Prices for leftover '07 models?

[bramfrank]

Amazing how prices vary. I was in a dealership in Marionville, MO yesterday...and they wanted $14,400 for a black 08.

So, you have three choices when that happens. Pay what they want, try to negotiate, or walk.

It's your money and its up to you how much you pay and to whom.

Caveat Emptor!

 

[Horst]

Hell I ran out of there, lol

 

[FJRBill]

There is an '07 in Aplharetta Ga for 10,500 with 4k miles and many mods. There are two new '07 FJR's in Charlotte NC for 11,700. I was going to Charlotte and the local dealer offered me their new '08 for the same price. Needless to say, I took the '08 since the dealer is only 2 miles from the house. I have the dealer invoice for a new '08. I'll post it below, I hope it helps someone out:

2008 FJR 1300A

List price: $13899

Dealer Invoice: $11788

Dealer ivnoice price includes a $252 freight charge for shipping from the manufacturer to the dealership. The freight charge was increased from $216 for units shipped from Yamaha to dealerships after June 1, 2008.

Assembly Cost: $90 per Yamaha price sheet

Each dealership has it's won method of figuring actual cost of assembly and preparation for sale. There is no reimbursement by the factory for this cost to the dealer.

[SIZE=12pt]Ready to sell cost: 11878[/SIZE]

This model Yamaha has 3% (of list price) dealer holdback

This holdback money is paid to dealers in at the end of the model year for units that are sold within the previous 12 months. Dealers must pay Yamaha the full "Dealer Invoice" price and wait up to 12 months after selling the maching to recive their dealer holdback.

The "Ready to sell cost" is the cost of the machine with NO PROFIT to a dealer. Dealers do not stay in business very long by selling machines for no profit.

Many dealers charge additional fees for "Freight and Setup" over and above the selling price of the maching. Add the "Selling Price" to the "Freight and Setup" charges and subtract the "Ready to sell cost" to determine the PROFIT a dealer is asking to make.

 

[bramfrank]

You have to understand the 'between the lines' issues with dealer invoices.

The net cost to the dealer for your recently ordered '08 A model is $416.97 ($452.97 if he got it before June) less than the supposed 'ready to sell' cost - and, by the way, the mean time to receive a holdback payment is 6 months, because we don't know when it is that Yamaha pays the holdback out.

That $90 assembly charge presumes that they are paying a real mechanic, not a junior geek to assemble the machine, so that's also probably somewhat inflated. Even so, unless they pay their mechanic for work billed (Sears does that) or have gone out and hired a person just to assemble THAT machine, the direct cost of assembly of the machine is zero, because the monkey doing the work would be sitting on his thumbs if we wasn't messing up the assembly of a bike. The cost disappears into the general overhead of the business.

Much of the *fun* is that when a dealer orders in a bike for you (like D&H does) they can afford to sell at *cost* because they aren't laying out their money for any length of time - in fact, if they have 30 day credit, they may well lay out nothing, receiving their money from the buyer before they send funds in to Yamaha. They can invest this money for a mean of 15 days and increase their profits that way.

Note that if you are financing your ride, the dealer almost certainly receives a kickback from the financing organisation as well.

In such cases, their profit margin is *interesting* because they make almost no direct profit on the sale, per se. But the return on investment is a huuuuge number, because they've actually invested nothing beyond the risk that someone might not collect the machine they've ordered - but D&H always has inquiries, so their risk in this regard is minimised.

So the statement that "Dealers do not stay in business very long by selling machines for no profit." is clearly incorrect, since Yamaha's highest volume dealers have been doing just that for years.

And, where a dealer is stuck with inventory and if he has HIS money in it (rather than manufacturer-owned inventory, as is common in thr car business), it is sometimes in their best interest to dump the unit at ANY price to free up capital, because motor vehicles are very poor investments, depreciating, even while they are sitting on the floor.

 

[timalan]

The '07 I looked at here in Tulsa is still there. that was Feb '07 when I looked. I told him what D and H was doing for me. He said "Have a nice trip" I did, and he still has a now two year old bike still on the floor. since '09s will be here soon. Dumb.

 

[Bigbeavk]

I just got the deal of a lifetime imho. I had an 05 Harley Wide Glide with 39k miles on it and they gave me an even trade for my new 07. They listed the value at 12k on the deal receipt. Man what a machine!!!!!!!!!!!!! I dropped of the Harley covered with road grime, bald tires and laughed all the way home. Some guy wanted to test drive the harley before I had even taken my tag off. lol 400 miles later my new cherrie is resting comfortably in her garage with a nice rub down.

OH LET THE GOOD TIMES ROLL!!!!!!!!!!

 

[FJRBill]

You have to understand the 'between the lines' issues with dealer invoices.
The net cost to the dealer for your recently ordered '08 A model is $416.97 ($452.97 if he got it before June) less than the supposed 'ready to sell' cost - and, by the way, the mean time to receive a holdback payment is 6 months, because we don't know when it is that Yamaha pays the holdback out.

