Dealer Mark-ups over sticker price.

[Trailer Park Casanova]

I bought my son a new quad this week. The new Yamaha 450. This quad is a screamer on the dunes. Streets ahead of me on my 660 Raptor.
I got it for less than sticker,,, and it's a hot seller. The dealer could easily mark it up. Being a long term customer, I bought from this dealer back in the days when he couldn't give stuff away, so I usually get a break.
While the dealer was prepping the Yamaha for our delivery, I walked around and checked out the two wheelers.
Honda has released in limited numbers, an awsum 6 cylinder cruiser. I wish I had a pic,, this bike is beautiful.
The dealer wanted 4 grand over the $24.000 selling price.
I know it pisses people off,, but there are customers that like it that way.
I have a Dentist friend that always has the new model Corvette 6 months, sometimes a year, before anyone else.
Road & Track Magazine always mentions him in their new Corvette stories,, and usually features pic's of his 'Vettes too.
He pays way, way over sticker price for that privledge and is glad he can.
I won't ever pay it,, shop till I drop or lump it until the price of what I want comes down.
Any dealer mark up stories? We've all had our hearts set on something just to be blown away by a mark up.
I'm sure Ziggy has a story or two. I'd be interested to read his take on it.

[NorCal Gameshow]

the first mark up i remember seeing was the 84 honda crx .
how about the pt cruiser? now you see ads for thousands off the sticker..

[lynden]

TPC
I work at the local Honda/Yamaha shop here in town and markup is a bitch! My boss is somewhat of a crook, but he has been in business so long that people don't always realize that he is takin em to the hole! Sure he helps out his friends, but if you're joe blow, say bye bye to taht bankroll!!!
Is that new Honda you speak of the Rune? We have one sitting in our show room right now! Asking price is $27,000. We have the only one in our area that is not spoken for! Those things are selling like hotcakes. The dealer there shoudl be able to get his $28,000 no prob.
How is that 450 off of the line? Everyone that we have sold have been dogs til you get em movin, and then you can sling em around like a rag doll.
Anywho, some of the things that I have seen working at the shop have made me more savvy when it coems to negotiating, after seeing what goes into something like an atv or cycle, I will never just buy a machine, there will be plenty of haggling. I look at it like, there are plenty of other places that would like to see my money just as much as this one!!

[Boozer]

lynden:
TPC
I work at the local Honda/Yamaha shop here in town and markup is a bitch! My boss is somewhat of a crook, but he has been in business so long that people don't always realize that he is takin em to the hole! Sure he helps out his friends, but if you're joe blow, say bye bye to taht bankroll!!!
Is that new Honda you speak of the Rune? We have one sitting in our show room right now! Asking price is $27,000. We have the only one in our area that is not spoken for! Those things are selling like hotcakes. The dealer there shoudl be able to get his $28,000 no prob.
How is that 450 off of the line? Everyone that we have sold have been dogs til you get em movin, and then you can sling em around like a rag doll.
Anywho, some of the things that I have seen working at the shop have made me more savvy when it coems to negotiating, after seeing what goes into something like an atv or cycle, I will never just buy a machine, there will be plenty of haggling. I look at it like, there are plenty of other places that would like to see my money just as much as this one!! This is good to know. When I bought my warrior and YZ 250 a few months back I didn't even bother haggling them on the price much. They gave me $500 off MSRP on each and didn't charge me an assembly fee so I figured that was an awesome deal. I was always under the impression that bikes are a no haggle kinda deal with the exception of hagglin the assembly charge and making them throw in a free helmet.
What did you end up paying for that 450? I got the warrior so my younger cousins can ride it when we take family trips but it is to damn slow. I want to upgrade to something bigger and I am thinking either the 450 or possibly the raptor. My uncle has a Polaris 650 that is pretty impressive but with an almost 10k price tag I just don't know about it. 10k seems a bit much for a quad.

