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Old 05-03-2007, 10:21 PM   #1
Robert95z
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If you're looking to buy a new 07' CBR600RR...

Just bought mine today, will post pics tomorrow.

But here is some useful info to use when buying...

Just for you guys.....

Dealer Invoice Report

2007 CBR 600RR

List Price: $9499

Dealer Invoice: $8289
Dealer invoice price includes $215 per crate freight charge for shipping from the manufacturer to the dealership.

Assembly Cost: $32 per Honda dealer pricesheet
Each dealership has its own method of figuring cost of assembly and preparation for sale.
There is no reimbursement by the factory for this cost to the dealer.

Ready to sell cost: $8321

This model Honda motorcycle has 5% (of List Price) dealer holdback.
This holdback money is paid to dealers in April or October for units that are sold to U.S. residents within the previous 6 months. Dealers must pay Honda the full "Dealer Invoice" price and wait 1 to 6 months after selling the machine to receive their dealer holdback.

Wholesale Incentives: none for this model.

Retail Incentives: none for this model.

The "Ready to sell cost" is the cost of the machine sitting on the showroom floor 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 machine. 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.

----------------------------------------------
Added:

How should I handle dealer/manufacturer add-ons? - “Add ons” such as freight and setup charges have nothing to do with the manufacturer, but allow the dealer to start at a higher profit point, so a discount can be offered while still maintaining a desired profit level. We suggest that you focus on the total price before sales tax and title fees. Don't waste time arguing about whether they should charge for freight and setup. If the total price before sales tax and title fees is acceptable, then it really doesn't matter how it is broken down. ($6000 price + $0 freight and setup = $5000 price + $1000 freight and setup)

What is dealer holdback? - Holdback is a percentage of the MSRP that is literally "held back" and paid at a later date after receiving proof that the unit was sold and properly warranty registered. It is typically paid to the dealer in April and October for units sold by that dealer during the previous 6 months. Some manufacturers still pay holdback once per year.

This holdback money will be additional profit to the dealer principal when it is received, and is not normally shared with the sales department or included in commissions. As such, many salespeople are not aware of this additional profit.

What about rebates? - Retail and manufacturer-to-dealer rebates are used by a manufacturer to improve sales performance on models that may not be performing as well as anticipated on the sales floor. Dealers are required to "pass along" retail rebates to the consumer, while manufacturer-to-dealer rebates are incentives for the dealer and are not required to be passed along to the buyer. Retail rebate information is always available on the manufacturers web site. Manufacturer-to-dealer rebate information is contained in our Dealer Invoice Reports.

Why do some dealers have more of certain models than other dealers? - Most manufacturers use an allocation system to distribute models to their dealers and forecast future build schedules. Dealers do not usually have the option to "pick up the phone and order more" if they sell out of popular models. Allocating new product allows a dealer who has consistently done well with certain product lines to receive more of that model than a dealer who has ignored a market segment and now wishes to “cash in” on a hot new model. It is not easy to increase a dealer’s allocations, but it can definitely be done over the course of a year or more by aggressively searching for extra inventory and then getting them sold. All in all, it is a fair system.

Do dealers costs change depending on their volume? - absolutely NOT TRUE! All dealers pay the same price for machines. Incentive programs are normally based on percentages of increased sales and allow the same opportunity to any dealer.

Unfortunately, motorcycle and ATV buyers seem to be willing to go thru all the "talk to the manager" and "you gotta come in" games that are common practice in car buying. Why should the consumer purchasing a commodity (made in the 10,000's plus), spend their time and gas running around looking for a fair price (win-win) when it could be done by e-mail, by fax, or telephone? - No one can make you play games if you are not willing to play. Now that you know what an XYZ 400 costs, pick up the phone, ask for the Sales Manager, tell him (or her) that you would like to buy a machine today and that after doing some research, you feel that $xxxx is a price you are willing to pay today. Sometimes you will receive a counter-offer that will be close to their bottom line price on that machine. If the price is reasonable and acceptable, go in and buy the machine. Don't play games.

