Low Trade in Offer on Motor Bike

leftspeaker2000 on 30/12/2022 - 13:41
Last edited 30/12/2022 - 21:49 by 1 other user

So, I went to a dealer today to look at trading in my 2017 GSX250R with 18,000km for a 2022 Kawaski ZX6R.

The Suzuki is in good condition minus a few scratches on the paint work which I inherited and is pretty normal for a 250. It does need two new tyres which I was quote at about $450 for at another shop. Online, they sell for $3800-$4000 in similar condition with better tyres.

They look over the bike and he come back saying it needs new tyres but also the sprocket and chain need to be replaced, as well as a general service (I service my own bike) and the back brake does need to be flushed.

They said best we can do is $1,000. Safe to say I just walked out. Is this normal, am I overreacting?

Automotive Motor Bikes

Comments

                      • brendanm on 30/12/2022 - 20:10
                        +2

                        @leftspeaker2000: I find that hard to believe. At any rate, looks like you can either take the $1k and get the bike now, or spend $500 on tyres, whatever it needs for rwc (if applicable), and hope you get $3k for it, so make you $1.5k better off, but you may miss out on this bike that's a good deal, so may end up worse off overall.

                      • Muzeeb on 30/12/2022 - 20:43
                        +2

                        @leftspeaker2000: Part of that $1k is providing a convenient and quick disposal service for you.

                        If you don't like the $1k then you have to experience the inconvenience and time wasted to dispose of the bike.

                        You can't have it both ways.

                        • leftspeaker2000 on 30/12/2022 - 21:10
                          -1

                          @Muzeeb: My time is valueless. I sure as shit will spend a few hours to triple my money.

                          • lunchbox99 on 31/12/2022 - 10:43
                            +2

                            @leftspeaker2000: Time is the one thing that nobody can get more of irrespective of their wealth. I can guarantee that on your deathbed you won't be thinking "if only I had more time, I could sell some more second hand motorcycles". Lol

                            • leftspeaker2000 on 31/12/2022 - 10:59

                              @lunchbox99: Lol, probably not. Money is also finite. Spending more won't make me necessarily make more. So I'd rather waste my time for 3x in return. But appreciate the sentiment.

                  • Harold Halfprice on 02/01/2023 - 16:19

                    @leftspeaker2000:

                    They run a shop, their job is to buy and sell bikes. I have a full-time job and I'm the consumer

                    Yes - their job is to buy and sell bikes and turn a profit. So they know what a bike is worth to them.

                    They need to spend the time and labour to get it to a saleable condition, have it take up space in their dealership, eventually find a buyer and offer them a warranty on top of it. It's just not worth it for them to buy your bike.

                    Most dealers when they make offers like this won't even bother trying to sell the car or bike afterwards - they'll flog it off to a wholesaler and probably take the loss.

                    They've got better bikes to sell, with better profit margins.

          • Euphemistic on 31/12/2022 - 06:29
            +2

            @leftspeaker2000:

            Except it has not been thrashed

            Even if it hasn’t been thrashed, they new to assume it has. Hard to tell from looking if it hasn’t been thrashed. Having worn tyres isn’t a good sign for it being looked after either.

            • leftspeaker2000 on 31/12/2022 - 09:22

              @Euphemistic: I agree on the worn tire front. The fact that I service it and worn tyres could look like a red flag.

  • Rob-4x4 on 31/12/2022 - 08:37
    +1

    Always remember the markup on new vehicles in Australia. I once did some work for a well known vehicle brand in Australia a number of years ago. The markup at the time on a small hatch, from landed cost including all shipping, taxes etc to the retail at the stealership was around 100 percent, ie retail was around double the landed cost of the vehicle.

    There are valid costs in their like shipping to stealership etc but they would not double the price.

    There is lots of fat in the cost of new vehicles in Australia that could be trimmed …

    • pegaxs on 31/12/2022 - 09:40
      +2

      Not on motorcycles there isnt. There is very little margin on motorcycles, even more so on Japanese bikes and even less on their cheaper ranges. There might be a tiny trim of fat on a top of the range Ducati Panigale V4R, but there is next to nothing on a 600cc Kawasaki sports bike, and basically no margin on loss leader bikes in the cheap learner class. Motorcycles are a way more competitive class of vehicle because they dont sell nearly as many as they do cars, so the margins are razor thin, especially on lower end models in the hope that you will be back later to buy a bigger, better one that has more margin on it.

      I worked part time in a motorcycle shop selling and servicing bikes in the late 90's early 00's and even the range topping, most expensive GSX-R 1000 only had $800 to $1200 worth of margin on it. On their learner bikes (250cc at the time) you were looking at maybe $300 tops. A friend of mine works for a Honda dealer and I wanted to get a bike at his cost price, and he knocked $500 of it for me, because that is all the bike had in it.

