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Joined
3/25/2018
Location
Houston, TX, USA
Can anyone help me understand how the KX rebates work? As an example, if a dealership has an MSRP of 10k but a sale price of 9k, is the sale price inclusive of the rebate? Or is the rebate something I can apply to separate of the dealer/sale price of the bike? Additionally, are the rebates applicable to SR models? Any info/help would be greatly appreciated.
Talk to your dealer, they are all different. One dealer said the rebate was already included in the discounted price. Or they add fees on top of the offer. The dealership does not get $ back, they get a parts credit to their parts department, at least that is what I was told. Just make calls and make sure you get a final price before Tax and before pulling the trigger. Or an OTD price.
You were lied to. The rebates are dealer rebates credited directly to them and they should discount the selling price accordingly. I did get a $100 debit card for a 110 but that was disclosed upfront.
The FDI (factory to dealer incentive) is included in whatever discounted price they are advertising. The dealership receives the incentive from the manufacturer after the deal is finalized. The difference between a rebate (money the customer receives after purchasing something) and an FDI (what all manufacturers are currently offering, Kawasaki included) is the fact that the incentive money is provided to the dealership after the sale to help them make back the money they discounted off the price.
The other advantage of an FDI as opposed to a rebate is that it effectively lowers the price of the bike, reducing the sales tax the customer has to pay.
They were correct in telling you that the FDI is credited to their parts account, but that is how all money going back and forth between a dealer and an OEM is transferred.
A rebate comes off the MSRP. Simply call a couple of your local dealers and ask for the out the door price and the break down of how they got there. Freight, prep and other discounts will vary.
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You are in the wrong. Having worked at a shop that sold Kawasaki this IS how it works. The shop gets the monetary value back as a parts credit to their account.
This is how it works for all the brands I was involved in. It's easier and more beneficial, tax-wise, for the manufacturer to apply a parts credit.
One kick in the nuts to the dealer is that sometimes the rebate isn't as large as the advertised value. Sea-Doo did that back in the '90s; they advertised $1,000 off any Sea-Doo, but then only credited $500 to the dealer. They basically told the dealer, "You are going to lose $500 on every PWC you sell this month, no matter what negotiated price you charge for it."
A hint for the OP: get a deal on the bike as if there was no rebate, and then have the dealer apply the rebate on top of it. Just because there's free money coming from the manufacturer doesn't mean the dealer should get all of it.
I enjoyed my time at the shop, but it was a tough gig. Most dealers are not swimming in money like most think they are especially when the OEMs like Sea-Doo do stuff like that.
Good tip for the OP, it's good for any customer to know what promotions are available before even setting foot in the store. Always ask for all in pricing with the breakdown.
Of the new bikes I've purchased from multiple MFG's including Kawi, they include it in the deal. Just ask for OTD price and pick the best.
FYI, buying out of state on non-titled bikes like MX bikes will usually save you the tax.
"FYI, buying out of state on non-titled bikes like MX bikes will usually save you the tax."
A word of warning - if you live in a state that has a "Use Tax" or something similar, your state Dept of Revenue can make your life miserable (and seriously dent your wallet) if you don't declare the out-of-state purchase and pay your state the appropriate tax. They can come after you for the original tax along with fines and interest. This was also the case with internet and mail order purchases before the courts made the ruling regarding online sellers and collecting taxes based on the delivery address of the purchaser - the buyer was supposed to delcare them on their state income tax return and remit the taxes owed.
Ask me how I know.
Some lessons are learned the hard way and they don't care if you were unaware of the laws - they treat everyone as if they were a criminal and did it intentionally.
Some out-of-state dealers will use this as a sales pitch but don't tell yo uthat you still have a tax liability to your home state. It can end up costing a lot more in the end, so be careful when deciding to go this route and educate yourself.
Hope it helps somebody.
The Kawi I bought last summer (a SxS..) had a rebate that came off the MSRP. But all that matters is the total OTD number, I don’t care how the dealer gets to a number, I just want to know what the total cost is. Kawasaki is pretty good to deal with, they are aggressive with pricing, I added a $1600.00 3 year warranty to the SxS and got OTD for just over MSRP.
I sent the same email to 5 dealers asking for an OTD price, 2 didn’t reply, out of the 3 that did, one of them was a good deal lower than the others, they got my business.
Thanks for all of the good info. I pullled the trigger on a new 2023 KX450SR earlier today.
Nice looking bike, have fun!
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