How To Buy A New Motorcycle from a Dealer at RevZilla.com
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00:00Spurgeon here with RevZilla and today we're going to discuss with you how to buy a new
00:05motorcycle.
00:11So years before I started working at RevZilla alongside this big galoot, I actually worked
00:15at a dealership level where I worked with new riders to help them navigate through the
00:19buying process.
00:20And that's what I hope to do with you in this video, we're going to walk you through how
00:23to buy a new motorcycle.
00:24This is going to be part of a larger video series where we discuss with you how to choose
00:28your motorcycle as well as how to buy a motorcycle and we're going to split that buying process
00:32into two separate sections.
00:34So if you're interested in how to buy a used motorcycle from a private party, that's where
00:38old Lemlem comes into play.
00:39He actually has a separate video walking you through that process.
00:42So make sure you subscribe to us on YouTube to keep up with all the content we have rolling
00:46out at RevZilla.com.
00:48Now the first thing you're going to need to consider before ever setting foot in a showroom
00:51floor is insurance costs.
00:53Keep in mind, if you're planning on financing your new motorcycle, nearly every bank out
00:57there is going to require you to carry full coverage insurance and full coverage insurance
01:01can get quite costly.
01:02So there are a few ways to circumnavigate some of those additional costs.
01:07First of all, consider a smaller displacement motorcycle.
01:10Oftentimes a larger displacement bike is going to carry a higher insurance premium with it.
01:14So if you go with a lower displacement bike, not only do you save money on the cost of
01:18the motorcycle, but you're also going to save money on your insurance premium.
01:21And make sure you shop around at different insurance companies out there because different
01:25insurance companies rate motorcycles differently.
01:27When I bought my first bike, I actually saved about $1,000 a year over what my auto policy
01:32holder was going to charge me.
01:34So it's really important to look at what's available out there from a variety of different
01:37companies.
01:38Now another way to save some money is to consider an MSF discount.
01:41A lot of times insurance providers will offer you a 5% or a 10% discount on your coverage
01:46if you've taken some kind of additional rider training.
01:49Really what the insurance companies want to see is that you know how to use and ride the
01:54motorcycle.
01:55Another thing to inquire about would be whether or not they're going to offer some kind of
01:58accessory coverage.
01:59Keep in mind, unlike auto policies, which are really kind of cut and dry, a lot of times
02:04you can get accessory coverage worked into your deal.
02:06So not only is the motorcycle covered, but the gear that you're wearing as well as anything
02:10you've added to the bike are going to be covered as well.
02:12Now the final thing to inquire about is going to be gap coverage.
02:16It's going to cover the gap between what your bike is currently worth and what you currently
02:20owe on it.
02:21If there's a depreciation that occurs, you're not left holding the bag on that.
02:24The last thing you want to do is to be continuing to pay on a motorcycle you no longer own because
02:30of some kind of an unfortunate accident.
02:32Now speaking of making payments on the motorcycle, once you have your insurance figured out,
02:36that's going to be the next step in the process.
02:38How are you planning on paying for this new bike?
02:40There's a lot of folks out there that would encourage you to pay cash.
02:42I'm not necessarily one of them because I think that financing a motorcycle is a great
02:46way for new or younger riders to establish credit so when they go to make a larger purchase
02:51later in life, that credit is there waiting for them to use.
02:55Now I'm not saying to walk blindly into a dealership.
02:57It's always important to check with your local bank or credit union to get an idea of what
03:01they're willing to finance you for before you walk into the dealership floor.
03:05Having that knowledge in your back pocket is going to be key.
03:07Now before you can ask a motorcycle dealership to beat your offer, you have to have one in
03:11mind and that's going to bring us to the final step in the process, choosing a motorcycle
03:15dealership that you trust.
03:16One of the biggest problems that I see with motorcyclists is they equate a good price
03:20on a motorcycle with a good dealership experience and that's simply not the case.
03:24Personally, I would rather spend a few extra dollars on the motorcycle if I know that the
03:29dealership is going to be there to support me for the entire time that I own that bike.
03:33So the question becomes, how do you find a good dealership?
03:36Well, the easiest way to do this is simply spend some time hanging out with them.
03:41So find your local dealerships and every other Saturday, show up for an hour or two.
03:45Walk around.
03:46See if they're hosting any different events.
