Price hike?

[moto al]

And if you can't afford a new one, most Honda dealers can probably get you a low-miles used one for £9000-£10,000...you see, it's working already!

problem is nobody want's now 2016 left overs because clients know about small improvements for 2017 and they want new, that's what dealer told me. It's bad honda moved QA testing to customers but it's good they make improvements, unlike bmw.

hi when I purchased my AFrica twin I stated a post warts and all . And to this day iv iv posted all my problems I have Incored with the bike . Al (thumbs)

[robson]

But, considering that folk were paying about £10000 - £10500 when these were launched, and 20 per cent of that was VAT (which isn't paid by the customer on used bikes) then the early AT's are actually holding their value very well.

and how you've come to that conclusion you're not paying vat when buying used one? :silly:

[Richard Simpson]

Because the customer isn't charged VAT.

VAT is charged to the dealer on the gross profit margin between the cost of buying the bike in and the price realised when selling it on. The customer is not charged any VAT.

Buy a used bike from a VAT-registered dealer, and you won't find a VAT element on the invoice. Buy a new bike, and you will.


Thanks for asking!

[robson]

Because the customer isn't charged VAT.

VAT is charged to the dealer on the gross profit margin between the cost of buying the bike in and the price realised when selling it on. The customer is not charged any VAT.

Buy a used bike from a VAT-registered dealer, and you won't find a VAT element on the invoice. Buy a new bike, and you will.


Thanks for asking!

sorry but you're delusional, true dealer pays vat from profit but just because it's not called vat on client invoice doesn't mean you don't pay for it. You think dealer does? yes with your money. In addition first buyer paid full vat and price drop for used one is a percentage from the gross value so if drop was e.g. 25% you still pay for part of the vat original customer paid plus profit for dealer.

[Richard Simpson]

Eh?

No, the dealer pays the VAT out of his gross profit on the used bike.

The consumer doesn't pay the VAT.

I think, having read your reply a few times, that you mean that part of the price that the customer pays is later paid as VAT by the dealer...but you could also argue that the customer is ultimately paying all the transaction costs imposed on the dealer, including the salesman's commission.

[Dirk]

The customer pays for it all...everything inc VAT.

[Richard Simpson]

Indeed, there's a difference between paying for it (all the dealer's overheads are ultimately met by customers if it is to stay in business) and paying it.

As said above. The dealer pays the VAT on the used motorcycle sale. The customer pays the VAT on the new motorcycle sale.

Most people can grasp this.

[Biker_Mike]

Lol, Voted for brexit and then wonders why prices have risen...

[johnnyboxer]

BMW a far smaller company ,dominated that slice of the market for years .

BMW Still do - the GS outsells everything else.... in the Adv Bike sector

really? bmw good time has come to end.

http://www.bmwmoa.org/news/292002/BMW-M ... in-USA.htm

BMW Group reported its May 2016 and year-to-date sales figures for the U.S., and the news is grim for the first five months of the year.

In May 2016, 1,221 BMW motorcycles were sold in the USA, a 40% drop from the 2,034 sold in May 2015.

This bucks trends seen in worldwide sales in March (up 19.6% over March 2015) and April (up 1.4%).

Only in USA.............Sales are still strong elsewhere

[IainD]

Indeed, there's a difference between paying for it (all the dealer's overheads are ultimately met by customers if it is to stay in business) and paying it.

As said above. The dealer pays the VAT on the used motorcycle sale. The customer pays the VAT on the new motorcycle sale.

Most people can grasp this.

I think you are missing the bigger picture.

All the dealers outgoings are reliant on the price paid for the bikes sold: Wages, VAT, Rates, Rent, Electricity etc. etc. Accessories and servicing have their own VAT elements, but may cross contribute as part of a whole business approach.

So, in effect, the customer pays for all of those costs (including the VAT) as there is nobody else to do it. If each sale didn't contribute to those costs the dealer would go out of business, so the price asked for / paid has to reflect that reality.