      The only time you are going to get a decent amount off a bike is if there is a factory incentive to get rid of old stock and there is a bonus in it for the dealer that they are willing to share with you as the buyer, and even then it isnt much. And at this point in time, no one is having trouble moving bikes, so there are not a lot of factory incentives to move bikes.

      TL:DR;

      Motorcycles =/= cars.

      • fredz0r on 31/12/2022 - 09:50
        +1

        Same goes with new cars. Entry level lucky to break even most times because everyone wants free mats which cost $200 and a tank of fuel which is $100. The information is all over the internet. Car dealers can't bluff anymore. https://www.carsguide.com.au/car-advice/dealer-profit-margin…

        • schmuppet on 01/01/2023 - 13:58
          +1

          The margin per unit is all bullshit, dealers make their money on manufacturer rebates and other incentives. Do you really think that they can afford to run massive dealerships by making $200 per car?

          • fredz0r on 03/01/2023 - 09:50

            @schmuppet: Net profit… plus most dealerships have a profitable service department.

  • Dslrfirst on 31/12/2022 - 09:24
    +2

    Buy a Ducati next time.

    • pharkurnell on 01/01/2023 - 18:32

      best thing you can do to lose weight… make sure you have hand warmers too for when you have to push it

      been there done that..

  • Euphemistic on 31/12/2022 - 12:48
    +2

    Something else to consider is that some dealers will offer high trade values, but that is typically added onto their stock prices. Ie better trade price, worse buy price for used vehicles.

    Whatever their model, they’ll target a value of the transaction and try to stick to it. Most dealers would likely have a similar transaction value (sell/trade), it’s he sticker price that varies. That is, get $2k extra for your trade and you’ll like y be looking at $2k more for the sticker on the one in the showroom.

  • holdenmg on 31/12/2022 - 13:51

    Here is a 2017 GSX250R on Gumtree.
    https://www.gumtree.com.au/s-ad/shortland/motorcycles/suzuki…
    It has done a mere 1600km and was offered since November @ $4000.
    Assume it is a single-owner, with low-kilometers, no scratches etc.

    Probably accurate to say it is still being offered at $3800-4000.

    • leftspeaker2000 on 31/12/2022 - 18:45

      That looks suspicious AF. The KMs are very low for the year and aftermarket decals, windshield, probably fairings too.

      Funny he is saying its light and powerful. It is heavy and not powerful.

      • holdenmg on 31/12/2022 - 19:37
        +1

        That isn't what they said.
        "she’s ready to go got power for what it is very nice bike to ride smooth very good for someone learning and with experience it’s very light an easy to handle.

        It would be lighter that the Kawasaki parked next to it.

        Maybe you just don't like that it challenges your world view.

        • leftspeaker2000 on 31/12/2022 - 19:55
          -1

          My bike is 185kg wet and 24hp. I can't tell what the Kawasaki is but let's say it's Ninja 400 Lams that is 44hp and 168kg wet. A Kawasaki 636 is the same weight as my bike but 110hp.

          So it has nothing to do with challenging my world view because I'm right.

          • holdenmg on 31/12/2022 - 20:03
            +4

            @leftspeaker2000: Yeah, then why does the Dealer have your $4000 and you still have your Bike. lol

  • Daddy Chill on 31/12/2022 - 14:57
    +1

    I hate car salesmen

  • Herbse on 31/12/2022 - 16:11
    -1

    Lol

  • Herbse on 31/12/2022 - 16:12
    +3

    "Online, they sell for $3800-$4000 in similar condition with better tyres"

    Asking price =/= sold price

    • pegaxs on 31/12/2022 - 22:48
      +1

      Omg, this. 120% this. This is the “offer” price, not the “sold for” price.

  • FlyingMiffy on 31/12/2022 - 16:52
    +2

    After rent, we now have an OP with entitlement syndrome for trade ins. Mate if its worth that much, sell it private and go back to the shop to get a deal for the new bike.

    • leftspeaker2000 on 31/12/2022 - 18:40

      I will. I don't think it is entitlement. I never traded in something before and although I knew that it's never retail, $1,000 is ridiculous even if it is reasonable for them.

      • [Deactivated] on 01/01/2023 - 10:14

        It gets worse, if it were an older bike you'd go in there with new tyres, chain, upgrades and they'd offer 1500.

        I generally offer my bikes to mates. Sold a couple nice and cheap before Covid prices hit, no regrets.
        If youve got a use for it, let it rot in the backyard.

