Dealer Markup right on the 2017 pricetags
#61
10-05-2017, 11:29 AM
Two points. My neighbor didn't want a 2018 because he didn't like the new motor. So there is some thought out there that if you want a new Harley get a 2017 while you can. That would explain the dealer markup. Limited supply and good demand.
Also when I bought my bike recently, I was surprised at the high cost of dealer added fees. I always deal in OTD pricing so I don't care how they get there but the fees were way over the top.
Also when I bought my bike recently, I was surprised at the high cost of dealer added fees. I always deal in OTD pricing so I don't care how they get there but the fees were way over the top.
#62
10-05-2017, 11:30 AM
Road Master
If the data at seedealercost.com can be believed, the 2017 'invoice' price of a 2017 Ultra Limited is 22,139. The MSRP is 26,999 so adding 3,500 makes the asking price 30,499.
The markup, in %, would then be 30,499-22,139 = 8,360 or 8,360/22,139*100 = 37.8%
This is assuming the ever so popular 'prep fee' and 'paperwork fee' is in the 3,500 tack on upcharge. If those are on top of this number the obscene markup just went more obscene.
It is my wholehearted opinion that the Chevy dealerships killed the Camaro when they stopped making them back in 2002 with similar pricing strategies. At the time of the cancellation the Mustang starting point was $16k and the Camaro started at $25k and the Mustang was outselling the Camaro in a month what the volume on the Camaro was all year. I stopped at a Chevy dealer on my way home from work to see what a triple black manual convert would cost me and the MSRP was something like $34k but there was $7,500 added on because the dealer felt like it..."take it or leave it." I left it. The car line was completely dropped in 2002. Meanwhile the Mustang GT convert down the street was carrying a discount from the MSRP.
I stopped at the local HD dealer to look at the 2017's this past July and they had a number of Ultra Classics and Ultra Limiteds. All had $450 'filing fees' and $1,000 'prep fees.' The Limited was over $30k and the Ultra Classic $28k. I asked what the fees were for and I was told 'non-negotiable, take it or leave it.' The salesman did point out how great I would 'look' on it though. I left it.
I have since discovered that the fees are an add on...HD pays the dealers to prep the bike and every car dealer in the State files paperwork as part of the processing without any charges passed on to the customer. The State does not charge special fees, especially that much, for a Harley to register it.
If Harley-Davidson is not careful the dealerships will drive the brand into the same hole the Camaro went. Unfortunately for HD there is not a huge shell of other models to carry the company while the one model is dead. As prices rise the sales fall accordingly; it is a viscous cycle.
Spending a little time on that dealer cost site is illuminating. BMW's have very little mark up between MSRP and Invoice, maybe the least. The new Star Venture and Goldwings have more than the BMW's but far less than HD. What a conundrum this is going to cause if sales continue to fall for the Company.
The markup, in %, would then be 30,499-22,139 = 8,360 or 8,360/22,139*100 = 37.8%
This is assuming the ever so popular 'prep fee' and 'paperwork fee' is in the 3,500 tack on upcharge. If those are on top of this number the obscene markup just went more obscene.
It is my wholehearted opinion that the Chevy dealerships killed the Camaro when they stopped making them back in 2002 with similar pricing strategies. At the time of the cancellation the Mustang starting point was $16k and the Camaro started at $25k and the Mustang was outselling the Camaro in a month what the volume on the Camaro was all year. I stopped at a Chevy dealer on my way home from work to see what a triple black manual convert would cost me and the MSRP was something like $34k but there was $7,500 added on because the dealer felt like it..."take it or leave it." I left it. The car line was completely dropped in 2002. Meanwhile the Mustang GT convert down the street was carrying a discount from the MSRP.
I stopped at the local HD dealer to look at the 2017's this past July and they had a number of Ultra Classics and Ultra Limiteds. All had $450 'filing fees' and $1,000 'prep fees.' The Limited was over $30k and the Ultra Classic $28k. I asked what the fees were for and I was told 'non-negotiable, take it or leave it.' The salesman did point out how great I would 'look' on it though. I left it.
I have since discovered that the fees are an add on...HD pays the dealers to prep the bike and every car dealer in the State files paperwork as part of the processing without any charges passed on to the customer. The State does not charge special fees, especially that much, for a Harley to register it.
If Harley-Davidson is not careful the dealerships will drive the brand into the same hole the Camaro went. Unfortunately for HD there is not a huge shell of other models to carry the company while the one model is dead. As prices rise the sales fall accordingly; it is a viscous cycle.
Spending a little time on that dealer cost site is illuminating. BMW's have very little mark up between MSRP and Invoice, maybe the least. The new Star Venture and Goldwings have more than the BMW's but far less than HD. What a conundrum this is going to cause if sales continue to fall for the Company.
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randyp (10-05-2017)
#63
10-05-2017, 03:53 PM
This is just one dealer and many more are doing it. A $30,649 bike for $23,777. Can you imagine being the poor sob who paid msrp last July.
I like this 2017 Springfield at $3,572 off msrp for $18,777 https://www.sincityindianmotorcycle....=xNewInventory
Local Harley dealers are discounting 2017 models up to $3,500.
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