Too good to be true sales $$$

4213 Views 18 Replies 10 Participants Last post by FangShui, Aug 6, 2015

jman

Discussion Starter · Aug 4, 2015

Just got off the phone negotiating with sales manager from East Bay Motorsports in Oakland. Didn't like their sales tactics. Pricing the bike very low $4188 http://6396.motorcyclesforless.net/p/20851927/2/11514272/7 , then jacking up the freight and prep. We argued (discussed) for 30 minutes with them telling me to come in and they'd give me an awesome deal. When I asked what would my awesome deal be. The answer was around $6300 OTD. WTF..... I asked how could a bike sold at $4188 be $6300 OTD? They said, because of freight, prep, tax and DMV. Needless to say after 30 minutes of negotiating I'm not buying from them ever. Sales manger says they're selling the R3 for cheap and just charging regular freight and prep, and everyone else charges the same. I asked him how much they normally charge for freight and prep on the R3 or other similar bikes? He said on the R3 regular freight is around $900 and prep is $400. Told him I've already been in their store and know for a fact that freight is not $900. All of the bikes on the floor has freight and prep listed for customers to see. Yes, dealers have to make money, but at least be honest about it. Don't be listing your bikes for $1000 less then try to sucker a customer into paying bogus fees. I would of went in and bought it today if it was really a sale. I have no issue with paying regular freight / prep, just not super inflated ones. So anyone who wants an awesome deal on a R3 of Ninja 300, they've got plenty of each in stock at according to them hugely reduced price.

1 - 19 of 19 Posts

Capitalview

· #2 · Aug 4, 2015

There is a dealer in Wisconsin that is listing the R3 for a similar price. I was going to call and see what the OTD price would be. I was lucky and able to pick up a used one so I never had to deal with them.

I am betting the same hugely inflated prep and delivery fees would also be involved.

rallykid

· #3 · Aug 4, 2015

There is a dealership here in Michigan advertising new Ninja 300's for $3995.00. OTD price is $6500!

mgfchapin

· #4 · Aug 4, 2015

That's an ungodly amount of fees. $1300 for F&S on a $5000 bike? Even after that and sales tax, that's still another $300 or so in doc, reg & fees. Pretty skeezy tactics there.

FangShui

· #5 · Aug 4, 2015 (Edited)

mgfchapin said:
That's an ungodly amount of fees. $1300 for F&S on a $5000 bike? Even after that and sales tax, that's still another $300 or so in doc, reg & fees. Pretty skeezy tactics there.

According to a salesman at my local dealership the amount Yamaha set for freight and setup/handling is $350.

And that's not a mandatory fee. It's an optional fee Yamaha said dealers may charge to offset the lower sales volume and lower profits due to the Great Recession, when motorcycle sales tanked by around 50%. Dealers complained to Yamaha and Yamaha set that $350 fee.

Also, he said that freight and setup are already built in to the MSRP of $4990 USD price and that there is about $600 profit in the sale of an R3 sold at MSRP.

Any dealer charging more than that is gouging.

ericbk02

· #6 · Aug 5, 2015

From what I have seen, the prices are all over the place as the dealers tried to make (gouge) the most they can on any sale. It seems that around $5500 / $5600 OTD is going to be about the best price. I see only a very few posts buying for less, but not many in CA. The usual OTD seems to be $6000 or a bit more. However, it seems that a dealer will discount the price of the bike - selling at a loss - which can leverage against profits; and I would think the "freight and prep" can be hidden as operating expenses - thereby they don't show as much profit at years end.....smart.

FightingNerd

· #7 · Aug 5, 2015

I may or may not be very drunk and sending them anonymous I hate you messages through their price quote system.

...I'm definitely drunk and sending them angry messages through their price quote system. It's just a phase of life I guess. Mutual support and all that. I've got your back bro.

jman

Discussion Starter · #8 · Aug 5, 2015

ericbk02 said:
From what I have seen, the prices are all over the place as the dealers tried to make (gouge) the most they can on any sale. It seems that around $5500 / $5600 OTD is going to be about the best price. I see only a very few posts buying for less, but not many in CA. The usual OTD seems to be $6000 or a bit more. However, it seems that a dealer will discount the price of the bike - selling at a loss - which can leverage against profits; and I would think the "freight and prep" can be hidden as operating expenses - thereby they don't show as much profit at years end.....smart.

It's not the price that irks me. It's the deceptive sales tactic used. If you're advertising any bike for $1000 less, then you'd better be willing to sell it for $1000 less. Don't be telling customers you're giving them an awesome discount of $1000, then tell them they'll have to pay $900 freight and $400 for prep, plus some unknown fees. It's common knowledge those charges are just a rip off. Yamaha should be doing something about this. I've seen more then one dealer advertise the R3 for $3999 - $4200. Yet somehow the cheapest OTD price are always over $6000. If a dealer is willing to advertise a lower price, then live up to it. Customers are willing to pay reasonable freight / prep, but not made up ones $$$.

jman

Discussion Starter · #9 · Aug 5, 2015

FightingNerd said:
I may or may not be very drunk and sending them anonymous I hate you messages through their price quote system.

...I'm definitely drunk and sending them angry messages through their price quote system. It's just a phase of life I guess. Mutual support and all that. I've got your back bro.

