Harley-Davidson will follow in the footsteps of many car manufacturers and launch a certified pre-owned bike program.
The famed bike manufacturer has been losing U.S. market share due to declining retail sales but demand for used Harleys remains strong. With this in mind, chief executive Jochen Zeitz is heading up a five-year turnaround strategy that will look to expand the brand’s appeal beyond middle-aged and affluent riders, Reuters reports.
J.D. Power notes that Harley was the most sought-after brand in the market for used big bikes in 2020. In fact, some Harley-Davidson dealers say that pre-owned bikes outsold new ones three-to-one last year, and with the coronavirus pandemic leading to an increased demand for outdoor recreational activities, this demand may grow further.
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“We believe this program will drive Harley-Davidson desirability, increase sales and margins, and enhance the overall customer experience while supporting growth,” Zeitz said in a statement regarding the certified pre-owned program.
The company’s program will certify motorcycles up to five years old with up to 25,000 miles (~ 40,000 km) on the clock. These bikes will be inspected and backed by a 12-month limited warranty and can also be financed directly through Harley-Davidson.
The company will launch the program in late April and already, more than 300 dealers have expressed interest in participating.
“The biggest competition for a new Harley-Davidson bike is not an Indian bike or a Honda, or a Suzuki bike, but is a used Harley-Davidson bike,” analyst at Wedbush Securities James Hardiman said.
Car manufacturers have been operating certified used vehicle programs for many years. These programs don’t just generate more business, but they also help cultivate brand loyalty.
