Does anyone one know how big of a markup most Harley Davidson dealers tack on their motorcycles?

Question

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.

Answer 1

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.

Answer 2

Harley Davidson Dealer Cost

Answer 3

This Site Might Help You.

RE:
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.

Answer 4

Aside from the fact that Doug M is talking through a paper as'shole and leaking s'hit all over everyone, something should be mentioned here. You noticed that last year's used bikes are selling at or near MSRP for this year. Well, that's because of the fact that Harleys are the only bike that can actually APPRECIATE after you buy it. They hold their value and will last years longer than the pieces of s'hit that Doug is advocating. And what about the ride? Couldn't stand anything else. And beautiful! I usually don't insult jap machines; I figure it's the 2 wheel experience that bonds us all but a lot of these japper flappers just can't open their mouths without insulting Harley. Look at it this way; in comparison to Hondas or Yamahas from the 60s, which do you see more of? Harleys or them? Tell me how many Hondas you see from 1945 still running strong? As for dependability, I had a 98 Road King that went 6 years on the same battery, never failed to start and ran strong all those years despite living outside through 5 years of Florida hurricanes (see my 360). In 04, the coil went and with that, I changed the battery. Aside from tires, that was IT for 6 years. Who can claim that to be undependable? And when I traded it in for my Lowrider, I got damn good money for it! And that from a dealer, so tell these insulting motherf'uckers where they can stick their false claims and old wives tales about HD. They want to ride Jappers? Fine!!! Let them! NO one will insult them; they hang out at the HD Dealership where I live all the time and ride with us and nobody gives them crap about their ride. I guess it's just latent jealousy that makes them crack wise and tell lies about HD.

As to the markup, they make a profit (oh! Horrors!) but I don't think it's anything outlandish. These dealers make the bulk of their money from aftermarket parts sales,merchandising and service. Part of the reason they don't haggle much is that their margin isn't that great. Thanks for letting me rant and rave; hope I gave you some insight on the pricing however simple it may be. Ride whatever you want; don't insult anyone else for what he rides.

And what does Jacklord ride? A scooter? Wearing bermuda shorts and a straw hat? Candyass.

Answer 5

Firecracker's got it ... it's a free market system and Harleys have a "prestige" markup. They sell a dream. They let Casper the Accountant pretend he is Marlon Brando in a tee and leather. But Gixxers have a large markup, too, and they also sell a dream -- they let Billy Zit pretend he is Valentino Rossi or Ricky Carmichael.
Bikes are about romance, in every way. Harley's particular flavor is real accessible for the average guy. That's why they can charge huge markups for inferior, outdated engineering.
But dang, it's still a HARLEY, dude, even if you have to get around on a trailer.

Answer 6

If you check around, most all of the Harley Dealers are regulated by HD corp. The maintain a balance price, if a customer go's out of state to buy a HD and gives his home address, the commission go's into a split to the dealer, nearest your address.

I say the mark up is 15%.

I suggest buying a new/used bike from Cycle Trader Magazine. I got mine, was only ridden 5 times and paid $4k less than new, with a extended 4 yr. warranty.

Answer 7

As much as they can, I suppose.

MSRP for mine was around 15K, according to HD's website.
Actual was 17K+/- . You don't get any wiggle room when you call the dealer an hour before closing on Friday night and say " I want the one on the display stand in the showroom. I'll be in tomorrow morning to pick it up."

19K even with extended warranty.

Answer 8

The mark up is HUGE.

There is nothing to a Harley.

Just a lot of chrome.

Don't let them fool you into thinking it takes $20k in parts to build one. I would guess it takes maybe $10k, the rest is name and the tax that comes on being built in the USA.

No technology, no need for R&D or engineers even =)

You are paying for the name, and regardless of what anyone says, that is it.

Honestly.

Why do you think a 180hp, 200+mph, direct injected sport bike with huge brakes, awesome efficiency and an insane red line would cost LESS THAN HALF a decent Harley that hasn't had any new technology or engineering in twenty years? It's over half again as powerfull, stops in a fifth the distance, can turn, and still gets 50mpg, logic would say the better performing, more efficient bike would be more expensive.

Did you know the current Harley V-twin is a Yamaha motor?

Again, honestly.

Try not to hate just becuase you don't like imported things, I'm not bashing. I don't have anything against HD's, I get why people like them, they just arn't for me, not my style.

If I were going to be sold on a bike that expensive, "It has timeless style" would not do it... He'd have to tell me "yeah, its the flippen fastest bike in the world, will pass an AMA superbike in the sweepers, gets 100mpg, and weighs so little you can carry it on your back"

Answer 9

They have a huge markup, Hey buddy I'll race your V-Rod anyday, Slow, underpowered, Noisey, Thats what HD is all about.

Answer 10

Local dealer used to mark up $1500. over msrp.