From New Berlin and Janesville, Wisconsin dealerships that haven't been paying for their HD goods:

https://www.biztimes.com/2019/indust...ufFuODqjt7Qxd8

 

Whoops.

 

Kind of reminds me of a dealer near here ... years ago he was in financial trouble and finance people were in the building taking inventory .... several scooters were on a rack ( loaded by a hi-lo ) and little did they know that the boxes were empty :<(

 

Oh.... I do believe that is frowned upon by the bean counters... hahaha

 

I hate to say this but I think this is happening in more than this one dealership. A friend worked for two dealership in the area, He work as a finance manager. He said he quit because of this very situation. Guys were trading in bikes and when he went to do the paperwork work for the loan, the old bike still had outstanding payment owned to the finance company because they were never paid by the dealership when the bike was originally sold. How would you like to trade in a bike you own on a new one only to find out that outstanding debt is still owed on it and you had not idea ? How is the dealership going to pay back 50k a week with over 1m owed back to H D. I think forclouser is in the future. Sad state of affairs.

 

Never a good thing to here.

What remains to be seen is whether it is a result of business/market atmosphere or simply poor business practices. The motorcycle mall trend of the 90's and 00's definitely is no help to such situations. Overhead is the bane of every business venture. You can't avoid it, but when things are good, or future trends are impossible to anticipate (or ignored) it's way too easy to get in over your head. Maybe that's not the case. Gotta wonder why it was sold in 16. Maybe it's just not a good location? Maybe the previous owner ran off clients and the new owner failed in his goal of re-attracting them? Just don't know. Hate to see it happen whatever the reason and where ever the location.

 

Boardtracker is going to be toast.

HD will put them on COD for all parts/merchandise and not give them the Certificates of Origins for the bikes until the dealership pays for the bike with certified funds or the payments ( loan principal) paid directly to the MoCo.

The chances of them getting credit from other sources is near nil.

 

I can’t see how a company can let they get that far in debt in the first place. I know of a filling station that let a trucking company pile up $50,000 in fuel charges. They went bankrupt. Too bad, it’s their own freaking fault.

 

The reddest flag to me was their alleged wholesaling off 32 bikes that the MoCo was floorplanning. If that allegation is true, someone is in real trouble.

 

with used bikes it is easy because they have the titles and there are no liens on them. HD paid off the loans within the floor plan financing.

I'm pretty sure they were not blowing new bikes on CO's thru an auction.