Does anyone one know how big of a markup most Harley Davidson dealers tack on their motorcycles?
I have been to a couple dealers in the Midwest and noticed that the prices on last years bikes are real close to the MSRPs of next years bikes.
These days Harleys sell for MSRP at almost every dealership. They do not negotiate price the MSRP sticker price is the sale price period. It used to be that some dealers would mark Harleys up beyond MSRP. But that was when Harley was still ramping up it’s new plants and could not crank out enough bikes to meet the demand. Today supply is not a problem. But Harley uses a unique method of keeping the prices at MSRP. They only allow a dealer to buy 4% more bikes than they bought last year. That means a dealer only has a set number of bikes to sell each year. And since the dealer only has a predetermined amount of bikes to sell they are not desperate enough to sell them at low ball prices. If customer A doesn’t buy the bike …customer B or C will. The dealers markup is about 20% on the bike. But then most of them tack on an assembly fee or destination fee or dealer prep fee or whatever they choose to call it of an extra $500 to $700. Then they try to sell you an extended warranty (up to 7 years).Then they give you the dealer installed custom accessories catalog which makes you drool all over the poor sales guys desk. Then of course there is the tax, tag and title fees. So by the time you leave the dealership the $14,000 bike you went in to buy ends up being 20 grand but … everyone always rides out with a smile on their face. And the dealer ends up $5,000 richer. If you want a cheaper bike … go to the jap dealer … most of them will wheel and deal on the price and you’ll probably leave there riding a decent bike with a smile on your face. But for some of us a Harley is the only bike that will do… there is no explanation. It just is. And we will continue to fork over our hard earned money to the dealer and smile. Hell I even go back and buy a Tee shirt now and then. (they don’t want to negotiate the price on those either). Oh and by the way Harley has built their reputation on solid straightforward and proven design. They are not cutting edge technology. But they have rock solid dependability and are beautifuly sexy machines. They are easy for a do it yourselfer to maintain, hold their value and last for many years. To me that sounds like a good value. There are thousands of old Harleys on the road … I see some of them nearly every weekend. I’ve never seen an old Jap bike on the road. I guess you just ride ‘em till they are worn out and throw ‘em away.
Sterling Meadows Tack Shops – Virginia Beach, VA
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