Biker Dealers in Financial Trouble(??)
Discussion
I visited my local multi-franchise dealer on the weekend - normally they would be ultra-busy at this time of year, with a packed showroom & waiting list for their service department, loads of secondhand stuff etc.
However, there appeared to be perhaps 25% of the normal showroom bikes, mostly unpopular stuff like Suzuki, some KTM dirt bikes & a handful of other brands. Service department only had 5 or 6 bikes parked outside & the workshop looked only half full.
Apparently they only got around half of their normal allocation of bikes, from Europe & Japan; how long this is sustainable I don't know, but it was a depressing site.
They did mention that scooters were shifting like hot cakes, but I would be surprised if this represents their main profit.
Will this be the end for the smaller dealers? Will the manufacturers subsidise, & for how long??
However, there appeared to be perhaps 25% of the normal showroom bikes, mostly unpopular stuff like Suzuki, some KTM dirt bikes & a handful of other brands. Service department only had 5 or 6 bikes parked outside & the workshop looked only half full.
Apparently they only got around half of their normal allocation of bikes, from Europe & Japan; how long this is sustainable I don't know, but it was a depressing site.
They did mention that scooters were shifting like hot cakes, but I would be surprised if this represents their main profit.
Will this be the end for the smaller dealers? Will the manufacturers subsidise, & for how long??
I remember chatting to one dealer and he said they are really struggling to get their hands on second hand stock, whether people are just holding on to their bikes longer or selling it private due to the jump in values I dont know...
I read the Suez canal blockage was having an impact on new bikes getting delivered, but again dont know how many manufacturers were impacted by this!
Stock shortages left, right and centre and there is no immediate end in sight. Factories in the far east have been closed or short staffed for ages due to the Covid restrictions. Its not as simple as one country being out of lockdown as components come from all over the world - if you haven't got one bit it stops the whole production line.
Pretty much every bike imported into the UK is already sold so goes straight out to the customer rather than going on to the shop floor.
The Ever Given has apparently got several containers of Yamaha and Suzuki machinery on board, but they won't go into dealerships either.
The shortage of new machines leads on to a shortage of secondhand stock as people can't trade in their old bikes. That has pushed secondhand prices up as dealers scrabble around to buy whatever they can get hold of (within reason). The only good point for dealers is that when they do have stock they can sell it at full price, there's very little incentive to discount.
Pretty much every bike imported into the UK is already sold so goes straight out to the customer rather than going on to the shop floor.
The Ever Given has apparently got several containers of Yamaha and Suzuki machinery on board, but they won't go into dealerships either.
The shortage of new machines leads on to a shortage of secondhand stock as people can't trade in their old bikes. That has pushed secondhand prices up as dealers scrabble around to buy whatever they can get hold of (within reason). The only good point for dealers is that when they do have stock they can sell it at full price, there's very little incentive to discount.
super7 said:
So this is the perfect situation for Triumph, BMW, Ducati, Aprillia to capitalise on the Far-East's inability to provide bikes.
Triumph should be all over this like a rash......
It's not often the Japs will give the European manufacturers this opportunity
I suspect there isn't a single bike made that is made with 100% European parts considering the components required to make ECUs, sensors etcTriumph should be all over this like a rash......
It's not often the Japs will give the European manufacturers this opportunity
I'm aware many Dealers have closed in the last year - I call around to try to update service history on bikes I've bought and many have gone
I'm dealing in bikes - very much at the lower end - and demand in May has been dire I presume due to the weather
I've sold more bikes to Trade than the public, I've assumed its due to the rain even I CBA to buy bikes ATM unless they are really cheap
I'm dealing in bikes - very much at the lower end - and demand in May has been dire I presume due to the weather
I've sold more bikes to Trade than the public, I've assumed its due to the rain even I CBA to buy bikes ATM unless they are really cheap
super7 said:
So this is the perfect situation for Triumph, BMW, Ducati, Aprillia to capitalise on the Far-East's inability to provide bikes.
Triumph should be all over this like a rash......
It's not often the Japs will give the European manufacturers this opportunity
The bit you’re missing there is a) most Triumphs are made in Thailand, and BMW also manufacture globally, and b) many of the bits they’re built from are made in the Far East anyway. Electronics in particular - can’t sell a bike minus its ECU, ABS system, or dashboard.Triumph should be all over this like a rash......
It's not often the Japs will give the European manufacturers this opportunity
Biker 1 said:
I'm not so sure. If all the stock is gone & there's no new stuff coming for the foreseeable, how can a dealership survive?
I know it's cars but just had VW around today they are buying back decent stock to resell. As we don't need the car at the moment makes sense to get rid while the going is good. I recently sold my 2013 street triple r. Bought in October 2020 for £3750.
Had it up for 4995, local dealer called and offered me £3300. I politely told him to sod off. I sold it privately the next day for the full asking price.
I'm not surprised they are struggling to find good stock, it's so easy to get a good price selling privately that there is no need to consider selling to a dealer.
Obviously the bike you're selling needs to be reasonably desirable and in good order to achieve the decent prices.
Had it up for 4995, local dealer called and offered me £3300. I politely told him to sod off. I sold it privately the next day for the full asking price.
I'm not surprised they are struggling to find good stock, it's so easy to get a good price selling privately that there is no need to consider selling to a dealer.
Obviously the bike you're selling needs to be reasonably desirable and in good order to achieve the decent prices.
I sold my bike to a dealer - he offered more than I had been offered part ex, but I have now noticed a complete lack of 2nd hand bikes available, so regret not keeping it part ex as I now have nothing to ride.
I couldn't sell it last summer (no interest), so was happy to sell quickly rather than worry about eeking out the best price.
At least I can now look at the private sales on ebay and the like.
I couldn't sell it last summer (no interest), so was happy to sell quickly rather than worry about eeking out the best price.
At least I can now look at the private sales on ebay and the like.
Normodog said:
I recently sold my 2013 street triple r. Bought in October 2020 for £3750.
Had it up for 4995, local dealer called and offered me £3300. I politely told him to sod off. I sold it privately the next day for the full asking price.
I'm not surprised they are struggling to find good stock, it's so easy to get a good price selling privately that there is no need to consider selling to a dealer.
Obviously the bike you're selling needs to be reasonably desirable and in good order to achieve the decent prices.
yes they are all offering silly money wanted a trade-in when I got my mt10 Sp on the old bike they were all taking the piss on price sold it for 3 times what any would offerHad it up for 4995, local dealer called and offered me £3300. I politely told him to sod off. I sold it privately the next day for the full asking price.
I'm not surprised they are struggling to find good stock, it's so easy to get a good price selling privately that there is no need to consider selling to a dealer.
Obviously the bike you're selling needs to be reasonably desirable and in good order to achieve the decent prices.
MT10-SP said:
yes they are all offering silly money wanted a trade-in when I got my mt10 Sp on the old bike they were all taking the piss on price sold it for 3 times what any would offer
My bikes are priced to undercut SBF yet I'm having buyers wanting to PX their bikes at full market value"It's currently advertised at £3995 and I would accept £3795 in PX"
I bet you would !
KTMsm said:
My bikes are priced to undercut SBF yet I'm having buyers wanting to PX their bikes at full market value
"It's currently advertised at £3995 and I would accept £3795 in PX"
I bet you would !
id have taken a sensible price factoring the dealers need for profit but I want going to be giving it away to chancers like that"It's currently advertised at £3995 and I would accept £3795 in PX"
I bet you would !
they were taking the absolute piss
but I was in a position not to need cash from it to buy a new bike so could wait and sell later
Edited by MT10-SP on Tuesday 25th May 09:16
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