Harley-Davidson wants a piece of the crazy used bike market

H-D just announced Harley-Davidson Certified, “the first certified pre-owned (CPO) motorcycle program supported by Harley-Davidson through its network of authorized Harley-Davidson dealers in the United States.” This enables dealers to sell select Harley-Davidson motorcycles with warranties, so long as they pass a “comprehensive 110-point quality-assurance inspection by certified Harley-Davidson technicians.” Harley-Davidson Certified marks the latest addition to Harley-Davidson Financial Services’ toolbox for navigating a bizarre sales environment.

“H-D Certified is a strategic effort to strengthen our competitive position and is part of our new approach to the used motorcycle marketplace, aligned to the strategic priorities of The Hardwire, while supporting growth,” said Jochen Zeitz, chairman, president and CEO, Harley-Davidson. “We believe this program will drive Harley-Davidson desirability and enhance the overall customer experience, allowing more riders to have access to our motorcycles and provide them with an added level of confidence in their purchase.”

And purchaser confidence is key in the used market. Common Tread has spilled plenty of digital ink on the subject of buying used, or more specifically, how to avoid being burned when buying a pre-owned motorcycle. H-D calls this “buying a bike with a story.” (Someone buy that copywriter’s lunch!)

The CPO sector of the automotive world has seen strong sales in recent years as average prices for new car purchases soar. In the U.S. motorcycle market, Triumph already introduced a CPO program of their own to capitalize on the healthy used market. CPO purchases make good financial sense to many of today’s buyers in uncertain times that encourage aspirational spending, tempered by value-oriented consumer preferences and unprecedented aftermarket support for pre-owned motorcycles.

Harley-Davidson Certified motorcycles have their VINs checked before complete servicing. “Motorcycles eligible for the program must be no more than five model years old, have less than 25,000 miles of use, and not contain aftermarket modifications to the engine or transmission, or major chassis or electrical modifications,” according to Harley’s guidelines. H-D Certified bikes include a year’s membership in H.O.G. (Harley Owners Group), standard member benefits (including roadside assistance), a year’s warranty, and promotional financing rates. Dealers are not required to opt into the program, but as we've reported before, the supply of new motorcycles was limited last year by production interruptions while consumer demand rose, so many dealers have relied more heavily on sales of used motorcycles.

But even when dealers aren't involved, Harley-Davidson also has a new way to help facilitate private sales of used Harleys while getting a cut of the action. 

HDFS provides private party financing. Yep, you read that right. This rider-to-rider arrangement enables HDFS to finance sales of used Harley-Davidson motorcycles in private sales through Eaglemark Savings Bank, an HDFS affiliate. Now HDFS can get involved with sales of used Harley-Davidsons whether they happen on a dealership floor or in a private seller’s driveway. Financing is available for private bike sales, add-on products, extended service plans, and even Harley-Davidson MotorClothes accessories. Inspections and maintenance checks are also available.

The CPO program and rider-to-rider financing fit into Harley’s new Hardwire five-year strategic plan. Will these measures pay off? Certified pre-owned motorcycles sure feel like an obvious next step for any premium manufacturer, especially in the current used motorcycle market.

Lemmy’s chopper theory article has already hinted at the bellwether role Harleys could play in economics. Might used Harleys be the hot ticket for the traditionalist core customer, as radical bikes like the LiveWire and Pan America take center stage? I can’t say for sure. But you can't blame Harley for playing both sides.