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Author Topic: Discontinued CVO's-Thoughts?  (Read 5484 times)

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Porschestan

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Discontinued CVO's-Thoughts?
« on: September 17, 2013, 11:15:37 AM »

Over the years HD decides to discontinue various CVO's.  Inquiring minds like to know, how does it make you feel?  What are your opinions as to their reasons?  Do you think it will make the discontinued bike worth more or less? In reality what did it do to your particular model? Is there a common trend? Or does it depend on each models own merits?

Some instant thoughts that pop up in my head:
Marketing, just another way to create demand for new models
Poor design turned into poor demand
Too costly to continue

Now it's your turn?

Thanks!
Stan
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Twolanerider

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Re: Discontinued CVO's-Thoughts?
« Reply #1 on: September 17, 2013, 12:01:36 PM »

I could care less what Mother Harley does.  If they don't make what I like I'll build it myself.  In fact I'd rather....
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Midnight Rider

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Re: Discontinued CVO's-Thoughts?
« Reply #2 on: September 17, 2013, 12:45:56 PM »

Some models simply don't sell very well.  Most all the touring models are always harder to find, are the first to leave the showroom floor, and are just simply more in demand.  "Baggers" sell better than Dynas, Softails, Springers, Vrods.  So, Road Kings, Street Glides, Ultras, and Road Glides are the "hot" bikes in the CVO lineup each and every year, with the SG's and the Ultra's leading the way.

I personally have seen some of the CVO Dyna models sit on showroom floors for over a year, finally being discounted just to move it.  Same for the couple of Springer models they put out...and Softails. The '06 SEVROD I bought in August of 2007 had sat for well over 10 months, so they were willing to "deal" on it.  That same dealer was, at the time, asking, and getting, 2K OVER MSRP for the CVO Ultra models.  And people were buying them at that price as fast as they came in.

Worth more?  If it's hard to sell them when new, demand is not going to increase when they are 10 years old.  Any HD bike, no matter which one, is worth what the book value is, regardless of what's been done to the bike to make it "better".  There are exceptions, of course, but the seller has to find that buyer who is willing to pay over book value because he/she just happens to love what you've done to the bike.  But that's not the rule.  I've sold three CVO bikes since '06, and none of them fetched a price over book value, despite the fact that I had done exhaust/intake work, upgraded suspension to the level of the best out there (to the tune of $2000 +), improved lighting, etc.  It might have made them SELL better, but they didn't get MORE valuable in any case.

Perhaps at some point down the road...say 30 years away...a given CVO might increase in value due to scarcity, but it's more likely the value will simply bottom out at some point. 

The CVO baggers are HD cash cows, and that is unlikely to change anytime in the near future.  It ain't marketing, it's simply demand, IMO.
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VaEagle

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Re: Discontinued CVO's-Thoughts?
« Reply #3 on: September 17, 2013, 01:57:14 PM »

I agree with Midnight Rider....

Think of it as in the early days of CVO they could market the bikes as assembled by hand not assembly line. Now there is no difference in assembly methods. In the early days they would run a CVO bike for two years and it did limit supply when the demand for Harleys in general were high. Problems come about when a very popular bike is discontinued to fit the two year schedule. This does rotate interest in various models but it may come back to bite them since a CVO is typically thousands of dollars above stock bike in a particular line and when you bling out a "starter level" bike it becomes too expensive for the typical buyer of that bike.
When the economy is tight a bike becomes a luxury not a necessity and the entry level bikes that are CVOs are not going to sell well.
The other way some CVO bikes have been picked year after year it's hard to keep customer interest in a 5th year plus CVO.
Just my .02 but a CVO is for someone who has the disposable income and buys it because he like it and would add the bling to a stock bike to that CVO level. It is still cheaper to buy a CVO than build your own especially if you have to pay a shop to install the parts.
If you buy a CVO for it's limited status a buyer is not really getting the most individual bike, look at the limited paint sets where they make only 50 or 100 sets versus the 1,500 or so CVOs each year. Then you have the build your own Sportster program so in that vein they have more of a one of a kind bike right off the factory floor.
Myself and others have said for several years that H-D should have a build your own program for the CVO concept.
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Dobeman2000

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Re: Discontinued CVO's-Thoughts?
« Reply #4 on: September 17, 2013, 03:23:01 PM »

I would agree in general what the others have said so far.  I would love to see a "build your own CVO" program as well.  Of course then they are going to charge you MSRP for every item you add, I prefer buying a minimum of 20% off retail- there are some online dealers that do this and of course there is ebay and craigslist.  As for the discontinued bikes, I personally loved the springers, but supply and demand rule.  They will always have the baggers as CVO's and throw another model in each year.  I would like to see a trike CVO in the future, which I think they will do as they are becoming more popular.
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Twolanerider

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Re: Discontinued CVO's-Thoughts?
« Reply #5 on: September 17, 2013, 05:05:49 PM »


I would agree in general what the others have said so far.  I would love to see a "build your own CVO" program as well. 


http://www.cvoharley.com/smf/index.php?topic=43691.0   :huepfenlol2:
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grayghost731

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Re: Discontinued CVO's-Thoughts?
« Reply #6 on: September 17, 2013, 09:28:26 PM »

I could care less what Mother Harley does.  If they don't make what I like I'll build it myself.  In fact I'd rather....