That $90 assembly charge presumes that they are paying a real mechanic, not a junior geek to assemble the machine, so that's also probably somewhat inflated. Even so, unless they pay their mechanic for work billed (Sears does that) or have gone out and hired a person just to assemble THAT machine, the direct cost of assembly of the machine is zero, because the monkey doing the work would be sitting on his thumbs if we wasn't messing up the assembly of a bike. The cost disappears into the general overhead of the business.

Much of the *fun* is that when a dealer orders in a bike for you (like D&H does) they can afford to sell at *cost* because they aren't laying out their money for any length of time - in fact, if they have 30 day credit, they may well lay out nothing, receiving their money from the buyer before they send funds in to Yamaha. They can invest this money for a mean of 15 days and increase their profits that way.

Note that if you are financing your ride, the dealer almost certainly receives a kickback from the financing organisation as well.

In such cases, their profit margin is *interesting* because they make almost no direct profit on the sale, per se. But the return on investment is a huuuuge number, because they've actually invested nothing beyond the risk that someone might not collect the machine they've ordered - but D&H always has inquiries, so their risk in this regard is minimised.

So the statement that "Dealers do not stay in business very long by selling machines for no profit." is clearly incorrect, since Yamaha's highest volume dealers have been doing just that for years.

And, where a dealer is stuck with inventory and if he has HIS money in it (rather than manufacturer-owned inventory, as is common in thr car business), it is sometimes in their best interest to dump the unit at ANY price to free up capital, because motor vehicles are very poor investments, depreciating, even while they are sitting on the floor.

Bram,

I just typed out what was stated on the dealer invoice, your worse than I am when it come to typing long threads. I appreicate the feedback and take it you have a personal interest in how dealers sell bikes with their BS on every other word. I dread buying new because of it all.

 

[bramfrank]

They don't call them 'stealers' for nothing. While there are some real gems out there, car, bike and motorised toy dealers tend to be pretty slimy - charging for things they don't do, breaking things and not admitting it and such.

The industry has to a large degree earned the reputation it has - and I've suffered my share of the deceipt.

 

[jmdaniel]

Amazing how prices vary. I was in a dealership in Marionville, MO yesterday...and they wanted $14,400 for a black 08.

So, you have three choices when that happens. Pay what they want, try to negotiate, or walk.

It's your money and its up to you how much you pay and to whom.

Caveat Emptor!

Gunny. Something too many people fail to realize or act upon.

 

[Lowcountry Joe]

You have to understand the 'between the lines' issues with dealer invoices.
The net cost to the dealer for your recently ordered '08 A model is $416.97 ($452.97 if he got it before June) less than the supposed 'ready to sell' cost - and, by the way, the mean time to receive a holdback payment is 6 months, because we don't know when it is that Yamaha pays the holdback out.

That $90 assembly charge presumes that they are paying a real mechanic, not a junior geek to assemble the machine, so that's also probably somewhat inflated. Even so, unless they pay their mechanic for work billed (Sears does that) or have gone out and hired a person just to assemble THAT machine, the direct cost of assembly of the machine is zero, because the monkey doing the work would be sitting on his thumbs if we wasn't messing up the assembly of a bike. The cost disappears into the general overhead of the business.

Much of the *fun* is that when a dealer orders in a bike for you (like D&H does) they can afford to sell at *cost* because they aren't laying out their money for any length of time - in fact, if they have 30 day credit, they may well lay out nothing, receiving their money from the buyer before they send funds in to Yamaha. They can invest this money for a mean of 15 days and increase their profits that way.

Note that if you are financing your ride, the dealer almost certainly receives a kickback from the financing organisation as well.

In such cases, their profit margin is *interesting* because they make almost no direct profit on the sale, per se. But the return on investment is a huuuuge number, because they've actually invested nothing beyond the risk that someone might not collect the machine they've ordered - but D&H always has inquiries, so their risk in this regard is minimised.

So the statement that "Dealers do not stay in business very long by selling machines for no profit." is clearly incorrect, since Yamaha's highest volume dealers have been doing just that for years.

And, where a dealer is stuck with inventory and if he has HIS money in it (rather than manufacturer-owned inventory, as is common in thr car business), it is sometimes in their best interest to dump the unit at ANY price to free up capital, because motor vehicles are very poor investments, depreciating, even while they are sitting on the floor.

Im fixin' to pull the trigger on an 08 (maybe...depends on the 09 color and I AM going to wait to see since it's kinda late in the 08 game). But anyway, this is good information and I appreciate the time you took to type it out. When I pay cash for a bike like this, I will get a good deal, I don't care if I gotta drive 600 miles to get it. Equally important is which shop to use for mechanical issues that are beyond my capability. That is where many of us have our hands tied. But fortunately, there are usually lots of Yamaha shops around to pick from I will definitely get the YES, even if I gotta buy it from the good folks at D&H for $20 over their cost. I had a stealer locally quote me $600 for it the other day. I laughed and left. CU later, Joe

 

[jordylad]

Paid $12,000 OTD in April for my 07A in SoCal.

