Harley Financing (Eagle Mark) Rates
Grand HDF Member
Joined: Aug 2013
Posts: 3,673
Likes: 5,069
From: Georgia
The 6% for 5 years has to be competitive at today's interest rates. The risk free rate is about 4.6-4.8% right now. The 12% isn't, but I'm sure the default rates on 6 and 7+ year loans are ridiculous.
Harley-Davidson's stock is also struggling. How can they be struggling at the kind of profit margins there are on these bikes? What do we really think it costs to produce a motorcycle? Ford sold one of my friends a whole pickup truck for $25k just a few years ago. How can H-D not make a killing selling you a motorcycle for $30k? I wouldn't rather have a new Kia than a new Softail, but there has to be something wrong when those are so close in price.
Harley-Davidson's stock is also struggling. How can they be struggling at the kind of profit margins there are on these bikes? What do we really think it costs to produce a motorcycle? Ford sold one of my friends a whole pickup truck for $25k just a few years ago. How can H-D not make a killing selling you a motorcycle for $30k? I wouldn't rather have a new Kia than a new Softail, but there has to be something wrong when those are so close in price.
They know there are problems when HDFS has to write off 36m in Q3 and I am real curious about Q4 which we get on Feb 3.
Last edited by ChrisHo; Jan 24, 2023 at 02:03 PM.
Stellar HDF Member
Joined: Oct 2013
Posts: 2,575
Likes: 3,171
From: Lake Geneva WI
yep. when i bought mine, i had 7.99 or 8.99% through Eagle bank, nov of 21... went to a credit union and refinanced for 2.54%. payment changed by 5-10 bucks, but it took 12 months off the loan. could just pay it off but with redo'ing my house, id rather have the funds to cover any surprises.
buddy in sales says 4 of 5 bikes he sells are over 20% interest. and that was in 21 when i bought mine before all this bidenflation hit.
buddy in sales says 4 of 5 bikes he sells are over 20% interest. and that was in 21 when i bought mine before all this bidenflation hit.
Banned
Joined: Sep 2009
Posts: 7,960
Likes: 6,716
From: WI
WOW...! I can't say I'm shocked though...
Seasoned HDF Member
Joined: Sep 2020
Posts: 8,158
Likes: 9,568
From: central NC
Eaglemark had some stupid high rates last fall, then one day the moco website updated to 5%. I bought three days later. Financed all $32k of the whole deal. Paid it off in four months. Paid $211 in interest all in.
Stellar HDF Member
Joined: Mar 2008
Posts: 2,328
Likes: 2,205
profit margin, figure it this way, Q3 reported revenue from motorcycles and motorcycle related products was 1,439,894,000 and the reported cost for the same was 946,656,000 - doesn't take a math genius to see the margins for that portion of the industry. Remember in Q3 they showed that their margins negated the need for the surcharge but they were keeping it and for good reason, people are paying it.
They know there are problems when HDFS has to write off 36m in Q3 and I am real curious about Q4 which we get on Feb 3.
They know there are problems when HDFS has to write off 36m in Q3 and I am real curious about Q4 which we get on Feb 3.
Bad debt is part of loaning money. I'd be more concerned about if the percentage of the outstanding loans that were being defaulted on went up. I'd be more concerned if their defaults were zero; that'd indicate they're not loaning enough money.
Seasoned HDF Member
Joined: Aug 2006
Posts: 24,540
Likes: 30,870
From: Pennsylvania
Grand HDF Member
Joined: Aug 2013
Posts: 3,673
Likes: 5,069
From: Georgia
yep. when i bought mine, i had 7.99 or 8.99% through Eagle bank, nov of 21... went to a credit union and refinanced for 2.54%. payment changed by 5-10 bucks, but it took 12 months off the loan. could just pay it off but with redo'ing my house, id rather have the funds to cover any surprises.
buddy in sales says 4 of 5 bikes he sells are over 20% interest. and that was in 21 when i bought mine before all this bidenflation hit.
buddy in sales says 4 of 5 bikes he sells are over 20% interest. and that was in 21 when i bought mine before all this bidenflation hit.
I do recall my first Harley purchase, 5th of July, the woman writing the contract to me I was the first single digit rate of the month... which to me didn't mean much because they were closed July 4 so that means four days at most... but in retrospect she probably meant she rarely sees them at all
Seasoned HDF Member
Joined: May 2018
Posts: 5,814
Likes: 7,147
From: Las Vegas
I think the dealer can get lower rates through HD Financial Services. I bought my wifes Heritage January of 22 and I think their rate was 7 or 8%. I argued that was nuts and refused to pay it. They made a call and it was lowered to 3.49%. Good enough for me, I bought the bike.
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Joe Kucinski
Stellar HDF Member
Joined: Sep 2016
Posts: 2,908
Likes: 3,512
From: At home.
Those rates are nuts, but I remember when people were paying 11% on home loans too. I'd never buy a bike, or car, at 11% interest, or even 5% for that matter. Back in 2017 I went through Harley to finance my 2016 Limited at .99%.....man how things have changed.
