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Discussion Starter · #1 ·
Hi all, I am new to riding and am looking to purchase my first bike, the 2020 Royal Enfield Himalayan. I got some numbers this morning from the dealer, and though I expected additional fees for registration and title and such, I was shocked when the $4749 listed priced quickly jumped to $6732, nearly a 2 grand difference and about 29% of the OTD price. I know for a fact this is outrageous, especially for a $5000 bike that will be replaced in June/July by RE's new Himalayan, and most of it seems to be "freight and assembly fees" which after a little research seems like an arbitrary price that is totally up to the dealer. I'm totally willing to shop around and take my business elsewhere, but this is the only dealer in So Cal with the bike in stock AND (forgive me for sounding prissy) in the color I want.

My question is, what fees would be reasonable and where should I start with this guy? Is $5200 (less than %15 the listed price) a good introductory offer or am i better off telling him to shove it and waiting for the new line to come out?
 

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Google the 2020 Himalayan and then peruse 'Cycle Trader' and compare prices, but only 'OUT THE DOOR' prices because that is what you will be paying anyway in the end. Lots of Dealers 'Low ball' internet prices to get ones attention and then stack on extra profit for them.

Being in San Diego, you will pay much higher prices but you may find a Dealer that will quote you a good OTD price and they could be far away or out of state, then it would be up to you to decide if it's worth it.

I once traveled 750 miles one way, in 2016, to save over $2,000 on a bike I wanted. I drove in and spent the night in a nice motel, and brought the bike back the next morning in the back of my Ford F150 Pickup.

Welcome to the forum!
61870


Sam:)
 

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The topic of dealer fees was discussed pretty thoroughly on the Royal Enfield US forum as they pertained to the 650 Interceptor, and the guys there compared notes and came up with around $1400 - $1500 as the average total on the ~ $5600 cost of the bike.

The local Chicago RE dealer is also listing the Himalayan online for around $4750, but these guys are also known for piling it on at the end.

Personally, I'd be buying somebody's 2nd hand bike a few years from now, when the 650 adventure bike that is rumored to be in the works comes out and everyone starts trading in their 411s. But I know that's not everyone's cup of tea.

Some things you can do.

Bikes aren't as seasonal in CA as they are here in Illinois, but here, I can wait a few months and prices really start to come down at the end of the season as the accountants start to complain about the cost of holding stock over the winter.

If you can find another dealer who's more willing to deal, walking into your dealer with a written quote can give you some decent leverage they say. If you play this game, don't let it slip that you have a color preference, or mind a trip to Texas, practice your poker face in a mirror.

See if you can get past the salesman to a technician, somebody who will call you if a trade-in or floor model comes up that you might be interested in.

If you can wait for next years models, that should soften the price on last years. Be aware that US dealers WILL sell previous years models as this years. This is apparently not illegal, perhaps because the bikes get titled as they are sold, not as they come out of the container. Study up on the VIN numbering of the model you are interested in, so you can recognize if a bike is left over from 2019 or even earlier. I've seen cases where bikes as much as 3 years old were being sold as current production. Heck I've even seen a model that had been DISCONTINUED more than a year previous, being sold as this years product. If they know that you know what you are looking at, that can only work in your favor in negotiations.

All that said, it's a very unique situation right now. I'm pretty sure that nothing has been coming out of REs factories since mid March. In most of the USA this is peak motorcycle buying season, ... the time that dealers can charge the most. Dealers know that supplies for this summer will be very limited. It's a tough time to buy new. I'd recommend waiting or buying something 2nd hand to get you riding now, with the intention of reselling that and getting what you really want later.
 

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I once traveled 750 miles one way, in 2016, to save over $2,000 on a bike I wanted. I drove in and spent the night in a nice motel, and brought the bike back the next morning in the back of my Ford F150 Pickup.
And I bet that bike has already been traded for yet another. Or is this the rare keeper for you?
 

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Discussion Starter · #6 ·
Thanks for the advice guys, I did some calling around and ended up getting the Himalayan for hundreds less than that first dealer, plus the guy was very honest and straightforward with me about how the extra fees are determined. I hope to get out there as soon as the DMV decides to take appointments again :cautious:

Cheers!
 

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Awesome! Let me be the first to welcome you (conditionally and prematurely) to the Royal Enfield secret society! That's great. That makes right around 2 of us on this forum at the moment

You probably have already heard about Itchy Boots, the U-Tube channel of the young lady who is riding an RE Himalayan, SOLO, around the world:

PM me if you want info on the RE USA forum.
 

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I don’t know. It’s just the way it is. Not that I care. It’s what I’m am going to have to pay I care about.
Bought my bike new from a dealership, All of the above applied.
Bottom line. I was looking to by a bike. If the salesman at the dealership couldn’t figure out. I was a rabbit Who just hoped on up ready to pay. He wasn't much of a salesman.
There going to ask a few qualifying questions To figure out if you are a tire kicker or a buyer. A good sales man will know you are a buyer before you do.
Reality the only price what matters is the out the door price. Or the put my pocket price.

I heard before hand, there is not a lot of room for negotiation on bikes. Not sure if it’s true or not.
In the end are you happy with the bike and the price? Don’t check next week or next month it will just piss you of.

