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Dealer Invoice

3K views 13 replies 9 participants last post by  grifscoots 
#1 ·
Does anyone know what dealer invoice might be on your typical $20,000 stickered GT?
I'm told there is not much markup but then again that's what they always say. I just hate negotiating a deal blind.
 
#2 · (Edited)
TomsterMVA said:
Does anyone know what dealer invoice might be on your typical $20,000 stickered GT?
I'm told there is not much markup but then again that's what they always say. I just hate negotiating a deal blind.
There is a 13% margin on new BMW Motorcycles over dealer cost. On a new and popular bike like the GT, good luck getting any wiggle room.
 
#3 ·
eljeffe said:
There is a 13% margin on new BMW Motorcycles over dealer cost. On a new and popular bike like the GT, good luck getting any wiggle room.
I wasn't given any wiggle room on invoice, but was given a free. large topbox and 600 mile service. I love this bike so much that it wouldn't have mattered, though.
 
#4 ·
I think they make most $$ on service. Small margin on the bikes. Only about 90 certified techs in the nation...do you know if your shop has one? Mine doesn't. At least I don't think so.

Might be best to find a pre-owned KGT with a few miles one it. Divorce sale, finance it and save $$ on the depreciation.

Best,

Gravity
 
#5 ·
grifscoots said:
I wasn't given any wiggle room on invoice, but was given a free. large topbox and 600 mile service. I love this bike so much that it wouldn't have mattered, though.
That's the same deal they are offering me....free large topbox and free 600 mile service....also taking $250 off the Nav III. If it's true that there is a 13% markup then that is about $2,600. They should knock off at least another $500, especially since there are 3 just sitting at the dealership.

Thanks for the info.
 
#6 ·
TomsterMVA said:
If it's true that there is a 13% markup then that is about $2,600. They should knock off at least another $500, especially since there are 3 just sitting at the dealership.
Maybe they don't need or want to? They are already giving you something back with the service and top case. Remember 2 things:

a) They are there to make as much money as possible (you are doing the opposite - trying to save as much money as possible)

b) They need to preserve price pointing and perceived value. Constant and large discounting erodes the price/value and therefore kills after-market value (just like GM vs. import in after-market. All those GM discounts and rebates are applied to the back end as well as the front. The imports very rarely apply factory incentives and hence the better resale).

So , I would rather have extra equipment on the front end rather than get hit at resale time because dealers started whacking prices. To me that is very shortsighted.

Brian
 
#8 ·
for the record
every bmw dealership has 3 separate businesses and corportations

Sales

Parts

Service

EACH makes money independently (for the most part) from the other
 
#9 ·
ClearwaterBMW said:
for the record
every bmw dealership has 3 separate businesses and corportations

Sales

Parts

Service

EACH makes money independently (for the most part) from the other
Greg,

Are you sure about this? I can see them having 3 accounting areas, but certainly not 3 business units and 3 corporations. That would be a tax and accounting nightmare. Plus they would have to operate all three interdependently of each other and probably hold them in a Sub C corp which would immediately void any pass-through taxes and money.

Brian
 
#12 ·
I ended up paying full retail for the bike itself but got a free 49 litre topbox, free BMW liners for all three bags, free 600 mile service and $225 off the price of the Nav III. I have no doubt I could have gotten another $500 off somewhere but didn't push it.

I agree it is a good thing that they BMW does not have a history of deep discounts as it is the only way to preserve the value in the bikes already purchased.

Oh yeah! i got 2 free ear plugs too! A $1.25 savings!
 
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