03:48Chances are, if a dealership is having a barbecue and they're having a hard time getting
03:51people to show up for free food, it's probably not the place you want to go buy a motorcycle.
03:56Now as for me, I've done my homework and I have an idea of where I want to go to buy
04:00my next bike.
04:01So let's head out right now and see if I can't procure myself a new motorcycle.
04:15So we're here today with Martin Motto and you might be asking yourself, why?
04:18Well, the answer is simple.
04:19This is the type of dealership I'd recommend for you to look for in your neck of the woods.
04:22It's a full service shop with a wide variety of different makes and models under one roof.
04:26Full financing, sales, service, as well as parts.
04:29And they've got loaner bikes for you to choose from for when your bike's in the shop.
04:32Now in addition to that, they also host a wide variety of different events and they
04:35really work to foster a motorcycle community.
04:38So needless to say, this is my type of place.
04:40Let's head in right now and check out and see what they currently have on the showroom floor.
04:49So the first thing you want to do when you get inside is spend some time looking at the
04:58selection of motorcycles available.
05:00After all, this is the fun part.
05:02There's a bunch of brand new shiny machines sitting around for you to take a peek at.
05:06Now chances are you already have an idea in your noggin as to which motorcycle you're
05:10there to see, but don't be afraid to see if there's anything new available that piques
05:14your interest.
05:15Now if you're in a showroom like Martin, there's pretty much one of everything represented
05:18here for you to look at when you're determining what you want to get.
05:22Now if you're at a smaller dealership, that might not be the case.
05:25So keep that in mind.
05:26If there's a bike that you have in your head that you think you want and you don't see
05:28it, don't be afraid to ask if maybe it's hanging around out back.
05:31Now as for me, I've done my homework and this Honda CB500F is going to make a great around
05:36town commuter while saving money on gas.
05:39The one thing I haven't done, however, is I haven't spent any time on the motorcycle
05:43itself.
05:44I'm just a regular rider and it's going to be important to make sure that I fit on this
05:47bike.
05:48So now would be a great time to get a salesperson into the mix.
05:51Hey, welcome to Martin Moto.
05:53I'm Rob.
05:54Hey, Rob.
05:55I'm Spurge.
05:56It's nice to meet you.
05:57So I've been looking at this bike.
05:58I've got some info.
05:59I wouldn't mind a little bit more information on it, but really what I want to know is,
06:00can I sit on this for a while?
06:01Absolutely.
06:02Feel free to throw your leg over any of the bikes in the showroom.
06:04Make sure you're comfortable on them.
06:05And while you're doing that, I'm going to go ahead and get some more information on
06:07this Honda.
06:08Awesome, man.
06:09Thank you so much.
06:10So as Rob and I discussed in our How to Choose a Motorcycle video, this is really important.
06:13You want to make sure you spend time sitting on the motorcycle and making sure you feel
06:17comfortable.
06:18This would also be a great time for you to talk to your salesperson about the availability
06:22for a test ride.
06:23Now test rides are going to vary drastically from dealership to dealership, but if you
06:28get the opportunity to take one out for a spin, that's always going to be great.
06:31You can also inquire about the availability for a demo day.
06:34A demo day is where a dealership is going to open up their entire fleet and you're going
06:38to be able to test out a variety of different motorcycles to see which one fits you best.
06:42But the cold, hard truth of the matter is, if you're a new rider, if you're wet behind
06:46the ears, there's a good chance that you're going to be buying the motorcycle without
06:48getting a chance to ride it first, and that's really why it's so important that you spend
06:52really just time in the dealership on the floor familiarizing yourself with the motorcycle.
06:57This is also a great time to carry on that conversation with your sales rep.
07:01This is a chance for you to ask questions about the bike, the buying process, and if
07:05they don't have the answer for you like you just saw Rob go, he's going to go and get
07:09me more information about the bike.
07:11They should be able to kind of just make the process seamless and easy for you while making
07:15you comfortable at the same time.
07:17So let's check back in with Rob and see what he found out for me on this CB500.
07:21Hey.
07:22Thanks, man.
07:23So, I have to admit, I'm a little bit torn between the non-ABS and the ABS version.
07:29Is there anything you guys can do for me on the price of the ABS bike?
07:32Unfortunately, there's not a lot I can do with this bike.
07:34I do have some leftovers in the back, though, that have ABS.
07:36Are you set on getting the current model year?
