Why Is the Difference Price Important?
If you have a trade, why is the difference price important? We'll run you through a few scenarios to help you make sure that you are getting the right deal when negotiating a new (or pre-owned) motorcycle, ATV, side-by-side or personal watercraft.
The difference price is the total price of the vehicle, plus dealer fee, sales tax, and licensing (the out the door price, OTD.) minus the equity in your trade.
Let’s say you walk into dealership ABC, they tell you that the out the door price of your new Honda Gold Wing is $20,000, we are going to use round numbers because it’s easier for me to do the math. Then, they tell you that the value of your trade is $6,000. That gives you a difference price of $14,000.
New bike OTD | $20,000 |
Trade value | $6,000 |
Difference price | $14,000 |
Now, wait one darn minute! That trade-in has been with you its whole life, you went all over North America on that bike! You met your wife on that bike! You met your new wife on that darn bike! Dealer XYZ told you over the phone they would give you $10,000 for it so you are going to sell it to someone who appreciates what you have!
Dealer XYZ sits down with you to go over numbers, and low and behold, they do it! Right there in black and white, $10,000 for your trade. But wait a second, it looks like the OTD price of your new bike has increased to $25,000… maybe that’s no big deal since you got what you were looking for on your trade.
New bike OTD | $25,000 |
Trade value | $10,000 |
Difference price | $15,000 |
This is just one way dealerships can move numbers around to show you what you think you want to see. Your difference price is the number that doesn’t lie. It is the real dollars and cents of what you are paying. When I am shopping for a car I never look at the trade value and always go with the dealership that gives me the best difference price. I’d take $1.00 as long as the rest of the deal makes sense.
New bike OTD | $14,000 |
Trade value | $1 |
Difference price | $13,999 |
Of the three deals, that last one is truly the best because it has the lowest difference price. If your dealership is giving you the best trade value but not willing to show you the difference price, stop by Beaverton Motorcycles and see why we make all the difference.
Life’s an adventure. Your journey starts here at Beaverton Motorcycles. Reach out to a Product Specialist today!