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-   -   Decline in Motorcyle sales (https://www.hdforums.com/forum/general-harley-davidson-chat/410410-decline-in-motorcyle-sales.html)

Moki Doug 09-18-2009 07:32 PM


Originally Posted by jason628 (Post 5600418)
Greetings,

It's all based on supply and demand. The last couple of years Harley had more supply than demand, so this year they've scaled back the number of bikes they are producing. From what is going on around here, there's very few 2010's to be found and the few that do make it to the dealership, they get sold rather quickly. For what they are sold for, I don't know. I paid MSRP but didn't pay setup/freight or any other charges for mine along with a discount on parts and labor.

Nice looking bike I would love to add one of those to my 08 FXSTC just could not give up the softtail and darn cant really afford a second bike. And thank you Harley for not killing the used Harley market. Yes you can find deals but most recognize the value of there machines and would rather set on them than give them away

will2002 09-18-2009 07:36 PM

I would think that a big problem for the MOCO is the GLUT of 1&2&3 year old used bikes out there that are on the market. Got to work through that before they can sell big numbers of new bikes.

Bigwillie 09-18-2009 07:44 PM

Why keep pump`n out bikes then sell them for less when you gotta pay the guys the same to build them ? IT`S smarter to cut production ,that keeps the price high .

TheJimer 09-18-2009 09:21 PM

[quote=frog13;5600219]:icon_lolsign: The article was ok, but the responses were funny, funny, funny. Kinda reminds me of here sometime, the internet forum argument you can never win. When you refer to morons are you referring to HD or motorcycle sales in general? The reasonI ask is because HD is still getting MSRP for the most part, although they are dealing, but we're still giving it to them, so who is the real moron?[/quote]

I would define “Moron” as the person that walks out of a Harley dealer paying MSRP or worse yet MSRP+!

This a “Buyers Market and Cash is King”! So why do dealers ask MSRP and more? Because they know that there are some lazy morons that have not done their homework and are dumb enough to pay MSRP!

Based upon the sales stats cited in that article; if I were in the market for a new bike, I would be on the phone getting quotes from every HD dealer in Pennsylvania (about 3,000 miles away). With PA bike sales down over 25%, CA is another depressed market but their silly sales tax laws often eats up the savings) I suspect that there are some hungry dealers that are getting tired of paying floor planning charges on their inventory and are willing to wheel & deal, especially with someone out of their area. There are some HD dealers that do internet discount parts but I’m surprised that someone isn’t doing internet discount on new Harleys!

There are several on-line Corvette dealers that have been doing this for several years. I bought several New Corvettes form an on-line dealer in NJ; (3,500 miles away) I never stepped foot in his dealership and I always managed save a minimum of 5K. There may not be that kind of room for a HD dealer to deal…but my point is…there are deals out their if you go looking for them!

The notion that you have to buy from your local dealer is “OLD SCHOOL” and you’re just asking to get screwed!

Why is it that everyone wants to be first with the newest and latest gadgets and trends but when it comes to buying big ticket items like cars, boats & motorcycles, they feel like they have to schlep into the local dealer! Give the local guy a shot but not before you have done your homework and got prices from out of the area dealers!

Oh, by the way, don’t say how about service, because any HD dealer will be glad to service your bike!

lh4x4 09-18-2009 10:27 PM

HD sales is down about 32%. The other makes are down about 50% and that's with giving huge discounts on nos models. Example the mighty VTX1800 you know the bike that in 2002 was going to do in HD. List $13,500 going for $8 - 9k and they still can't unload the 06-07 and 08's. Honda shut down the Ohio plant that made them last spring and headed back to Japan with there tail between their legs.

HD will make a profit in 09 and 10. They have went from their 06 high of over 444,000 bikes to a projected 212,000 bikes for the 2010 run.

Yes, they sell for MSRP. Why not? It keeps HD as the premium brand and keeps the value of your machine up. What's not to like about that.

I get a new one every year and the trade in values given to me have went over book. That's where dealers can hide a little discount. Give you more than book on your trade.

TheJimer 09-19-2009 04:41 PM


Originally Posted by lh4x4 (Post 5603471)
HD sales is down about 32%. The other makes are down about 50% and that's with giving huge discounts on nos models. Example the mighty VTX1800 you know the bike that in 2002 was going to do in HD. List $13,500 going for $8 - 9k and they still can't unload the 06-07 and 08's. Honda shut down the Ohio plant that made them last spring and headed back to Japan with there tail between their legs.

HD will make a profit in 09 and 10. They have went from their 06 high of over 444,000 bikes to a projected 212,000 bikes for the 2010 run.

Yes, they sell for MSRP. Why not? It keeps HD as the premium brand and keeps the value of your machine up. What's not to like about that.

I get a new one every year and the trade in values given to me have went over book. That's where dealers can hide a little discount. Give you more than book on your trade.

Ih4x4
Your thinking is seriously flawed; your hypothesis assumes that all HD dealers are asking and getting MSRP thus maintaining a high value of your trade! Dealers adjust (at least the smart business people do) their prices based upon current market conditions. If a dealer; be it motorcycle, car boat, etc., is located in a economically depressed area or the employment rate for that area is statistically higher than the rest of the nation, the dealer has to adjust accordingly just to survive.

Some dealers are spoiled by the “supply and demand” days when exuberant buyers would take out a second or even a third mortgage on over valued real estate in order to purchase a toy such as a motorcycle. Those days are over and dealers waiting for them to return need to conduct a reality check and adjust their business model!

