Some Harley dealerships guarantee trade-in value
Price credited later on new, more expensive motorcycle
Seeking new customers, with a higher payback later, some Harley-Davidson dealerships have launched programs that guarantee the trade-in value of a motorcycle when it’s traded for a bigger, more expensive bike in a year.
Customers who buy a new Sportster or Street model from Harley-Davidson of Madison, for example, can get the bike’s original price credited toward the purchase of a qualifying Harley touring bike 12 months later, provided the trade-in doesn’t have more than about 5,000 miles on it and remains in good shape.
The sales promotion is from the individual dealership, not Harley-Davidson Inc. It’s aimed at attracting new customers and may be extended through June, said dealership General Manager Crystal Mundt. “We will see what happens,” she said. Sportster and Street motorcycles are Harley’s most affordable bikes, with the Street 500 having a retail price of $6,849. Dealers say there isn’t much markup on the bikes and the profit comes later when they’re traded
for a more expensive Harley like a $17,549 Heritage Softail Classic.
Harley-Davidson dealers across the United States are offering nomoney-down, low-interest financing on Sportsters and Streets.
John Lee, manager of Harley’s U.S. marketing channels, said he hadn’t heard of many dealerships offering trade-invalue programs like the one at Harley-Davidson of Madison but that it was reminiscent of what Harley offered in the past as a company-wide promotion.
“I wouldn’t be surprised if dealers were taking a page out of that playbook,” Lee said.
Hal’s Harley-Davidson in New Berlin has offered a buy-back program on used bikes.
Under it, customers can buy any used Harley from the dealership, ride it for up to 5,000 miles, and get the purchase price credited toward a new 2018 model when those are available.
House of Harley-Davidson in Greenfield and Racine says it will match sales programs advertised by other area dealerships.
“We match anything, anytime,” House of Harley President Jeff Binkert said.
The Sportster is a line of bikes that Harley-Davidson has produced continuously since 1957, while the Street was introduced in 2013 and is the bike of choice in HarleyDavidson Riding Academy classes.
Sportsters and Streets have a loyal following, and dealerships make money when riders customize those motorcycles, but for many people they’re starter bikes.
“Realistically, most Sportster customers are trading in 18 to 24 months,” said Austin Chisholm, sales director at Wisconsin Harley-Davidson in Oconomowoc.
Wisconsin Harley-Davidson doesn’t have a buyback program akin to the one in Madison.
“We give people a good value for their trade regardless of whether they purchased the bike here,” Chisholm said.
Suburban Harley-Davidson in Thiensville is one of the largest Harley dealerships in Wisconsin.
“We put more into trades than any other dealer around. It’s what we do all the time,” said sales manager Todd Berlin.
Over the years, Suburban has accepted some unusual trade-ins, including campers, boats and a cow that was destined to become steaks and ground beef.
“We take almost anything,” Berlin said.
Suburban owner Wayne Haupt spared the cow from the slaughterhouse.
“He didn’t have the heart to see it butchered, so he donated it to a farm,” Berlin said.