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Author Topic: Demo Bike Incentive Question  (Read 667 times)

Snow4us

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Demo Bike Incentive Question
« on: March 31, 2018, 01:06:50 AM »

Been researching Zero and looking to purchase a DSR.  Called the local dealer today as I noticed they have a 2017 DSR demo in stock and the dealer is telling me that Zero will pay $1,500 of the demo bike price, but that the incentive is up at the end of this month.  He mentioned that they have been running this promotion for Jan, Feb, and March.

In order to receive the $1,500 discount, I would have to purchase today.  Is this a dealer pressure scam or is this legit?  Why would Zero do an incentive like this and not put it out there publicly?  Wouldnt the goal behind such a program be to sell all the old demo bikes?  Why not advertise the deal?

Thanks!
« Last Edit: March 31, 2018, 01:52:22 PM by Snow4us »
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mrwilsn

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Re: Dealer Scam? Looking for help
« Reply #1 on: March 31, 2018, 03:42:41 AM »

It's not a scam.  Zero doesn't advertise because it's not a consumer deal, it's a dealer incentive for having a demo bike.  I can't confirm if the end of March is the official last day.

In order to be a dealer the motorcycle shop is required by Zero to have a certain number of demo bikes.  These bikes are basically on loan for most of the year.  The dealer can't sell these bikes until a specified date during the year (some time in August).  Once that day hits the dealer is given a $1500 discount from Zero to purchase the bike.  Most dealers will pass that on to the consumer in order to sell the bike as fast as possible but they don't have to.  For example, if a dealer thought demand was high they might only offer the consumer a $500 discount and pocket the extra $1000.  If a dealer doesn't sell the bike by a specified date (end of March) then Zero rescinds the $1500 discount to the dealer.  The idea is to incentivize the dealers to sell the demo bikes as fast as possible as soon as the next model year is available.

The problem is that not all demo bikes sell by the deadline to get the dealer cash.  Thus, when you see a demo bike at a dealer that is more than a year old....that dealer is taking a hit to sell it to you at a discount because they are no longer getting a discount from Zero.  After the end of March deadline they have to pay Zero full price for the bike as if they had just ordered it instead of being a demo bike.  This is the main reason some demo bikes sit at dealers for so long.  The dealer isn't getting any discount so they don't want to discount to consumer.  But the consumer doesn't want to pay full price (or near full price) for a bike that's been a demo.

I actually thought the dealer demo cash had ended at the end of the year because my local dealer had told me they completed a sale on new years eve when the dealership was actually closed in order to complete a sale before the deadline to lose the demo cash.  But it's entirely possible Zero extended the deal if they had a lot of dealers that still had demo bikes to get rid of.

The bottom line....if a dealer is offering you a $1500 discount on a demo and you have inspected the bike to confirm there isn't a major issue with it....I would take the deal before it expires.
« Last Edit: March 31, 2018, 03:44:27 AM by mrwilsn »
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goomicoo

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Re: Dealer Scam? Looking for help
« Reply #2 on: March 31, 2018, 04:08:58 AM »

What dealer?
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BrianTRice@gmail.com

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Re: Demo Bike Incentive Question
« Reply #3 on: April 02, 2018, 11:40:55 AM »

There is a community buyers' guide for less personal generalizations about buying a Zero: https://zeromanual.com/index.php/Potential_Buyers_Guide
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Current: 2020 DSR, 2012 Suzuki V-Strom
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NEW2elec

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Re: Demo Bike Incentive Question
« Reply #4 on: April 02, 2018, 07:17:24 PM »

Another fun fact about demos, the warranty starts the day Zero ships it out to the dealer.  There is an extra 90 days tacked on but it's never the full 2 year warranty.
I voiced my opinion to them that they may want to alter that policy, we'll see what they do.
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gyrocyclist

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Re: Dealer Scam? Looking for help
« Reply #5 on: April 12, 2018, 04:33:40 AM »

It's not a scam.  Zero doesn't advertise because it's not a consumer deal, it's a dealer incentive for having a demo bike.  I can't confirm if the end of March is the official last day.
...
Thanks for your informative answer. Now I'm wondering: how much do dealers make selling motorcycles in general, and Zeros in particular? I know about bicycles: selling bicycles doesn't bring in much cash -- it's all about parts and accessories. If you get a 10% discount from a bicycle dealer, you're doing very good. (A few years ago I was looking to buy a fixed-gear. Days later, I happened to pass by a bike shop that had one of the models I was interested -- with a price that I knew was 40% off MSRP. I felt sorry for the dealer, knowing they were losing $$ on the bike. So I bought it. It was a great bike.)
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