Local HD dealer laying off

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Jan 2, 2009 | 01:38 PM

#51

RODEO

Outstanding HDF Member

Joined: Sep 2008

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I don't see what the current problem as as I got $800-900 off on an 09 and that was back in October. You mean to say they (Dealers) cant do at least that good now?? Nonsense....

(No deliver nor set up fees of any kind either.)

Jan 2, 2009 | 01:40 PM

#52

tmblweed

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Joined: Oct 2007

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From: Near Raleigh N.C.

Every dealer in my area lays off this time of year...its very cold outside which means business is naturally slow.

Jan 2, 2009 | 01:48 PM

#53

scasey

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Joined: Sep 2008

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From: FLORIDA

Quote:

Originally Posted by Saturday Night Special

From what dealer?

Jan 2, 2009 | 01:54 PM

#54

wi.st.rod

Cruiser

Joined: Aug 2007

Posts: 142

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From: SE Wisconsin

Quote:

Originally Posted by scasey

That doesn't really hold water with me b/c when the 09's come out you can easily find 08's at 2K below MSRP. That is what dealers like to say to keep the price up but if they can sell a leftover 2K off and not devalue the market why can't they sell 09's for the same to keep their business open?

I have seen screaming eagles the past 2yrs as leftovers withas much as $4500 off MSRP

Maybe you can find an '08 at $2k below MSRP, simply because it's an '08 (especially given the frame improvements of the '09s). If dealers started selling '09s for $2k below MSRP, who is going to buy the leftover '08 for $2k less? No one, that's who. So then what does the dealer do? Start dumping '08 leftovers for $4k below MSRP? And if they do that, what happens to the value of a used '08? Better (or worse) yet, the value of a used '07? '06?

I don't think you can apply the market devaluation / selling below MSRP argument to off-model years.

Jan 2, 2009 | 02:00 PM

#55

scasey

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Joined: Sep 2008

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From: FLORIDA

Quote:

Originally Posted by wi.st.rod

I am talking about when the 09's first arrive at the dealer, If dealers still have 08's in January then they are in big trouble. I noticed this price drop back in 07 when the 08's came out also but the economy wasn't nearly as bad so the 07's flew out the door but that is not happening this year as you can go into any dealer and still find an 08 leftover especially the anniversary colors

I am also not talking about the touring machines it is across the board

Jan 2, 2009 | 02:04 PM

#56

DrPlastic

Outstanding HDF Member

Joined: Oct 2007

Posts: 2,398

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From: Newport news, Virginia

About 12 years ago Toyota was having a hard time selling the Supra. In 1996 (the final year for that cars production) the Supra was available in automatic only and I believe had crested $50,000. There was a class-action lawsuit against Toyota after they dropped the price $11,000 to $39k (and brought the 6 speed back) by owners for diminished resale value. In the blink of an eye your newly purchase Supra's value dropped $11K! WTF

I ran into the same situation after buying my '05 Ford Explorer XLT AWD. I paid just under MSRP at about $30K. Fords brand value and market share was dropping like a rock. 12 months later I was lucky to get $12K for it when trying to sell it. That's over 60% drop in resale value in 12-16 months. This comes about because Ford was deeply discounting their vehicle in a last ditch attempt to generate cash. Resale values of vehicles are based on what the MSRP minus any discounts that the vehicles were selling for that year.

So if H-D (at the corporate level) starts dropping bike prices the entire market will fall.

Jan 2, 2009 | 02:16 PM

#57

timberland

Road Master

Joined: Oct 2007

Posts: 1,117

Likes: 4

From: Log home in SE Michigan full time. Log cabin in east TN, Smoky Mountians part time

Quote:

Originally Posted by ajpuck

Our dealership told their wrenches just before Christmas that they had to take a pay cut. Some of them were cut as much as $4.00 an hour. This can make for some very disgruntled employees. Hope that the unhappy wrenches don't let it filter down into their work. Come Spring they will probably be looking for a new dealership to work for.

For any company to reduce the wage of their employees is wrong. Cut a working week from 40 to 32hrs, at least a person can "fill in" doing something somewhere else, rather it be work on bikes in his or her garage or flip burgers. Essentially the dollar amount is the same for the employee. A company will make their profit long before they reinstate the wage. Good things won't come out of this, it is the same for HD or GM. I have yet to see a dealership cut prices to drum up any business that may be around, either parts or bikes.