As to your argument that there are “hidden discounts” in your trade-in; the only way that makes sense to the buyer is if you live in an area that only charges you sales tax based upon the difference between the trade and the purchase price of the new bike; most states charge sales tax on the full purchase price; therefore it behooves a prudent buyer to receive a discount on the MSRP, rather than the so call hidden trade. Presently the market is flooded with used bikes; consequently, the trade-in and resale value of used bikes is down. Normally dealer love trades because they make the deal a little more convoluted and more difficult to compare…but these are not normal times we are experiencing! :icon_oldskewl:


lh4x4 09-19-2009 05:17 PM

TheJimer - I offered no hypothesis at all only a couple of facts. I'll restate. In the entire HD dealer network there are only rare cases of actual below MSRP sales and then they are generally limited to the end of a model year.

I do live in a state that only applies sales tax to the difference in the trade in and price of the new. Therefore the more I get in trade the less sales tax I pay.

The value of a used vehicle is easy to determine by many sources. Find out the book value for retail, private sell and wholesale. Then check local papers to see what selling
prices are. That will help adjust the book prices to the local economy.

Since 1962 I have purchased new over 130 cars, trucks, and motorcycles. I can muscle the crap out of a car dealer with cash offers. HD to its credit has a dealer base that holds firm.

I find that better for the HD rider than the alternative.

Ride often and safe.

TheJimer 09-19-2009 07:42 PM


Originally Posted by lh4x4 (Post 5605986)
TheJimer - I offered no hypothesis at all only a couple of facts. I'll restate. In the entire HD dealer network there are only rare cases of actual below MSRP sales and then they are generally limited to the end of a model year.

I do live in a state that only applies sales tax to the difference in the trade in and price of the new. Therefore the more I get in trade the less sales tax I pay.

The value of a used vehicle is easy to determine by many sources. Find out the book value for retail, private sell and wholesale. Then check local papers to see what selling
prices are. That will help adjust the book prices to the local economy.

Since 1962 I have purchased new over 130 cars, trucks, and motorcycles. I can muscle the crap out of a car dealer with cash offers. HD to its credit has a dealer base that holds firm.

I find that better for the HD rider than the alternative.

Ride often and safe.

I guess if you walk into a Harley dealership with the mind set that the best you’re going to do is MSRP…guess what, the best you will do is MSRP!

Your hypothesis that “it rare that a HD dealer discounts and then generally only on limited year end models” is totally wrong! I have never paid MSRP on any of my new Harley’s and never will! The last new Harley I purchased was in my 2009 Tri-Glide; this was brand new hot model that some dealers around the country were selling for $2k over MSRP before they even hit the showroom floor. But There is AWAYS, let me repeat ALWAYS a depressed market somewhere.

I called around and found a dealer had one on the floor and another in route. The bike I bought was actually sold twice before but in both cases they collected a deposit and the financing fell through. It was just before X-mass and the dealer was anxious to deal; I told him that I am a cash buyer and offered 2k under MSRP and we settled on $1,500 under MSRP, plus I got them to through in about $500 of accessories. I actually had a better deal at another dealership but I was not willing to travel 1,500 miles though snow country to save a few hundred dollars more.

Deals are there for the picking but you have to do your homework and get rid of that old school, got to buy at the local dealer mentality! If you keep going back to the same dealer year after year and assuming that EVERONE insists upon MSRP, you are asking to get laid away!

lh4x4 09-19-2009 09:36 PM

You still missed the main point that it is a better way that HD does business than other manufacturers. Ford, Chrysler and GM lost many billions of dollars by overproducing and then discounting and devaluing their product.

That is the bottom line of the issue. Yes, as I said on a limited occasions some pay below MSRP. I have heard of $2K of end of the year Ultra's.

Your $1,500 off on a limited market Triglide which is a smaller % reduction because of the high price to begin with.

You seem to think that my purchase was a lay down. Here are the facts. My 97 had a list of 13,750 and a wholesale price of 11,700. I put it on craigs list and other areas for $13,750 or best offer and free delivery within 500 miles. Not a single inquiry. I always try to sell first instead of trade.

First dealer was $12k for the trade and would not improve. Second dealer was $12,500 for the trade and free 1k service. I got him to $13k, change the laced wheels for the mags no charge which would have been extra, the free 1K service, no set up fee and some chrome stuff of about $200.

The extra $500 in trade in saved me another $40 in less sales tax. So I would suggest to you that the $1,300 over wholesale, the the $200 in chrome, the no cost 1K service, the free upgrade to mags and no labor cost, was a bigger % of the MRSP of a $23K Ultra classic (ABS) than your $2K total was off the Tri-Glide MSRP.

The dealer was happy and I was happy. It doesn't get any better than that.
Like you I only pay cash for every thing. My house, my 8 car garage, my three Corvettes, my Viper, my car, my 4x4. I just bought a 2010 Tundra Quad Cab TRD Rock Warrior and a 2010 Camry SE. I traded a 2007 Ram Quad Cab Big Horn Edition and a 2008 Hylander Limited 4x4 for retail to retail.
That is a difficult trade in any economy. In the Hylander to Camry trade we just swapped keys. I did have to pay for title and lic transfer.

I stand on my conviction that the best thing for HD's future is to maintain only producing the # of units to stay just at or even a little below the market. Don't fix what is not broken.

un3asyrider 09-20-2009 05:42 AM

jesus TheJimer and lh4x4! you guys both have too much time AND money on your hands. honestly, both of your posts made my head hurt. maybe you both should whip 'em out and see who's is bigger?

i guess if i was loaded with cash, i would brag about all the stuff i have bought too.


anyways, my vag just hurts cause i dont have a viper. you both suck.


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