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Dragonwing
| Posted on Wednesday, February 18, 2009 - 10:06 pm: |
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,,,,with the sudden glut of $7999 new Buell 1125s that are being offered for sale? In case you haven't noticed, at least in the NE Ohio area, there have been at least two dealers, over the last two weeks, that have offered NEW 2008 1125Rs at the absurd price of $7999!! This is no joke, and the bikes are fully prepped and ready to go. I'm guessing that the HD dealerships are getting out of the Buell line, but the idea of selling the bike at far less than cost somehow doesn't sit real well with me. I talked with one of the local HD dealers who's not involved in the pricing, and the GM was likely to crap himself, as this is waaaay below his cost on the bike. Needless to say, he got on the phone, and pitched a bitch with the factory, but the bikes are still there, and the price is correct. I dunno. To me, a deep discount only serves to cheapen the brand...and to the uninitiated, makes one really wonder if Buell is even going to be in business next year. Agree? DW |
Hellgate
| Posted on Wednesday, February 18, 2009 - 10:17 pm: |
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I bought one, only mine was $5.00 less. If the inventory is there the factory needs to unload them. They've already paid the labor, parts and overhead to build them, and are now paying storage and taxes. I'd bail on them too if I was Buell. (Message edited by hellgate on February 19, 2009) |
Ccryder
| Posted on Wednesday, February 18, 2009 - 10:23 pm: |
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Buell will be here next year and many, many more. Don't let the current economic climate push you away from Buells. There is no worry about support or parts. Go for a test ride (be sure and bring your checkbook). Neil S. |
Dentguy
| Posted on Wednesday, February 18, 2009 - 10:31 pm: |
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A leftover 1125 from a previous model year that was improved in 09. It also has a little bit of a reputation for some issues. Should they sit on and hope that it moves? That obviously isn't working so it has gotten an aggressive price to try and get it to move. Maybe some feel that the deep discount cheapens the brand, like you said, but they are still sitting there for a reason. |
Dragonwing
| Posted on Wednesday, February 18, 2009 - 10:39 pm: |
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CC; I'm not speaking for myself. I'm an owner and intend to stay such. It's the discussion that the dealer and I were having....where people who are not quite familiar with the brand might be compelled to stay away, seeing the the bike is being 'given away' and wondering why? The questions that immediately come to mind would be: "Isn't it worth the price?" and "What's the reason they're so cheap....going out of business?" DW |
Dalton_gang
| Posted on Wednesday, February 18, 2009 - 11:00 pm: |
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Is it just me or is anyone else getting tired of these threads about the ridiculously discounted `08s? I guess that a used `08 is worth less than half of msrp. This economy really sucks ass! |
Redbuelljunkie
| Posted on Wednesday, February 18, 2009 - 11:02 pm: |
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It's not just Buell... we have '08 Yamahas currently priced at cost minus the current cash back incentive- and they're still sitting on the floor. Buell has traditionally been overpriced for what you get, but the current economic conditions are keeping all retailers from moving units. A short while ago when the $7995 1125R first appeared, they sold a bunch of them- that showed what the market value of the bike truly was. Yeah, it hurts if someone paid more (a lot more in most cases) for their 1125R, but most said they were happy with their purchase. Buell is experiencing a "double-whammy" is regards to 1125R values right now. |
P_squared
| Posted on Wednesday, February 18, 2009 - 11:06 pm: |
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Actually, I think it's the dealer's feeling the 'pinch' on the VERY reduced pricing. If I'm not mistaken, Buell has already been paid before the bike hits the showroom. |
Clarkjw
| Posted on Wednesday, February 18, 2009 - 11:08 pm: |
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It's funny that they could massively improve the marketablity by updating the injectors/map and giving a free plastics swap. People would pay near 2k more for <$500 worth of investment. Buell clearly hates their dealers! |
Dragonwing
| Posted on Wednesday, February 18, 2009 - 11:14 pm: |
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PxP: I'm to understand that the dealer's cost on the unit was about $10K. If that's the case, then I can see why the GM had a fit. They're being sold for 20% less than his cost. Whoa! DW |
Midknyte
| Posted on Wednesday, February 18, 2009 - 11:17 pm: |
