Another bike dealer closed
Another bike dealer closed
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Discussion

papa3

Original Poster:

1,516 posts

205 months

Wednesday
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Iron City Facebook announcing closure of South Shields.

These guys were decent and seemed to have a grip of their business. Shame to see another one gone.

Bob_Defly

4,950 posts

249 months

Wednesday
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Wow, it really looks like motorbike dealers are having a terrible time in the UK.

hiccy18

3,481 posts

85 months

Wednesday
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That's my second nearest KTM dealer gone, was kinda hoping we'd get one closer rather than losing another. irked

papa3

Original Poster:

1,516 posts

205 months

Wednesday
quotequote all
hiccy18 said:
That's my second nearest KTM dealer gone, was kinda hoping we'd get one closer rather than losing another. irked
KTM is a great brand but they are yet to recover from their financial woes. Stock is thin on the ground and margins are being destroyed by aged stock clearances. Enfield margins are poor on a good day so the combination or brands would be a challenge aside from the wider issues in the industry.


slopes

40,960 posts

205 months

Yesterday (07:24)
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Bob_Defly said:
Wow, it really looks like motorbike dealers are having a terrible time in the UK.
Nobody - apart from those already owning bikes - are buying bikes anymore, it's not like the late 70's through to early 90's when younger people wanted bikes, the social media generation don't care about motorbikes. I was out some time ago in Matlock Bath one weekend and almost everyone there on a bike, was of the older generations, i think i saw maybe 10younger people on bikes. The reast were all my age -l ate 50's - or close to it either side.



smifffymoto

5,167 posts

223 months

Yesterday (07:32)
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Bikes are also expensive now.
They are only seen as reasonable because of manufacturer finance deals and 0%.

hiccy18

3,481 posts

85 months

Yesterday (08:02)
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papa3 said:
hiccy18 said:
That's my second nearest KTM dealer gone, was kinda hoping we'd get one closer rather than losing another. irked
KTM is a great brand but they are yet to recover from their financial woes. Stock is thin on the ground and margins are being destroyed by aged stock clearances. Enfield margins are poor on a good day so the combination or brands would be a challenge aside from the wider issues in the industry.
I fancy changing my bike next year, SDGT is top of the list. Or it would be if the nearest dealer wasn't two hours away. For a main bike that'll need at least a service a year, possibly two, plus possible warranty work, that's more awkward than I'd put up with. In an ideal world KTM would have some kind of dealer support atm, but they're in no position for that.

Freakuk

4,124 posts

169 months

Yesterday (08:23)
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Bikers are getting older, I'm not sure why everyone had a bike when I was young, it took me until 28 until I swung my leg over one though.

There's also been a big shift in what people want to ride (probably age related), I was obsessed with sportsbikes back then but how many new sportsbike sales are there these days, everyone seems to be migrating to retro bikes, super naked's, adventure bikes.

And the bike on sale now are expensive, gear, tyres, servicing it all adds up. As much as I'd like another bike I don't ride anywhere near as much as I used to so spending a good chunk of cash on something I'm barely going to use just doesn't seem the best use of my cash, even my man maths cannot justify it these days.

Edited by Freakuk on Thursday 9th October 10:17

ChocolateFrog

32,844 posts

191 months

Yesterday (08:28)
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I'll be honest, since selling my last bike I rarely if ever miss it.

I've got a mate who is a year into a 2 year RTW trip on a Triumph Scrambler who I envy but other than that I can live without bikes and it's not money that's the issue.

Trevor555

4,879 posts

102 months

Yesterday (08:36)
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Part of owning a new bike, or car, means having to endure the main dealer service departments.

The way in which they try to rinse us nowadays has almost become too much to bare.

So for me, I'll be buying used from now on, and use my decent indies to look after them.

Plus, these modern assistance things???

My new bike cancels the indicators half way around a roundabout FFS

papa3

Original Poster:

1,516 posts

205 months

Yesterday (09:47)
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Trevor555 said:
Part of owning a new bike, or car, means having to endure the main dealer service departments.

The way in which they try to rinse us nowadays has almost become too much to bare.

So for me, I'll be buying used from now on, and use my decent indies to look after them.
Same old chant. Where do you think your used bikes come from?

Plinth

727 posts

106 months

Yesterday (10:26)
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Bob_Defly said:
Wow, it really looks like motorbike dealers are having a terrible time in the UK.
It's not looking great so far in 2025.

New bike sales figures for this year, January to September, compared with same period previously:

2025 72,996
2024 85,798
2023 89,123
2022 89,553

(source: mcia.co.uk/press-statistics)

Biker9090

1,582 posts

55 months

Yesterday (10:37)
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Licencing is longwinded and not available until (at the earliest after having an A2 for 2 years) 21.

Insurance is an absolute joke.

Theft is an issue and breeds paranoia.

The roads seem worse than ever.

No wonder they're not selling.

srob

12,219 posts

256 months

Yesterday (11:04)
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Biker9090 said:
Licencing is longwinded and not available until (at the earliest after having an A2 for 2 years) 21.

Insurance is an absolute joke.

Theft is an issue and breeds paranoia.

The roads seem worse than ever.

