| Author | Message | ||
     Buellgrrrl |
HD showrooms have been pretty sparse lately- no crush of leather clad bodies, no wall to wall motorcycles... What's happening? The shortage of customers is easy to explain- they're overextended and the local HD dealer has become a place to drink free coffee whilst unemployed. But the floors near barren of new bikes? If bikes aren't selling, they should be jammed to the rafters and flowing out the door. I first noticed this at Ford dealers about a year ago- inventories so low that dealers were spacing out the cars on the lot so it looked full. I then noted a few Ford dealers with completely empty lots. When I was able to find an explanation, the cause of these empty dealerships was a loss of "flooring". "Flooring" is the financing of new vehicle inventory, and is usually provided by the manufacturer's finance company. To raise the money to "floor" dealer inventory and finance new sales, the manufacturers go to the financial market and sell "paper", essentually borrowing money. What I suspect is happening is that the credit markets are becoming skittish about borrowing money to finance HD products as well as the big three's new cars. This is reflected in the dealership I just visited where half the bikes on the showroom floor were used- "repos" perhaps? Any opinions? | ||
| Woody1911a1 |
Triumph dealers are serving better coffee ?  | ||
| Indy_bueller |
HD has an advantage in that they can "throttle" the amount of new bikes produced. The big three do not have this luxury due to the agreements they have in place with labor, hence the posting of HUGE losses by Ford, etc. It's actually less expensive for Ford to continue to produce vehicles than to idle their production lines. What I suspect is happening is the Ford dealers are selling so many fewer cars, they can't afford to buy more. Therefore there are fewer cars on the lot. This has been going on for several years now. I worked for a Ford dealership in 2003-2004. Sharp Ford was the oldest Ford dealer in Indiana. They went out of business last year. I could see the handwriting on the wall when I was there, which was one of the reasons I left. If this continues, you will see a lot more of them go out of business. There are just too many choices available out there, and not enough people buying. Plus the big three have been focused on producing gas-guzzlers rather than efficient cars. In a nutshell, they didn't pay attention to the future trends and now they are taking it in the shorts. Things will get worse for them before they get better. It's a much different situation for HD. They simply produce less bikes. | ||
| Speedfreaks101 |
Did you check the MV dealer, maybe they just moved over there. | ||
| Iamike |
I stopped by our dealer in Waterloo. Very few HDs or Buells. But they were selling their two 1125s for a $1,600 discount. | ||
| Swampy |
Hasn't anybody checked the weather? It's riding season! I drove right past two dealers Saturday, I don't care whats in the showroom. | ||
| Just_ziptab |
The problem is growth.........stockholders demanding MORE MORE MORE! Consumers demanding MORE MORE MORE. Well, we got it.........got to the point of no return. Pay this, pay that, pay here, pay there. It used to be that you had a monthly house payment and a car payment. Go back into your archives and see what you payed monthly, 25 years ago compared to today. Let see............computer online fee, cell phone, pay TV, several magazines and newspapers, a house payment, a car (or two) payment, a motorcycle payment, boat payment, snowmobile payment, several family memberships to swimming pools/ball games and the like, club fees(golf, gun or what ever) and all the crap you buy online that you really didn't need. And insurance is a big one nowadays. Nothing cheap about schooling now either. My folks didn't give me dime when I went to college. Had my own earned money and there was more than enuf to take the courses I wanted. Can't imagine a kid of today doing it on his own...with out a lot of help from parents or scholarships. I used to take night courses just for the pure fun of it. Now I don't, simply because the fees are outrageous. Now add to all that the increase you pay for food/energy/fuel/property tax/sales tax and there is nothing left to play with. Second to insurance, my biggest monthly bill is gasoline...........25 years ago, I payed for it with a little cash from my billfold.......now it's all on plastic and payed off at the end on the month. Disposable income is dwindling fast for most everyone in"the working man" class and now the masses are realizing that fact and slowing down on "I want that" syndrome. Me? I'm doing fine. I got beyond most of the pay crap listed above by simple eliminations of stuff that was not worth it anymore..and just as happy with out it............ | ||
| Teddagreek |
It's Damn hot down here in Florida.. | ||
| Buellinachinashop |
Doesn't HD own their own credit company, EagleMark? If they're not lending to their own customers, I would see a huge problem. With today's economy, companies can't make customers walk through the door though, but if I owned a company like HD and EagleMark, I'd be offering some great terms on loans to entice customers. This should be a buyers market, not a sellers. | ||
| Cityxslicker |
ah the double edge sword of easy to own... We have a full lot of consignments because people cant make their payments on bikes they bought for 'entertainment' and have not been riding. The other side of the coin is that people are parking their big SUV's and picking up bikes for commuters (we will see how fair weathered they will be once the rain turns on here locally, and it will) The other thing is they just did a model year change. In June they quit sending us bikes, so we could sell out stock of 2008's before the 2009s show up, we got our first shipment of 9s last week... 8 weeks with out a bike delivery, it will make your floors skinny. This is nothing new, they have done it for at least the last five Business is brisk, just for different reasons, my numbers are on target with 2003 model year, and our Buell sales have doubled this year. (new and used) | ||
| Beachbuell |
HD shops are awaiting the arrival of the 2009 models. Thats why they might seem "empty" with motorcycles. Nobody wants a store full of 08's when 09's are on the way. | ||
| Court |
The day we purchased my wife's car, about 2 years ago, she spent the afternoon in the showroom looking and deciding. During that time the dealer sold 43 cars, her's was the 44th (and last) that day. Last Saturday I had brakes, rotors and a bunch of other annual service done to my Ford. I sat in the showroom and read the entire day. They sold 1 F-150 and (I think) i Edge. I was doing the math, mentally counting the folks present (about 15, the utilities and so forth and trying to figure what they made on those cars. I'd wager they made about as much on my $1500 service as they did sales. Times are a changing. The "I want" growth syndrome is more a personal than a societal malady, although I'd admit to elements of both. One of my sons lives in a wonderful (inexpensive) place in Portland, doesn't own a car, (rides a bike to work and everywhere he goes), no cable, no phone no nothing . . . Kind of an interesting deal. | ||
| Bombardier |
The dealer where I bought my bike requires that you pay up front when ordering anything including tyres. I get my tyres at the bike store next door. He was happy to take my money for the bike without me being able to test ride it ($21000). | ||
| Cityxslicker |
Funny how far we have come, and how backward we remain. Sometimes I wish I could just unplug it all. http://thoreau.eserver.org/walden00.html The digital answer to carrying the book with you | ||
| Brumbear |
Amen | ||
| Chellem |
I agree with City and Beach - we are a little light on bikes, but it's just because we're "between" model years right now. Limited 2008s, only a few 2009s so far. No idea why. But I know it's not due to any credit issues.  Since I'm in charge of that. ->ChelleM |
