Regardig closed dealers How is the inventory handled?
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Seasoned HDF Member
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From: NE Ohio
Regardig closed dealers How is the inventory handled?
I presume dealerships have credit arrangements with MOCO to keep their sales floor in bikes.
What about their parts, clothing and doo-dad inventory?
question on the new bike inventory.
does that go back to MOCO and they redistribute as dealer orders come in?
or can other dealers offer to buy it at an agreed on price between dealers?
Any/all insight and comments welcome
thanks
..L.T.A.
What about their parts, clothing and doo-dad inventory?
question on the new bike inventory.
does that go back to MOCO and they redistribute as dealer orders come in?
or can other dealers offer to buy it at an agreed on price between dealers?
Any/all insight and comments welcome
thanks
..L.T.A.
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From: SF Bay area
Typically when any business closes it's for financial reasons. The inventory belongs to the creditors and a court decides how to deal with it.
There are times tho when someone owns multiple dealers, the goods are moved to other locations.
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There are times tho when someone owns multiple dealers, the goods are moved to other locations.
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In this thread, the OP mentioned that a dealer was closing and liquidating its inventory. monkeyboy22, who kindly locates parts for us, responded with this...
If corporate buys any of their inventory it will be at a loss. The dealer will have to pay the freight charges to ship the items. And corporate will be very picky about what they are allowing to be returned. No chemicals (lubricants, paint, loctite, brake cleaner, etc.), batteries, obsolete parts, and the packaging must be pristine.
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Dealers are franchisees. Unless they have a financing agreement with Harley, i.e., floor plan or line of credit for P&A, the MOCO has no financial interest.
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Under the previous owner at the dealer I work at, all of the bikes were paid for before they got unloaded off the truck. That was done by the owner's choice and not mandated by HD. I'm sure there is a line of credit offered to most dealers for new vehicle purchases.
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Road Captain
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I can only speak from the parts and motor clothes end of it. Once the items are ordered by the dealer, it's usually a 30 day credit from corporate and needs to be paid. After that it belongs to the dealer and is their responsibility to dispose of those parts. They no longer are owned by HD.
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Road Warrior
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Any actual facts as to why they are closing? If you care to look, almost all the top brands are reducing the number of dealers and have been for a few years.
THIS is a couple of years old, but you can see not a new trend. Only Polaris and BRP are on the rise and around here are not stand alone dealers. If not for the ATV/UTV offerings as well as dirt bikes and other offroad, it would be worse for many of those. I know most places there used to be individual dealers for each brand, now I see one place with several brands.
Just the nature of the beast, considering these are for the most part just recreational/luxury items for many people, things aren't that dire.
THIS is a couple of years old, but you can see not a new trend. Only Polaris and BRP are on the rise and around here are not stand alone dealers. If not for the ATV/UTV offerings as well as dirt bikes and other offroad, it would be worse for many of those. I know most places there used to be individual dealers for each brand, now I see one place with several brands.
Just the nature of the beast, considering these are for the most part just recreational/luxury items for many people, things aren't that dire.