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Old 01-01-2016, 04:27 PM
Trailblazer
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Default Ball park ATV dealer markups?

I was with a friend in an ATV dealership this week, he was shopping for a dirt bike for his son and I was checking out the quads. I know salesman will say almost anything some time, one thing that caught my eye was the he told us that everything new in their shop was marked exactly $100.00 above dealer cost. They are one of the larger dealerships around me but I still can't see them being able to run a business with those types of margins. I know there is more to it, service, accessories, etc. Even if they sold 5 new ATV's everyday that would not be enough to pay the staff, not to mention everything else that comes along with the property.


Does anyone on here have experience or work at a dealership? I was curious if the margins are that low and they get some kickbacks or something or was this just some garbage from the salesman.


The quad I looked at was at 16 570 (no power steering) sage green and it was priced at $5500.00. The reason it caught my eye was it had a 3500 lbs. winch on it with a snow plow. When I asked the dealer about it he said the price did not include the winch and plow, they just put it on that afternoon and hadn't changed the price yet. According to him the dealer price on the 570 was $5400.00.
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Old 01-01-2016, 05:33 PM
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Some larger multi dealer ships can throw em out there at ridiculously low prices just because they can afford to. Just like cars and trucks there are kick backs to dealers on the amount of units they pass out the doors at years end. Most small to medium size dealerships out there try to aim for at least 400-600 buck profit margin if they can. Some may lower the margin if selling multiple units to customers or at least throw in some extras such as winches,bumpers,racks,etc. After the sale service may be lacking on some of these places as we got a lot of customers from multi line dealers that used some brands as "step children" versus their bread and butter line. No harm in getting a smoking deal,but I'd have a good local place lined up for parts and service if places like this forget about you after the initial sale..
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Old 01-02-2016, 09:49 AM
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I think you pretty much answered your own question.. A dealer would not be open long if they only made $100 on their machines.. Between all the bills they have to pay they also have loans they use to buy these machines. Interest would chew that 100 up
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Old 01-02-2016, 12:41 PM
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I have noticed the larger dealers with advertised prices way lower than other dealers in the same area. The higher volume of sales allows for lower prices. They will tack on other fees to the final price and of course give you a hard sell on a warranty so that $5500 Sportsman 570 will end up costing $7000 by the time you leave the dealer. They put accessories on units like that purposely to catch your eye too and figure right then is a good time to get you to spring for them since you're already spending a lot of money on a new machine and you don't even have to wait to use or install them, they're already there. Usually you will get a little discount on them for buying multiple accessories at once, like a winch and a plow and probably some upgraded wheels and tires. If they see you like the unit with all the goodies on it, rest assured they will find a way to sweeten the deal so you buy the fully accessorized unit.
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Old 01-02-2016, 12:53 PM
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The dealers that move more machines and parts get a much better deal from the manufacturor. So usually the bigger dealers have more wiggle room.
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Old 01-02-2016, 01:03 PM
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Quote:
Originally Posted by Zrock View Post
The dealers that move more machines and parts get a much better deal from the manufacturor. So usually the bigger dealers have more wiggle room.
Nope they don't.. We paid the same price as dealers that sold twice as many as we did..The key is the year end kick back from Polaris on units sold ..Same as other atv manufacturers and works the same way with auto dealers. Plus don't know about other manufacturers other than Polaris,but we got a certain percentage kick back on accessories at years end also. This is an incentive for some dealers as mentioned to push winches,plows,bumpers,gun boots,storage boxes,plus cabs,doors,etc for Rangers and Rzrs. Can add up at the end of the year.
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Old 01-02-2016, 02:17 PM
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I'm actually pretty close with a few local dealers. Maby Polaris is diffrent but the ones I deal with get better rates the more units they sell.
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Old 01-14-2016, 12:38 PM
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I'm sure this has been hashed over before. I was back in the local dealer today passing through town. I'm still not quite ready to buy yet but they had their 450 HO's marked at $4999. The fine print said subject to dealer fee of $498 and a DOC fee of $98.00. What are the odds of them coming off of those or is that out of the question. Before I saw the fine print I thought if I could get them to throw in a winch I would pay the $4999.00. I am curious if that would never happen or if they have that much wiggle room. This is one of the higher volume dealers in my area. I didn't even talk to a salesman today so I didn't get a feel for them on that. Just curious what your experiences are.
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Old 01-14-2016, 12:49 PM
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Final price is the bottom line.

They may sell you one for $100 over their cost, but that cost won't include tax, freight, assembly, title registration and any other add ins they might include.

That all adds up to an nice chunk of change. Which is why on any type vehicle I negotiate the out the door price. And I'll tell them up front freight and assembly are their costs, not mine. Don't always get a deal, but I do always get a good price.
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Old 01-15-2016, 12:29 AM
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$4999 for a new 450 HO is the lowest I've seen them advertised for. I don't think you'll find a better deal than that. You'll have to add sales tax as well. Basically add about $1000 to get an out the door price of about $6000.
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