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It's the discussion that the dealer and I were having....where people who are not quite familiar with the brand might be compelled to stay away, seeing the the bike is being 'given away' and wondering why? But, if they are unfamiliar with the brand, then what should the price drop mean other than they're in line with the pricing of the ricers that they are familiar with. They complain that Buells are over-priced, so this ought to be a welcome thing to them. |
Carbonbigfoot
| Posted on Wednesday, February 18, 2009 - 11:24 pm: |
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If the dealer already paid for the units, and owns them, then they can sit on his floor till hell freezes. If he floorplans them, (pays interest on them) at some point he looses less by ditching them at whatever price he can. Ugly business, but I was involved in a deal one time that straight up lost 11347 dollars from pure cost on an Eddie Bauer Excursion. Sometimes it happens. Rob |
Bikejunky
| Posted on Thursday, February 19, 2009 - 05:26 pm: |
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The real kicker here is that dealers that do this are the ones causing YOUR bike to be WORTH DICK when you go to buy a new bike. This kind of "devalue selling" is exactly what kills the trade and retail value of your .01" off the lot Buell motorcycle. As Buell owners I would think you would be as pissed off about dealers like this as I am. |
Doerman
| Posted on Thursday, February 19, 2009 - 05:47 pm: |
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I don't dwell on this. I have mine and it is worth the price I paid for it. If I were itchin' to sell, then that would be a different story. Consumer's memories are short. When they are sold all of this will be forgotten in a couple of months. |
Bobup
| Posted on Thursday, February 19, 2009 - 05:55 pm: |
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I'm not worried look on ebay for Yamaha RDs and look at the prices they are fetching.... the Buells will come around and be worth more than the original price....someday My sons will reap the benefits....LOL |
Clarkjw
| Posted on Thursday, February 19, 2009 - 06:01 pm: |
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I'm not mad, but I paid $9405 for mine and got $675 in merchandise. |
Vanvideo
| Posted on Thursday, February 19, 2009 - 06:05 pm: |
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They're priced like that here in North Florida. I am seriously considering getting one. You can't find used ones for that price. It's a great bike, but I guess the known issues with the '08s (or perceptions thereof) are keeping people away. |
Clarkjw
| Posted on Thursday, February 19, 2009 - 06:25 pm: |
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hahah, there are issues for sure. still a great bike with serious potential. |
Ski25r
| Posted on Thursday, February 19, 2009 - 06:30 pm: |
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IMO… Everyone here knew from the onset there where going to problems with the first year models. Glitches give the owner an opportunity to know their bike and adds character. Let them sell them cheap, trash them, wreck them, and blow them up (as long as no one is injured). I will be sitting happy with my 25th anniversary 25R. Ski |
Redbuelljunkie
| Posted on Thursday, February 19, 2009 - 09:45 pm: |
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The real kicker here is that dealers that do this are the ones causing YOUR bike to be WORTH DICK when you go to buy a new bike. This kind of "devalue selling" is exactly what kills the trade and retail value of your .01" off the lot Buell motorcycle. As Buell owners I would think you would be as pissed off about dealers like this as I am. That's not how dealers operate... at almost every dealership new inventory is financed through third-party lenders (GM Capital is the biggest). The dealer must pay interest each month on every unit that remains unsold, and what's worse is that the interest rate increases the longer it sits there. For a streetbike, monthly interest can run $40-$60 on each unit- that means it's costing money just sitting there. The incentive is to move the unit- but that's only part of the equation... Buyers play the biggest role in a bike's value- what customers are willing to pay is what dictates the value of a bike. The dealer's incentive is to sell bikes, and the longer inventory sits the more the dealer loses. So, the price is reduced as an incentive to the buyer- but if customers are unwilling to pay, the price is reduced further. At a certain point, the dealer will do most anything to "stop the bleeding" and make inventory go away. The buyer is in control at this point, and bikes will sell at whatever price the market places on them. Right now it's a double-whammy because of the economy and the 1125's "perceived" value- it's a perfect storm. You cannot blame dealers from doing what they need to do in order to stay in business- if they had it their way everything would sell at MSRP (or more). If buyers thought 1125's were worth more than $7995- there would be none available... and Buell dealers are not the only ones facing these problems. Give the dealers a break. |
