Author Topic: Why Motorcycle Dealerships Are Sometimes Called Stealerships  (Read 28 times)

smallengineshop

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Why Motorcycle Dealerships Are Sometimes Called Stealerships
« on: November 26, 2017, 06:03:58 PM »


I found a used motorcycle online sold by a Honda dealership in another state. The price for the bike was right at its blue book value for a bike in excellent condition. Normally, a used motorcycle sold by a dealership has a higher sale price than their blue book value, so I sent an email asking for the total cost including all fees and taxes. The email I got back from them made my mouth drop.

The motorcycle was listed online for $1,999.00. It was supposedly discounted from its previous price of $2499.00.  I know this particular model isn't popular and the dealership is probably having trouble selling it, which explains why it was discounted. I was hoping they would be more reasonable with fees, but they weren't. Here is a break down of the motorcycle's total cost from the dealership:

- $1,999.00 listed advertised sale price

- $560.00 UVC Assembly/PDI - PDI stands for pre delivery inspection and UVC stands for used vehicle certification  If your buying a new vehicle your charged a fee to assemble the motorcycle and do a PDI. A used vehicle doesn't need assembly, so your charged a fee for a UVC. I think the acronym UVC is only used in Arizona. A UVC and PDI are just another way of saying "vehicle inspection." Basically a PDI and UVC is walking around the vehicle and making sure everything works; all fluids are at their proper level; everything is adjusted properly, and maybe ending with a test ride. Assembling a motorcycle can involve as little as installing the handle bars, and a vehicle inspection can be done in a very short amount of time. The guys doing this type of work are most likely newbies and are not paid very well; i would say between $9 and $13 per hour.  A vehicle inspection charge may also have been applied when the previous owner traded in the used vehicle for a new one, and hidden within the trade in value. It wouldn't surprise me if a dealership makes money on both ends.

- $550.32 Document, License, Registration: - It doesn't cost a dealership $550.32 to license and register a vehicle, so most of this fee is a charge to have a secretary do all the paperwork. Again, a secretary is another dealership employee making less than $20 per hour, and the document work for a new or used motorcycle is done in a very short amount of time.

 - $225.19 Tax - This is a legitimate fee every dealership must charge.

The total cost for this motorcycle is $3,334.52. That's a 67% markup over the listed sale price of $1999.00. A dealership has employees to pay, so I understand the additional fees. What I don't understand is why the fees are so high. The dealership markup on a document, assembly and vehicle inspection fee is ridiculous! Its no wonder why motorcycle dealership's are often referred to as stealership's; it feels like they're stealing your money. The smart thing to do is save your money and pay cash for a used vehicle from a private seller; compare prices for accessories and parts for your motorcycle whenever you can, and don't buy from dealerships when their prices are unreasonable.

« Last Edit: November 26, 2017, 06:23:25 PM by adminjoe »
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The Small Engine Shop

Why Motorcycle Dealerships Are Sometimes Called Stealerships
« on: November 26, 2017, 06:03:58 PM »