Buying your next bike is a big investment, both in terms of finance and emotion. When we buy a car, we consider the practicalities and seek out the most affordable and sensible way to get us from A to B. But, when we buy a new bike it’s all about the passion. With this in mind, we want to get as much grunt for our pennies as possible. But does walking into a dealership with a wad of cash put us in better stead for getting a bargain? Or does it not really make any difference these days?
A vast amount of buyers choose to trade in an existing bike simply for the fact that it offers a hassle free way of getting rid of it. Selling your bike privately can be a time consuming and frustrating exercise and not everyone is comfortable having strangers come to their house to view.
This is where part exchange comes into its own. You take your bike to a dealer, choose a new bike, agree on a part ex price for your bike and lo and behold the deal is done. Traditionally, dealers have always offered a low price for a trade in model, and you will no doubt be able to achieve more if you can be bothered with the hassle of a private sale instead.
If you want a stress free transaction however, and don’t mind loosing a few bob in the process, part exchange is a simple and easy way to purchase your next motorbike.
However, you obtain the cash, either from the private sale of your old bike or by using your own savings, buying a bike with cash is not quite the golden goose it was once considered to be.
Dealers actually prefer their buyers to part exchange their old bikes, and use finance deals to pick up the rest of purchase price. This gives them plenty of bites of the cherry as they get a kickback from the finance company, and the opportunity to resell your trade-in at a profit. Your cash therefore, is not really of that much interest to them.
That said, a buyer with cash in his pocket is a done deal with no complications so they should still be keen to do business with you.
The trick to actually getting a good deal on your next bike is using a winning combination of clever haggling skills and a subtle glimpse of your wad of cash.
Don’t bowl in asking for a massive discount, and expect the dealer to give an inch on the price. Let it be known that you are a serious buyer without appearing desperate. Ask informed and relevant questions about the bike, and when you are satisfied that it is the right bike for you, then let them know that are interested in paying cash for it. Give them a clear indication of the price you are willing to pay for the bike, and make this the starting point for your negotiations.
However you purchase your next bike, remember not to get carried away and spend the mortgage on a shiny set of wheels. Set a budget and stick to it. If you would genuinely rather just part exchange and walk away with a newer model, there is no shame in that. The vast majority of drivers in the UK would rather part ex their old vehicles to avoid the hassle and potential risks involved in a private sale, so you will always be in good company.