The way I look at it all those dealer add on are negotiable or at least give room to negotiate.
Last thing a salesman wants to see is a rabbit walk out the door to another dealer.
The words he doesn’t want to hear. I will be back. Which translated means, I am going someplace else.
Before you go. Check the prices, on line, at a bunch of places. Figure out a rough ball park out the door.
Decide if you can afford it.
Go to the local dealer, tell him you are just kicking tires, Sitting on a few bikes, not sure what you want.
Let him run his pitch.
He will try some soft close, on you.
Questions intended to get you to say yes,
What kind of riding do you like to do.
Can you see yourself on this bike,
Would you like to sit box this bike.
Do you like the color.
All sorts of them They are.
l soft closes. Each one get you a little closer.
Would you like a test drive, now your getting to the harder close.

If they let you ride it, The price will be negotiable, Make a hard offer. Some place a bit above the sticker plus taxes. And be prepared to walk.
If they let you walk out the door your offer was to low.
Bet You leave with a bike.
 

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Discussion Starter · #9 ·
For those interested, the OTD was exactly $1,401 difference from the cycletrader listing (May 2020), and on the lower-mid end of the range I got from this forum and the few OTD purchases I could find in California. These models are hard to find right now because most dealers are running out until the new line release tentatively set for late June to mid July, so if a dealer gives you 1300-1500 in fees there really isn't much room for negotiation. The first dealer was talking almost 2000 in extra fees and raised red flags when he told me he "just got the bike in yesterday and more are on the way" when I was looking at his cycletrader listing which had been up for ALMOST A YEAR! Making a sale is one thing, but a liar that doesn't realize we are in the age of the internet? Not to toot my own horn but I'm not that clueless my dude.

Anyway, happy to be a part of the Enfield family.
 

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These models are hard to find right now because most dealers are running out until the new line release tentatively set for late June to mid July, so if a dealer gives you 1300-1500 in fees there really isn't much room for negotiation.
Anyway, happy to be a part of the Enfield family.
The Himalayan is included in the recall that also affects the 650 models, which isn't going to help any in freeing up the flow of new machines.
They don't mention north america as being part of the recall, so perhaps the bikes sent here were made before they started using the defective calipers. There's also the possibility that the article just didn't notice the NA market. It is quite small, relative to RE's domestic, Asia and Euro sales.
 

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if a dealer gives you 1300-1500 in fees there really isn't much room for negotiation.

I suppose that depends on whether your goal is to get the bike or to pay less. Being specific and the more you desire something, will cost extra cash in my experience, regardless of what you're buying. If you want a new bike and to save some money, a new old stock bike is one of the better ways to do it. Buying a bike that's relatively new and a low volume probably means you don't have much room for negotiation. Both the new bikes I bought were at least a couple years old. In a bit of irony neither was my first choice, but ended up working out well. I paid well below MSRP with no fees other than tax and license.
 

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I think I explained this to a few others but if you haven't seen the threads i'm willing to cover it for you guys from a dealership perspective. Every new unit at a dealership was bought for under MSRP, they have to sell it for a certian amount to ensure the salesman, sales manager, and finance manager can make a living. When you go into a showroom or look online, a dealership will have the unit displayed at MSRP price, this is the base price that all dealerships selling this unit have to start at. A lot of the time there is an incentive on a unit and you'll see a "discounted price", this is why many of the times when you compare one dealerships showroom price to another dealerships showroom price, they may differ drastically. Some dealerships include the incentives and keep them updated in the prices, thus the "discounts", other dealerships don't show them in the price and keep it at MSRP, saving incentives for bargaining tools in the sales process, allowing the salesman to attempt to maximize their profit. How to get around this? Simple, ask the MSRP on the unit, and if there's any incentives or rebates on it. Back to MSRP, dealerships all start at this one price for selling a certian unit, this price is given to them by the manufacturer of the unit and is dictated by them. If the dealership advertises a price that is too far below or above MSRP they will receive a large fine ($10,000+). Some manufacturers provide more leniancy with the advertised MSRP such as Japanese companies, other manufacturers such as Polaris will fine right away, and can even remove their units from a dealership permenantly. That being said, in brand new current year units there is usually some wiggle room, ($500-$3000) depending on the base price although there really isn't that much room to go before the dealership will end up losing money. Units that are not current year often have large incentives and discounts so they can move them off the floor, and always have more wiggle room then current year units. If it's a unit from a past year, that means the dealership is having trouble selling it, and will be willing to lose some money on the sales process to move it out. As for fees, when it comes to a new unit (regardless if it's a leftover 2019 new unit or a fresh 2020) they are assembled and tested by somebody, and they don't magically arrive to the dealership. So you will usually be looking at an assembly and prep fee, a freight fee, and dealership + tag + tax fees. Some dealerships include the fees in the advertised price, although obviously most don't. Let's say someone calls me for a motorcycle that's has a MSRP of $5,000 and asks me to give them a rough out the door price. I'll take the $5,000, add $389 + $489 for prep freight and dealership fees, at this point we will be at $5,878. Once I get the sum, I'll take that number and add state sales tax to it, in my case 7%, which will bring us all the way up to $6,289.46, which you can start negotiating from. This isn't including your registration fees. Dealerships cannot waive or remove fees, although they can hide them discreetly in the OTD price, there's laws and jobs in place to ensure that these get paid for somehow.
 
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