Steve Saunders Goldwing Forums - View Single Post - Buying a new Honda

View Single Post
post #67 of (permalink) Old 04-01-2012, 11:36 AM
Junior Member
Join Date: Mar 2012
Location: Hedgesville, West Virginia, USA
Posts: 6
Post imported post

Kit Carson wrote:
A great many things go into running a business or shop. The ten year rule some shops have adopted is not against you or the bikes, it is simply business.

Any inventory of parts takes time and effort to keep around and also standing inventory has to be paid for every year, to the tax man. So quite simply the taxes on outdated inventory exceed the profit of any sales of older parts.

They have to be organized and in their bins, this takes up space, they sit for years, as although there are old bikes out there, not enough to be profitable.

Although it may rub you wrong the goal of any business is to make a profit, otherwise there is no need to be in business.

It is not the training or skill of the mechanics, a motorcycle is a motorcycle is a motorcycle, period, trouble shooting, basic things like brakes and so on are the same on all bikes basically, just different design but any mechanic can turn wrenches on any machine. There is no great mystery to that. A bike is a bike is a bike. Electronic and new circuits have became quite the challenge sometimes, but it is all the same.

There is also the element of the one who will bring in an older bike for repair, say for example it is the rear swing arm rotted out or the stator in a 1200 and you have to pull the engine . For a shop who pays wages and supports overhead, this is a $2000 dollar or better job. So what is the bike worth?? If it is never claimed back, now you have to go to the local magistrate and gain ownership of the bike, in my area this costs another $185 bucks to accomplish. So now I am up to 2185 plus time to do this.
Now I have to try to sell it. It will sit there for two years and finally you just give it away. Write it off as as loss on taxes.

Those are some of the problems a dealership faces dealing with the public, the government and the tax man.

Just putting a perspective on it some do not consider.

Kit said it the best, IMHO. Dealers do not want to take on the aspect of potentially owning a bike they cannot sell because the work costs more to do than the bike is worth. With that being said, it's rather easy to get nearly any dealer to do any standard work for any bike as long as parts can be found: Tell the dealer to give you a quote and pay for the service and parts up front.

You can't convince the dealer "I'll pay for it even if it's $1500 for a bike worth $2000" no matter how hard you try. But give them $1500 before they start work and have a service contract that states the work will be done for that $1500 and I bet at least 80-90% of the service managers will gladly take that work on - there's virtually no risk to the dealership at that point.

These odds are even improved when it's just routine maintenance: tire changes, oil changes, etc.

Proud owner of a 2012 Ultra Blue Metallic.
wildwolf is offline  
For the best viewing experience please update your browser to Google Chrome