Unfortunately, many customers will then take that price and use it to start negotiating with the next dealer, and on and on. The Sales Manager then feels that it was a complete waste of time to quote a discounted price over the phone. The only way a dealer can normally sell a machine by quoting over the phone is by quoting such a low price that no other dealer is willing to beat it. It may help move a model you are overstocked on, but it is not a good practice for keeping a dealership profitable.

Realistically, rarely does a dealer who quotes a fair and reasonable price over the phone actually make the sale. The sale is usually made by the next dealer who says, “ wow, that’s a great price, but I’m sure I can save you some money. Come on down, bring your checkbook and I’ll talk to my boss …


-----------------------------

Happy Hunting! -Rob
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Old 05-03-2007, 10:30 PM   #2
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awsome dude, can you find this for other bikes? what about cars?
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Old 05-03-2007, 10:33 PM   #3
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btw, congrats on the new bike, cant wait to see the pics
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Old 05-03-2007, 10:42 PM   #4
Robert95z
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PM me, honda only
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Old 05-03-2007, 10:59 PM   #5
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The invoice price does not included TTL right? Just making sure cause TTL is something that must be paid no matter what bike you buy as it is money to the govt, not the shop. So OTD, im guessing $8800 or so on the 600rr.
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Old 05-03-2007, 11:05 PM   #6
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so you found anyone selling it for the low low price?
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Old 05-03-2007, 11:25 PM   #7
Robert95z
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Thats without TTL... You wont be able to find anyone below 9... but this will help you against the bull at the dealer
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Old 05-03-2007, 11:27 PM   #8
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A girl my girl works with at hooters said she just paid 9000 OTD on a brand new silver 06 cbr600rr. I guess thats expected though since its already a year old.
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Old 05-03-2007, 11:33 PM   #9
Robert95z
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Yeah they have sales on the 06 models.. I know the 06 1000's were $1000 of msrp a month or two ago
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Old 05-03-2007, 11:40 PM   #10
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anyway to find anything out for other manufacturers?
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Old 05-04-2007, 12:23 AM   #11
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post those pics i want to see the 2007 model
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Old 05-04-2007, 08:28 AM   #12
Robert95z
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Im bringing her home today
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Old 05-04-2007, 08:51 AM   #13
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congrats,
thats a sweet bike!
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Old 05-04-2007, 09:13 AM   #14
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nice purchase. Are you going to track the F4i?
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Old 05-04-2007, 10:05 AM   #15
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i was thinking about gettin' an all black one too! SWEEET
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Old 05-04-2007, 10:52 AM   #16
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Hey Robert , just a quick question to make sure I've got the dealer holdback calculation correct. We use 5% of the msrp not the dealer cost to come up with a dollar price that they'll get back in april or october.

Which in this case is 9499*5%=$474.95 they'll get back from Honda. I know you've got the deatils up top but I just wanta make sure I'm reading you right
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Old 05-04-2007, 11:20 AM   #17
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Quote:
Originally Posted by John133
Hey Robert , just a quick question to make sure I've got the dealer holdback calculation correct. We use 5% of the msrp not the dealer cost to come up with a dollar price that they'll get back in april or october.

Which in this case is 9499*5%=$474.95 they'll get back from Honda. I know you've got the deatils up top but I just wanta make sure I'm reading you right
Hold back is usually used by dealers to cover advertising, flooring, etc, it is not a profit, and will not be taken off of the purchase price by 99% of dealers...
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Old 05-04-2007, 11:33 AM   #18
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I picked up mine last Saturday...you won't be disappointed.
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Old 05-04-2007, 05:27 PM   #19
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Quote:
Originally Posted by Texmex1
Hold back is usually used by dealers to cover advertising, flooring, etc, it is not a profit, and will not be taken off of the purchase price by 99% of dealers...
this man has a lil clue about honda sales..........
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Old 05-05-2007, 02:30 AM   #20
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Yall are gonna when you see what these guys are selling them for:

http://www.southernhonda.com/new_veh...&DispType=1106

That price is OTD!

I wish I would have seen this before I picked up my bike
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