A "dealer prep" fee, also known as a setup fee or destination charge, is a fee that dealerships may charge to cover the cost of preparing the motorcycle for sale. It typically includes tasks such as uncrating the motorcycle, assembling any parts that were shipped separately, inspecting and adjusting various components, performing a pre-delivery inspection, and sometimes adding fluids or performing minor cosmetic touch-ups.
In the case of the quote you received for the 2021 Kawasaki Concours 14 ABS, the dealer prep fee of $1,298 is an additional charge added by the dealership for the preparation of the motorcycle before it is handed over to you. It is important to note that dealer prep fees can vary between dealerships, so it's always a good idea to inquire about the breakdown of the fee and understand what services are included.
When evaluating the total cost of purchasing a motorcycle, it's essential to consider all the associated fees, including the unit price, freight charges, dealer prep fees, taxes, registration, and any other applicable fees. It's also worth checking if there is any room for negotiation or if the dealer is willing to waive or reduce certain fees.