Dealer Margin

[ChazzyB]

Has anyone got any idea on what sort of margin dealers have on the list price of bikes? A dealer told me yesterday they had an end-of-quarter sale to hit target so they were selling bikes at cost plus "a few hundred pounds for us". He then worked out the discount available on a new GS TE - £900. That's less than 6% on the list price. I think he's taking the piss. Or is he? A fairly shit buy-in price (I thought) for my bike too. I thought car dealers had about 30% margin, cost to list price.

What's the score, generally?

 

[jimbo]

A fairly shit buy-in price (I thought) for my bike too. I

I do hope he didn't see your bike with your home made mud guards on?

 

[ChazzyB]

I do hope he didn't see your bike with your home made mud guards on?

 

[RedRick Esq.]

Any discount has to be applied to the pre VAT and on cost price as does any extra target bonus th edealer has

So if you have calculated on the OTR price your maths are skewed

eg
bike full list is 10K plus VAT and 300 OTR charges = 12300 if you take the 6% off that you end up at 11562

Correctly it would be
10K -6% plus VAT +OTR so total of 11580

 

[JJH]

No way is it 30%. JJH

 

[RedRick Esq.]

I actually think that dealers will have a max of 15% plus any bonus

 

[RichieS]

I was reliably informed it used to be 10%,but that's hone down to 8%, so 6% is OK

 

[Rockred]

I think Rick is closer to the mark up. At 6% that is too small a profit to survive.

 

[JohnnyBoxer]

Nutty will be along soon and he has all the inside knowledge

He just gets BMW bikes at cost and never lets the dealer get any sort of margin

 

[RedRick Esq.]

Whenever i buy a new bike I start at the 15% using the calculation i showed earler That gives me a rough idea as to what the dealers break even price is ( i am unaware as to any bonus they have) if they do that deal then they either have more discount than i credited them for or some bonus.

If they wont do it we move upwards to them until we get somewhere or i walk away thinking they are taking the piss !

I have no issue with a dealer making profit and am happy for them to do so but not too much at my expense

 

[matchbox]

Discount before vat is exactly the same as discount after vat, from the buyers perspective! The price you pay is the same.

 

[Neil W]

If it is an 8% margin on sales of new stock bikes remember most dealers will be making a lot more on the part exchange bike ie they will pay you the lowest amount they can get away with and make a decent mark up on the resale and so stay in business.

I have no doubt that certain less popular models or colours in the range will get a larger discount from BMW UK to the dealer if they buy them in for stock and so the dealers profit margin will be higher when they give you a 'nice' discount

 

[haditlowered]

Has anyone got any idea on what sort of margin dealers have on the list price of bikes? A dealer told me yesterday they had an end-of-quarter sale to hit target so they were selling bikes at cost plus "a few hundred pounds for us". He then worked out the discount available on a new GS TE - £900. That's less than 6% on the list price. I think he's taking the piss. Or is he? A fairly shit buy-in price (I thought) for my bike too. I thought car dealers had about 30% margin, cost to list price.

What's the score, generally?

A dealer gave me £9,500 for a 2012 R1200GS in June last year against a new Triumph - and they are still trying to sell it at a lower price than they gave me.... i figured at the time that they were just trying to get a new bike out the door to hit sales figures, but i have since concluded that they screwed up big time to my benefit

 

[Micky]

7.5% that's all!

 

[ChazzyB]

Thanks all, so perhaps he's not taking the piss on the price. I was a bit taken aback at the valuation of my 20,000 mile 15 plate TE. OK, it needs a rear tyre and an oil change service in 2000 miles time. The price to change didn't make me bite his hand off, though. In fact, he could see my hurt expression. This is the only new bike I've ever had. Maybe this reflects how many GS's are sloshing around in the used market. The Tiger 1050 I ran for 3 years before this cost me £2k in depreciation (bought for minus sold for).

 

[haditlowered]

It's luck of the draw on the PX value but i think some dealers have more to offer than others on new bikes so shop around, you might have to travel... but it might be worth it, i'd recommend Chester Motorrad who have just done me a good deal. Ask for Steve Parry, he's on this site too, you never know...

 

[stever1]

Discount before vat is exactly the same as discount after vat, from the buyers perspective! The price you pay is the same.

How can it be ?. If you get discount before VAT, then you don't pay VAT on the money you have saved.

 

[thebuyer]

Has anyone got any idea on what sort of margin dealers have on the list price of bikes? A dealer told me yesterday they had an end-of-quarter sale to hit target so they were selling bikes at cost plus "a few hundred pounds for us". He then worked out the discount available on a new GS TE - £900. That's less than 6% on the list price. I think he's taking the piss. Or is he? A fairly shit buy-in price (I thought) for my bike too. I thought car dealers had about 30% margin, cost to list price.

What's the score, generally?

30% !!!!!!!!!!!!!!!!

 

[Blackal]

30% !!!!!!!!!!!!!!!!

I think we moved past that point..............

Al

 

[Ex-Call Centre Chimp]

FWIW I understand that BMW car dealers have a maximum of 13% allowance in new cars.