Buying two Ducati's at once. - Ducati.ms

Ducsforfun · Apr 29th, 2011, 9:12 pm

Wassssuuuppppp (old Budweiser commercial)??!!

A friend of mine and I have come with the idea of buying both of our motos at once as good incentive for the dealer...to give us some incentive. Both of these bikes are current year Ducati Streetfighter 'S' models.

Our proposal for the situation is to work with one salesman, give him two commissions, and return the favor with a deal that we cannot pass up. Being that these are expensive, wheelie monster, Italian oh my goodness, Ducati motos, Oh, and the fact that they are holding an MSRP of -5$ on 19k; how would you all approach this?

It's Frriiiiiddayyyyy!

motodave · Apr 29th, 2011, 9:15 pm

and obviously payday too!!! Go for you only lose if you dont try....

jeremyh007 · Apr 30th, 2011, 7:34 am

If it was a cash deal, you may be able to get somewhere. Once they have to do work with financing, they want to get paid

TheX · Apr 30th, 2011, 7:36 am

Cash isn't always king either, some finance companies give the dealers incentives to use them and that means revenue.

Quarantine · Apr 30th, 2011, 8:22 am

I did this same exact thing with a friend in 09.
We went directly to the dealership owner, cash in hand.
Got my brand new 1198S for $3500 less than the sticker price.
My friend got slightly a better deal for his Desmosidici.

DuckMan · Apr 30th, 2011, 8:26 am

I bought my Monster and ST3 and the same time and I did put the salesman in a very good mood. I got quite a bit off of list price and I think both of us were happy with the deal. But as mentioned above I paid cash and that hurts the dealer a little bit. I just bought a car for the wife and got the finance guy to admit to me that on a $30,000 car financing through the dealer gives them about $400 dollars to play with. BUT! by paying cash you save a shit load on finance charges.

Quarantine · Apr 30th, 2011, 8:37 am

Some dealer seem to prefer the financing. But what you save with a financing option will hurt your wallet more in the long term with all the finance charges you've got to pay.

DaC · Apr 30th, 2011, 10:18 am

Quote:

Originally Posted by Quarantine

Some dealer seem to prefer the financing. But what you save with a financing option will hurt your wallet more in the long term with all the finance charges you've got to pay.

There's usually nothing stopping you from paying off the financing the day after you walk out of there. With all loans I have ever gotten I have made sure that there was never an early pay off penalty.

Disclaimer: I'm not a dealer, so I'm mostly talking out of my butt on the next paragraph

I would imagine that a dealer WANTS to get you to finance it. Wouldn't they receive some form of commission on the deal, unless it's a special Ducati backed VERY LOW APR rate? Doesn't a mortgage broker receive thousands in commission for facilitating a simple refinance?

Let us know how you make out and best of luck to you. I just bought a very low mileage used bike because I can't stand having to play games on pricing with a dealer. I personally think if they were up front with their pricing and offered EVERYONE a fair deal they would average out better than by having some guys save a lot and some guys spend too much. Something isn't working out for them, as many dealers are closing their doors with their current practices. Hell, the dealer downtown still had a 999R with zero miles that they wanted $23K for. Gimme a break, it's time to let it go guys.

romancommander · Apr 30th, 2011, 11:27 am

It's better for the dealer if you finance and they can give you a better deal as the financing back end gives them more margin. Remember virtually no dealers "own" the new bikes on the floor. Those are the property of the MFG put on display at the dealer. In turn, the dealer pays "flooring" on each bike. The bike MFG sets a minimum "sell price" for the dealer and anything over that is profit the dealer keeps. The bike MFG's stage the bikes in a regional warehouse to be called on and "bought" (pay flooring) by the dealer as needed. The bike MFG usually pays freight and setup to the dealer as well as credits the dealer to inspect/service each bike. So that "delivery and setup" fee that's on the tag on each bike, is purely padded dealer profit. That's why it varies wildly dealer to dealer, and as such is highly negotiable if you know this fact.

When it comes to MFG approved financing, the bike MFG wants the finance fees as added profit. They go through a lending institution who takes a piece of the pie. To get the dealer to use the financing, they give him incentive which depending on the program is either a %based point or cash value say $200.

Volume based incentives:

The more the dealer sells, the more margin the MFG gives him to work with. Usually on the back end after he meets a quota or goal, or has the highest sales in region (s). Can be a free flooring incentive, but usually it's a cash value incentive. They are often competed for weekly, monthly, and quarterly. Lots of times if you are at a dealer that is close to winning you'll be in the right Place at the right time, and the dealer will let a bike or two go at very little profit just to get the volume based incentive.

Now as far as your situation on buying SFSes:
If you try and buy from a dealer who has been flooring the bikes for a long time, you may get a deal just so he can move them. Chances are if the dealer has only the newest model year in stock he's more likely to pass on you and wait for someone who will pay him top dollar since he's paid very little flooring. So I suggest looking for a dealer who has 2 2010 models.

Also keep in mind dealers have overhead. The newer/bigger the store, the more employees they have, the more bikes that sit on the floor, translates into more overhead, and often means you'll get it cheaper elsewhere. Look for established dealerships who haven't recently expanded, remodeled etc. The huge overheads led to the demise of a lot of dealers during this recession.

To me customer service is where its at. Remember you may have to take your bike back there for warranty some day, if you play hard ball find another dealer or you'll always be "that guy" and go to the end of the line. Dealers like repeat customers and they make money on service. I'll pay a little extra to keep the lights on a at dealer I like because I want to go back and have them work on my bike.

romancommander · Apr 30th, 2011, 11:55 am

Quote:

Originally Posted by DaC

I personally think if they were up front with their pricing and offered EVERYONE a fair deal they would average out better than by having some guys save a lot and some guys spend too much. Something isn't working out for them, as many dealers are closing their doors with their current practices.

Motorcycle dealers play this game, especially dealers of non specialty brands like most Japanese bikes, because they know the majority of the time and with the majority of their customers, they'll sell that person 1 bike ever. Most Japanese bikes are doomed to a life to be crashed within the first 2 years and very few ever see the 10k mile mark. Also these dealers know they are likely to make 0 money on service or warranty work with these customers. So i guess there mentality is why not screw them? This mentality and huuuge overhead is what did in Roseville's former biggest dealer along with all the negative publicity generated by "coupon gate".

Quote:

Hell, the dealer downtown still had a 999R with zero miles that they wanted $23K for. Gimme a break, it's time to let it go guys.

I refuse to deal with this dealer because they have the mentality mentioned above. I have tried and they play lots of games. That being said they probably dont own the bike they just pay flooring, but I bet at this point Ducati is paying them to sell it.

I went in to A and S, educated with multiple price quotes, knowing what I did in the post above, and had 0 games or back and forth. We came to an agreement we were both happy with, and they wound up with a long term customer. Customer service with them is their #1 priority and to me that pays dividends.