Dealer Gouging or Normal Costs? - K-Bikes.com - Excellence in Motion
 
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post #1 of 10 (permalink) Old Mar 23rd, 2006, 11:35 am Thread Starter
 
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Dealer Gouging or Normal Costs?

Ok, I am a current GT owner with a new GT on the way, my question is do all/most BMW dealers charge a destination charge ($400) AND a dealer prep ($365)? I know some don't, but in general is this norm? These costs (pure profits) plus the profit they make off the selling the bike at full retail seem a little obscene! I know I know supply and demand...blah blah blah, but if they won't 'work' with these numbers I may just have to shop and drive to find a dealer that doesn't charge these kind of costs!
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post #2 of 10 (permalink) Old Mar 23rd, 2006, 1:05 pm
 
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Didn't BMW up the retail prices to include freight a year or two ago? Seems like I remember reading that on the website. Assembly is another matter, although I think all companies pay for assembly.
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post #3 of 10 (permalink) Old Mar 23rd, 2006, 1:28 pm
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Dealer prep is included in the MSRP. It's not assembly per se, but rather "make ready" for sale.

As for what dealers make by selling a bike at MSRP, I'm not sure a 13% margin over cost would be called obscene.

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post #4 of 10 (permalink) Old Mar 23rd, 2006, 2:09 pm Thread Starter
 
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I agree, 13% on a 'luxury' item is probably in line with many items, however an additional $765 on top of that seems like reaming to me. I just finished calling 8 dealers in Texas, Oklahoma and Louisiana, 2 charge zero dollars over MSRP, 2 charge prep only (less than $300), 1 charges $400 destination only, and 3 charge for both prep and destination ($550-$765). I realize a business with charge whatever they can 'get away' with, I was just curious if there was a 'norm', and from my calls I guess the answer is no!
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post #5 of 10 (permalink) Old Mar 23rd, 2006, 2:11 pm
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BMW pays the dealer directly for set up.. there should be NO dealer prep charge. There is a frieght charge but I believe it's included in the MSRP of the bike. FWIW I've never paid a dealer prep charge on any of the 5 new BMW's I've bought.
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post #6 of 10 (permalink) Old Mar 23rd, 2006, 2:56 pm
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The $400 dollars destination charge is valid. It represents the cost to get the bike from Germany to your dealer.

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post #7 of 10 (permalink) Old Mar 23rd, 2006, 5:50 pm
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Quote:
Originally Posted by BigDave
Ok, I am a current GT owner with a new GT on the way, my question is do all/most BMW dealers charge a destination charge ($400) AND a dealer prep ($365)? I know some don't, but in general is this norm? These costs (pure profits) plus the profit they make off the selling the bike at full retail seem a little obscene! I know I know supply and demand...blah blah blah, but if they won't 'work' with these numbers I may just have to shop and drive to find a dealer that doesn't charge these kind of costs!
Sorry to say this!!!!!!!!!!!!!!!!!!!!!!!!!!! But there is no SUPPLY AND DEMAND on this bike for sure.
Dealer in Los Angeles are try to push and hipe this bike and they are doing a very bad job because there are not that many like this bike and that is the fact that they have to face it. just wait 6 months and you will see the drop on price like.
All the best......................
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post #8 of 10 (permalink) Old Mar 24th, 2006, 12:23 am
 
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No Destination

MSRP for BMW NA Motorrad includes destination to selling dealer and vehicle prep. Unlike car dealers, destination and prep are built into the advertised price for these bikes.

Many BMW dealers, however, are squeezed by the National HQ for various and sundry franchise fees and takes. So it is not surprising they try to get it back using terminology familiar to American consumers.

If buyers are readily in hand, it works.
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post #9 of 10 (permalink) Old Mar 24th, 2006, 11:09 pm
 
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Question

My question is related to yours! What if you buy somewhere other than local due to price issues and the local has issue with service, illegal yes, but service fees, service priority, and time it takes to do the service are always still in question under these conditions.
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post #10 of 10 (permalink) Old Mar 26th, 2006, 11:35 pm
 
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Service and Sales not necessarily related

I know what you mean. I bought a K12RS from an out of state dealer four years ago. The local guys were pissed. Unfortunately the bike they had was an '02 and I wanted an '01. I wasn't crazy about the servo brakes plus the bike I bought was $2.5K less from the other dealer [off-lease bike from BMW with full warranty].

At first I got the cold shoulder from the local folks. I finally asked the store manager about it. He understood what drove my purchase. I let him know that I still planned on getting service from them. The service writer was also OK with me. He said he didn't care where the bike came from as long as they could keep doing my services. After the initial cold period, they are fine with me. Plus they have continued to do well and have a growing customer base. This could be different in a area where BMWNA is putting the screws on a local dealer.

As always, YMMV.
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