciting time this can be especially when you go into a dealership with a little bit of knowledge! It is important to know what you want, and to make sure your motorcycle fits your needs. Do your homework and understand completely what you're looking for before you talk to a salesperson. There is a great web site called CycleBuy.com where you can find out the dealer invoice price and obtain a report on each bike. Remember the dealer is in business to think money and he will try and make at least 10% profit on your sale. Some of the more common fees are set-up fees, documentation fees, destination charges and taxes. It is difficult sometimes to find out what a dealership's profit margin is, but it is somewhere between 5 and 15%.
Also know that the salesman will always try to sell you extra items including an extended warranty and all the accessories, because obviously the dealer makes money on this, too. It is a personal choice on which accessory or additional item you would like. If you are doing a trade-in, remember to do your homework as well. Check out this web site, www.kbb.com (Kelly Blue Book), as this will tell you what the price of the vehicle is when either selling it outright or trading it in. Try keeping the rule in mind that the dealer always wants to make at least 10% profit on each deal, so doing your homework means you may be able to talk them down substantially.
Most dealers are favorable to cash deals, but if you are financing try to put down a good portion of that in cash. You may want to use a personal line of credit or get a pre-approved loan from a lending institution before approaching a dealer. Some dealers may have low percentage loans they can offer you on certain models, and this may definitely influence your decision. If you sell your bike privately rather than trading it in, you are probably going to get more for it. Remember, the dealer wants to work with you so play hardball with him. Give them some of your other business such as riding gear and accessories as this can be used as a bargaining tool. After you will finalize the deal, you can almost always get them to sweeten it a bit more by throwing in the helmet or a jacket, since the salesperson has spent a lot of time and doesn't want to lose the sale.
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