You are so right bad shzt happens to good people very day

 

Well we started a new program at the dealership i work at, like the Huyandi (spelling?), if for some reason you fall into tough times, then well buy the bike back. The problem with this is, we saw last year, alot of people buy bikes around this time (April - May), and they dont make a single payment on the motorcycle, and they ride the whole season before Harley comes gets it. Harley usually sends people out after like 4-6 late payments. We have this new program, and are seeing it already potentially being abused...

 

Defaults are certainly a part of any financial company's headaches in today's world.

The bigger problem most if not all companies face is the ability to raise debt which in HDFS's case, they need to fund their bike loans. They used to bundle these loans up and sell them to investors - can't do that now. If you have not noticed, corporate interest rates have gone sky-high and the availability of capital has all but dried up. So, they have to hold the finance contracts on their balance sheet and take on more debt in HDFS to fund them - that's why they tapped Warren Buffett and another investor for some loans. At least they are able to provide some financing and keep new bike sales going.

 

My point was that some of these guys *DO* go in to the situation knowing that they won't be able to make the payments and only do it to have a bike to ride for a few months. Yes, some good people fall on hard times, but I can't agree with you that *Everyone* that gets repoed had good intentions and are "good people".

 

duh???

 

Sad times....

 

Seems funny that his insurance didn't cover the loan. Most insurance policies have death clauses to cover the note don't they?

 

I agree.
But I have been listening to financial shows and people actually call and ask///
I cant pay for my house....
so, I am gonna loose it...
Is now a good time to buy a car?

There thinking is, after that house gets taken away they wont be able to get a car... so get the car now... the start of trouble.

 

Harley credit is doing it to themselfs, same as the rest of the lenders in this country. When I bought the Classic, they approved me for $52,000. I mean come on. That would've been what? $900 a month. The salesman was trying to get me to put EVERYTHING they had on that bike, and gear up on motorclothes. Just stupid.

 

I totally agree, with this bad economy I have personally seen a few friends down on their luck, good hard working people!