Foreclosure Suit hits Illinois Harley Davidson Dealership

[XDCX]

While I know this isn't a Motorcycle Dealership Forum I still thought the news report about a foreclosure suit hitting an Illinois Harley Dealership was interesting. Here's a link to the full report - click here

Here's what caught my attention:

• I was surprised that some Harley Davidson stores are still struggling
• It was interesting to learn that Harley's Dealer Count had dropped from 788 in 2007 to the current count of 695
• It was interesting that the local bank that first issued the loans sold them off to a Colorado Investor Group after the loans needed to be renegotiated

Concerning the Investment Group, I imagine they bought the loans at a steep discount and now they're working to maximize their return. It's just a guess on my part, but I'm betting that an out-of-state Investment Group is going to be much more likely to play "hardball" with a dealer who is in arrears than the local bank which originated the loans.

[tnpartsguy]

One of the oldest Harley dealers in middle TN went bust last fall. It was the 1st in the area to go with the Chrome Diner look.

http://nashvilleear.blogspot.com/201...osing-its.html

[DealerEx]

Originally Posted by tnpartsguy

One of the oldest Harley dealers in middle TN went bust last fall. It was the 1st in the area to go with the Chrome Diner look.

http://nashvilleear.blogspot.com/201...osing-its.html

Say it ain't so! surely the factory couldn't have been wrong about a new facility being needed?

[XDCX]

Originally Posted by tnpartsguy

One of the oldest Harley dealers in middle TN went bust last fall. It was the 1st in the area to go with the Chrome Diner look.

http://nashvilleear.blogspot.com/201...osing-its.html

That's too bad - sounds like the dealership was well liked/supported by the community.

[XDCX]

Originally Posted by DealerEx

Say it ain't so! surely the factory couldn't have been wrong about a new facility being needed?

Great point - this wouldn't be the first example where a dealer built a new facility at the encouragement of their OEM and then lost their whole business when the rent factor became unbearable.

The other downside to building an expensive custom facility is that it has limited appeal if the business goes under. How much demand can there possible be for a stainless steel building that looks like a diner?

[steve_biegler]

http://harleytechtalk.org/htt/index.php?topic=57012.0

If you look about 4 or 5 posts down there is talk of some of the HD requirements.