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[RJ749]

Always a bright side somewhere ..... couple of months may be the right buy time on a dealership....

Remember that old expression "don't let your mouth right a check you don't want cashed"?

There are dealerships trading at no blue sky and greatly reduced facility prices over those of even a year ago.

None in our area have failed but some have elsewhere and with the "new" overhead created by the facility demands of the MoCo there will certainly be more in the future.

How does a Harley dealer become a millionaire?   Start with two million.

[BLM777]

Do you have your eyes on one?  I think you might have a coveted market.

Have watched a couple over the past year or two, JC.  Certainly not wishing anyone a failure, but have some ideas for a small service oriented shop with "old days" attitudes.

[JCZ]

Have watched a couple over the past year or two, JC.  Certainly not wishing anyone a failure, but have some ideas for a small service oriented shop with "old days" attitudes.

Kind of like Jim's independant shop out here.  Interestingly, he's stayed busy all winter long with everybody else standing around (or sending employees home).  Droan's in Oakland laid off six or seven at one time.

That "old days attitude" is what I was referring to when I said you'd have a coveted market (the members of this forum that live in that area).  I should think a service dept. full of CVOs would speak loudly for a dealership......especially when some of them have come from hundreds of miles away.

On that note........I'll be riding Terrie's Street Glide in the rain for two hours, this afternoon, just to get it to Jim's.  Man, I can't wait for that!

[Gone Fishin']

will that cut the number of CVO built for 09?  That would be great for those of us that have or will have 09,s?    fewer silver cvo roadglides  is a good think for me----AK

I am pretty certain that CVO numbers will be down as well. We'll see.

Ride safely,
Louis

[BLM777]

Kind of like Jim's independant shop out here.  Interestingly, he's stayed busy all winter long with everybody else standing around (or sending employees home).  Droan's in Oakland laid off six or seven at one time.

That "old days attitude" is what I was referring to when I said you'd have a coveted market (the members of this forum that live in that area).  I should think a service dept. full of CVOs would speak loudly for a dealership......especially when some of them have come from hundreds of miles away.

On that note........I'll be riding Terrie's Street Glide in the rain for two hours, this afternoon, just to get it to Jim's.  Man, I can't wait for that!

Exactly the concept I've had in mind, JC.  No superstore prospect here, just small store, managable inventory and over the top service.  If that's accomplished the rest will take care of itself.

BTW....anybody ever mention that you were getting too old to be taking a two hour ride in the rain ?

[hdbrad03]

Well my dealer built a new Super Walmart Store this last year and it got them absolutely nothing.

So far CVO wise:
2 FatBob's
2 Springers
1 Ultra
1 Road Glide (no more coming)

I feel they were 5 years to late building their new store.

 
     Brad

[BLM777]

Sure does seem like the timing was wrong.  As far as the CVO allocations are concerned the super store concept doesn't really guarantee more specialty bikes.  It's primarily based upon the previous years performance as to the allocation.  Maybe next year times will pick up for them.

[FLSTFI Dave]

Never but somebody else will.  You got good credit?  Look around.
See below:

  Of course thats for a new bike.  But you surely could do better outside.  I guess you realize the dealer gets a piece of that percentage for getting you to finance.

You do realize the 6.5% for 72 months is not Harleys rate, their is much higher.

Shopping three creditunions and four banks 6.5% is the best I have found with a place I know and trust.  For 48 months they are doing 5.5%, which is the route I am choosing and for automatic payment they drop another quarter percent putting me a 5.25%

[1abastarsmda]

I just spoke to a friend that received a fax from a dealer.  He received several pages of items he was supposed to get from them, but also received another page that he didn't think he was supposed to get.  It was a letter to the dealers from Harley that broke down some changes in bike availability.  It mentioned slowing production of some models, stopping production of some models.  Regarding CVO's, it said something to the extent that only commited CVO orders will be completed at this time.  I'm going to see if I can get a copy of the actual letter sometime soon.

[1abastarsmda]

Here's a copy of the actual letter sent to dealers.  After reading it, I don't quite know what to make of it.  I guess I don't know what phase III and phase IV orders are.  Anyway, hopefully this will come through in a way that can be enlarged to be able to read it...it's not the clearest copy.

[RJ749]

Looks like they kept the profitable units and are going to be eliminating the units that are tougher to sell and don't turn as fast.

Also, appears that dealer allocation and orders that are in (sold and unsold) are not affected.

[Gone Fishin']

Here's a copy of the actual letter sent to dealers.  After reading it, I don't quite know what to make of it.  I guess I don't know what phase III and phase IV orders are.  Anyway, hopefully this will come through in a way that can be enlarged to be able to read it...it's not the clearest copy.

The phases are the ordering periods Harley is using to schedule production and shippping. Typically Phase I was July through September, Phase II October through December, Phase III January through March and Phase IV April through June, in accordance with the model year cycle Harley was most often using. For various reasons there have been changes in the past, but this is still a good guideline.
From my point of view, the letter informs dealers about the impact they need to consider regarding to the model year '09 reductions vs. the 2009 calender year reduction of 10% to 13%. Since Q1 is basically done, the reductions for model year '09 will mostly hit in Q2, while Q3 and Q4 will be model year '10. If the production cuts would be "even" each of these three quarters would see a reduction of 13% to 17%. My estimate, however, would be that the reduction would be higher in Q2 (e.g. phase IV), because the newer models would probably sell better anyway. And there is hope for the economy to recover sometime later this year. I'd say, pending on the model the reductions in Q2 (e.g. phase III) would be rather between 15% to 25%, with the CVO's probably hit rather in the highest range.

Hope this makes sense. Anyone with more information, please chip in.

Ride safely,
Louis