Diablo1
| Posted on Thursday, February 19, 2009 - 11:16 pm: |
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This is all funny math. If dealer's cost is $10K, and the bank owns the bike, then the dealer pays interest as long as the bike sits on his floor unsold. However, if the dealer sells the bike for $8k to "cut his losses", he then has to pay $10K to the bank right in short order. But, he's short $2K! So he has to take $2K of his own money to take his loss immediately. This funny math is one of the reasons that you don't see any deep discounts on HD bikes in this terrible economy. Dealers don't own the bikes - banks do. It's the same thing with all the car dealers - no great deals for the buyers yet. A dealer can't generate cash or any cash flow to pay down bills on inventory he doesn't own. Liquidating inventory is only of value if you own the inventory. (Message edited by Diablo1 on February 19, 2009) |
Dentguy
| Posted on Friday, February 20, 2009 - 12:29 am: |
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It's the same thing with all the car dealers - no great deals for the buyers yet. What do you consider a great deal? Here is a few local prices from a quick search. 2009 Chevy Tahoe $10,000.00 off the sticker. 2008 Volvo XC90 $10,000.00 off the sticker. 2008 Range Rover(s) $22,000.00 off the sticker. 2009 Volvo S80 $11,300.00 off the sticker. 2009 Chevy HHR $5000.00 off the sticker of a car with MSRP less than $20,000.00 Just to list a few new 08s and 09s from 1 multi line dealer in the area. These are averaging 25% off the MSRP before any negotiating. I understand what you are saying, but there are plenty of new car deals around here. |
Froggy
| Posted on Friday, February 20, 2009 - 12:33 am: |
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Dentguy I am in the market for a 09 Pontiac G8 GXP 6.2L Manual, blue, with sunroof. $41k msrp, please let me know if you see one near 30! |
Dentguy
| Posted on Friday, February 20, 2009 - 01:13 am: |
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Will keep my eyes open. |
Rsh
| Posted on Friday, February 20, 2009 - 02:02 am: |
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Froggy, If you were a GM employee the G8 GXP price is about 38k, there is also a regional incentive of 3K available or low APR financing, I think a factory to dealer rebate of 2k is going on now as well and if a dealer is really hungry they will dip into it. |
Redbuelljunkie
| Posted on Friday, February 20, 2009 - 10:32 am: |
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A dealer can't generate cash or any cash flow to pay down bills on inventory he doesn't own. Liquidating inventory is only of value if you own the inventory. Absolutely false- inventory sitting on the showroom floor is costing the dealer money- especially if he doesn't own it. The best thing is to sell at a profit, next is to break even, currently the goal is to minimize the loss on each unit sold- because a sold unit beats an unsold unit any day. What is a dealer supposed to do? Do you expect them to hold onto a unit in hopes that sometime in the future someone might buy it for asking price- especially considering the new models are arriving and the unit's value is decreasing daily? The system is set up to punish the dealer for not selling bikes, so at a certain point that's what the dealer is going to do- cut his losses. Blowing out older units stops bleeding so the newer units can (hopefully) generate some cash flow. In the current economy, sales are almost at a standstill- and you will be hearing of more and more dealers going out of business. Instead of looking down your nose at dealers, buy the bikes at the discount price- it helps them and is a great deal for you. What's with the dealer bashing?... they are evil for selling too high, and evil for selling too low- the market dictates the value, not the dealer... and we are the market. |
Rockstarblast1
| Posted on Friday, February 20, 2009 - 12:10 pm: |
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I don't get why its bad either? Its great to me cuz I jus picked one up! But where are all you guys from I didn't kno there were this many Buell owns in ne Ohio. |
Silvrevo
| Posted on Friday, February 20, 2009 - 01:52 pm: |
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the 7995 caught my eye, along with its a pure good looking bike. but I have to unload my 2007 fz6 first,, and its a great bike. hate to take a big hit on it. I might wait till the 2009's get down to $8k at the end of summer, then make the leap. this econonmy is going now where fast,, well I bet it will get much worse. Osama had it right first when he kept saying "Change".... its what we all will wind up with in our pockets. |
Luisemilio25r
| Posted on Friday, February 20, 2009 - 04:23 pm: |
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Do you mean Obama? |
Dentguy
| Posted on Friday, February 20, 2009 - 04:42 pm: |
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Do you mean Obama? I think he said what he meant to say. |
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