At least one dealer has an idea to get more customers, Milwaukee Harley Davidson says if you buy a 2008 model Harley Davidson from them, they'll throw in 100 shares of Harley Davidson stock. Buy a 2009 model and get 50 shares. As I write this, HOG is trading at $16.31 per share, you do the math.
Given the recent troubles getting buyers to pull out their checkbook, this might work out for both parties, it might nudge someone into the purchase which benefits the dealer and the buyer gets a spiff that might grow in value. Nice incentive.
Link: Milwaukee Business Journal
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makes a hell of a lot more sense than gm’s recent (current?) promotion (also offering shares with purchase)
Bought it at 35 a few years ago, watched it zoom to the 70s, watched it fall, sold at 45. Lots of fun, but I’ll never do that again.
You know, I was talking about Harley’s stock market & sales troubles just a few weeks ago too. (post linked to above)
This is actually a REALLY good idea for an incentive program. Let’s say the stock goes back to it’s value just one year ago — that would be more than DOUBLE its value today. Not to mention that HD pays a dividend too, so if you have an automatic reinvestment option with your broker, that 100 shares could conceivably grow to 110 or 120 in a few years all on its own.
Not bad.
Let’s see, according to Kelly’s Blue Book the Harley will depreciate 25 percent in the first year (assuming you only paid MSRP, worse if you paid more) then factor in the 10% financing (interest counts even if you paid cash!) and that’ll put it all into perspective. Basically you’d be better off if you received better financing rates.
-todd
instead of taking the 100 shares @ $16.31 couldn’t i just take $1631 off the sticker price? that would bring the price of the bike to a more reasonable level where more people would be interested in purchasing a bike.
Todd, you would be better off just paying cash in full no matter what.
A vehicle is very, very rarely an investment. Most times it is a liability (cost to run, keep, have insured, plus depreciation) rather than an asset.
I’d only pay cash if I can get better interest for my money by investing it. Otherwise I’d pay off any other debts I had first. You lose interest if you pay cash and you pay interest if you finance.
I’m just afraid Harley will make it sound as if you’re getting ahead or even breaking even with this scheme. For me, I just buy used, undervalued bikes for what little money I have.
-todd
I think we are on the same track here
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