Harley-Davidson’s are a classic American motorcycle for a rider with a since of the “lifestyle”, but in the last few years the lifestyle hasn’t been popular among younger riders. Harley has been trying to change that with new marketing campaigns, and newer cutting-edge bikes. Yet, still the company is floundering in the market, and it may be because of used Harley-Davidsons.
Are Used Harley-Davidsons Hurting the Company’s Bottom Line?
Several weeks ago, Harley stunned the motorcycle industry by releasing news that 17 new models were coming to the factory’s lineup in 2018. Though company execs had warned in February that the classic bike manufacturer would be releasing 100 new models in the next 10 years, nobody was quite expecting the company to get started so quickly. This was an especially bold move considering the condition of the motorcycle market at the moment.
The motorcycle industry is in a bit of a slump right now as current motorcycle enthusiasts age out of the motorsport and young blood seems slow to start riding. This has caused new bike sales to slip all over the industry. For Harley it means that its second quarter sales in 2017 was 9.3 percent lower than its 2016 second quarter. There are even signs that the company’s market share could be sliding.
So, who does Harley have to thank for the slowed business? Many would initially turn to Indian Motorcycles for that answer, but it turns out that these wounds might be self-inflicted. Baby boomers are aging out of their motorcycles and so they are selling them. This is leading to a market flooded with used prices, which is making used bikes the more affordable option for newcomers and aficionados.
It’s estimated that there are 2.5 times more used Harley-Davidsons on the market than new at the moment. Could this hamper the motorcycle manufacturer’s plans to expand and offer new bikes? Only time will tell, but the attorneys who ride at Metier Law Firm will continue to watch the market and see what will be the fate of Americas largest motorcycle manufacturer.