What is this dealership thinking?

[GimmeFuel]

At the local dealership, there is this 2006 Screamin' Eagle Fatboy that I'd love to get but the payments would just be out of my price range. I've got some negative equity in my bike, so after trade-in, I'd be looking at about $400/mo. Here's what I don't get. This bike is 6 years old and has been at that dealership for a year or more. As of right now, it's sitting in the back room (not on display) with the rest of their used inventory. I've told them that if they could give it to me for $300/mo., that I'd take it. I know that's a serious drop in price, but since they've had so much trouble moving it, why wouldn't they just take a sure thing rather than simply sit on it. It's only losing value more and more.

Somebody help me understand this.

 

[rhino 2]

I had a small business myself [not bikes, now retired] if a customer offed me a price lower than my break even point, I would rather hang on to it and Wait till i got a reasonable [to me] offer. Sooner or later someone come in with the right offer.

 

[Jack Klarich]

At the local dealership, there is this 2006 Screamin' Eagle Fatboy that I'd love to get but the payments would just be out of my price range. I've got some negative equity in my bike, so after trade-in, I'd be looking at about $400/mo. Here's what I don't get. This bike is 6 years old and has been at that dealership for a year or more. As of right now, it's sitting in the back room (not on display) with the rest of their used inventory. I've told them that if they could give it to me for $300/mo., that I'd take it. I know that's a serious drop in price, but since they've had so much trouble moving it, why wouldn't they just take a sure thing rather than simply sit on it. It's only losing value more and more.

Somebody help me understand this.

Some want to get big bucks for these along with the CVO bikes, guess they believe the limited number of these bikes command a higher price JMO

 

[HDDon]

The old joke that the business owner takes a loss on each sale but makes it up in volumn, is just that -a joke. Your dealer has a break even point on the bike you are looking at. Find out what the KBB value is for the bike and make an offer based on that price. The dealer is not "collecting" bikes, he is in business to sell and service them. Do your homework and deal with them as an informed buyer. Good luck and let us know how you do.

 

[glider]

KBB on that bike is in Excellent condition $19,765. The longer most places keep a bike or car without selling it effects their profit margin on the bike. You're best bet is to go trough a credit union for the loan. The dealer also makes points ($$$) on a loan if you get it through them.

Most units at dealerships are financed and not owned outright (called a floor plan) and when they reach a point of paying interest on a loan that would give them a negative figure on that unit is when they want to deal on it.

If you are stuck on the bike, make them an offer BUT if you finance the bike, be sure to run the numbers before signing on the bottom line because they do some funny things with numbers and you may end up paying more than agreed on for the bike.

(Yes, some dealers do this)

 

[dbmg]

I had a small business myself [not bikes, now retired] if a customer offed me a price lower than my break even point, I would rather hang on to it and Wait till i got a reasonable [to me] offer. Sooner or later someone come in with the right offer.

Some want to get big bucks for these along with the CVO bikes, guess they believe the limited number of these bikes command a higher price JMO

This is a guesstimate of value..: 2006 Harley-Davidson FLSTFSE2 SCREAMIN' EAGLE - 1690cc Standard Equipment, Prices & Specs - NADAguides


So what does $400.00 a month times how many months equal, plus your payoff. This info might help you understand why $300.00 a month will not work.....

 

[Bodeen]

Dealers always want too much for the used bikes, way too much IMHO. Look elsewhere and when you buy one be sure to take it by and show them you meant business. I know everybody is going to give me the what for and why the dealer is a better place to buy but a $ is a $ and everyone you can save these days is a good thing.

 

[Webbtron]

I know I've said this here before, but PPHD wants $500 to do paperwork. You have to be a serious negotiator just to overcome that fee. So I'm saying check private sellers many will have treated the bike better than a dealer.

 

[Hoople]

Somebody help me understand this.

I know it's not what you want to hear but if I was you I would ride what I had and bank some money. Your financing 100% of the bike, and your down payment is up-side-down with negative equity. Your going to be paying through the nose for this new 5 year old bike and you won't have any wiggle room to buy any accessories or parts once you have it.

 

[HDDon]

I know it's not what you want to hear but if I was you I would ride what I had and bank some money. Your financing 100% of the bike, and your down payment is up-side-down with negative equity. Your going to be paying through the nose for this new 5 year old bike and you won't have any wiggle room to buy any accessories or parts once you have it.

The truth is sometimes a bitter pill. Excellent advice!