Harley-Davidson Inc has taken the rare step of offering rebates on its 2016 motorcycles to U.S. dealers as an incentive for them to shift a backlog that has restricted sales of its latest models, three dealers and two analysts said.

Keen to protect its premium-brand image, Harley-Davidson does not discount its bikes. The unusual promotion, which the dealers expect to run until the end of April, is likely to weigh on the U.S. motorcycle maker’s margins in the first half of the year, the analysts said.

After announcing a few months ago that Harley-Davidson is plotting a full-scale aassault on the motorcycle market (50 models in five years in an historic promise), such a promotion will probably limit shipments of its 2017 models, including the new “Milwaukee-Eight” engine touring motorcycles. Three U.S. dealers and two analysts said Harley was offering rebates of up to $1,000 on each sale of its 2016 motorcycles, including its higher-end touring bike, cruisers and Sportsters.

The dealers spoke to Reuters on condition of anonymity as the information is confidential. Dozens of other dealers declined to comment on the rebates. Harley did not respond to a request for comment on whether it had offered rebates to its dealers. As of Dec. 31,

 

The reality is this - a 1000.00 rebate, well the bike is depreciated more than a 1000 at this point...

 

You should at least cite your source from Cyril huze before posting it as your own. That's english 101 if you are inclined

 

I'll buy a 2016 if they'll discount it 10k That's about what a new one is worth to me.

 

Cutthroat marketing to move last year models & old stock off the floor, reduced production numbers on the new M8 platform and the new models to be released later this year means fewer bikes on the floor and wait periods to order a non stocked biked.

You do the math on what is going to happen to prices, doesn't take an economics degree to see this coming.

 

https://www.yahoo.com/finance/m/9fd8...ill-offer.html

 

Definitely will need to come down more than a grand, no reason to buy a 16 when a 17 is right next to it, with a bigger motor, better suspension, and less depreciation for only 1k more....

 

They have to do something.

There is a huge glut in the used bike market right now. Around here, touring bikes with 8-10k on them are selling at many thousands below the original sticker prices.

Buyers market for sure. If Harley is going to introduce 50 new models, there will be lots of flippers buying new. That means more bikes flooding the used market.

 

Considering that there is a few thousand dollar markup on most Harleys, the dealers have more room than just the $1,000 rebate to play with.

 

Bad link. And I'm not finding anything online about a H-D rebate.