gunslinger_006
Well-Known Member
Freight and setup are either break even or slight profit centers. The dealers make the majority of money from the following:I'd like to throw a question out there for you guys with dealership experience. What's the real story on the hidden fees like freight and setup? When I bought my most recent new bike a 2017 DR650 in 2018, the dealer did not charge any of those fees. In fact they advertise "No BS pricing and no hidden fees". This dealer told me that freight and setup are included in the MSRP. Other dealers around here are charging $900 for freight and setup. The DR650 purchase was a leftover at a good price and they even delivered it. This was one of my best dealership experiences by far.
Financing
Service dept
Used vehicle sales
The reason you want to let them think you are using their financing is they will ofte cut you a break on things like freight and setup because the payday comes from the kickback they get from the bank for every loan they sell.
So you let them give you a deal and once its agreed to, you say “hey i just heard from my bank, they gave me x rate, can you beat it?”
They cant. And they already agreed to sell you the bike at price x.
Source: worked for a major brand car dealership for a long time.