Please login or register.

Login with username, password and session length
Advanced search  
Pages: 1 2 [3] 4 5 ... 7  All

Author Topic: Honest negotiating price discussion  (Read 18712 times)

0 Members and 2 Guests are viewing this topic.

Mr D

  • 1K CVO Member
  • *
  • Offline Offline
  • Posts: 1897
    • WI

Re: Honest negotiating price discussion
« Reply #30 on: October 15, 2018, 09:02:38 PM »

Wow tazmun,  that makes it even worse.    That is a big depreciation in one year.   $43 to $33?????   

Holy crap


Have to remember, there’s 20 points in a new CVO.... now what they ask, & what they’re worth.... two different topics
Logged
2014 FLHRSE6 Orange/Black
2012 FLHXSE3 Ruby/Typhoon [Sold]
2007 SEUC2 Red/Blk [Sold]
2006 SEUC Haze/Black [Sold]
2005 SEEG Yellow [Sold]
2003 VRSCA [Sold]
"I can do all things through Christ who strengthens me"
Phil 4:13

MakoCVO

  • Newbie
  • *
  • Offline Offline
  • Posts: 27
  • www.CVOHARLEY.com
    • NY

Re: Honest negotiating price discussion
« Reply #31 on: October 15, 2018, 09:48:21 PM »

I was about $3K away on my trade for my '19 CVO RG.  The dealer told me if I finance, they will match my trade request (even gave me $3,400), but said I need to keep my loan for 3 months before I refi.  They took the commission from the financing and applied it to my trade payoff.  I thought this was a SOLID move, and they charged me MSRP with no dealer prep/freight. 
Logged
2019 CVO Road Glide
2018 Anniversary Breakout - sold
1995 Fat Boy - sold

bbrown

  • 1K CVO Member
  • *
  • Offline Offline
  • Posts: 1833

    • CVO1: 04 SEEG BLK/BLU
    • CVO2: 11 SESG. ORANGE/ BLK
    • CVO3: 19 SERG LIGHTNING/ SLVR
Re: Honest negotiating price discussion
« Reply #32 on: October 16, 2018, 07:26:23 AM »

I was about $3K away on my trade for my '19 CVO RG.  The dealer told me if I finance, they will match my trade request (even gave me $3,400), but said I need to keep my loan for 3 months before I refi.  They took the commission from the financing and applied it to my trade payoff.  I thought this was a SOLID move, and they charged me MSRP with no dealer prep/freight.


Good idea.  I assume all dealers can offer this??  How much do you finance?
Logged

MakoCVO

  • Newbie
  • *
  • Offline Offline
  • Posts: 27
  • www.CVOHARLEY.com
    • NY

Re: Honest negotiating price discussion
« Reply #33 on: October 16, 2018, 08:15:31 AM »

Can they...yes.  Will they...maybe.  When I was in the mortgage business, if my client was a few thousand short at closing, I could always bump the rate and give them the commission.  Same logic here.  I told my dealer I was using Credit Union financing, he said if I went through Harley, he would just apply the commission.  The more you finance, the more the dealer makes.  This is a major profit center for any dealership, which to me is just fine, business is business.  I give my dealer credit for suggesting the idea to be honest.  However, if you refinance the loan during the first 3 months, they won't earn the money.  So, they are trusting that you would honor the deal. 
Logged
2019 CVO Road Glide
2018 Anniversary Breakout - sold
1995 Fat Boy - sold

CVOStreetglide

  • 1K CVO Member
  • *
  • Online Online
  • Posts: 1239

    • CVO1: 2015 CVO Street Glide
    • CVO2: 2012 CVO Street Glide (Sold)
    • CVO3: 2010 CVO Street Glide (Sold) CVO4: 2006 VRXSE DESTROYER (Sold)
Re: Honest negotiating price discussion
« Reply #34 on: October 16, 2018, 11:56:31 AM »

Can they...yes.  Will they...maybe.  When I was in the mortgage business, if my client was a few thousand short at closing, I could always bump the rate and give them the commission.  Same logic here.  I told my dealer I was using Credit Union financing, he said if I went through Harley, he would just apply the commission.  The more you finance, the more the dealer makes.  This is a major profit center for any dealership, which to me is just fine, business is business.  I give my dealer credit for suggesting the idea to be honest.  However, if you refinance the loan during the first 3 months, they won't earn the money.  So, they are trusting that you would honor the deal.

Now I wonder what the interest cost to the borrower would be after 3 months? 

In the old days if you took out a 36 month loan 50% of the interest would have already been forfeited after 6 months.

Knowing what it would be would help me make a more informed decision as to paying cash or using the strategy you proposed.

