Good news for Harley-Davidson enthusiasts
But bad news for Harley-Davidson:
Shares of Harley-Davidson Inc. (NYSE:HDI - news) fell 16.5 percent to $49.06, its biggest percent drop in more than 13 years, after the motorcycle maker cut its profit and production targets for the year.
I predicted this many years ago back when there was a six-month to a year wait for a new motorcycle. I used to say, “One day there will be plenty of Harley’s for everybody at much cheaper prices. My thinking was that the vast majority of bikes were being sold to weekend warriors who bought the bikes on a whim with a swipe of their Gold Mastercard and who then left them in the garage only to break them out for the occasional Sunday ride. When things got tough, such an expensive toy would be one of the first things to go, thus causing the supply to outstrip the demand. Thus causing prices to drop.
Last year when I couldn’t dump my Harley Road King for less than book I thought the writing may be on the wall for Harley. Recently, looking at the classifieds for pre-owned scooters, I knew that if something didn’t happen soon with the economy, Harley was going to be in the soup. The big bikes were selling for anywhere from $10,500 to $13,000. Low miles, garage- kept, chromed-out with every accessory, the whole bit. Weekend warrior bikes.
If you’ve ever wanted a Harley and you have a decent job with a little job security, it is definitely a buyer’s market for Harleys.