Pundits in the press are saying it is a page from the Detroit auto industry’s playbook while Harley-Davidson CEO Jochen Zeitz says selling used bikes is part of Hardwire’s five-year strategic plan. "There are two distinct parts to this market: new bikes and used bikes, both of which present opportunities which we will pursue." Call the HD-Certified program what you will, The Motor Company needs something to shore up declining market share.
“The 118-year-old American brand has been steadily losing U.S. market share amid declining retail sales for six years,” reported Reuters. “But the demand for used Harleys, which are less expensive, has remained strong. Some dealers told Reuters that pre-owned bikes last year outsold new ones by three-to-one.” Mainstream media picking up what NPA has been saying to Auction insiders for years.
J.D. Power data demonstrates Harley remains at the top of the NADAguides look-ups, fueling the belief that the certified program will draw in new customers. “We believe this program will drive Harley-Davidson desirability, increase sales and margins, and enhance the overall customer experience while supporting growth,” notes Zeitz.
“There are approximately 3 million used Harley-Davidson motorcycles on the road, one million of which are 7 years old or more. We want to focus on those that are five years old or newer, with no more than 25,000 miles.”
He says that's the sweet spot of the market, offering "the highest potential to also get them engaged in new motorcycles in the future." Unlike the “More Roads To Harley” program pushed by Zeitz predecessor Matt Levatich, pre-owned could be the path to build brand loyalty and attract new customers without added engineering and manufacturing expenses for lower-cost/lower margin bikes like the discontinued XG500 and XG750 Street models.
Under the terms of the HD-Certified pre-owned bike program, which is set to kick off in April, The Motor Company will certify units up to five years old with up to 25,000 miles on the clock. Certified bikes will be inspected and backed by a 12-month limited warranty and can be financed by HDFS.