No wonder they're not selling.
Yet smaller independants selling second hand bikes seem to be doing ok? Certainly the ones I know of are.

Is it being a main dealer that's the issue (manufacturers demanding expensive corporative ID changes, refusing them to be multi-franchise, expensive 'must have' service tools etc) or is it that people just aren't willing to pay for a new bike?

If it's the former, it's possible to change. If it's the latter then there's a bigger issue...

Linksmas

3,121 posts

233 months

Yesterday (11:37)
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srob said:
Is it being a main dealer that's the issue (manufacturers demanding expensive corporative ID changes, refusing them to be multi-franchise, expensive 'must have' service tools etc) or is it that people just aren't willing to pay for a new bike?
Whilst it is definitely some from Column A and some from Column B I also think there is more to this we realise. Main Dealer showrooms are big places with lots of nice fixtures, fittings and furniture that will cost a lot to run, and I expect that is mandated as part of running a franchise. Yet the local independent used bike place is just stuffed with a massive range of things without any extra fuss.

papa3

Original Poster:

1,516 posts

205 months

Yesterday (12:34)
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Linksmas said:
Whilst it is definitely some from Column A and some from Column B I also think there is more to this we realise. Main Dealer showrooms are big places with lots of nice fixtures, fittings and furniture that will cost a lot to run, and I expect that is mandated as part of running a franchise. Yet the local independent used bike place is just stuffed with a massive range of things without any extra fuss.
It's a complicated issue but one that is affecting all dealers.

Main dealers have many and varied requirements placed upon them by manufacturers. From set up costs, stocking charges and tools to training, brand identity and admin, they all add up.

Margins are tight, whilst the %age margins in bike seem reasonable the wholesale values are low compared to cars. Small capacity machines only have a gross margin of £200-250, from which the dealer needs to prepare the bike (mechanical and valet) and run the business. Many dealers do not enjoy the cash position to own their stock outright so instead use manufacturer supplied funding lines. These attract significant charges which destroy NP very effectively. This is worsened by the wholesale mentality of many manufacturers and importers, forcing stock into dealers.

The realistic future of solus (one brand) dealers is bleak at best. Some businesses make accounting decisions that mask the true state of their enterprise. Those who own the premises choosing not to charge rent internally, failing to correctly adjust stock values for write off or depreciation etc which falsely inflate the balance sheet WHICH is a key factor in securing borrowing.

Some manufacturers have reacted (Honda and Ducati notably) to mirror the car model of stocking (mandated stock mix and demo holding only) where the brand carries the stock, not the dealer.

Add in the parts/clothing stocks and it is easy to see just how cash hungry a bike business can be.







Essarell

2,117 posts

72 months

Yesterday (12:52)
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That’s sad to hear about Iron City SS closing down. The site over at Dunston with Kawasaki & Triumph seems busy enough and Vertu have invested hugely over at Boldon.

Motorcycle theft must be having an impact on sales, insurance costs, dealer servicing and the one thing that’s putting me off of anew bike is the massive electronic complexity. All fine when under warranty but a future pain in the arse when you want to do is head out for a quick ride and be greeted with a plethora of warnings.

Price wise all things are relative, most manufacturers have good sports / sport touring offerings in the 9-15k bracket, BM’s always have been expensive, my 03 R1150RT was (apparently) £8800 new.



Gnits

991 posts

219 months

Yesterday (13:44)
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I have seen a bunch close in Hampshire. HuskySport in Alresford, Holeshot in Salisbury, CSS in Bracknell, Bahnstormer in Maidenhead.
I suspect motorcycles are no longer the cheaper alternative to cars and who wants to ride in the rain and get their bike stolen.

Trevor555

4,879 posts

102 months

Yesterday (14:09)
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papa3 said:
Trevor555 said:
Part of owning a new bike, or car, means having to endure the main dealer service departments.

The way in which they try to rinse us nowadays has almost become too much to bare.

So for me, I'll be buying used from now on, and use my decent indies to look after them.
Same old chant. Where do you think your used bikes come from?
You didn't actually quote the chant bit.

My indicators cancelling half way around a roundabout is the chant.

Oh, and some more chant, Honda don't even paint the frames properly anymore.



That one got rejected, the next was marginally better.

One before a Bmw, faulty from new. Bmw said "it performs as expected" and left me to get it diagnosed. 7 months with a new bike I couldn't ride.

If manufacturers want us to continue to buy new perhaps they should build/paint them properly, ditch the so called safety features, and stop ripping us off at the service desk.

No wonder new bike sales are down.

That's a chant.

Edited by Trevor555 on Thursday 9th October 14:37

KobayashiMaru86

1,713 posts

228 months

Yesterday (14:19)
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They're dwindling all the time which puts me off buying new too because you often need aftersales support. I've stuck with the same bike the last 6 years as I have rapport with the dealer and they've always done OK by me. But mates bough other marques, only for them to leave. One bought a BMW S1000RR and weeks later, M&P lost it and he ended up selling it as it was a headache to own. Few weeks ago he debated Ducati as it was local, only for M&P to totally disappear. Everything is Cardiff or further unless you have a Suzuki or Yamaha.