Confession Of A Harley-Davidson Dealer

Observing that all motorcycles in the Harley-Davidson showroom carry the same tag with “Sold under MSRP”.  What is going on? Dealer answers “cannot move them and the new 2008 models are on their way”. Why? “During the last years a lot of Harleys bought with ELOC (Equity Line Of Credit) on appreciated/inflated real estate, or with cheap loans up to 5 years. These days are over. Real estate is down. Loan rates are up. Owners keep their bikes longer and many owners who can no more make payments have their bikes repossessed".  What are you going to do? “If I can’t move them I will cut my 2008 models order”.  Harley-Davidson stock (HOG) 52-Week high was $75.87. It closed yesterday August 14, 07 at $54.81, a pull back of 27.76%.

3 Responses to “Confession Of A Harley-Davidson Dealer”

  1. 1 BuzzB Aug 16th, 2007 at 12:56 pm

    Most businesses and industries are cyclical, having many ups and downs over the years. Harley has been on a 20-plus-year high, growing annually. A slowdown is not only normal, it was to be expected whenever uncontrllable conditions prompted it. The economy and other changing conditions prompted this, and now dealers will need to take measures to adjust, and the factory will need to find ways to continue to grow the market.

  2. 2 Nicker Aug 21st, 2007 at 11:21 pm

    i can buy the “20 year cycle” and “normal slowdown” prompted by the “changing consitions and the econom.”

    So, how does the OCC expansion (see the previous article)factor into this…???


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Cyril Huze