Thanks for the support.

jman

Discussion Starter · #10 · Aug 5, 2015 (Edited)

rallykid said:
There is a dealership here in Michigan advertising new Ninja 300's for $3995.00. OTD price is $6500!

Then when you ask them for a break down of all fees, they just try to side step the question and tell you to come in for the deal of a lifetime. What can they possibilly do to justify the $2500 in fees and taxes?

jman

Discussion Starter · #11 · Aug 5, 2015

Simi Valley Motorsports lists multiple R3 all over their websites for sale at $3999. All colors in stock. Will call them tomorrow to see if they're reputable or up to games also. Tired of dealers playing games.

http://www.simivalleycycles.com/new_vehicle_detail.asp?veh=439336&pov=3972648

Capitalview

· #12 · Aug 5, 2015

I do have to give a shout out to an awesome, upfront, dealer here in Wisconsin.

Rock River Powersports. I went in and talked to them about buying a R3 strictly for racing. Without any haggling they were willing to sell one at $100 over their cost with no set up or freight charges!

They also list their bikes, when the do advertise on Craigslist, as not having any set up of freight fees.

They will get my business, and referrals. That is what makes a good dealership. It is also how you get repeat customers and make money. I will be buying parts and accessories from them. I didn't end up buying from them only because I was able to find a used one, with 77 miles on, for an awesome price.

cwmoss

· #13 · Aug 5, 2015

When I started shopping for a R3, I contacted two dealers who had them in stock for an OTD price and while I was waiting for a return call, came across a dealer right outside of Houston that advertises no setup or freight charges, ever, so I contacted them about the OTD number. I figured it to be somewhere around $54 -$5600 and they called me back and it was a few dollars over $5500 OTD. I offered them a flat $5500 and they accepted my offer, made a deposit and picked the bike up the next day. Super easy deal. They will be my first stop whenever I am shopping again. The other two dealers finally got back to me, and both of their OTD numbers were over $6k, one was $6400 and the other was I think $6200. I asked why so high and both said that these were hot items and that NOBODY was selling them for less. When I told them no thanks, I had bought a bike for 55otd, they wanted to know who, which told them, check out the classifieds and find out for yourself, that's how I came across them. The fellows up in Min. have their R3's on Ebay for 48-4900 and they advertised NO hidden fees. Deals are out there, just a little searching will find them.

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t-rav_12

· #14 · Aug 5, 2015

Capitalview said:
I went in and talked to them about buying a R3 strictly for racing. Without any haggling they were willing to sell one at $100 over their cost with no set up or freight charges!

I did the same thing at my local dealership here in Kansas City (Reno's Powersports), Missouri. I put a $200 deposit back in November, then took delivery the first week of May for a grand total of $5129 OTD.

feasiblejacob

· #15 · Aug 5, 2015 (Edited)

Thank you so much for this thread! I was about to buy an R3 from East Bay Motorsports, but now I'm not so sure. I'd still buy if they can nail down a proper deal.

jman

Discussion Starter · #16 · Aug 5, 2015

feasiblejacob said:
Thank you so much for this thread! I was about to buy an R3 from East Bay Motorsports, but now I'm not so sure. I'd still buy if they can nail down a proper deal.

Go ahead and give them a try. Maybe you can get them to tell you why they have it for sale at $4188 and somehow comes out to $6200 OTD. I've had friends buy bikes from them before and it's been around $400 for freight / prep. They seem to believe since they're selling the bike for $1000 less, they have to mark up the freight / prep by the same amount to make up the difference. What they don't realize is to the customer it looks bad and makes the dealership look sleazy. If they're truly selling a bike at a greatly discounted price, then just sell it for that price. Don't play games with junk fees. Good luck!!

ericbk02

· #17 · Aug 6, 2015

jman said:
It's not the price that irks me. It's the deceptive sales tactic used. If you're advertising any bike for $1000 less, then you'd better be willing to sell it for $1000 less. Don't be telling customers you're giving them an awesome discount of $1000, then tell them they'll have to pay $900 freight and $400 for prep, plus some unknown fees. It's common knowledge those charges are just a rip off. Yamaha should be doing something about this. I've seen more then one dealer advertise the R3 for $3999 - $4200. Yet somehow the cheapest OTD price are always over $6000. If a dealer is willing to advertise a lower price, then live up to it. Customers are willing to pay reasonable freight / prep, but not made up ones $$$.

I agree. I can only suggest to play one dealer against the other - or go a little ways out of your area to different dealers. The going price OTD does seem to be about $6000 +. I do think if you shop - and have "cash in hand", ready to buy, (not just tire kicking) the dealer will usually make a better deal.
This deception is rampant with bikes and cars.

feasiblejacob

· #18 · Aug 6, 2015

I called them back yesterday and they have "the best deal in California"

They're asking about $400 freight and $960(!?) for prep. Another dealer has already promised to beat them.

FangShui

· #19 · Aug 6, 2015

feasiblejacob said:
I called them back yesterday and they have "the best deal in California"

They're asking about $400 freight and $960(!?) for prep. Another dealer has already promised to beat them.

Prep literally, and I do mean literally, takes about 1 3/4 to 2 1/2 hours MAX!

So that would be $385 to $550 per hour...ludicrous!

1 - 19 of 19 Posts

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