07:38I mean, not really, as long as it's the same bike, it doesn't bother me in the least.
07:41I would be interested in hearing about prices for additional warranty, though.
07:44Absolutely.
07:45Let me get started working up some prices on both models.
07:48Are you going to be financing with us today?
07:50So here's the deal.
07:51I have secured financing through my bank.
07:54If you can beat that number, however, I'd be very willing to work with one of your banks.
07:58Absolutely.
07:59Let me get started on this, and then I'll meet you over at the sales desk in a few minutes.
08:02Thanks, man.
08:04So what most riders might not realize is that on some of these smaller displacement bikes,
08:08there's not a lot of margin left for dealerships to negotiate when it comes to price.
08:12So I wouldn't expect to see too much of a price break on some of these smaller bikes.
08:15However, there are some additional ways you can save some money.
08:18For example, if you're okay with a leftover model, a bike that's not the most current
08:22in model year, but it still comes with a full factory warranty, you can usually save a few
08:26dollars on a leftover because of rebates that the OEMs have applied to that bike.
08:31If you absolutely have to have the newest, brightest, shiniest model year machine, you
08:35can always talk to your dealership about maybe some value adds, maybe some parts, some accessories,
08:39some gear, or additional warranty.
08:41A lot of times dealerships are willing to work with you on this, especially if you're
08:44financing the bike through their dealership.
08:46Now, speaking of which, this is a time that most motorcycle dealerships are going to know
08:50how you're planning on paying for that bike.
08:53They want their money.
08:54You want a brand new motorcycle sitting in your garage.
08:56So there's a few ways you could handle this.
08:58You can always go to your bank and get a pre-approval, and just treat this like a cash transaction.
09:03The other way you could do it, you could simply pay cash.
09:06But my guess is a lot of you out there are going to want to be considering financing
09:09options for this motorcycle.
09:11So while it's always a great idea to secure financing with your bank ahead of time, I'd
09:15always recommend giving the dealership a chance to beat your financial offer.
09:19And I say this because the last time I came in to buy a bike, they were able to beat my
09:23bank's offer by a substantial amount, getting me a better interest rate.
09:26Keep in mind, that's all these guys do.
09:28They sell and finance motorcycles.
09:31Another advantage of actually financing through a dealership is going to be the fact that
09:34you can work in additional parts, accessories, and even warranty into the financing itself.
09:39So instead of having a larger upfront cost to outfit the bike the way you want it, you
09:43can simply work it into your financing and get a small bump in your monthly payment.
09:47The beauty of doing this at the dealership level is you don't have to go back and forth
09:50with your bank multiple times to get new approvals for new amounts for that cost as it begins
09:56to rise.
09:57Speaking of which, I'm going to check in with Rob right now.
09:59I'm going to see what he was able to do for me on this little Honda.
10:02All right, what do you got for me?
10:07All right.
10:08So like I thought, I can't do anything about pricing on the bike you were sitting on, but
10:12I do have that leftover in the back that has ABS, and it qualifies you for some additional
10:17rebates as well as a discount on an extended warranty should you purchase it today.
10:21Dude, this looks awesome.
10:22So just so I'm clear though, this is the exact same bike just with ABS and a model
10:26that you're older.
10:27Yep, exact same bike, and I was also able to get better financing than you were going
10:31to be able to get with your bank pending a credit approval.
10:34That sounds great to me.
10:35My only question is, can I leave with it today?
10:36I want to go ride.
10:37Absolutely.
10:38I'll have them start prepping it while you're filling out your paperwork.
10:40That way, once it's all set, we can get you on your bike today.
10:43Sounds great, man.
10:45So this has obviously been a simplified example of how the buying process works, but it should
10:50give you a good idea of what you can expect when you're getting a new motorcycle.
10:54Some of the things we didn't talk about were additional warranty, accessories, as well
10:57as service contracts.
10:58If you're not familiar, service contract is where you pay a little bit more money up front
11:01for an additional set amount of service.
11:03If you're the kind of person that doesn't like working on your bike or you rack up a
11:06lot of miles, it's going to be a real value add for you.
11:09The other thing to note here is that this is a point in time where I'm forking over
11:12the cash as the buyer.
11:14If I'm using a bank check or if I'm just paying cash, it's going to be pretty much a done
11:17deal.
11:18I hand over the funds.
