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Most manufacturers provide dealers with "free" flooring for a period of time. Sometimes only 3 months, sometimes 12 months. No interest on inventory on the showroom floor. But this is also what motivates the manufacturer to provide "holdbacks" which are bonuses paid to the dealer for selling early, before the flooring ends. Presumably the dealer could get the lowest possible price if they could pay cash up front. Interest rates are horrible after the "free" period. Loan shark rates.

Trades require cash. You buy a new motorcycle the dealer hasn't paid for so now the dealer has to pay for the new bike and cover your trade. Cash strapped dealers use a 3rd party broker to handle trades. When they go to the back room to determine your trade value they are calling the broker to get the offer value. It is the broker who sets the rules such as, "nothing with more than 50,000 miles". The broker owns your trade. Defines the price the broker must have on resale, dealer gets to keep anything over and above. Brokers don't care much whether the dealer makes the new sale so they make lowball offers.

When you see used inventory that needs obvious repairs, you can be certain those are owned by a broker. The broker can take the bike from the dealer at any time and if the dealer put new tires on it, "tough luck."

N4HHE wrote: ↑Sat Dec 18, 2021 8:52 pm Most manufacturers provide dealers with "free" flooring for a period of time. Sometimes only 3 months, sometimes 12 months. No interest on inventory on the showroom floor. But this is also what motivates the manufacturer to provide "holdbacks" which are bonuses paid to the dealer for selling early, before the flooring ends. Presumably the dealer could get the lowest possible price if they could pay cash up front. Interest rates are horrible after the "free" period. Loan shark rates.

When I was a Yamaha Dealer Free flooring was only for 30 days. We had another source with better interest rates that we would shift our unsold units to on day 29.

Holdback - Holdback is actually the dealer's own money. When the dealer buys the bike from Yamaha he pays a little extra which Yamaha holds until the unit is Warranty Registered and Paid for. Then, if the Dealers accounts with Yamaha are current (Parts/Advertising/Warranty/etc) Yamaha will send the dealer a check for the outstanding "Holdback" they have been holding - usually once a quarter but sometimes once every six months. The dealer gets his own money back and Yamaha doesn't pay any interest on what they have been holding.

N4HHE wrote: ↑Sat Dec 18, 2021 8:52 pmTrades require cash. You buy a new motorcycle the dealer hasn't paid for so now the dealer has to pay for the new bike and cover your trade. Cash strapped dealers use a 3rd party broker to handle trades. When they go to the back room to determine your trade value they are calling the broker to get the offer value. It is the broker who sets the rules such as, "nothing with more than 50,000 miles". The broker owns your trade. Defines the price the broker must have on resale, dealer gets to keep anything over and above. Brokers don't care much whether the dealer makes the new sale so they make lowball offers.

We owned our own trades, never used a "broker". Some dealers have financing sources that will loan on used/trade inventory.
Brokers offers reflect their need to make a profit and the cost of transportation. Just like in the car business the "Blue Books/NADA Guides/Black Book" don't get updated fast enough, the best source of value is through searching the National Powersports Auction databases.

N4HHE wrote: ↑Sat Dec 18, 2021 8:52 pmWhen you see used inventory that needs obvious repairs, you can be certain those are owned by a broker. The broker can take the bike from the dealer at any time and if the dealer put new tires on it, "tough luck."

Not necessarily true, The lack of needed repairs may have more to do with shop scheduling than broker ownership. Never having had a broker-owned bike on my floor I can't imagine why one would even display a unit one didn't own, In South Dakota, it is illegal for a dealer to display a unit for sale that you don't have a title for.

bigjohnsd wrote: ↑Sat Dec 18, 2021 11:11 pm Never having had a broker-owned bike on my floor I can't imagine why one would even display a unit one didn't own, In South Dakota, it is illegal for a dealer to display a unit for sale that you don't have a title for.

Not sure if you've noticed, but times have radically changed in the last 18 months. Businesses are dying daily, still, so if you can't get inventory and you don't have any cash because you have no inventory to sell, you have to decide, enter a relationship with a broker and have something on your floor, or lock the doors and go belly up and try to suck up the losses you incurred during these difficult times.

Yep. The market right now is like visiting Mars. I’d never have guessed things would be like they are right now at dealerships.

Festus wrote: ↑Sun Dec 19, 2021 10:49 am

bigjohnsd wrote: ↑Sat Dec 18, 2021 11:11 pm Never having had a broker-owned bike on my floor I can't imagine why one would even display a unit one didn't own, In South Dakota, it is illegal for a dealer to display a unit for sale that you don't have a title for.

Not sure if you've noticed, but times have radically changed in the last 18 months. Businesses are dying daily, still, so if you can't get inventory and you don't have any cash because you have no inventory to sell, you have to decide, enter a relationship with a broker and have something on your floor, or lock the doors and go belly up and try to suck up the losses you incurred during these difficult times.

