Depreciating Inventory

Energy One

What would you offer a dealership for thier un-sold bikes?

  • 10% off MSRP

    Votes: 6 3.7%

  • 25% off MSRP

    Votes: 82 50.6%

  • 50% off MSRP

    Votes: 60 37.0%

  • Give me one for one doller?

    Votes: 14 8.6%
  • Total voters
    162
  • Poll closed .
R

reflective

Guest
Since the big bomb was dropped a couple weeks ago, we are still awaiting the effects of the fallout (availability of parts both now and in the future, availability of service, etc.)

There is still some inventory sitting on dealers showroom floors. Each dealer is probably in a different situation from another dealer. But as time goes on what will happen to the value of those bikes if there are no parts for them (or it takes a year or more to get that company up and running efficiently).
They have immediately depreciated because they lost their warranties.

How much would you offer (AND RISK) a dealer for a new bike (no matter what year it was manufactured) off the MSRP or Invoice? I ask because I'd rather take some risk myself than to have the banks get them; or some auction house.
 
erldawg

erldawg

Guru
I think it's more about what you are willing and comfortable purchasing one for. There are some very good deals out there if you're willing to do the research. Keep in mind though, at some point new bikes will eventually be gone.
 
M

MuscleBiker

Member
The very fact that BDM has gone under has an exacting impact on the price of new, and all of our Dogs. All in all, BDs are good machines. I say "let's ride 'em 'til the wheels fall off"!
 
Jaygya

Jaygya

Member
Yeah , I'm looking into the possibility to get a k9 but the dealers have lowered the prices by only 3 k Wich IMO is not that great I lost the warranty on my actual bike so I don't believe they should still try to get max for their bikes ... Aniway I love BDM and I'll still gona buy the k9 if a god opportunity appears... I'll never ever be without a Big dog ... :)))
 
R

reflective

Guest
only 3K ?

Yea, I have heard, but not confirmed, that you could buy an after market warranty...2 years for $1,500.00 but that's not going to solve your long term concerns (parts and stuff later on down the road).- I don't think 3 K is going to do it.
 
M

machete

Member
Depreciation is a huge and complex notion. Add the fact that there is no manufacturer support. Dealers will soon realize that their inventory is depreciating on a daily basis.

All will go throught the five stages of recovery. First being denial. Over night the number of BDM's for sale listed in Cycle Trader grew from 46 to now there are 13 pages of listings.

Compare the dealer prices for the same model bikes. Many are in denial.

The new bikes will/have depreciated the most.

If you're a dealer, you will soon face a tipping point where cutting your losses equation will dictate your selling prices.

Fact is, depreciation is not a linear calculation. Approximately 70% of value depreciates in the first 3 years. 100% over 5 years.

Assuming a dealer gets 30% margin off MSRP.

MSRP $35k x 30% = $10,500
Wholesale (or dealer invoice) = $24,500
25% instant depreciation = $6125
New Wholesale value if new = $18,378

This is today's truest valuation of a brand new big dog (variances apply) sitting on a dealer showroom.

Dealer's will take heavy losses, and I expect those with large BDM inventories to start to move these bikes in that range, or risk dying a slow painful death.

My advice is for dealers to admit the facts and sell these bikes at the price required to move them NOW!

Just sayin
 
RADAMS445

RADAMS445

RADICAL
machete said:
Depreciation is a huge and complex notion. Add the fact that there is no manufacturer support. Dealers will soon realize that their inventory is depreciating on a daily basis.

All will go throught the five stages of recovery. First being denial. Over night the number of BDM's for sale listed in Cycle Trader grew from 46 to now there are 13 pages of listings.

Compare the dealer prices for the same model bikes. Many are in denial.

The new bikes will/have depreciated the most.

If you're a dealer, you will soon face a tipping point where cutting your losses equation will dictate your selling prices.

Fact is, depreciation is not a linear calculation. Approximately 70% of value depreciates in the first 3 years. 100% over 5 years.

Assuming a dealer gets 30% margin off MSRP.

MSRP $35k x 30% = $10,500
Wholesale (or dealer invoice) = $24,500
25% instant depreciation = $6125
New Wholesale value if new = $18,378

This is today's truest valuation of a brand new big dog (variances apply) sitting on a dealer showroom.

Dealer's will take heavy losses, and I expect those with large BDM inventories to start to move these bikes in that range, or risk dying a slow painful death.

My advice is for dealers to admit the facts and sell these bikes at the price required to move them NOW!

Just sayin
Click to expand...
Sure ya do!:roll::roll::roll:
 
KnotSo

KnotSo

Admin
Staff member
Jaygya said:
Yeah , I'm looking into the possibility to get a k9 but the dealers have lowered the prices by only 3 k Wich IMO is not that great I lost the warranty on my actual bike so I don't believe they should still try to get max for their bikes ... Aniway I love BDM and I'll still gona buy the k9 if a god opportunity appears... I'll never ever be without a Big dog ... :)))
Click to expand...
GET THE SELLING DEALER TO PROVIDE YOU WITH AN EXTENDED WARRANTY AT HIS COST, AS PART OF THE DEAL.
 
S

Satterfield

Member
Hey, where did you here this "rumor"? Does anyone know what the situation is with the warranty on current bikes-are the owners out of luck will dealers no longer provide warranty service? often in situations like this the "going out of business" company is still liable for the warranty on the cars/bikes that have been sold. "T"
 
TCALZ06

TCALZ06

Well-Known Member
Motor-Psycho said:
Then again, why in the hell would I pay a
dollar for a bike that can't get wet?
Click to expand...

you have no idea what you are talking about. These bikes do well in rain and mine has been in it many times in over 18k miles.

Hell last year going to Laughlin we rode about 100 miles in a hell of a storm that got down to 40 degrees and the dog never missed a beat and no electrical problems later. Neither did the guys Iron Horse who was riding with me:bang::bang:
 
K9Anniv

K9Anniv

Well-Known Member
I'd love to see a dealer offer 25% off a new 2009-10 Bulldog Bagger!
BUT, I think we're dreaming...that would be ~$10K off MSRP!! :eek: :lol: :loony:
 
goofy

goofy

Active Member
K9Anniv said:
I'd love to see a dealer offer 25% off a new 2009-10 Bulldog Bagger!
BUT, I think we're dreaming...that would be ~$10K off MSRP!! :eek: :lol: :loony:
Click to expand...
There's a 2010 Bulldog on Ebay right now with a MSRP of $39,900 that's sitting with a $24,999 bid. I know the reserve hasn't been hit, but you never know...
 
MIAMIVICE

MIAMIVICE

Member
Wow, I damn near got kicked off the site for speaking my mind about Dealers and their "Stubborn" Prices for Dogs...life after BDM...GOOFY, Thanks for being a "Snitch"....:2thumbs:
 
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