HD In The Business Pages - Hope It Doesn't Spread.

[PapaUtah]

I hope it isn't a sign of things to come for the industry but HD has been trailing the industry in sales growth this year and now the holy grail of HD buyers, "I always sell them for what I paid for it or more!" appears to be a fading memory also...

I can't post the latest research directly(copyright restrictions) but can paraphrase them.

Dealers surveyed report used H-D motorcycle prices declined an average of 18% during the last 12-month period. Substantial inventories of '05s remain. Dealers plan on leaving '06s crated until '05s are gone. Promotions continue. Sportsters discounted up to $1,500, Twin-CAMs $3,000 and V-RODS $3,000.

Used HDs discounted to MSRP

Current year bikes, 5.9%, 1-2 years 11.6%, 2-3 years 16.0%, 3-4 years 19.4%, 4-5 years 21.9%

Still a very admirable percentage retention of the purchase price. But it looks like the gravy train days maybe coming to a close for HD.

Best comment was on HD dealers. Researchers noted the HD dealer network needs to move from being order takers opening crates and selling overpriced bikes to rich urban bikers to relationship marketers. That will be an interesting transformation to watch.

:assasin:

 

[radman]

Sure is a far cry from the days when guys were able to sell their place in line for a quick $500.

 

[dive1]

Probably not a good sign for the HD crowd as they usually put 4 - 6K worth of options before they even get them. The dealers will really feel it in the extras.

Welcome to the new reality.

Dave B)

Disco Bay

 

[FJRocket]

Ah, the bubble has burst.

It was fun while it lasted. I started seeing the glut in 2003. Now the anniversary bikes are a dime a dozen on the showroom floors everywhere. And I slightly looked sideways at a VROD back then and a salesman was ready to practically GIVE one to me. They were selling them below retail even back then. It's a nice little bike, but never found a following. Too bad. And then there's Buell. Too bad.

Now I'm going to start pleading with local LEOs to carry dB equipment and site those bastards for noise pollution.

Had a beer Saturday that was riding an '04 1200 Sportster. "Top heavy POS. I already dropped it twice. Usually beer induced. Rides like a tub o shit. Doesn't run worth a crap. Had all kinds of maintenance problems..... I'm gonna buy a new one." Ok, I get it. These guys are in to self abuse, right?

Harley is as much to blame for the pricing and the glut. Encouraging dealers to build monstrous showrooms and facilities. Then they get huge inventories and have to turn them. No wonder the market is sliding.

 

[devanator]

Up here in Alexandria they are just building a new HD store. The HD store in Raymond is putting one up. I don't know if its true but they are said to have about 3 million in it once its up and running.

RB Specialties, the Yamaha dealer where I bought my bike said they looked at opening up a store but the profits just weren't their he felt. But they are selling Yamaha's right and left.

Devanator

 

[moby one]

Yeah, all of my neighbors are harley owners. you should have seen the look on their faces when the "rice burner" came flying down the street. "why the hell did you buy a Yamaha?". Cuz, after researching for a few months and considering all makes and models, the FJR is exactally what i wanted.

Regarding the "investment" in purchasing a harley. They have been increasing their production numbers over the last few years by the hundreds of thousands. I knew that they wouldn't hold their value for much longer. I get those auto/rv mags for fun and i noticed that you can buy a new harley for about $3k less than what people are asking for used.

 

[BigAl]

As a former HD owner, this seems spot on. Part of it I attribute to the fact that they have changed some significant things on the newer bikes, that make the older ones drop in value- rubber mounted design of the Sportster, fuel injection on the big bikes, people who would otherwise buy the traditional v-twins buying the v-rod and Buell bikes gaining press and popularity. Add in the glut of metric v-twin cruisers and tourers being offered at lower prices, and over production of current models based on over zealous sales forcasts and it was only a matter of time before resale prices started feeling downward pressure. Plus an aging popluation is going to be less tolerent of the beating you take from the vibes of a big, air-cooled v-twin.

Thankfully I had a Sportster, and I bought it without any markup, so I did not have a whole lot tied up in it. I basically ate the $1500 I tied up in go faster parts (notice I said faster, not fast), which lost me $1500 out of an all in cost of $8K over 5 years- about 19%.

It was a decent bike for around town blasting, and when I wanted something a bit bigger and better for longer rides and for carrying work back an forth from the office, I got something more suited for that.

And while you are playing noise police, please do not forget the squids that roar along with open (or nearly so) pipes. I find that high pitched scream much more annoying than the rumble from a Harley.

 

[boogahboogah]

When I was getting back into the bike market after an absence of 20 years, back in 2000, I went to the Harley dealer to find out about the Harley bikes & maybe test ride some bikes.

After I stood around for 20 minutes with no attention from the order takers (they were definitely not salesmen), I finally grabbed one of them, told them I was getting back into the bike market after a 20 year absence & wanted some assistance on bike models & also that I would want to ride a bike. This was at 'Mike's Famous' in New Castle Delaware, a very large inventory dealer.

Imagine my surprise when I was told that I had to put down a deposit, get in line, and buy a bike in order to ride one! They would not budge on the deposit/purchase requirement, and I would not put down money without riding the bike.

I ended up with a Royal Star, loved it & never had a mechanical problem in the 5 years I had it.

Because of the treatment I received at that dealer I don't own a Harley & never will. I have graduated to the Feejer, so I should thank them now, dont'cha think?