[CRAIG]

Subject: 2016 Africa Twin DCT
Hello Craig

Not sure if Kirk has been in touch with you but we are pleased to announce that Honda Canada has released the MSRP of the Africa twins much lower than expected. You will be getting our first Silver DCT in late May early June as per Honda Canada. There will only be the Silver DCT version at the Canadian Motorcycle shows.

$14999 + $895 freight Build & Pdi + $195 doc + taxes = $18030.88 On the road!

Cant wait!!!!!

 

[JustPlainBill0]

At today's exchange rate, you are getting a screaming deal! MSRP (base price) in USD for a DCT AT is $13,700 -- that converts to 19342 CDN. I'm moving to Canada (or buying from Yamaha)!

 

[Yromulus]

You do have to wonder why companies do this "unequal" pricing in this day and age where everyone is connected and knows full well what is going on.

Notwithstanding the price of the actual bike, in the UK we pay £800 for the DCT transmission. In the US you seem to be paying around $6-700. Even allowing for disparate taxes and a cr*p exchange rate it would appear that the UK is getting a raw deal.

All they do with all these shenanigans is create resentment and ill-will. Well, it p*sses me off that's for sure!

 

[Nessuno]

Can't wait to see her this weekend!!! Anyone heading out to the toronto show?

 

[JustPlainBill0]

You do have to wonder why companies do this "unequal" pricing in this day and age where everyone is connected and knows full well what is going on.

Notwithstanding the price of the actual bike, in the UK we pay £800 for the DCT transmission. In the US you seem to be paying around $6-700. Even allowing for disparate taxes and a cr*p exchange rate it would appear that the UK is getting a raw deal.

All they do with all these shenanigans is create resentment and ill-will. Well, it p*sses me off that's for sure!

Such a great question Yromulus that I Googled it. Lots of factors involved, import duties, tax and value added tax being the most significant but corporate opportunism can play a part too. Here's the best article I found:http://tinyurl.com/gmd4g2s

A big consideration not mentioned in the article: motorcycle MSRP prices are set and fixed for a year in advance. They don't go up and down on a daily or weekly basis as raw materials, currency exchange rates, taxes, fuel and transit costs change. Manufacturers have to build in margins so they don't end up losing money on their products. And if they over-estimate demand for a particular model, they do lose money when they have to discount it heavily to sell, they have to account for that as well.

Well, that little learning exercise blunted some of my annoyance at Honda. Hope it works for you too. :nerd:

 

[Nessuno]

Such a great question Yromulus that I Googled it. Lots of factors involved, import duties, tax and value added tax being the most significant but corporate opportunism can play a part too. Here's the best article I found:http://tinyurl.com/gmd4g2s

A big consideration not mentioned in the article: motorcycle MSRP prices are set and fixed for a year in advance. They don't go up and down on a daily or weekly basis as raw materials, currency exchange rates, taxes, fuel and transit costs change. Manufacturers have to build in margins so they don't end up losing money on their products. And if they over-estimate demand for a particular model, they do lose money when they have to discount it heavily to sell, they have to account for that as well.

Well, that little learning exercise blunted some of my annoyance at Honda. Hope it works for you too. :nerd:

I would also factor in country of origin.

Fairly certain the motor is made in Timmonsville with the Pioneer 1000. That would allow it to be priced cheaper in the US/Canada as you're not paying duty on the motor like you would in Europe.

 

[Yromulus]

Thanks JustPlainBillO and Nessuno.

Good points. I've calmed down now!

 

[anotherbiker]

My Moto Guzzi California was significantly cheaper in the US than it would have been had I bought it in the UK (which is a lot closer to Italy!! lol) even taking into account tax variations. I'm talking thousands of $s cheaper.

Why? Because they marketed it in the US as being the same price as a Harley Road King, but higher spec for the price, and Harleys are a lot cheaper in the US than they are in the rest of the world.

I expect Honda thought the DCT box would be more attractive in the UK than in the US (more motorcycle commuters in the UK), hence the price variation.

 

[JustPlainBill0]

.

I expect Honda thought the DCT box would be more attractive in the UK than in the US (more motorcycle commuters in the UK), hence the price variation.

Probably not. This http://www.dutycalculator.com/dc/244288/cars-motorcycles/motorcycles/engine-capacity-501-800-cc/import-duty-rate-for-importing-motorcycle-from-france-to-united-kingdom-is-6/ indicates there's 6% import duty plus a 20% VAT (value added tax) on motorcycles imported into the UK (displacement 501-800cc's). The U.S. does not impose duty or VAT on motorcycles so those taxes alone would account for a $3380 USD ($13K x 26%) increase in the price of a base Africa Twin imported to Britain over one imported to the U.S. Or mostly, why the DCT option costs $700 in the U.S. and a 26% VAT would raise the cost to $882 (608 British pounds). Couldn't find the VAT for motorcycles over 800cc's, but assume it's greater than 20%.

 

[anotherbiker]

Fair point... always worth bearing in mind that you're not comparing like for like with UK prices and U.S. prices. Sticker price in the UK includes VAT (sales tax), whereas it doesn't in the U.S.

 

[JustPlainBill0]

Yeah, sales tax here is added at the state level and isn't included in MSRP. But I did learn that there's a U.S. import duty of 2.4% levied on motorcycles over 970cc's that is folded into the MSRP. Can you say "thank you Harley Davidson"?

 

[Nessuno]

Heard Canadian bikes will be in by June or so...