I Agree  :2vrolijk_21:   It seems the CVO bike is just the starting point for most of us anyway  :nixweiss:
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Porschestan

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Re: Discontinued CVO's-Thoughts?
« Reply #7 on: September 17, 2013, 11:13:15 PM »

Interesting so far, but hard to wrap my head around how much the MRSP's are for the CVO's and now compare them to a Non CVO of similar model.  Then look at the over all depreciation factor on each..meaning on average does a CVO depreciate at a higher or overall lower per cent age?  If there was a over all rule in this we then could know dollar for dollar over time which actually costs more? ( yes I know we just should buy what we like, I do that day and night!, but still it would be interesting to know)

Am I making it too confusing? If so I a sorry
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owl893

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Re: Discontinued CVO's-Thoughts?
« Reply #8 on: September 18, 2013, 07:07:08 AM »

Stan, I feel hurt, alone, vulnerable; like a jap bike owner without a crescent wrench, where to go, who to turn to.......

Nawwwwwww, just messin' with ya.  I could care less, some say it makes them more valuable.

OWL

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Re: Discontinued CVO's-Thoughts?
« Reply #9 on: September 18, 2013, 10:45:10 AM »

I also like the build to suit option. Starting with Crank options ;D
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VaEagle

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Re: Discontinued CVO's-Thoughts?
« Reply #10 on: September 18, 2013, 11:45:29 AM »

Interesting so far, but hard to wrap my head around how much the MRSP's are for the CVO's and now compare them to a Non CVO of similar model.  Then look at the over all depreciation factor on each..meaning on average does a CVO depreciate at a higher or overall lower per cent age?  If there was a over all rule in this we then could know dollar for dollar over time which actually costs more? ( yes I know we just should buy what we like, I do that day and night!, but still it would be interesting to know)

Am I making it too confusing? If so I a sorry
I don't think you are making it confusing, it's the basic concept that can get complicated since cost to own is not just that simple or figured in a vacuum. If you were to take the above idea you would have to use two bikes (or more to get a fair sampling) one CVO and one not, pay the MSRP price and leave them purely stock for the same length of ownership and sell at the same time. A problem arises when you realize that almost everyone modifies or adds accessories to their bike over time and it's those costs that get lost the most in value. I can see where a CVO will hold it's price better overall and because of the bling factor it may sell quicker than a stock bike. But if you look at other costs to own a more expensive bike you can muddy the waters somewhat with higher sales taxes, registration taxes and higher insurance costs for a CVO, even cost to run having to use high test gas versus a stock bike using regular gas. So just my .02 but I don't think there is one simple answer and H-D ownership and a CVO in particular may not make financial sense but we own and ride bikes for emotional reasons.
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Midnight Rider

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Re: Discontinued CVO's-Thoughts?
« Reply #11 on: September 18, 2013, 12:17:30 PM »

I'm sure one could run a data analysis and confirm this, but....IMO, the rate of depreciation, expressed as a percentage of original MSRP, would be the same for almost any HD.  Particularly the touring models.
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DCFIREMANN

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Re: Discontinued CVO's-Thoughts?
« Reply #12 on: September 23, 2013, 07:45:48 AM »

I also like the build to suit option. Starting with Crank options ;D

Oh that would be sooooo nice, but IT WILL NEVER HAPPEN!!!!! The engine option would be great also. A 103, 110, 117, and the mighty 120.

Be Safe

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the jacobite

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Re: Discontinued CVO's-Thoughts?
« Reply #13 on: September 24, 2013, 05:17:59 PM »

 Last year you could not get a CVO breakout unless you had it ordered at the factory dealer launch, this year at the local dealer 2014 model launch night overheard a customer being told that all the CVO ultras and breakouts were sold before they got back from America, they seem to be restricting the number of CVO's they are importing to Britain to keep the dealer price up.
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Re: Discontinued CVO's-Thoughts?
« Reply #14 on: September 29, 2013, 11:31:01 PM »

I'm sure one could run a data analysis and confirm this, but....IMO, the rate of depreciation, expressed as a percentage of original MSRP, would be the same for almost any HD.  Particularly the touring models.

Except, as is often stated, a CVO MSRP includes all of the included bling, so that has to count for something when comparing to the MSRP of a similarly blinged-out base bike.  The rate of depreciation may be the same, but it seems to me that the CVO would be a better long term value.
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