[Sherpa]

Hey TPC,
it's doctor freinds like you have that keep alot of us "proud to be the 2nd owner" very happy.
think about it, they take the initial hit on
depreciation, and put a few thousand on it. then
they inturn sell it to pay for the new one.
it does crack me up though when you see stuff for
sale, and it's like 2-5 months old. I'm thinking,
"what an idiot" who'd buy something, and then
sell it 5 months later-?
but stuff happens, and around the bay area lately,
there's alot of that sort of behavior going around.
--Sherpa

[MagicMtnDan]

lynden:
TPC
I work at the local Honda/Yamaha shop here in town and markup is a bitch! My boss is somewhat of a crook, but he has been in business so long that people don't always realize that he is takin em to the hole! Sure he helps out his friends, but if you're joe blow, say bye bye to taht bankroll!!!
Is that new Honda you speak of the Rune? We have one sitting in our show room right now! Asking price is $27,000. We have the only one in our area that is not spoken for! Those things are selling like hotcakes. The dealer there shoudl be able to get his $28,000 no prob.
How is that 450 off of the line? Everyone that we have sold have been dogs til you get em movin, and then you can sling em around like a rag doll.
Anywho, some of the things that I have seen working at the shop have made me more savvy when it coems to negotiating, after seeing what goes into something like an atv or cycle, I will never just buy a machine, there will be plenty of haggling. I look at it like, there are plenty of other places that would like to see my money just as much as this one!! Honda Rune
http://www.f6rider.com/Rune/Rune_large_01.jpg

[Hotcrusader76]

"supply and demand"

[TOBTEK]

WE here at the dealership im employed by have a saying......we the dealership DO NOT set the pricing, you the public does. ANY object is worth what you the public are willing to pay. THE BEST is when a customer comes in and states.....WELL, THE BLUE BOOK SAYS ITS WORTH...BLAUGH,BLAUGH,BLAUGH....Can you SELL it to the BLUE BOOK company..no! SIMPLE, if something MSRP's for 30K and NOBODY will buy it...simple, your gonna have to discount it. And the same applies for indemand items....doesn't matter if its a new 450 Yamaha quad(which is badass BTW, I think I need one of those) or a hot new car. Simple rules of supply and demand.....How about when the new BMW Z8's came out a few years ago. Sticker was 130,000.00, we had a REAL offer from a women that wanted it for her husbands b-day. She was not on the waiting list with a deposit, She came in and said she knows how it works...I dont have a deposit, but what will it take to buy it....400/450,000.00 eek! we had a list of peep's with money on them for two years, we would have gotten our butt's sued off. We sold #1 Z8 to a long time customer and he was excited to ONLY pay $267,000.00 plus gov fee's......wow
BTW.....we have a new black Z8 alpina in the showroom if anybody wants one......spamtek! :D

[Dave C]

I agree with Tobtek.
Supply & demand.
The price is equal to what your willing to pay for it.
If its rare and in demand, the price goes up.

[Screaming Pete]

TobtekI thought you got married this weekend? jawdrop

[TOBTEK]

Screaming Pete:
TobtekI thought you got married this weekend? jawdrop oct 4th is the big day.....then you all wount hear from me till the 20th of oct :D

[Essex502]

When we ordered our BMW 540i in 2000 the local dealership said that we would have to pay full list price - no exception for them to order it. Told them where they could stick it and ordered at another dealer after shopping around and that dealer took almost $4,000 of the list price. Hell, they didn't have to do anything except paper work and clean the car when it came in. I never pay list on a negotiable item. Wait a little and see what happens...say an ad for the new Ford T-bird for $7,000 off of list...Same happened on every "hot" car...wait a little. If you really gotta' be the first on your block you're gonna' pay for that right! Me...I'd rather keep the coin in my pocket for another toy! :D

[TOBTEK]

Essex502:
When we ordered our BMW 540i in 2000 the local dealership said that we would have to pay full list price - no exception for them to order it. Told them where they could stick it and ordered at another dealer after shopping around and that dealer took almost $4,000 of the list price. Hell, they didn't have to do anything except paper work and clean the car when it came in. I never pay list on a negotiable item. Wait a little and see what happens...say an ad for the new Ford T-bird for $7,000 off of list...Same happened on every "hot" car...wait a little. If you really gotta' be the first on your block you're gonna' pay for that right! Me...I'd rather keep the coin in my pocket for another toy! :D MOST OF THE TIME.....that will work out for you. there are exceptions to every rule though. We have had MANY customers say that they will wait and get a better deal, come to find out that the thing they really wanted cant be obtained any longer. Have also seen cust's walk over a few dollars on a vehicle(like a few $$$ a month on a lease :rolleyes: ), come back the next day and its been sold by another salesperson....
BTW: congrats on your 540....awesome car! come in and drive a new 04, nicest driving car Ive EVER driven. the active steering is incredible, you NEVER have to move your hand from there position on the steering wheel. Full lock to lock for a u-turn, is a half turn of the wheel, then the steering ratio reduces at speed.....and the computer controll stab-controll......forget about it.....insaine