Regards

Jerry
Logged

MakoCVO

  • Newbie
  • *
  • Offline Offline
  • Posts: 27
  • www.CVOHARLEY.com
    • NY

Re: Honest negotiating price discussion
« Reply #35 on: October 16, 2018, 12:05:34 PM »

That depends on a few factors.  1) The difference in the rate of your local bank vs Harley credit, 2) the amount you are financing, and 3) the length you keep the higher loan active.

Let's just use ballparks:  If you can get 3% at a local credit union, and Harley is at 8%, then you are paying the difference of those 2 payments for 3 months.

Let's assume, just for example, that my payment was $200 more per month for those 3 months.  So I'm "negative" $600.  However, I was able to get an additional $3,400 for my trade, saved $1,600 in monthly payments on the bike I had for sale (the Mako I had on order wasn't due in until January at my local dealer), my trade would have been worth less, so I feel as if the $600 in payments gave me a benefit of over $4,400. 

It all depends on your situation.  For this particular deal, it worked very well in my favor, and the dealer moved a unit at MSRP, and will now be handling my referrals. Win Win.
Logged
2019 CVO Road Glide
2018 Anniversary Breakout - sold
1995 Fat Boy - sold

CVOStreetglide

  • 1K CVO Member
  • *
  • Online Online
  • Posts: 1239

    • CVO1: 2015 CVO Street Glide
    • CVO2: 2012 CVO Street Glide (Sold)
    • CVO3: 2010 CVO Street Glide (Sold) CVO4: 2006 VRXSE DESTROYER (Sold)
Re: Honest negotiating price discussion
« Reply #36 on: October 16, 2018, 12:58:03 PM »

That depends on a few factors.  1) The difference in the rate of your local bank vs Harley credit, 2) the amount you are financing, and 3) the length you keep the higher loan active.

Let's just use ballparks:  If you can get 3% at a local credit union, and Harley is at 8%, then you are paying the difference of those 2 payments for 3 months.

Let's assume, just for example, that my payment was $200 more per month for those 3 months.  So I'm "negative" $600.  However, I was able to get an additional $3,400 for my trade, saved $1,600 in monthly payments on the bike I had for sale (the Mako I had on order wasn't due in until January at my local dealer), my trade would have been worth less, so I feel as if the $600 in payments gave me a benefit of over $4,400. 

It all depends on your situation.  For this particular deal, it worked very well in my favor, and the dealer moved a unit at MSRP, and will now be handling my referrals. Win Win.

I must not have explained my question clearly. 

My point is in your situation you cannot payoff the loan for 90 days. How must interest did you pay by waiting to pay off the loan?   It would seem that would be the offset expense verses the commision you might have had to pay. 

As you mentioned they are in business to make money and like to use what I call “waterbed accounting”  i/e If the interest goes down then the commission goes up. In the end they get their money.

I am not being difficult but just pointing out the well known fact that they are going to make
Logged

MakoCVO

  • Newbie
  • *
  • Offline Offline
  • Posts: 27
  • www.CVOHARLEY.com
    • NY

Re: Honest negotiating price discussion
« Reply #37 on: October 16, 2018, 01:40:55 PM »

You "can" payoff your loan, the dealer ask that you don't as they don't earn a commission unless the borrower makes 3 payments.

I was taking a loan...from my credit union.  The difference to me by going through Harley is $200 per month. If I keep the loan out for 3 months, that's $600 MORE the loan itself is costing.  But, I'm SAVING over $4,400 in total as described.  Worth it to me.

Logged
2019 CVO Road Glide
2018 Anniversary Breakout - sold
1995 Fat Boy - sold

skratch

  • 1K CVO Member
  • *
  • Offline Offline
  • Posts: 2003
    • LA

    • CVO1: 2013 FLTRXSE2 Roman Gold/Burnt Emerald
Re: Honest negotiating price discussion
« Reply #38 on: October 16, 2018, 04:05:07 PM »

to do an honest comparison, you can realistically expect to get a 2.9% or lower rate from eagle mark, not 8%.  that would be if you had less than stellar credit.  if you're buying a cvo, you probably are in the higher tier for creditworthiness.  if you finance $40,000, at the end of 3 months, you would have paid less than $300 in interest.  definitely a worthwhile return for the guy. 
« Last Edit: October 16, 2018, 04:09:31 PM by skratch »
Logged
I understand the concept of reality, but find it too confining as a way of life

MakoCVO

  • Newbie
  • *
  • Offline Offline
  • Posts: 27
  • www.CVOHARLEY.com
    • NY

Re: Honest negotiating price discussion
« Reply #39 on: October 16, 2018, 04:30:54 PM »

I have 2.25% at my credit union secured.  Again, I'm letting you all know that you do have options when it comes to negotiating a deal using financing rebates if your dealer is willing to play ball.
Logged
2019 CVO Road Glide
2018 Anniversary Breakout - sold
1995 Fat Boy - sold

tazmun

  • 1K CVO Member
  • *
  • Offline Offline
  • Posts: 1080

    • CVO1: 06 FLHTCUSE (sold)
    • CVO2: 19 FLHXS All Black
Re: Honest negotiating price discussion
« Reply #40 on: October 16, 2018, 04:41:12 PM »

Wow tazmun,  that makes it even worse.    That is a big depreciation in one year.   $43 to $33?????   

