BMW Purchase Strategy

[fanatic]

Need some advice on buying a BMW. I'm planning to buy an F800GS and will have to finance 70-80% of it. Does BMW haggle at all? If so, what's a reasonable discount...1%, 5%, 10% of the total price? The sales guys are giving me the hard sell, but I'm trying to temper my eagerness to buy with the desire not to pay too much. I haven't bought a new bike in seven years, and at that time the Aprilia dealer offered a nice discount on Futuras and added a $700 voucher for riding gear. Will BMW offer anything comparable? What approaches have you Teutonic warriors used successfully? Thanks in advance for any (helpful) advice...

[RSVRFACTORY]

they might if bikes are not selling well (these days they are all sitting). BMW has always been a brand that had good resale, so it would be a bit more difficult to talk them down in price. You can always try.

[Jennings Junkie]

It's really more of a dealer thing- and there's not a lot of BMW dealers out there. I recommend collecting the discounts currently offered on competing bikes and taking that information with you to the BMW dealer. Suggest that they match the discounts, or at least come close. If they are unwilling- just walk away. In the current economy, if a dealer is unwilling to work with you on price then don't buy from them. The customer has all the power, but you must be able to walk out the door to show them you have self-control... otherwise they'll just wait for you to cave.

[KarlBalmer]

how many dealers do you have in striking distance. call around if the wont come down at all. I have never had a BMW deaer not come off somewhat at least. heck I bought a K1200S in 2005 when they were selling well the first year and got 1500.00 off and more than I thought possible on a 99 K12RS with 67k miles of flogging on the clock. (6200 trade in totally stripped of anything that could be taken off. so that by the time I sold off all the extras I got almost 7500.00 for her)
if your financing look online as I think BMW has some promotions going there right now.

[abouc]

The dealer nearest me usually runs specials a few times a year, where they will throw in $xxx towards gear, luggage, etc. He told me to get the best price, come back in February. Though in AZ that probably won't make any difference.

Good choice in bike, by the way.

[Unreal]

Call around. There is a local dealer here that just opened and has tons of bikes, but with snow on the ground I doubt they are selling much. I bought my Aprilia from AF1. Paying $500 to have a bike shipped is worth it to get a deal. The only local dealer wanted $2000 more even after shipping.

[commandodave]

I always found that paying in cash works. Determine how much you are willing to pay for that F800GS, tax title, and out the door. Then walk into dealer with a stack of $100 bills equal to your price. Assume your total is$6000. After negotiations, if he is lower, all to the good, but if his lowest price is $6500, pull out your stack of benjamins and start counting. When you get to $6000 say, "Sonofabitch! I only brought $6000 with me." Then turn and start walking for the door. If the salesman doesn't call you back before you reach it, keep on walking.

It works best right before the dealer has to pay interest for keeping the bike another month.

Dave

[fanatic]

Good advice, guys, I appreciate it. I will call around to see what prices are like around the SW US. I'm willing to drive for a day to get a better deal. My only concern with that is when it comes to servicing it. I'd hate to piss off the local dealer by buying elsewhere! The good thing is I'm in no hurry, so I can walk away if the price isn't right. Do motorcycle dealers have the same issue with keeping bikes in the showroom, i.e., they lose money for each month it sits on the floor?

[Tifa]

why downgrade to the beemer??....you could have a really nice ape for that sort of money...:cheers:

[SoulDaddy]

Have you joined a Beemer forum or two and asked what their advice is? Maybe should oughta. :cool:

[fanatic]

Tifa, there's just something about the F800GS that scratches my itch. I like the Caponord but it just isn't right for me.

Soul, I will when I get home (I'm at work and can't spend too much time doing "research.")

[Tifa]

Tifa, there's just something about the F800GS that scratches my itch.

Steady on there chap...I have two good friends who both bought 800GS's...and within a few months they had both chopped them in for a 1200GS....long story short...once the novelty wore off they were bored shitless.

Try to blag a really good & long test ride if you haven't done so already

I haven't ridden the 800GS myself...but I have tried the F.....nice bike, but a bit bland and without character imo. Mrs Tifa didn't like it much either, because the rear bodywork (near the fuel filler cap) dug into her thighs....she just found it a bit uncomfortable..

I must admit that the one thing that would prompt me to buy a beemer is the aftersales network...light years ahead of most motorcycle marques

[RSVRFACTORY]

Good advice, guys, I appreciate it. I will call around to see what prices are like around the SW US. I'm willing to drive for a day to get a better deal. My only concern with that is when it comes to servicing it. I'd hate to piss off the local dealer by buying elsewhere! The good thing is I'm in no hurry, so I can walk away if the price isn't right. Do motorcycle dealers have the same issue with keeping bikes in the showroom, i.e., they lose money for each month it sits on the floor?