[Ziggy]

Hey There TPC,
Yeah, there are lots of stories but TOBTEK pretty much hit it on the head..Supply and demand...mostly meaning demand for any one particular product. If limited quantities are available yet there is a high demand there is the inevitable mark up from many "retailers". Suggested List price is just that...suggested.
I for one will not and have not ever charged over MSRP at my dealership. There were always people willing to pay more to try stepping in front of others but the cash didn't sway us from being honest to the many who had plunked down the deposit a year or two ago.
The Z8, as Tobtek said, was one that some paid double or even triple--but I'm willing to bet some of those folks aren't nearly as happy as the next door neighbor who bought his 6 months later for 1/3....then it, of course, was the dealers fault for making them pay the premium :rolleyes:

[26 QUEST]

I have a friend who sells Lambos in maimi. The new one is going for 30,000 over sticker. How about the first Ford GT selling for 500000.00 at a auction last mth. Sticker is 135000.00. I wish that was me selling it.

[DUCKY]

I worked at a Honda car dealer (the largest volume dealer in the US) back in 2000. When the S2000 (their little convertible sports car) came out, it had a sticker of $33k and change. We had the highest allocation (three cars available)and we had people lined up to pay 40, 50, even 55k for one. We salespeople didn't care about selling them though, because instead of our normal commision rate, we would get a flat rate of $500 if we sold one, regardless of the price (CRAP!!!)It was kinda cool though, as I worked on the used car side, and a guy bought a new one (paid $45k for it) took it home, and his wife told him to sell it or find a new wife. He came down, traded it in with 3000 miles on it, for a new Accord (they gave him $30k back for it) and I sold it as a used car for $40k and got my full commision rate for it. That made my month.....

[Trailer Park Casanova]

I'm all for getting the most money you can for something
I bought the daughter a new Miata for a good report card and got a huge break off sticker ( this Miata story is a thread in itself and thanks to RD for backing me up on this purchase). I remember when Miatas were getting a 50% markup.
My roofer friends tell me when it rains,, their's $5000 worth of work in a $22 dollar can of Henrys.
Every hot summer,, it takes 7 weeks + to get A/C service out here.
I've never jacked up my prices, I don't have the Huevos to, but most A/C companies do,, and then some.
It's my eyes,, I can't see it.
[ September 29, 2003, 10:10 PM: Message edited by: Trailer Park Casanova ]

[Hermosa]

I have seen cars marked up and some really reduced, it's really a crap shoot these days. We looked at the GMC Denali this weekend, one dealer was getting full sticker plus $3,500.00 for a market correction. Went to another dealer 30 miles away, same truck was $2,500.00 below sticker. You really need to look around and do the homework, not just with cars, but just about every service out there.

[Essex502]

TOBTEK - Yep, you're right...sometimes I miss an item I wished I'd had...thoughts run longingly to past wants...however, I won't be screwed either by artificial shortages planned by the manufacturer to keep interest and generate excitement. Oldest marketing trick in the book. I just won't be a party to it....oh, well....

[Trailer Park Casanova]

Boozer
What did you end up paying for that 450? [/QB]I paid $6700 OTD with a 3 year warranty.
My son moved up from a Honda 250EX and the Yami is a lightning bolt compaired to that.
If you read the trade rags, interviews with Yamaha development engineers always say their first objective is a quad that won't wheelie stock.
It's a BFD issue to Yamaha that they don't wheelie in stock form from what I read.. Hence the tall gears in the first year Raptors, and the almost tall gears in the newer Raptors. And the slow hole shot on the 450's.
I paid $6700 OTD for my '02 Raptor with a 2 year warranty. That was a killer price at the time.
I was going to buy him a Suzuki 400,,, glad I waited,, the Suzuki looks great standing alone,, but next to the Yami 450,,, it really looks klunky. And, of course, the Yami has tons more performance.