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Author Topic: Cycle Buy / Dealer Cost  (Read 1174 times)

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cooterbrown

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Cycle Buy / Dealer Cost
« on: August 26, 2013, 03:20:46 PM »

Is the info they provide in Cycle Buy - Dealer cost accurate ? for example they show a 2013 CVO Ultra Anniversary Edition - MSRP = 38,599 Invoice = 30,879 that's a better spread than a 120k car would have (7,720) on top of that the dealer charges 1k prep for three hours of labor ? that's another 700 in profit wow!!Is this accurate ? if so that's 8,420 total profit 
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charles05663

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Re: Cycle Buy / Dealer Cost
« Reply #1 on: August 26, 2013, 03:25:11 PM »

I had a buddy of mine who was a CFO for a Harley shop.  He told me they the bikes had a 20% markup.  So looking at those numbers it appears correct.

 :oops: :nixweiss:
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grc

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Re: Cycle Buy / Dealer Cost
« Reply #2 on: August 26, 2013, 03:45:23 PM »

Yup, looks about right to me.  Figure 18%-20% off MSRP, and yes indeed, most auto dealers would kill for that kind of markup.  They haven't had that kind of discount structure since the 1970's, when massive inflation created "sticker shock" and the manufacturer's responded by cutting the dealer discount (margin) to keep from having to boost MSRP's any higher.  You might be amazed at how low the margins are for low end and mid level cars.  It's the reason that all those add-ons became popular with the dealers, like bogus paint protection packages and other pure profit items, financing skullduggery, etc.

This is why I've always recommended that people never pay more than MSRP, and never pay for "prep" which is strictly one of those extra profit add-ons.  They are compensated by H-D for the tiny amount of "prep" that Harley requires.

Jerry
« Last Edit: August 26, 2013, 03:47:36 PM by grc »
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TinSpinner

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Re: Cycle Buy / Dealer Cost
« Reply #3 on: August 26, 2013, 05:01:44 PM »

20% and they still nut up when you try to get them to throw in an oil change at MSRP!
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cooterbrown

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Re: Cycle Buy / Dealer Cost
« Reply #4 on: August 26, 2013, 07:31:05 PM »

Auto and truck dealers would be lucky to hold 5% margin.... 
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