Forbes published an article on its website indicating that The Motor Company is caught behind a rock and hard place...

Harley decided to increase shipments and inventories, which lowered the prices of used bikes. But the company also lent money to buyers who weren't able to make proper payments.

Read the full article here:
http://www.forbes.com/....markets32.html

Add to that the fact that financial analysts expect a surge of homeowners defaulting on their subprime mortgages, and now you have Harley without qualified buyers.

Of course it didn't help that Harley decided to upgrade their Twin Cam engines to 96ci with 6-speed trannies, making it harder for dealers to sell their 2006 leftovers.

If Harley tightens up its lending practices it'll mean that dealers can't sell bikes. So should they take a gamble offer loans to people with risky credit, just to move the inventory?

Basically, Milwaukee is in trouble.

On the other hand, if you have cash to spend, now is the time to make a good deal on a 2007 Harley.

Labels: Harley Davidson