Dealer trade-in negotiation?

[awa355]

10 posts before the handbags came out, Well done.

[Gremlin]

Changeover price is the real number. When negotiating, they can choose to up the trade value or lower the sale price, whatever, to get a better changeover cost. That was how I worked my last one, and during negotiation some stuff was thrown in, I could buy other stuff at cost etc.

Remember that new bikes on the floor are usually on a finance plan, so a, they're not paying that value in one big wad when getting in new stock, but equally, if it's been sitting on the floor too long it starts to hurt. With 2nd hand bikes, they have to stump up any value straight away (or you negotiate a more funky deal), and then it changes again if the bike is for sale on behalf.

2nd bikes also have to sit there, often for a while, before they can realise some value, and someone will come along and try to low ball them on it (so they're squeezed in the middle).

If you want the best deal money wise, sell your bike, buy the new one. Get fucked around by tyre kickers, don't get the new shiny desirable until you've sold yours... or walk up, flick them some money and get the one you want almost straight away.

I've done both, yes, you can take a bit of a bath on trading but you may end up doing that anyway when you don't sell privately. Pros and cons, pick one, enjoy the new bike when you get it.

[Akzle]

You dont sound like you are very finacially literate as with buying a bike though a finance company you will end up paying far more than the advertised price.

son of a fucking bitch. i accidentally green reppd this.
if everyone could do me a favour and red, with the comment "you're a fucking idiot", that would be swell.

[Erelyes]

son of a fucking bitch. i accidentally green reppd this.
if everyone could do me a favour and red, with the comment "you're a fucking idiot", that would be swell.

Red his post or yours? Fuckit, may as well do both.

[Big Dog]

Haven't read the whole thread but +1 for Gremlins post. Lay 4 of your cards on the table.
You want what bike?
Any extras?
Do you want finance?
Do you have form with this store? Yes, it makes a difference.

The fifth card in your hand is what you are prepared for in changeover cost.
Tell them a reasonable figure that is less than that. They might go for it. They might not and counter, haggle from there.
If your changeover is too rediculous they will not haggle as there will be fuck all margin in a sub 8k bike.
A lot of sub 8k bikes end up going out the door with only the gst more than commission on them just to keep inventory fresh if the bike you are buying has been sitting a long time.


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[Big Dog]

What is reasonable?
If both bikes have the same value on trademe they still need 1k to change hands to cover their costs, gst, valet, commission.
+orc if not already registered.

If you would pay 5 k on their bike on trade me and you think you can get 5k for yours. Start offering 1k to change but decide before you get there how much total you will go to.
Ps... as a general rule what you will get on trademe is x.
Reality is (( $x - 20%) - ~$100 fees) and needs to be weighted against lost opportunities while you sell.

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[Big Dog]

The advice is still sound. Cash doesn't make a difference any more as it still goes through the books and although the retailer won't pay the 2-3% fee they will have to pay staff to sit there counting it and doing the paper work, and more time (going to the bank) associated with banking it.

3% off 6k is under $200 and those faggots that talk 'cash money' will be expecting more than that off for their so awesome favour of paying you for your goods and services..... (paying for shit they want to buy with legal tender! OMERGERD! What a fucking favour!)

If you were to buy it for a 'legitimate' cash deal, as in not through their books, you could expect absolutely no warranty or acknowledgement that you've bought it from them if something were to go wrong, because technically you didn't...

Further, the point you miss on finance is that they WANT YOU to pay through finance if they get a kick back, so cash is no favour to them at all and there is no incentive for them to drop the price for cash. Comprehend?

Correct, add in the increased risk of having that much cash hanging around and it is any wonder cash is still acceptable.

If you take finance they can add in insurances. More kickbacks.
Breakdown cover. More kickbacks.

Cash buyers are statistically less likely to bring return business or their servicing.

The only incentive remaining for cash is definite sale. Today.

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[TheDemonLord]

The only incentive remaining for cash is definite sale. Today.

Which depending on the day can be a good bargaining chip.

I remember reading somewhere that EoM was a good time as sales staff are keen to add extra sales before the month ends.

[Hubris]

Forgive an ignorant question but when you say cash....do people mean non-financed eft-pos (where the vendor has to pay a % in service charge) or do people actually show up with 5-10-15K cash in hand?

[Akzle]

Forgive an ignorant question but when you say cash....do people mean non-financed eft-pos (where the vendor has to pay a % in service charge) or do people actually show up with 5-10-15K cash in hand?

srsly ???



((where ARE you from??))

[Tazz]

Forgive an ignorant question but when you say cash....do people mean non-financed eft-pos (where the vendor has to pay a % in service charge) or do people actually show up with 5-10-15K cash in hand?

Cash as in cash....as in cash in hand....

You can fit 15k in your pocket.

[Tazz]

It is nonsense to suggest you can not get a discount for cash I certainly did especially if dealers have old stock they want to get rid of.

You've just said yourself they want to get rid of it, which is why they are bloody discounting it. It's not because you're paying cash, they'd discount it for any payment if they want the fucking thing gone!

[scott411]

cash means paying on the spot, being eftpos, cheque (if accepted, many shops will make it clear before you ride away) or bank transfer, or cold hard cash,
and as said above, dealers make money on finance deal, so the final price is not likely to be different if you are financing the difference, (pre the finance fees and interest)

dealers have to run a register for bikes in and out so likely the old school discount for cash, and put it off the books is not really possible,

as sad before, work on change over price, as thats what matters, it will likely be less than the difference if you sell your bike,

as for the margin on the 8k bike, after the assembly and PDI , the dealer is likely to make more money on the finance, insurance, and any gear they sells you, esp if the bike is part of a nationwide promotion

[Tazz]

If they were offering a discount for any payment though they would advertise it themselves at a discounted price would they not? The bike I got a discount on did not have a discounted sticker on it.

They wanted to get rid of the stock, from your own account, so why would it need a discount sticker to be motivated to discount it if that meant getting rid of it, which is what, from your own account, they wanted to do....?

Unless you got refused a discount for another payment, and they specifically said no but we will give it to you for blah blah blah if you pay cash, you are only bloody guessing anyway.

[jasonu]

So from what you are saying then if you are ever in a position to buy a bike for cash you will offer the advertised price because you believe cash discounts are impossible? The only thing I could see making getting a cash discount less likely than it used to be is the fact that many cities/towns in NZ only have one franchised dealer for each brand of bike.

If you can pay cash then buy privately. You will for sure get a better deal than buying from a dealer.