I was in vehicle sales in California for several years , (not motorbikes) we never wrote stock down on the books , for one the manufacturer gave 60 days after delivery before they invoiced the sale to us , second , the average time a vehicle was on the lot was between 30 and 45 days (between delivery and sale) so its not like the vehicles are gathering dust .
the only time we had distressed merchandise was if there was a recall vehicle that failed a govt regulatory requirement (EPA) and that was a manufacturer issue . Finance incentives are used by sellers to move vehicles that are more than 60 days in the yard ( in our case the manufacturer had its own finance company ) which is about the time the vehicle is invoiced to the dealer , by the in country manufacturer
Probably however as motorcycles are imported there is not such a close relationship between manufacturer and dealer and also the time line from production to getting on the lot is longer so there would not be such good financial incentives , so more incentive on the part of the dealer to move the stock .
Having high inventory levels may also be a company strategy given the fickleness of shipping timelines currently
Really interesting industry to be involved in regarding financing !
MTO Price at posting:
$2.44 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)