When I was shopping, any dealer would have sold me a left over 07A at that price, but they wanted list at the time for an 08.

Since then, I've seen deals on 08s up to $2k off.

 

[bananaman]

So I went back to the dealer and asked to see the bike. (last time I was there the "A" was "in the back") The salesman and I go outside and start walking, and walking, and walking... out back was really out back, a large metal building about 200 yards from the main shop. We go inside and there are assorted ATV's, bike parts etc.. laying around. Over to the right are a couple of motorcycles covered up. The salesman pulls the cover off the FJR and it's just covered in dust! It was like going into an old barn and finding a new bike that had been stored for years. I sit on it and we talk for a few minutes. I say, 'so this is an '07, huh?'. 'And aren't the '09's coming out soon?'. He say's 'yeah don't remind me.' So I'm thinking alright, they just may deal on this baby to clear it out. So we go back inside, he runs some numbers, does the 'I got to talk to the manager thing', and then when he gets back pulls the 'some other guy called me just today asking about that bike.' Yeah right! Anyway bottom line: 13,500 OTD! I thanked him and left.

 

[jmdaniel]

So I went back to the dealer and asked to see the bike. (last time I was there the "A" was "in the back") The salesman and I go outside and start walking, and walking, and walking... out back was really out back, a large metal building about 200 yards from the main shop. We go inside and there are assorted ATV's, bike parts etc.. laying around. Over to the right are a couple of motorcycles covered up. The salesman pulls the cover off the FJR and it's just covered in dust! It was like going into an old barn and finding a new bike that had been stored for years. I sit on it and we talk for a few minutes. I say, 'so this is an '07, huh?'. 'And aren't the '09's coming out soon?'. He say's 'yeah don't remind me.' So I'm thinking alright, they just may deal on this baby to clear it out. So we go back inside, he runs some numbers, does the 'I got to talk to the manager thing', and then when he gets back pulls the 'some other guy called me just today asking about that bike.' Yeah right! Anyway bottom line: 13,500 OTD! I thanked kicked him in the nuts and left.

Fixed it for ya.

 

[Danno]

I bought my 07 in Feb of 08 for 11,400 not including tax and license.

 

[jwbham]

A dealer here in Birmingham had 2 - 07"S in June that they sold for $10,750.

Smith Brothers on Onteonta, AL had Black '08 for $12,299 - "out the door".

D & H was $12,499.

 

[BobS]

Go with the A but look for a 2008. They are priced about the same price that you are looking at here in FLA. I almost made a trip up to a Ohio dealer that sold 2008 A for under $13000! Pretty much the same bike but you wil lose value on the 2007 much quicker and the 2008 looks greta in black! Either way...get one. It's a great bike!

 

[Gman]

This was some great information. I'm kind of waiting to see whats been updated on the 09's, but at the same time eager to pick up the '08. I think the "black" bike is sharp in appearance and I haven't seen anything negative in the forms. Besides, it would be a definante upgrade from my current 97 Nighthawk 750. I understand that dealers need to make some sort of profit, but lets have some common sence. A local dealer in upper Va told me two weeks ago they are selling the '08's at the manufacture's suggested price (so wiggle room). So I'm looking at upper Maryland or even a little drive to Ohio.

 

[goathead666]

Paid $12,000 OTD in April for my 07A in SoCal.When I was shopping, any dealer would have sold me a left over 07A at that price, but they wanted list at the time for an 08.

Since then, I've seen deals on 08s up to $2k off.

Please tell me where, I'm in SoCal looking for a decent deal without having to talk to every dealer in the state.

Rick

 

[SeDe2]

I found a gorgeous black '08 at the Yamaha dealer in Delta, CO yesterday for 12,8xx and the indicated they were even willing to work on that price. I thought it was a hell of a good deal for an '08 A. If you'd like contact info let me know.

 

[jordylad]

Paid $12,000 OTD in April for my 07A in SoCal.When I was shopping, any dealer would have sold me a left over 07A at that price, but they wanted list at the time for an 08.

Since then, I've seen deals on 08s up to $2k off.

Please tell me where, I'm in SoCal looking for a decent deal without having to talk to every dealer in the state.

Rick

I bought mine at Corona Yamaha. Last I heard, they still had an 07 but I believe it was an AE.

Checkout Mission Motorsports in Irvine, I understand they are dealing on 08As. THey had 2 last time I was there about a month ago.

Also check out OTD motorsports link They have good prices and can arrange a pickup anywhere if you don't want to go to LA.

P.S. I am not affiliated with any of these businesses, but welcome any kickbacks.