Looks like the number of delinquencies on Harley loans will be a problem.
It appears many Harley buyers had low FICO scores, yet Harley went ahead with the loans to close the sale.
https://finance.yahoo.com/news/really-another-worrisome-sign-harley-013500481.html
Didn't the banks just go thru this with the sub prime mortgage loans? WTF?
The classics come back.
Two or three years ago a buddy. that is smarter than me, predicted the next recession would come from auto loans defaulting. Then I read that those same loans were being bundled into securities. Hmmm, didn't we learn from doing that with home loans? Apparently not.
Joe
Opportunity knocks! When the bottom falls out you'll be able to pick up your Harley for 10 cents on the dollar....The again, it's a Harley and not worth 10 cents..... :flag_of_truce:
A friend of mine bought a sportster last summer. Horrible credit and paid $2000 over msrp at 20 something percent. He's gonna be paying on that for ever and end up paying twice the price it was worth new :Facepalm:
Not surprising to me at all. I work down the street from a wholesale place. 2-3 times a week I see large trailers full of Harleys and 4-wheelers. My assumption was all repo. seems likely now reading this.
Loads of used bikes on the market as low prices. Not sure why anyone would buy a new bike, any brand, but Harleys really don't make any sense.
Quote from: Dieselman7.3 on June 27, 2019, 05:51:32 AM
A friend of mine bought a sportster last summer. Horrible credit and paid $2000 over msrp at 20 something percent. He's gonna be paying on that for ever and end up paying twice the price it was worth new :Facepalm:
Well if we ignore those pesky monetary details, a Harley is still the only bike you can sell anytime you want and get all your money back, so they've claimed for ages.
Ahem, schadenfreude.
Quote from: Pat Conlon on June 26, 2019, 08:12:33 PM
Didn't the banks just go thru this with the sub prime mortgage loans? WTF?
Yes but why would they stop doing it? No one even got so much as a wag of the finger for the largest financial fraud in history.
Quote from: Tuned forks on June 26, 2019, 09:34:34 PM
Two or three years ago a buddy. that is smarter than me, predicted the next recession would come from auto loans defaulting. Then I read that those same loans were being bundled into securities. Hmmm, didn't we learn from doing that with home loans? Apparently not.
Theres another bigger shit storm coming with Mother of All Credit Bubbles (https://business.financialpost.com/news/economy/beware-the-mother-of-all-credit-bubbles) and the Business Sub Prime Mortgages (https://www.bloomberg.com/opinion/articles/2018-09-17/subprime-corporate-loans-could-spark-the-next-financial-crisis). So buckle up, its gonna be worse than the last one.
It might go like this: The HD dealer gets a sub-prime loan to by a shit load of bikes from the factory. They gamble on selling the bikes with sub-prime loans to "cutomers" (i.e. suckers) in order to move product. Why?
A salesman from a Ford dealer told me it's common for corporate to set a quota for the dealers. If they meet that quota the dealer can get a bonus worth several hundred thousand dollars
per month. So the dealer could actually make more money by selling cars for nil profit to get the bonus. Maybe HD has a similar system with their network.
Also if the loan is independant from the dealer why would they care? They got their money already didn't they? Of course you can only stretch it so far... it's like the proverbial snake eating it's tail.
Of course I'm probably/hopefully wrong. :scratch_one-s_head:
A 6 year bike loan.......WTF :Facepalm: