A bright spot for HDFS is the particularly strong resale market for used Harleys just now, according to recent data from the National Automobile Dealers Assn.
That reduces the severity of loan losses if HDFS is forced to repossess motorcycles.
"The good thing about Harleys is they don't decline wildly in value," says Barnett, the Texas dealer.
Unfortunately, that can't be said of Harley-Davidson stock. The shares have lost half their value over the past two years.
Image: The facade of the Harley Davidson cafe on Las Vegas Boulevard | Photograph: Pascal Le Segretain/Getty Images
Also read: Dressing for the recession
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