11:19If I'm going through financing with the dealership, I would sit down, I'd take some time and I'd
11:23fill out the extra paperwork to make sure that I'm squared away.
11:26Things like the actual loan application would be taken care of at this point in time.
11:30The other thing that you didn't see me do was discuss anything about taxes or government
11:35or regulations, and that would be taken care of at this point in time too.
11:38One of the value adds that you get from purchasing at a dealer is that you don't have to go somewhere
11:42else to take care of all that additional paperwork the way you would if you were buying at a
11:46third party.
11:47If you're at a dealership, they take care of the licensing, the registration, as well
11:51as any kind of a license plate or taxes that would be associated with that.
11:54Uncle Sam's got to make their money one way or another.
11:56It's just nice that the dealership is going to take care of all that paperwork for me.
12:00You heard me ask Rob if I'd be able to leave with that motorcycle today, and that's because
12:05I want to be very clear with him.
12:06I want that bike.
12:07It's important for you to do the same.
12:09You need to set your expectations of what you want out of the motorcycle buying experience.
12:13That's because if you're at a smaller dealership, they might have to order the bike in or they
12:17might have to prep the bike or uncrate it or even assemble it.
12:19In some cases, even in a dealership like Martin, like this, there's going to be some service
12:24that has to be gone through.
12:25Just make sure you're very clear on what you're expecting from them, and you shouldn't have
12:29any disappointments.
12:30Now, I was clear with Rob.
12:31I want to leave on that bike today.
12:32I'm going to sit down, I'm going to finish my paperwork, and then I'm going to meet you
12:35guys all out in the service department on my new bike.
12:47So the paperwork's done, the bike is serviced, but there's still a few things that need to
12:57be looked at before I leave on this motorcycle.
12:59So you want to make sure a member of the staff goes over the bike with you.
13:03You need to know where the controls are located.
13:05In this case, that member of staff is going to be Rob, the guy that sold me the bike.
13:08So he's going to walk me through exactly what I can expect from a control standpoint.
13:12He's also going to make sure I know exactly where the tool kit as well as the owner's
13:15manual are located.
13:16But he's not going to be done there.
13:17He's then going to introduce me to the service staff, because once the sale's complete, the
13:22service staff is the member of the staff that you're going to probably interact with most
13:25at a dealership level for taking the bike in for its regular maintenance as well as
13:29any possible warranty work that might pop up.
13:31So it's really important to understand exactly how they operate.
13:35Ask them a few questions.
13:36For example, can you just drop the bike off for service?
13:38Do you have walk-ins, or do you always need to schedule an appointment?
13:41In addition to that, do they have pickup service?
13:43Will they come to your house and get the bike for you?
13:45Or at the very least, if you drop the bike off, do they have some kind of a loaner bike
13:49program for you to get back home once you're done?
13:51Understanding exactly how your service department works will take all the guesswork out of having
13:56to drop the bike off so there's no surprises down the road.
13:59Now, the final thing you need to figure out before you leave here is how you're getting
14:02the bike home.
14:03So if you're not completely comfortable in your riding ability with this motorcycle,
14:07it might be the time to call a friend or a family member with a truck or a trailer and
14:10see if they'll help get the bike back to your house.
14:13Or at the very least, reach out to the dealership themselves and see if they have a way to drop
14:16the bike off for you.
14:18As for me, I'm going to do this the old-fashioned way.
14:20I've got insurance on the motorcycle, I've got my gear here, so I'm going to suit up
14:24and I'm going home on two wheels.
14:25So keep in mind that everything we talked about today is just an example, and every
14:44dealership will be a little bit different.
14:46If you want some additional research right now, you can head over to Common Tread and
14:49read one of the articles we penned on how to haggle for a bike, some of the different
14:52bikes that are available for you, as well as how to select the right bike for you.
14:56This is all going to be valuable research if you're just starting out as a motorcyclist.
14:59You can always check out one of our other videos too.
15:01Lemlem and I did a video on how to select a motorcycle, and he also did a great job
15:05helping you navigate the perils of Craigslist in how to buy a used bike.
15:10So make sure you subscribe to us on YouTube to keep up with all the content we have rolling
15:13out at RevZilla.com.
15:15As for me, I want to thank you for joining us today at Martin Moto as we discussed how
15:18to buy a new bike.
15:19I'm Spurge.
15:20Enjoy the ride.