I believe they pay every month that bike sits on the floor. I think each dealer has a floor plan that makes them carry x amount or bikes and x amount of each model....so any bikes that are not moving, the dealer pays on them in some fashion.

end of the month is a good time to go down with a handful of cash and start the bidding.

[Chuck B]

I like a good deal like anyone else however I've found when buying new from a dealer a give a bit in that area. My local dealer(s) have changed greatly since I got into motorcycles in 1984 and its not been for the better. I feel more strongly than ever to support my local dealer(s). If that means I pay a bit more than going out of state ala Los Angeles than so be it. With two local dealers here I've built enough of relationship with them that more than makes up for it. Example: My KX250 is an 05 and of course a 2st. If you haven't noticed 2st, much less a MX 250, is a dieing breed. He keeps all high wear items in stock for me. All he's asked is I let him know when I'm going to get rid of it so he can stop stocking those items. He goes out of his way to find items I want/need and offers aftermarket items at pricing that in most ways directly competes with anything I'll find on the internet. I've regularly been invited to dealer/manufactures private events and biggest reason of all I know he appreciates my business and I appreciate his service.

I've heard your local BMW dealer is pretty good...still an independent too!

Besides...now I have more fun pounding the keyboard looking to low ball all the losers on Craigs lists. Just recently....92 KLR650 $200, 02 KX100 $300, 07 675 (too low to post!), 01 Futura $2200, 95 XR600R $700 and just the other day a 98 KTM WP fully adjustable shock for $50 and HID H4 Hi/Low system for $40! Their new home will be on the KLR :worship:

[fanatic]

Chuck B, I agree with you about the local BMW dealer...seems to be a good small businessman who isn't trying to gouge his customers. All the sales folks are above board. Unfortunately, all I've read lately indicates the F800GS is one of the few bikes moving off the floor quickly, so I don't think I have much negotiating room presently. I'll continue to drop in and see if the two white ones on the showroom floor are moving. If not, maybe around the holidays when few folks are buying new motorcycles, I'll see what price they'll give me.

[fnfalman]

First of all, if you're going to get an adventure bike, get the KTM and don't waste your money on any BMW.

Secondly, if a BMW dealership were to want to sell you a bike badly enough, they will negotiate. BMWs aren't exactly flying out the doors right now. So, name your price.

[RSVRFACTORY]

what Chuck B said is perfect....if you have a dealer/business that will offer what you need at a fair price, support that.

There was a dealer around here that would kinda stick it to you, but they were the "better" of the 2 we have. Karma came around and now the owner has to sell the dealership. He is accused of taking VINs off bikes and using them on custom bikes he was building.

[Jet City Racer]

Let me make a few calls tomorrow, I'll find out dealer cost/shipping details for you. ;)

[Axecent]

When I bought my K100RS in 85, I literally checked dealerships all over the US, and got the best price from a shop in bay area. I used it to get a matching price 100 miles from my door.

[OZSLR]

I want to clear up some misconceptions about screwing dealers for a "good" price having managed a bunch across 3 states here between 2005-2007 as part of a "sea change". Opened my eyes to the dynamics of customers (or as some were refered to, cuntstomers).

Assuming that the US is not disimilar to here, most dealers finance their stock. They also operate on pretty slim margins at RRP, usually around the 10-12% (that's gross) before Mr customer starts demanding a better deal. They will usually have an interest free period depending on what plan they took the bike on, but the longer the period, the higher the base cost. After that period (usually 30/60/90 days) they start paying interest so the bikes cost increases. Many dealers make stuff all out of the bike sale and in fact hope you do take Finance and Insurance (through them) and also buy a new jacket, Helmet, set of gloves or boots, and service your bike with them to increase potential return.

When there is a new model or a shipment of new year complianced bikes on the way, the importer/factory may decide to offer dealers cash back to clear stock, as they want the new stock going straight onto the dealers floors and not sitting in "their" warehouse where they would then have to carry the cost. So it is under these circumstances that good deals can be had, be it for example an 08 complianced bike, or an 09 because the 2010 shipment is due. They may also offer the dealer a set of pipes, or luggage etc to help clear stock, but the dealer wont profit from the accessories, but will just use it to leverage the sale.

I'm not trying to defend "all" the dealers as there are some shady ones, but it's a tough gig and most of the good guys do it for love rather than money and if you want competent mechanics working on your bike with up to date equipment, spare parts to be kept in stock and decent floor stock and demos to test and chose from, you have to expect the business to be profitting somehow to pay for it all.

