What Recession? High-End Bikes Take Off, According to Wall Street Journal
Never mind last year's 7.7% dip in U.S. motorcycle sales: a slowing economy isn't stopping high-end bikes from selling, according to The Wall Street Journal. Citing the popularity of BMW's $25,000 HP2 Sport, Ducati's $72,500 Desmosedici, and Harley-Davidson's $20,000 Rocker among others, writer Jonathan Welsh quotes owners of expensive bikes that seem captivated with the machines' mystiques in spite of their astronomic prices.
The phenomenon looks like a happy accident for the motorcycle industry, as the bikes in question were conceived and designed long before business started to soften. The article also alludes to the Great Depression's bike boom, which suggests the current rise in fuel prices might additionally maintain demand for more sensible motorcycles. Is this a win/win scenario, or will the middle ground get neglected in favor of high and low-end extremes? Comment with your thoughts.
Photo © Victory
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Comments
There will always be people with money. Some inherited it, some earned it with hard work, and I don’t blame them for wanting the best, or most unique. Good for them for spending when some can’t.
I think it’s called “Disposable Income”. Try as I might, I never really got my head wrapped around the concept.
By the way…that Buell is REALLY ugly
I think it is a combination of disposable income and the rising price of fuel. I know I have seen more people on motorcycles just at my place of work than anytime in the past 20 years.
why does the picture displayed on this say its a Buell !surely its a Victory ?
I guess these folks are buying the expensive bikes now becuase they’re cheaper to run than a cage.
Cyco (and Pete)-
Sorry, the bike in the photo was mislabeled. It’s actually a Victory Vision Tour (and the picture clicks through to a photo gallery.)
Basem
First, there is no recession, yet. Just a slow down. Second, These are small segment motorcycles. It doesn’t take much of a blip to make an increase in sales. The more interesting story is Harley Davidson laying off workers. I don’t think this is related to the economy either, just the fact that everyone makes a better bike than Harley for considerably less money. The “mystique” just ain’t worth that much extra money.
Kirk,
While there has been no official conclusion that we’re in a recession, it certainly looks like we’re headed there– wouldn’t you agree?
If you’re looking for Harley-related business stories, look here, here, here, here, and here.
There are plenty of entertaining comments to go along with all those posts.
Basem
I think the drop is sales also has to do with the aging baby boomers. They ma have hit the peak with this group in regards as to who is interested in buying Harley’s. H.D. is not loosing sales because of other mfg. making better bikes. Their bikes are better now than they’ve ever been.
James! Finally!! Someone said something positive about Harleys. The re-sale value says alot about the bike. The “Jap” stuff just doesn’t have it.
Let me quote the article: “second-hand Harley inventory is rising, and that there’s a “very slight decline in asking prices.” Author Gary E. Sattler says that, “This does spell good news if you’re in the market for one, and if that’s the case, I envy you.” I can’t say I disagree.” — kinda says it all.
Basem, if anything you need more Harley news – not less!
Baghdad John,
Just goes to show that you can never make everybody happy, right?
Basem
The local H-D dealer feels that a reason for the developing glute of used (and appears tobe late model)bikes is the aggressive and loose financing Harley had for the last couple years. The same financing phelosphy thats generating the housing havoc. You can almost make the payments but thats OK here’s your loan and new keys.
Hi there. I’m new here and it looks interesting.