Why are dealers overcharging for shipping and how is BRP involved?

[Tommy Shenanigans]

If you look at U-Ship rates, the cost to ship a PWC is about $.58/mile and a boat/Switch around $.96/mile. I imagine BRP gets a volume discount yet BRP and it's dealers are charging us 5 to 10 times the amount it would cost us to ship it. Seems it's corporate America/Canada causing the inflation along with dealer lies only George Santos would admire...not the government or gas prices. Not one of these dealers will volunteer the bill of lading and costs. Good luck with the Consumer Financial Protection Bureau (CFPB)... Trump gutted it to 4% effectiveness from years prior... another reason they're getting away with it imo. Ask for proof of the shipping costs and please comment with responses or proof. Buyers unite!

 

[mikidymac]

Because shipping rates change daily and all dealers are a different distance from the factory so they average it out.
So at the beginning of the model year the manufacturer has to guess what the average rates will be for the entire year to cover the costs.
This is why the rate is the same for all dealers, it isn't the actual shipping rate you can look up to your dealer.
Not a scam as all vehicles have to cover shipping to the dealer.
The freight fee is set my the manufacturer not the dealer.
What is a scam is if the dealer is charging you a fee on top of the manufacturer's freight.

 

[Tommy Shenanigans]

Thanks for the reply which explains some of it. Yet, the cost to ship across country isnt over $2000 on U-ship. How do you explain $3000-$4000 average? By "guessing"?! I'd like to guess the charges guessed are excessive. And btw the dealer charges are def not the same. Get a quote in West Palm, FL and another in NC and you'll see. You can also find additional dealer charges for items never done...like the water test required by BRP which is seldom accomplished but checked by cranking the motor a few seconds dry.

 

[mikidymac]

Well, you learn something new every day.
You sparked my interest so I looked at the seadoo site and they no longer list the flat rate freight like motorcycles and cars, it just says, "Commodity surcharge starts at $465". WTF?
So I went and checked the Yamaha WaveRunner site and no freight listed, just price and "does not include freight".

So back to your question.... It appears they can now charge whatever they want.

As far as setup, "prep" or whatever they call it, technically it is illegal for them to charge for that as, 1. The manufacturer already pays them to prep the craft, 2. The manufacturer requires them to do it to verify the craft and validate the warranty. Now, most dealers either don't know it is illegal or just don't care. They are not allowed to call it prep or assembly. The only thing that is legal is if they just call it "dealer markup" or "dealer fee" or something similar. This is why car dealers were calling it a "market adjustment" or "dealer added fee".

My best advise is if you are looking to buy is call them out on their B.S. fees and be prepared to walk. You might have to drive some but you will find an honest dealer that will give you an honest price and honest fees.
I bought a new motorcycle last year and all the dealers within 2 hours of me were adding a markup, prep, freight and doc fees and I called them out on their BS and told them exactly why I would not be buying from them because of an average of $1,500 markup over MSRP. I found a dealer 4 hours away and paid MSRP plus tax and license, no hassle, no drama.

 

[Tommy Shenanigans]

That sounds about right. I just got off the phone with a BRP rep about this and she said that the averaging freight cost is not exactly but somewhat true. The closer dealers are not charged as much. Dealer freight pricing at the time of shipment should be comparable to U-Ship pricing at that time. Shipping may be higher if the dealer accepted the shipment in more than one piece. The $1400 manufacturer surcharge some dealers are including are not valid anymore and not charged dealers anymore. Unless the dealer order occurred when rates were at their highest, this charge should not be included. She said freight pricing has come down a lot and the surcharge should no longer appear on most invoices. This was a figure to compensate for shipping prices already built in to MSRP which has already significantly increased over the past year while shipping prices have dropped. Still, dealers are tacking on freight costs. She also said that BRP has no control over dealer pricing but she was more than aware that some dealers are arbitrarily jacking up prices especially in areas of high demand and inflating actual shipping charges and blaming BRP which they do not appreciate. They are also aware of dealers charging additional fees to perform the BRP warranty checklist, even thought they fail to adequately or even actually perform the check, like the water test which may incur significant time/labor costs which many dealers flat out lie about, especially if they are far from the water. Once again, this would be a viable additional cost the dealer can add instead of not doing it at all. She confirmed your thoughts: that you may have to search around for an honest dealer, all pricing is negotiable, including arbitrary doc fees, etc. dealers tack on pretending it's required. BRP requires or insists on nothing in dealer pricing. MSRP is just that, suggested retail. It's not what the dealer is paying. The dealer will make a nice profit by only charging MSRP. Looks like most of these dealers are only using the perception of inflation and freight costs to get away with this price gouging. If more buyers walked the prices would drop.

 

[Kavenow]

Hey! Shipping costs can be a real head-scratcher, right? If you're exploring alternatives, a1autotransport.com could be worth checking out. They're known for fair pricing and transparency. Sometimes going with a specialized shipper can break the corporate cost trend. Worth a shot, and you might find a more wallet-friendly option.

 

[mikidymac]

Hey! Shipping costs can be a real head-scratcher, right? If you're exploring alternatives, A1AutoTransport could be worth checking out. They're known for fair pricing and transparency. Sometimes going with a specialized shipper can break the corporate cost trend. Worth a shot, and you might find a more wallet-friendly option.

This is from the manufacturer to the dealer.
Alternate shipping can not be arranged and is not dictated by the buyer.
And I hope this is not an ad plug for A1.

 

[trumansdionis]

I understand your frustration with the high shipping costs for PWCs and boats. It does seem disproportionate compared to the rates you've found on U-Ship. It's disappointing when corporate entities like BRP and its dealers don't provide transparency about their shipping costs, especially if they're charging significantly more than the actual shipping rates.
Using services like https://www.shipvehicles.com/ to compare prices can be helpful in advocating for fairer rates. It's important for consumers to unite and demand transparency from dealerships. Your point about the Consumer Financial Protection Bureau is valid, and it's unfortunate that its effectiveness has been reduced.