  • BHR on 31/12/2022 - 17:01

    Trade in is for them to take on the hassle of selling it. Trade in price is for perfectly serviceable… $2700 - tyres and service, their offer seems fair. Think you can do better, sell it yourself. They don’t need the stock sitting on the show room floor for months.

    • leftspeaker2000 on 31/12/2022 - 18:49

      100%. I'm going to get new Tyres and a new chain - I inspected the chain and it does need to be replaced but the sprocket is fine. Changed the break fluid in both breaks and cleaned all the gunk of the sprocket. She is good to go.

      • Bamm-Bamm on 31/12/2022 - 21:50
        +1

        If the chain is cactus the sprockets will be too.

        Let's do the math shall we

        $1000 trade in price
        $500 Front & Rear Tyres
        $450 Chain & Sprockets
        $200 Brake Fluid Flush
        $600+ Major Service (service intervals are 6k or 12k or yearly whichever comes first either way it's overdue for the 24k major service so valve clearances will need checking and or adjustment, you can bet a new buyer will expect this to be done or they will want the $ off to cover it

        $2750 so far, and that's just stuff to make it serviceable we haven't even looked at cosmetic stuff yet

        Then let's add

        $168 Stamp Duty
        $??? Rego?
        $180 RWC Inspection
        $300 Warranty Allowance
        $500 Profit, after all they are a business

        Total $3898

        Plus GST = $4287 or thereabouts so yep about $4k retail

        Now you can see why they offered you $1k, because realistically that's what it's worth to them.

        If I was a private buyer of your bike I would want that done as a minimum to consider it, so your 4k bike is really worth $2250 retail as is

        • leftspeaker2000 on 31/12/2022 - 21:55

          Good break down. Interesting to see thd figures.

          But a break flush is $200? I bought $15 of dot 4 the arvo and flushed both in $30 minutes.

          Sprokets don't always have to be replaced at the same time. Soem people say you do, others say you don't. I inspected the sprocket and it's fine.

          All these prices are what it would cost me, not them.

  • Seaeagles on 31/12/2022 - 18:35
    +3

    Don’t get caught up in the trade in price game, focus on the change over price.
    Would you rather a $1000 trade in and pay $16,000 for the new bike

    Or get a change over of $14,000 not caring if the trade in is $1 or $5000.
    A lot of dealers will give you a false win on a trade in and tear you a new one on the purchase price.

    • leftspeaker2000 on 31/12/2022 - 18:39

      I'd rather let it rot than hand it over for $1000. The thing is, the bike they were going to sell me is "second hand". A guy bought it, took it back a few weeks later. They would have low balled him and then they were trying to tell me a used bike, granted with low kms, for $1000k of the retail.

  • ass3ts on 31/12/2022 - 19:04

    You shouldn't expect market value if you want the convenience of trading it in.

  • lowndes8 on 31/12/2022 - 19:48

    1 - Its a 250 very limited market i dont get why anyone would even want a 250
    2 - It has scratches
    3 - No service history
    4 - Needs Tyres
    5 - Needs chain and sprockts
    6 - Needs service

    So you do your own servicing why did you not replace tyres and take care of chain and sprockts?

    I would take get the bike serviced, tyres and chain and sprockets then sell private

    • leftspeaker2000 on 31/12/2022 - 20:02

      1 limited? 250s are the perfect bike to learn on. Sure a Ninja 400 lams is faster but 250s are great. I'd rather a small 250 than a detuned 400.
      2) minor that if you were not looking you could not tell
      3) it does, just last year I have been doing it myself. Previous owners all did it and I did it for a year.
      4) So, take of $400 (retail) which is what I was quoted
      5) chain only. No sprocket. $100
      6) sure

      • lowndes8 on 31/12/2022 - 20:11

        I learnt on a 500 and glad i did. Anything smaller then a 400 is crap, no speed and pointless

        • ZachBlasphemy on 01/01/2023 - 08:49

          That's an awful opinion to hold. I personally had a Yamaha R15 (150 cc) and I did heaps of multi-hour one-way trips with it.

          If all you want is to go fast then sure, do what you like, but there is so much fun to be had on smaller bikes and to call them pointless is ridiculous.

          So much gatekeeping in the motorcycle community.

          • leftspeaker2000 on 01/01/2023 - 10:14
            +1

            @ZachBlasphemy: This! You can have so much fun on a 250. Because you don't have straight line speed, you need to learn how corner and flick the bike to have fun.

        • Darude Sandstorm on 01/01/2023 - 13:24

          In my opinion my Grom is much more fun than S1000RR. I can use all gears instead of just first and stunting a small bike is quite fun. No power wheelies but eh.
          Sure 250's get boring very quickly and being in a dangerous situation where you need to drop a gear and disappear, you're going to struggle but for commuting they're fine, just don't expect to be trying to haul ass against an SV6 commodore or 4 Banger Rolla

          • [Deactivated] on 01/01/2023 - 19:06

            @Darude Sandstorm: Fwiw a Gsx250r is a second quicker down the quarter than the latest Corolla.
            Some of y'all just need to be chopped by a scooter, thats what I think.

