Dealer Costs and Fees at Purchase

[Quick-Star24]

Just decided to go for it and buy an AK550 today....and I found the black one I want in Columbus Ohio. I live in WV....I asked for the out the door price and they told me $11,200. I was in shock! That is $1300 over the price of the scooter.

Is this much added cost normal? I asked him to send me the invoice so I can take it to my bank but he never did email me the invoice this afternoon. I wanted to see the added fees and costs to the $9899 price.

Any thoughts or opinions would be appreciated,

Jeff Q

[CROSSBOLT]

Relatively new and desireable model, very few in country, lotsa folks want one, supply low, demand high equals seller's market.

[Stig / Major Tom]

Absolutely stone dead expected OTD price for that scooter......and for many others as well.
OTD prices are always an unpleasant surprise party the dealer has waiting for you. 
 It was like the 4th of July at the closing of my $3,099 Piaggio ! (and I checked - same scoot had the same OTD in other parts of the USA)
Take it ....or leave it.....especially with a popular model.

$1300 on a $10K scoot? Yep, expected - though some very very clever buyers will be along soon to poo poo that.
always happens.

Stig

[souzamoto]

For a dealer to make full margin on the sale, which is MAYBE, 10 to 12%, they need to recoup the destination charge (freight) which is around $400.00, Set up Fee which includes receiving the crate, uncrating, disposal of said crate, Assembly of the unit, Battery service, fluids check, nut and bolt check, fuel, oil, cleaning, all which is part of the PDI (Pre Delivery Inspection). Then there is Tax, DMV and Documentation fee. It doesn't apply in your case but, sometimes a dealer will try to recoup any Flooring charges that they have paid to the flooring bank. Although, most dealers consider this a a cost of doing business but it does take away from the bottom line quickly. Usually, most distributors give the dealer a Free Flooring period before the bank begins to charge the dealer interest on the units on the floor. So, you need to ask yourself, How much money are you going to allow the dealer (and the commissioned salesperson) to make or lose?

[leomagnus]

The cost of a new 2022 AK550 is $9899. You have destination charges also. There are no discounts on these bikes. I just got one myself. So yeah 11,200 sounds about right. All 3 AK550s that arrived at my dealer were sold the day they arrived

Dean

[randyo]

inflation, dealers have to keep up to keep employees, continue to keep up with inflating overhead, any deals are thru cultured relationships

[CROSSBOLT]

For a dealer to make full margin on the sale, which is MAYBE, 10 to 12%, they need to recoup the destination charge (freight) which is around $400.00, Set up Fee which includes receiving the crate, uncrating, disposal of said crate, Assembly of the unit, Battery service, fluids check, nut and bolt check, fuel, oil, cleaning, all which is part of the PDI (Pre Delivery Inspection). Then there is Tax, DMV and Documentation fee. It doesn't apply in your case but, sometimes a dealer will try to recoup any Flooring charges that they have paid to the flooring bank. Although, most dealers consider this a a cost of doing business but it does take away from the bottom line quickly. Usually, most distributors give the dealer a Free Flooring period before the bank begins to charge the dealer interest on the units on the floor. So, you need to ask yourself, How much money are you going to allow the dealer (and the commissioned salesperson) to make or lose?

All that stuff the dealers are SUPPOSED to do would justify some of the "dealer charges." However, in my experience, the dealers do almost none, repeat, NONE of the things you mentioned. I am sure the dealers YOU have worked for have done ALL the items mentioned and then some. I have been on both ends of this: as a motorcycle/scooter customer and as a tech at a John Deere dealership. Motorcycle experience was so long ago it does not really count. Scooters is more recent from 2004 to 2016. John Deere was 1994 to 97. The surprising thing at JD was the price of the equipment and the half-a$$ed setup that was done plus no supervisor or management ever checked any of the work. The field service call rate for combines and cotton pickers was estimated over 75% that were all related to just the setup. There were very little in the way of errors from the manufacturer but there were some. Those you had to test each system to find and it was not being done.  Cost is relative. Combines cost way more than a scooter but then the guy buying the scooter has nowhere the resources that the farmer has available.

[Mancashire]

The price looks fine to me. There was assembly, tag and title, freight, and the big item was sales tax. Even with the military discount, my “extra” charges were more than $1300. Count your blessings and buy the scooter.

[LidoCA]

 AK550 local dealer:
 $9899 MSRP.
$485. Freight set up.
$1550 A.D.M. 
Plus dealer doc fees, 9.5% sales tax and $400+ registration fees. NOPE.
  I'm more shocked that people are actually paying these inflated prices on cars and motorcycles.  They couldn't charge it, if there were no buyers.
 I guess that goes for everything these days, houses, cars, etc.

[randyo]

here in NH, there is no sales tax, no insurance requirement (unless ya got a bank loan), and customer takes care of registration at local town hall, so dealer add on is usually <$500, but you do get hit at the town hall too, anywhere from the $21 it cost to register my k-pipe, to..... based on value for the town portion, and weight class for the state part, a big construction vehicle could cost thousands., and as my k-pipe gets older, the annual price goes down, I think as low as $12/yr

[swoter]

Here’s what mine was like. Bought a new 2020 Kymco Like 150i abs and noodoe. 0 miles on it. Dealer price was 3000, prep fees, taxes, and title fees added up to about an extra $1000. Total price I think was about 4000 out the door. It sucks, but they would not budge on any of the dealer fees.

[Stig / Major Tom]

Here’s what mine was like. Bought a new 2020 Kymco Like 150i abs and noodoe. 0 miles on it. Dealer price was 3000, prep fees, taxes, and title fees added up to about an extra $1000. Total price I think was about 4000 out the door. It sucks, but they would not budge on any of the dealer fees.

Were you at Ride One in Springfield?
Yeah, they're famous for not dealing on the displayed sticker price.
April 2013 I told the salesman to "start writing up my LIKE200I while I go over here and pick out a free helmet."
I received $100 gift card from them, and a $50 gift card from Kymco in the mail. But bought my helmet from RevZilla because  I didn't like the snotty sales girl.
Stig

[swoter]

Yep, that’s where I bought it. I went to Springfield because I called around Columbus and couldn’t find one in stock. They were ordered but not in store. I liked the one at Ride1, so I bought it. It’s red, very nice color.