Festus wrote: ↑Sun Dec 19, 2021 10:49 am

bigjohnsd wrote: ↑Sat Dec 18, 2021 11:11 pm Never having had a broker-owned bike on my floor I can't imagine why one would even display a unit one didn't own, In South Dakota, it is illegal for a dealer to display a unit for sale that you don't have a title for.

Not sure if you've noticed, but times have radically changed in the last 18 months. Businesses are dying daily, still, so if you can't get inventory and you don't have any cash because you have no inventory to sell, you have to decide, enter a relationship with a broker and have something on your floor, or lock the doors and go belly up and try to suck up the losses you incurred during these difficult times.

In South Dakota the law requires the dealer to have the title in possession, there could be a consignment agreement with a "broker" as long as the title to the vehicle is in the dealers' hands, there might also be a power of attorney empowering the dealer to execute the sellers' portion of the title if the vehicle was sold. I've checked with several dealers that I still know, none have any "Broker Owned" vehicles in inventory, they are doing some private consignment sales, usually for about 15% of the sales price.

bigjohnsd wrote: ↑Sun Dec 19, 2021 4:49 pm In South Dakota the law requires the dealer to have the title in possession, there could be a consignment agreement with a "broker" as long as the title to the vehicle is in the dealers' hands, there might also be a power of attorney empowering the dealer to execute the sellers' portion of the title if the vehicle was sold. I've checked with several dealers that I still know, none have any "Broker Owned" vehicles in inventory, they are doing some private consignment sales, usually for about 15% of the sales price.

And South Dakota didn't lock down. Try operating a business in a locked down state. Not even close to being the same thing.

Festus wrote: ↑Sun Dec 19, 2021 5:08 pm

bigjohnsd wrote: ↑Sun Dec 19, 2021 4:49 pm In South Dakota the law requires the dealer to have the title in possession, there could be a consignment agreement with a "broker" as long as the title to the vehicle is in the dealers' hands, there might also be a power of attorney empowering the dealer to execute the sellers' portion of the title if the vehicle was sold. I've checked with several dealers that I still know, none have any "Broker Owned" vehicles in inventory, they are doing some private consignment sales, usually for about 15% of the sales price.

And South Dakota didn't lock down. Try operating a business in a locked down state. Not even close to being the same thing.

Hmmmmmmm.

Psst. Bikes are dead weight. Nobody buys bikes anymore. Quads, side-by-side, tractors, pwc's, boats, RVs all manner of water sports, hell anything recreational except bikes.

Why? Driving your car should tell you all you need to know. Unless your fun center is wired to the danger lobe ...

bungie4 wrote: ↑Sun Dec 19, 2021 5:43 pm Psst. Bikes are dead weight. Nobody buys bikes anymore. Quads, side-by-side, tractors, pwc's, boats, RVs all manner of water sports, hell anything recreational except bikes.

15 years ago our dirtbike riding club with 5000 leased acres was worried about being overrun by ATVs. Today ATVs are almost nonexistent. Today we are overrun with Rzrs. The good news is the SxS crowd recognizes their needs and dirtbike single track are different. They don't beat our single track into 2-track the way the ATVs kept doing.

Where do those rednecks get the money for $70,000 loud lifted trucks and $25,000 Rzrs? (says the man who drives a Tesla)

N4HHE wrote: ↑Sun Dec 19, 2021 6:34 pm

bungie4 wrote: ↑Sun Dec 19, 2021 5:43 pm Psst. Bikes are dead weight. Nobody buys bikes anymore. Quads, side-by-side, tractors, pwc's, boats, RVs all manner of water sports, hell anything recreational except bikes.

15 years ago our dirtbike riding club with 5000 leased acres was worried about being overrun by ATVs. Today ATVs are almost nonexistent. Today we are overrun with Rzrs. The good news is the SxS crowd recognizes their needs and dirtbike single track are different. They don't beat our single track into 2-track the way the ATVs kept doing.

Where do those rednecks get the money for $70,000 loud lifted trucks and $25,000 Rzrs? (says the man who drives a Tesla)

I'll buy it if you can get me financed - otherwise known in the industry as a "Get me Done".

Festus wrote: ↑Sun Dec 19, 2021 5:08 pm

bigjohnsd wrote: ↑Sun Dec 19, 2021 4:49 pm In South Dakota the law requires the dealer to have the title in possession, there could be a consignment agreement with a "broker" as long as the title to the vehicle is in the dealers' hands, there might also be a power of attorney empowering the dealer to execute the sellers' portion of the title if the vehicle was sold. I've checked with several dealers that I still know, none have any "Broker Owned" vehicles in inventory, they are doing some private consignment sales, usually for about 15% of the sales price.

And South Dakota didn't lock down. Try operating a business in a locked down state. Not even close to being the same thing.

All manners of Recreational Vehicles are in very short supply here in South Dakota.