There's no denying that inflation has caused the powersports market to contract. Nearly every brand is reeling from lower consumer confidence, as well as stagnant wages and the dollar just not being worth what it once was. And the brands playing in the premium market have suffered the worst portions of that contraction.
Polaris, Can-Am, KTM have all seen double-digit declines in sales and revenue and, most of all, Harley-Davidson. And it's simple math.
When you have an average transaction price of around $25,000 to $30,000 on luxury goods like a new motorcycle when most are having trouble just paying rent or mortgages—at least for Harley—those items are the first to suffer these market conditions. So it makes sense that Harley's cut the price of its base-model Nightster, the brand's most inexpensive offering, by $500 to under $10,000. And that's good!
But I don't necessarily believe that Harley's sales woes are completely linked to the brand's pricing, which is something I told the brand's PR folks when I was with them for the Softail launch in Texas a few weeks back. Instead, I think Harley actually highlights the real issue in the press release talking up the Nightster's price drop. And it revolves around the brand's truly awesome rider training program.
The Nightster, even as inexpensive as it is and representing Harley's introductory bike, is too much motorcycle to be any sort of motorcycle introduction.
I want to read off some stats for the Nightster, and want to see if you can spot the issue with it being an entry-level motorcycle built for new riders. Powered by Harley's Revolution Max 975T, the Nightster has nearly 1,000ccs and produces 91 horsepower and 72 pound-feet of torque from its V-twin. It also weighs 481 pounds. That's, well, that's a lot for a new rider to deal with. Heck, that's a lot for a seasoned rider in most circumstances.
But the problem with the Nightster being Harley's lone introductory motorcycle is highlighted further with the fact that customers can get a sweeter deal on the Nightster if they complete Harley-Davidson's Riding Academy, which has trained up over 1 million new riders since its inception (and that's awesome!). According to the brand, "Nightster motorcycle customers that have completed the Harley-Davidson Riding Academy Course or another approved accredited course are eligible for the Rider Training Graduates 5.99% APR financing offer through Harley-Davidson Financial Services if the motorcycle is purchased within 180 days of course completion."
So not only do you get a price cut, but you can also get better financing terms. Which is solid.
And I hear you asking, "What's the problem?" Well, those same new riders are being trained on Harley-Davidson's small-displacement motorcycles like the X350 and X440. Those are low weight, low power, and are far more nimble than the Nightster. So despite the price reduction, the barrier to entry going from the Riding Academy bikes to the now cheaper Nightster is pretty large. And yes, I've made this case before. I even made this case directly to the Harley-Davidson representatives in Texas.
Obviously, they aren't the ones making the lineup decisions. But I hope that Harley-Davidson's executives see where the market is going in terms of inexpensive, small-displacement motorcycles that they already build and which have become so successful elsewhere around the world. There is the issue of our awesome tariff wars here in the U.S. impacting those imports, as these motorcycles are built in partnership with Hero.
I do still think the Nightster is a good value, especially for someone looking to trade up from a used Harley-Davidson or Indian. It's a new motorcycle for under $10,000, and that's always a good thing.