  • So Was Red on 31/12/2022 - 22:06

    Someone genuinely stole my last motorbike, I was really sad about the slip-on exhaust as it was a gift but other than that it was a great opportunity…

    • Darude Sandstorm on 01/01/2023 - 13:26

      Good suggestion. is OP wanting to post his address so the OZB community can give him a hand?

  • pinkybrain on 01/01/2023 - 00:21

    what's the point of this whinge post?

    If this was a private buyer and they offer you that price,
    you would've said no and moved on.

  • berger on 01/01/2023 - 09:51
    +1

    Pretty fair price. They are offering a service to you by trading in.

    Fix the issues, clean, get a service booked in by a business. Sell privately and walk back to the dealer with cash. Won’t be that much difference. Plus the shop runnings costs of the dealer add up too.

  • kaleidoscope on 01/01/2023 - 11:24
    +1

    trade ins will be shit deals most of time… marketplace is the way to go with rwc

  • bsl on 01/01/2023 - 12:27
    +1

    we traded a car 2019 for a 2022 and they offered us 10k less than what private sale was for.

    only had 17k kms on it

    • leftspeaker2000 on 01/01/2023 - 12:45
      -2

      According to replies on this forum that is fair.

  • Hangryuman on 01/01/2023 - 13:20
    +1

    it's what used vehicle dealers do - keep you waiting, then go over the vehicle with lots of sighs and pained expressions - all designed to reduce your expectations

    then come out with a drawn-out 'we don't really want it' - 'it needs a lot of work' - and 'this is the best we can do'

    once bought from you, they typically won't do any of those repairs, just wash and polish and present it as 'almost new' condition for a much higher price

    IOW - 'we buy junk - and sell antiques'

    short answer - sell it yourself - but make sure you don't let any dodgy people take if for a test ride - never to be seen again - I'd probably let them sit pillion while taking them for a demo ride - otherwise get their keys and a snap of their driver's licence before you even let them sit on your bike with the keys.

    • leftspeaker2000 on 01/01/2023 - 13:38

      Thanks, great comment. The kind of input I was looking for when posting this.

  • Davo1111 on 01/01/2023 - 15:40
    +1

    If it's such an easy sale, sell it yourself

  • herecomestheoost on 01/01/2023 - 17:27
    +2

    :D

    herecomestheoost on 01/01/2023 - 17:27 (Collapsed - Offtopic. Show)
  • us3rnam3tak3n on 01/01/2023 - 18:56
    +1

    I hate to defend dealerships but a full log book history of servicing would make a huge difference for the resale value they would be able to ask.

  • guitargeek89 on 02/01/2023 - 10:16
    +1

    It can feel like dealer's are lowballing you, but they have a minimum profit per lot they need to make to stay profitable.. It may just be that they need to net at least 2k per bike to stay ahead. For example, if you had a bike worth $1000 there is a good chance they wouldn't even want it for free, after they do their mechanical check over, push it on and off the lot every day, taxes, itd simply not be worth it for them.
    So in your case, the bike is worth $3800 - $400 tyres, - $400 chain + sprocket + fitting (this is without factoring in basic service, but take another couple of hundred) , now they have their 2k..
    This doesn't even leave them with any wiggle room for when the person that buys it, goes over it with a fine tooth comb and finds something else that will cost the dealer.
    Unfortunately (for you) their $1000 offer seems quite reasonable.
    Private sale will be the best for you.
    Good luck.

    • leftspeaker2000 on 02/01/2023 - 10:34
      +1

      Thanks mate. Appreciate your comment! Let see how I go.

  • Cluster on 02/01/2023 - 11:17
    +1

    If you don't like the offer, sell it yourself. Simple.

  • Drakesy on 02/01/2023 - 13:45

    An item is only worth what someone else is happy to pay.
    They gave you an offer, it's up to you to accept.

    If they don't need the inventory they're not going to bid for it. Basically it's throw away money to them.

  • holdenmg on 05/01/2023 - 09:22

    I guess nobody is selling (or buying).

    Tumbleweeds!
    https://media.giphy.com/media/1Zbeweu52ZaQE/giphy.gif

  • leftspeaker2000 on 06/04/2024 - 12:29
    +3

    For anyone who sees this or cares, I sold bike for $3600 just recently. So 3.6x what I was offered by the dealer.

    • Woody982 on 07/04/2024 - 16:54

      Yep, that's trade in offers for you!

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