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[skippy]

I believe at one time someone here had the true cost that HD dealers pay I am
Looking for cost on a softail slim s. I refuse to pay MSRP.... I think it was a web site that u can look up true cost...

[Ghost__Rider]

http://www.seedealercost.com

[grc]

You really don't need to look up a specific model, Harley has the same markup (dealer discount) for all the models as best I can tell.  Take the MSRP, multiply by 0.80, and the result is the invoice price.  In other words, the dealer discount is 20% of MSRP.  For a $40k MSRP bike, that would equate to $8000, a $30k bike would be $6000, and a $20k bike would be $4000.  Very healthy profit margin compared to most products, including cars.

Jerry

[JCZ]

And then most of them want to charge for dealer prep on top of that. 

[Rooster]

And then most of them want to charge for dealer prep on top of that. 

Yes and like car dealers they already get paid from the Manufacturer to do the set up so they get you twice. So to me the extra the dealer charges is actually "ADDITIONAL DEALER PROFIT OR MARKUP"

[grc]

For the 2016 Softail Slim S in a color other than black, the MSRP is $18899.  Invoice would be about $15120.  Freight is $390 and is not included in the MSRP or subject to markup.  In other words, it's a straight pass through charge from the manufacturer, and it is a legitimate charge.  On the other hand, other charges like dealer prep are pure hogwash, since H-D pays the dealers to do the minor amount of "prep" required, like installing the Maxi fuse and setting up the security system, installing or adjusting mirrors and any other parts not actually installed at the assembly plant, etc.  Document or "doc" fees are also questionable, since preparing the sales documents is a normal cost of doing business.  The folks at Home Depot don't charge you a separate "doc" fee for preparing and printing an invoice for your purchase, do they?

Anyhow, once you've figured out what the dealers invoice cost is, you still haven't determined his true final cost.  I assume they still have a holdback allowance just like the car dealers, but can't state that as fact.  If they do, that is usually a certain percentage of the MSRP that the factory "holds back" until the vehicle is actually reported sold by the dealer, and then paid in a lump sum for all vehicles sold either quarterly or semi-annually.  In the car business a common holdback is 3%.  Then you have various dealer sales incentives that can kick in additional profits.  You probably won't see that on a new Harley early in the model year, but might toward the end of the model year.  The problem is the public never really knows if such incentives are in effect, or how much they might be.  On a totally new model, I wouldn't expect much of a discount if any this early in the model year, but there is no harm in asking.  The worst that can happen is they say no.

Jerry

[skippy]

Thanks for the info very helpful I have looked at three dealers and they are not budging off MSRP and all the dealer bs they add on. Will wait till cold weather hits and look up north....

[CVODON]

Some of the local dealers in my area have over the last few years offered "sales weekends" that featured free set-up and free freight along with gift cards of varying amounts and allowed you to use them on the purchase. This is all well and good and I have taken advantage of this deal twice. But if I were a dealer, and could sell my inventory without offering incentives, why would I not do it that way. Why does a dealer of bikes, lawn mowers or gas want to offer a discount on merchandise that will sell for retail, IE: put more money in his pocket, he is, after-all in business to make money. But the point is, this is not the time of year to get a discount on a new model as they just came out and demand is high. Dealers up north I would think would plan there inventory according to sales trends and also floorplan is all they are paying until the bike is sold, so winter probably makes little difference. Pay a few months of floorpan and sell for MSRP in a few months is much better than giving someone a $1000 discount in low sales times. Look at it from both sides. 

[King Glide]

Stop and think about it, how much enjoyment over several years of ownership, is worth, compared to $1000 or even $2000. I personally just give them what they want because my enjoyment every time I ride is priceless and that money is just penny's per ride.

It's just me but, it isn't worth the fight and the good relationship with the dealer pays the difference in other ways like little discounts on service, parts, etc.

[CVOStreetglide]

For the 2016 Softail Slim S in a color other than black, the MSRP is $18899.  Invoice would be about $15120.  Freight is $390 and is not included in the MSRP or subject to markup.  In other words, it's a straight pass through charge from the manufacturer, and it is a legitimate charge.  On the other hand, other charges like dealer prep are pure hogwash, since H-D pays the dealers to do the minor amount of "prep" required, like installing the Maxi fuse and setting up the security system, installing or adjusting mirrors and any other parts not actually installed at the assembly plant, etc.  Document or "doc" fees are also questionable, since preparing the sales documents is a normal cost of doing business.  The folks at Home Depot don't charge you a separate "doc" fee for preparing and printing an invoice for your purchase, do they?

Anyhow, once you've figured out what the dealers invoice cost is, you still haven't determined his true final cost.  I assume they still have a holdback allowance just like the car dealers, but can't state that as fact.  If they do, that is usually a certain percentage of the MSRP that the factory "holds back" until the vehicle is actually reported sold by the dealer, and then paid in a lump sum for all vehicles sold either quarterly or semi-annually.  In the car business a common holdback is 3%.  Then you have various dealer sales incentives that can kick in additional profits.  You probably won't see that on a new Harley early in the model year, but might toward the end of the model year.  The problem is the public never really knows if such incentives are in effect, or how much they might be.  On a totally new model, I wouldn't expect much of a discount if any this early in the model year, but there is no harm in asking.  The worst that can happen is they say no.

Jerry

The other issue is whether the dealer is "Floor Planning" his new and used inventory. If so the interest and financing costs are imbedded in the cost as well. Obviously if the bikes sit for awhile the cost is increased and profit is reduced.

Many long established dealers are doing their own floor planning and financing at "very attractive rates" for those with marginal and good credit scores.

Regards
Other Jerry

[Tibs]

Yeah, its not just a flat 20% profit unless they have absolutely no overhead, no rent, no taxes, nothing.

Go in with that in mind and you will not walk away thinking they just made 20% off of you.

[bakon]

20 percent is about spot on from a deal I just witnessed between a dealer and "old girlfriend" with some other interesting things added. Freight is a pass through, but parts are 40 percent and all those clothes and helmets 50 percent mark ups.

But the store does cost to heat. Ask a mechanic how much that $70 an hour goes to heat and how much to him....but then again he gets a rest room too...