Holy crap


It also gets worse! The dealer is asking $33995, and say he wants to make 10%.
Say he also may go down to $33000, minus 10% plus safety check of oh say $500.
I would assume then he may have taken the bike in at $29200!!!!
The dealers close to the factory, also get allot of employees who get 20% off list, so in effect
those employees aren't taking the hit as we would, just saying!

Tazmun
Logged
The "TAZMUN"

CVOStreetglide

  • 1K CVO Member
  • *
  • Online Online
  • Posts: 1239

    • CVO1: 2015 CVO Street Glide
    • CVO2: 2012 CVO Street Glide (Sold)
    • CVO3: 2010 CVO Street Glide (Sold) CVO4: 2006 VRXSE DESTROYER (Sold)
Re: Honest negotiating price discussion
« Reply #41 on: October 16, 2018, 07:55:55 PM »

to do an honest comparison, you can realistically expect to get a 2.9% or lower rate from eagle mark, not 8%.  that would be if you had less than stellar credit.  if you're buying a cvo, you probably are in the higher tier for creditworthiness.  if you finance $40,000, at the end of 3 months, you would have paid less than $300 in interest.  definitely a worthwhile return for the guy.

MakoCVO and scratch:

Thanks very much!  This is what I wanted to know. 

Also, the fact that MakoCVO’s deal was/could have been a cash deal to the dealer but actually could have been financed elsewhere helps as well. 

Regards


Logged

SDCVO

  • 2.5K CVO Member
  • **
  • Offline Offline
  • Posts: 2917
  • 19 CVO RG-12 CVO RG
    • CA


    • CVO1: 2019 Mako Shark Roadglide
    • CVO2: 2012 Maple Roadglide
    • CVO3: 2019 BMW K1600 Grand America
Re: Honest negotiating price discussion
« Reply #42 on: October 17, 2018, 12:45:27 AM »

Now I wonder what the interest cost to the borrower would be after 3 months? 

In the old days if you took out a 36 month loan 50% of the interest would have already been forfeited after 6 months.

Knowing what it would be would help me make a more informed decision as to paying cash or using the strategy you proposed.

Regards

Jerry
front loaded interest loans no longer legal at least in CA but thought that was federal. Now vehicle loans pay simple interest which is same interest first month as last
« Last Edit: October 17, 2018, 12:50:22 AM by SDCVO »
Logged
Alan

iski

  • 10K CVO Member
  • ****
  • Offline Offline
  • Posts: 10251
  • EBCM 007
    • FL


    • CVO1: 2007 FLHTCUSE2 Screamin' Eagle Ultra - Light Candy Cherry and Black Ice - Traded
    • CVO2: 2010 FLHTCUSE5 Screamin' Eagle Ultra - Crimson Mist Black/Dark Slate - Traded
    • CVO3: 2017 FLHTKSE CVO Limited - Black Garnet & Electric Red Pearl w/Carbon Dust
Re: Honest negotiating price discussion
« Reply #43 on: October 17, 2018, 12:51:57 AM »

Not as useful at the beginning of a model year (maybe) but a good resource for motorcycles as well as cars when getting ready to purchase & doing research:

https://www.nadaguides.com/

Logged
"I had the right to remain silent, but I didn't have the ability." ~ RW

skratch

  • 1K CVO Member
  • *
  • Offline Offline
  • Posts: 2003
    • LA

    • CVO1: 2013 FLTRXSE2 Roman Gold/Burnt Emerald
Re: Honest negotiating price discussion
« Reply #44 on: October 17, 2018, 08:10:51 AM »

Now vehicle loans pay simple interest which is same interest first month as last

simple interest does not mean that the interest is divided equally throughout the life of the loan.  you pay x % on the outstanding balance, calculated daily.  so your first month payment is going to have a larger interest payment due, than your 40th month payment.
« Last Edit: October 17, 2018, 08:34:59 AM by skratch »
Logged
I understand the concept of reality, but find it too confining as a way of life
Pages: 1 2 [3] 4 5 ... 7  All
 

Page created in 0.182 seconds with 24 queries.