Buying a motorcycle should be an exciting time, but it is important to stay alert during the process. Some dealerships will try to take advantage of unsuspecting buyers and cost you thousands of dollars. By knowing the tricks and what to look out for you can protect yourself and get a fair deal on your dream bike. Let’s get into 5 ways motorcycle dealerships are trying to pull a fast one on you - and how to not fall for it.
Floating Fees: The Hidden Cost Bomb
You don’t want to be surprised by extra costs when you’re looking at that new bike. But some dealerships play games with their fees, changing them from customer to customer like a game of fee tag.
These sneaky charges can add up fast:
- Doc fees: Supposedly for producing paperwork, but often inflated
- Processing fees: A vague term that covers a bit of everything (or nothing)
- Preparation fees: For getting the bike "ready" for you
These floating fees can add a few hundred dollars to your purchase price, sometimes more. It’s not uncommon to see them add thousands to your total cost, especially if you're financing a motorcycle with bad credit in Canada. By being aware of these hidden traps you’ll be better equipped to avoid extra charges and keep more cash for accessories or that new helmet you’ve been wanting.
Pro tip: Before you sign, or better yet even view a bike that you're interested in, ask for an offer to purchase with a breakdown of all fees involved. Compare them to what other other dealerships are charging.
Subpar Service: When Cutting Corners Costs You
When you're eyeing that sweet used bike at the dealership, it might look shiny and ready to ride. But don't be fooled by appearances. Some dealerships try to maximize their profits by putting as little money as possible into prepping used motorcycles for sale.
Here’s how some dealers might be short-changing that used bike:
- Oil changes: Using the cheapest oil they can find or just topping off old oil
- Surface cleaning: Making the bike look good without fixing the problems underneath
- Ignoring worn parts: Not replacing brake pads, chains, or sprockets that are almost done
- Cheap tires: Slapping on budget tires instead of good ones
- Skipped inspections: Glazing over safety and mechanical checks
This corner-cutting can lead to big problems down the road. That cheap oil won’t protect the engine properly and will wear it out faster. Those worn parts will fail soon after you ride off the lot and leave you stranded or worse. And those cheap tires? They’ll compromise your safety on the road.
The long-term effects of this subpar prep can cost you:
- Repairs shortly after your purchase
- Reduced performance and reliability
- Safety risks from mechanical issues left behind
- Higher maintenance costs to fix neglected problems
- Lower resale value when you sell or trade-in
Be aware and ask the right questions and you won’t buy a bike that’s been rushed through prep for a quick sale. Remember a little extra effort upfront will save you a lot of money and headaches down the road. Don’t let a dealership’s cost-cutting turn your dream bike into a nightmare.
Pro tip: Before buying a used bike, request to see the service records and ask for a detailed list of what the dealership did to prepare it for sale. Don't be shy about asking to have a third-party motorcycle mechanic inspect the bike before you buy. A reputable dealer won't have a problem with this request.
Misleading Advertising: The Low Payment Mirage
We've all seen those eye-catching ads: "Ride home today for just $99 a month!" Sounds too good to be true, right? Well, often it is. Some dealerships use these tantalizing low payments as bait to lure you in, but the reality can be far different.
Here's how they pull it off:
- Unrealistic down payments: That low monthly rate might require a massive down payment
- Extended loan terms: Stretching payments over 6 or 7 years to lower the monthly cost
- Lease offers disguised as financing: What looks like a great deal to own might actually be a lease
When you get into the fine print you’ll find most of these deals are impossible for most buyers to qualify for. They might require perfect credit scores, large down payments, or come with high interest rates that wipe out the low monthly payment. Don't fall for the hype.
Pro tip: Always read the whole terms and conditions of any advertised offer. Ask the dealer to break down the total cost of the loan, including interest, over the life of the loan. That will give you a clear picture of what you’re really paying for that great deal.
Bait and Switch: The Phantom Inventory Trick
Ever seen an ad for a great deal on a bike and when you get to the dealership it’s not available? Welcome to the world of bait and switch where phantom inventory is used to get you in the door and upsell you on more expensive models.
Here’s how it works:
- Dealers advertise prices on popular models
- When you get there, surprise! That bike is “just sold” or “not in stock”
- Salespeople will redirect you to more expensive or slower-moving alternatives
This isn’t just annoying - it’s a waste of your time and potentially your money. You might end up spending thousands more than you planned or settling for a bike that doesn’t quite fit your needs leaving yourself susceptible to pressure sales and other dealer tactics.
Pro tip: Before you head to the dealership, call them first. Verify that the exact model you’re interested in is on the lot. Get the name of the person you spoke to and if possible a confirmation email. As mentioned previously, ask for an offer to purchase with the all-in price. This will save you from a wild goose chase and your wallet.
Interest Rate Inflation: The Kickback Scheme
Think you've negotiated a great price on your dream bike? Not so fast. Some dealerships have an ace up their sleeve - inflated interest rates that can cost you big over the life of your loan.
Here's the deal:
- Dealers often work with multiple lenders
- Some banks and lenders might offer kickbacks to dealerships to sell you a higher interest rate
- This added benefit is solely for the sales team while damaging the deal for the customer
This scheme can add up to serious cash. Even a 1% increase in your rate could mean paying hundreds or even thousands more over the course of your loan. By being prepared and informed about financing, you can ensure you're not just getting a great bike, but a great deal overall.
Pro tip: Don't walk into a dealership without knowing your credit score and getting pre-approved for financing. Your bank or credit union can often offer better rates, giving you a solid baseline to compare against the dealer's offer. You may also consider a pre-approval from a dealership broker like our partners at Revival Powersports who have access to multiple lenders and do not get paid to upsell rates.
Fool's Gold: "Certified" and "Award-Winning"
Think that the "Certified Pre-Owned" tag or "Best Dealership" award means you're in good hands. Not so fast. Some dealers are pulling a fast one with certifications and awards that are about as valuable as a chocolate muffler.
Here's how this smoke-and-mirrors act plays out:
Certified Pre-Owned Bikes
- Fancy name, but standards can vary wildly as there is nothing governing the word "certified"
- Some "certifications" involve little more than a quick wash and wax
- Might not cover crucial components like the engine or transmission
"Best of" Awards
- Often purchased by the highest bidder, or at the very least the ad space is
- Local publications may hand these out like candy for advertising dollars
- Tells you more about the dealer's marketing budget than their service quality
Industry Certifications
- Some are legit, others are pay-to-play schemes
- May require minimal effort or standards to maintain
- Could be years out of date
Don't be dazzled by shiny plaques or fancy certificates. These can be marketing tools designed to give you a false sense of security while potentially covering up subpar practices.
Pro tip: Do your homework. If a dealer touts a certification or award, ask about the specific criteria involved. For "certified" bikes, request a detailed inspection report. For awards, check the source - is it a reputable industry organization or a local advertiser's circular?
Buying a motorcycle shouldn’t be a minefield of hidden fees and shady tactics. By being informed and aware you can avoid the pitfalls we’ve talked about and ride away with a great bike and a great deal. Remember knowledge is power - and in this case, it’s also money in your pocket.
Don’t rush into a purchase. Take your time, do your research, and don’t be afraid to walk away if something doesn’t feel right. A good dealer will respect your process and work with you to make sure you’re completely happy. After all the goal isn’t just to sell you a bike - it’s to welcome you into the riding community. So gear up, be savvy, and hit the road with confidence. Happy riding!
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