Harley's $35,000 Cruisers Caught in Credit Crunch

[burkazoid]

Thought you all might find this interesting. I guess Harley had to learn the hard way that in a credit crunch nobody spends $35,000 on a motorcycle.

http://www.bloomberg.com/apps/news?p...RWU&refer=home

[misunderstood]

Probably more likely to buy their stock now at 1/3 it's high.

[darthvulcan]

The fact that there ARE people who will continue to spend that much on a bike is really a testament to the marketing genius behind Harley.

Harley sells an "image", more than a product. For some, this justifies the expense. For others like myself...it's just not my cup of tea.

I know what I like, and I like my Nomad!!

[cactusjack]

Originally Posted by BurKaZoiD

Thought you all might find this interesting. I guess Harley had to learn the hard way that in a credit crunch nobody spends $35,000 on a motorcycle.

http://www.bloomberg.com/apps/news?p...RWU&refer=home

You should have said "...nobody in their right mind spends $35,000 on a motorcycle."

Brand differences aside, I truly hope HD can withstand the current economic problems. They aren't as diversified as the Japanese manufacturers.

[scion0]

Originally Posted by cactusjack

You should have said "...nobody in their right mind spends $35,000 on a motorcycle."

Brand differences aside, I truly hope HD can withstand the current economic problems. They aren't as diversified as the Japanese manufacturers.

I agree.. a friend of mine went and got a second mortgage for his HD. Need to ask how that is working for him.

[dogdoc]

Ain't.

[phenrichs]

I would bet there are a lot of people that were once thinking of HD and will now find out what kind of machine you can actually get for your money by checking into Kaw and Yam and Honda. I would bet they try some radical pricing scheme like the auto makers did with employee pricing. I know when I worked for a HD dealer after 4 years you could get one at, (pause for thought), it was either cost or 10% over cost. That was in '01 and let me tell you the markup is extreme.

[burkazoid]

Originally Posted by "Scion0"

I agree.. a friend of mine went and got a second mortgage for his HD. Need to ask how that is working for him.

Second mortgage?!? That's just crazy talk! I don't love anything that much. I'm not getting a second mortgage for anyone, not even my kids. For Pete's sake, my daughter paid for her own school. I think the wife and I bought her books for one, maybe two semesters.

Where did this national creed of borrowing to get things we want but haven't earned come from?

[rickmeister56]

harley may have to go back to making bomb cases or golf carts. they dont need to sell motorcycles anyway. their clothes and their bling is expensive enough to turn a profit.

[novijoe]

I was checking out Harley's and was thinking about buying one. When they found out my credit was good I swear the guy called me almost everyday. He sounded disappointed when I told him I bought another Nomad but I rode a new Electra Glide Standard and I didn't like it. Couldn't see spending 22k on a loaded Street Glide. I'm happy with my new "Nad", but to each his own.

[gopjohnny]

while we were at thunder beach, my friends who all ride harleys had a few beers, they never say anything about my nomad till they have had a few. They didnt rib me about it, they just got misty eyed and told me I didnt understand.

"our harleys arent just motorcycles they have a soul, we never owned anything that we just sit in the garage and stare at, and think "omg its beautiful"

they actually said that, you would have thought they were talking about a mistress

[glwilson]

There was an Ultra-Classic Screamin-Eagle 105th Anniversary model available at Walter Brothers dealership in Peoria, IL for sale for $28,000 the last I looked. It listed for well over $35,000 originally. (You had better like copper and black; air-cooled; belt-driven; and vibration to buy this bike.)

Regarding a second mortgage for a motorcycle -- does a world financial credit crisis; or foreclosure; or bankruptcy ring a bell for anyone? It is exactly this kind of nonsense that has all of us in the situation we are now facing -- and the worst isn't here yet.

Just wait until about mid-2009 when unemployment is hovering around 9% and see how many HD's; BMW's; Escalade's; and other such nonsense if for sale at "fire-sale" prices -- not to mention real estate and other such potentially appreciating assets.

Remember; cash will be king over the next two years. Save your money; get out of debt; and make wise purchases over the next two years. There will be some incredible buys before this is over.

God love the ignorant for allowing them to exist for the benefit of the wise.

[johnb]

I had told a buddy at work who was thinking about buying HOG stock that I thought it wasn't the right time. This was back in March, when I bought my '06 Nomad. The local HD dealer (Reggie Pink) had just moved into a bigger building and I thought that they did that a little late in the "cycle" (no pun intended). Even back in the Spring it felt like how much longer can the good times keep going. They are a long time established dealer, but I wonder whether they'll make the sales they will need to make the new building make sense. I don't think, especially now, that there will be that much "discretionary" money going around buying premium priced Harley's, never mind any of the other custom bikes like Big Dog etc. In fact Big Dog had layoffs too!

While I didn't start out looking for the Nomad, I'm glad I found it and it found me! I think we can all have our cake and eat it! The right bike for the right price! We didn't have to mortgage ourselves out of sight to own it.

[kenb]

Originally Posted by rickmeister56

harley may have to go back to making bomb cases or golf carts. they dont need to sell motorcycles anyway. their clothes and their bling is expensive enough to turn a profit.

Took the words right outa my keyboard!

I would bet more people go to a "Harley Davidson Lifestyle Center" to get clothing, jewelry, Barbie dolls, etc. Oh yeah, and accessories for their motorcycles (if they own one) than go to look for a bike. They have never moved enough motorcycles to pay for the huge buildings HD sells their wares in.
As long as there is crap/stuff with the HD logo on it, HD will survive.

check out:

http://www.goingfaster.com/angst/main.htm

[paul]

Interesting thing happened Sunday as I was at a group function. A fellow I see and talk to very regularly had bought a Harley about 6 weeks ago. He's known me since I've had the Nomad and we've talked about bikes on a regular basis. Anyway, he rode up and his wife jumped off the back and we were all standing around talking. He noticed my highway pegs and said he wanted a pair, where did I get them? His wife spoke up, I want one of those! After asking what she meant, she told him a bigger bike like (my Nomad) and a better seat.

We talked a while and found out he financed his bike for more than 20K. It's a stock, basic, w/ no extras. The extras, he can't quite afford yet. When he asked about how I bought mine, I explained, cash, 5500.00, less than 6K miles and in GREAT shape (as he could see) you could see his wife giving him that look like, Why the hell did we pay 20K for a lot less bike? I didn't try to help him explain it, he kind of already had his "I always wanted a Harley" explanation going.

I say, good for these guys, maybe I'm the stupid one for just not getting it.