When in the market for a new motorcycle, you should always buy from a local dealer. Even though you can likely save some money by shopping around and buying from a dealer that is another state, a face-to-face deal is better. Below are some tips to follow before going to the dealer:
- Know what make and model of motorcycle you want to buy. You should always consider your what you wants and needs are. A good idea would also be to shop around via online ads or print ads and by calling other dealers to get a good idea as to what to expect in terms of price.
- Do you due diligence. Predetermine what your wants are. Be prepared to discuss specific bikes with a salesman.
- Go to CycleBuy.com and find out what the dealer invoice price. The typical profit the dealers are going to look to me is 10%.
- Other fees involver with buying a new motorcycle include documentation fees, setup fees, dealer fees and taxes. There is no formula for determining what the profit margins are for these items, but it is typically between 5-15%.
- The dealer is likely going to look to sell you 'extra', i.e. an extended warranty. The purchasing of any type of extra is going to be at your discretion. It is important to note that the dealer makes money off of these 'extra'. So, you may be able to find a better deal on a warranty by looking for on your own, online.
- If you are looking to trade-in your old motorcycle for a new one, make sure you go to KBB and find out what the value of your bike is before going to any dealers. However, keep in mind that you will most likely get much more for your bike if you sell it privately.
- Be ready to negotiate! Remember, dealers typically will make a 10% profit on any bike they sell. So, if you know what the dealer price is, you know what you can negotiate for the final price.
- Paying cash for your bike will save you money. If you can not afford to pay for the entire purchase price in cash, leave as large of down payment in cash as you can, and finance the rest. The more you pay for your downplaying, the less your monthly loan payments are going to be as well as the amount of total interest you pay for your motorcycle.
- Always look to play hardball with the dealer. Try and get some extra perks out of them, i.e. free repairs, apparel, accessories, etc..
Regardless of what source you choose for your motorcycle purchase, we can help you secure the financing you need. We provide low rate motorcycle loans for people with good and bad credit. Learn more about the motorcycle loans we offer, or apply now.