[williamr]

What works for me is scouringthe web to getthe cheapest advertised price. I go down to my local dealer and say 'I want this bike. I can get it for this price, but I'd rather buy from you because you're local'. Saves all the hassle of negotiating as either they match the price, or very nearly, or you walk away.

For the finance, unless BMW are subsidising a low cost deal, look at a personal loan rather than dealer finance.

Rob

[fnfalman]

For the finance, unless BMW are subsidising a low cost deal, look at a personal loan rather than dealer finance.

Rob

Depending on the makes and models, BMW Financing can give you some killer interest rates. For example, I bought my Rockster on 0.49%. Yes, that's right - 0.49% interest over 60-months.

[williamr]

Yep.

I went in to pay cash for my ER6, found Kawasaki were offering 0% finance and left my cash earning interest. It's there if I have to pay the finance off quick, but it's finished in about four months anyway. I've got a trade in and still got the cash if I decide to swap the bike.

It doesn't stop you from driving the best possible deal either.

Rob

[Jet City Racer]

OK, here's the skinny on the F800GS. The dealer has a 12% markup on the bike, (which isn't much) so subtract that number from retail of $11,395 to get dealer cost. But..... the dealer also does have to pay an additional $495 for shipping per bike to BMW which has to be added to the break even point. There aren't any 2009's available from BMW, so unless your dealer has them still on his floor you're stuck with the 2010.

I hope that helps.

[OZSLR]

the dealer also does have to pay an additional $495 for shipping per bike to BMW which has to be added to the break even point.

The dealer also has to uncrate and assemble, another cost often not considered when people look at the base price and RRP.

[Jet City Racer]

The dealer also has to uncrate and assemble, another cost often not considered when people look at the base price and RRP.
That money is reimbursed in this case by BMW.

I do my homework. ;)

[jrflanne]

Pick your dealer. If you like them just buy the damn bike. If they are good, list is fine since you and them will be dealing with each other in the future and $500 doesn't mean shit in the long run. It does nobody any good if you get a bike for cost and then they go under. Frankly, I buy used bikes. The last bike I bought new, I walked into the dealer, the dude was cool, the bike I bought was love at first sight, and I signed the papers and never looked back. He made money. I got my bike. A win for everybody.

[duc slayer]

A lot of dealers are hurting right now, I had a chat with, well lets just say a traveling salesman who covers the NE (rather not put him on blast :D ) and he has 7 dealerships closing this week. Some of them are rather large and well known, even Ronnie's is teetering on the unknown

[OZSLR]

That money is reimbursed in this case by BMW.

That's fair! Over here, the dealer has to resource the cost of pre delivery, but the bikes base price is to their dock and inclusive of freight, at least for the APE/MG importer. That way a small specialist dealer in somewhere like Perth, 3000k's away, has the same landed cost as a large multifranchised outlet just up the road from the warehouse in Sydney. Protects the smaller dealer and stops the big ones cross border trading.

[Jet City Racer]

FWIW~ I'm not saying the prospective buyer should only buy the bike if the dealer loses money, but knowing how much profit is in the deal will help the buyer know if the deal offered is fair for all parties. IMO if you can get a popular bike for MSRP including tax and license you got a good deal

[Chuck B]

FWIW~ I'm not saying the prospective buyer should only buy the bike if the dealer loses money, but knowing how much profit is in the deal will help the buyer know if the deal offered is fair for all parties. IMO if you can get a popular bike for MSRP including tax and license you got a good deal

Like an 08 CBR1000 for less than $8K otd? :D

[KarlBalmer]

the average rider walking in off the street is not going to know what the dealer has in a given motorcycle on the show room, unless you know exactly what the dealer paid for it and what interest they are paying on the money they used to pay for it, along with knowing if there are any incentives or "help" being offered by the factory to the dealer to help move for that specific bike.

Figure out what you are willing to pay for a given bike and make a real offer, if the dealership accepts they felt it was worth while and since you made the offer so felt it was worth while.
if you are in the ballpark at all a deal will be made,if not either you or the dealer is being unrealistic in your expectations.

[Jet City Racer]

Like an 08 CBR1000 for less than $8K otd? :D

The dealers aren't losing money even at that price. There were Bonus bucks and a permanent price reduction from the MFG.

[Marcusredmonkey]

I stopped by the local BMW dealership today and poked around about the F800 GS you were mentioning. They had the 2 white ones you mentioned but 1 of them was their demo bike. I didn't get any pricing from them but the sales guy there Jim was real nice and very knowledgable about the bikes.