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'02 Anodized Club
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970 Posts
Discussion Starter · #1 ·
I've had quotes ranging widely on dealer prep as I look for dealer V-rods. I'm willing to pay for reasonable dealer prep, but don't want to get ripped off. Since the quotes vary widely, it's pretty clear that this is an extra-margin item for a lot of dealers.

--On a new 2004 or 2003 on the floor, what is the real number of prep hours? Does HD require a real setup of the bike, or is it all done at the factory? How do I make sure the prep is more than a fresh tank of gas and a wax job?

--On a new 2003 that's been taken from over the stock of another dealer, it it reasonable for the new dealer to ask for dealer prep? I'd assume any detailed setup was done by the first dealer.

--On a dealer's inventory of used bikes, does dealer prep (even, say, an hour's worth, for example) make any sense at all?

Again, I'm willing to be reasonable, but want to get what I pay for.

Thanks --
 

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Ghost Rider
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533 Posts
In my mind, dealer prep=hidden commision charge.

They tell you what each button does, fill up the fluids and tank and clean the bike (assuming it was dirty to start with).

I couldn't get them to take it off though........
 

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SNAFU
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13,094 Posts
Dealer prep is a surcharge to pay the dealership to do something that they are REQUIRED to do prior to delivery of the vehicle. There is no additional dealer prep on used bikes (there may be reconditioning required but that needs to be included in the sales price of the bike, not an additional charge). Bikes taken over from another dealers stock could require dealer prep if it was never removed from the factory crating. If the bike has been removed from the crate and prepped by the original dealer then there's nothing for the selling dealer to do.

Bottom line, it's an cost that they have conditioned us to pay.

When I negotiate I tell them what I'm willing to pay + tax and tags. If they add any dealer prep on top of the negotiated price I walk out. I've walked out on many bike/car/boat deals over add-ons and in most instances they remove it to save the deal.
 

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backcracker
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735 Posts
I completely agree and didn't pay mine either. Are they gonna sell the bike in the box? No, they HAVE to prep it to sell it, so it should not trickle down to the buyer. :spank:
 

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'02 Anodized Club
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970 Posts
Discussion Starter · #5 ·
Prep is highly negotiable, at least at one dealer.

Thanks, good advice.

Good discussion today on prep with a dealer re new bikes. Said that the typical book time on one is 1.5 hours, "plus a quart of oil". At his rate of $85/hr, that's $120 or so. Definitely an area for considerable negotiation, and he was up front that this was a negotiable item. His freight charge was $260, much less negotiable.

In any case, the numbers above might give you a little leverage when they talk $500 prep fees. Hope it helps.

Interesting spin from him, though, on financing. They get a credit for it from HD and their other financing sources. Appears to be a flat fee for referral (though he didn't confirm this, note the following suggestion from him which leads me to think its a flat referral fee). His advice was that they'd work with me on the value of fee they get as part of the deal, but I'd need to pay off the financing over no less than 4 months (figure less than that and the fee has a giveback, I assume). His quote was 6.9% on financing -- not that I care, since I'd only finance to get the deal price down. Since it comes out the financier's pocket, the only discussion is how much the dealer discounts the deal to offset the fee from the bank.

Anyone in lending know how much the referral fee is on a $15K deal from an auto/bike dealer? Figure 5 year note with 7% APR. The interest payments on a 60 month note @ 7% total $2,700, so the fee to the dealer could be pretty good. Just curious.

Learning more every day, and will contine to share what I learn about buying for those who haven't dealt with HD dealers before. Few more weeks and I'll pull the trigger--

Best to all--
 

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SNAFU
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13,094 Posts
It varies a lot but a rough industry standard is 1%, typically this is added to the rate and kicked back to the dealer. Many times it's paid upfront as an advance. That's why he said you need to keep the loan in force for at least 4 months. The advance is paid back by the dealer as your loan matures. Figure the dealer is making between $200 - $400 if they process the financing.
 
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