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General Moto | Off-Topic Posts
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[QUOTE="Smit-Dog, post: 542872, member: 25436"] The CC issue has nothing to do with financing. That's not to say that a dealer could not make up for a low profit deal on a bike if you choose to finance the purchase through their lending source. They'll then make it up through interest revenue. CC companies charge a transaction fee to the dealer. It is based on a percentage of the sale. High volume CC sales generally result in a lower, more favorable percentage for the dealer. That is to say that if you as a dealer process $1,000,000 in CC transactions, you'll get a more favorable percentage than the guy down the street that only processes $100,000 in CC transactions. Let's say that dealer cost on a bike is $4500. After much negotiation and haggling, the agreed selling price is $4600 (despite the fact that MSRP is $5600!). The dealer does this to get the business, and to beat the dealer across town. Buyer now tells dealer he wants to pay entire price by CC. Dealer pays 1.75% in CC transaction fee, which takes $80 off the $100 profit, leaving $20. Pay for the kid to process your paperwork and wheel the bike out, and the dealer has just lost money. Without the CC fee, the dealer could have at least made a (very small) profit. Keep in mind that these are all hypothetical numbers, but the concept is the same. [/QUOTE]
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MX, SX & Off-Road Discussions
General Moto | Off-Topic Posts
More Suzuki/Kawasaki Merger news
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