Developments in Motorcycle Rental

[DGS49]

For those who do such things (I do), motorcycle rental took a giant turn for the worse a few months ago, and I doubt that very many people are aware of it.

Eagle Rider is a nationwide company that rents motorcycles on a short-term basis. Many Harley Davidson dealers have also provided rentals for many years - a little more costly - but if you rent on vacation you could usually rely on either an Eagle Rider or a H-D rental agency being in the area. Eagle Rider also rents Harley's, if that's what you want.

The advantage to Eagle Rider is that they rent many different brands. I like to rent a big touring bike, so I've rented Indians, BMW's, and a Goldwing from Eagle Rider, as well as a couple of Ultra's at Harley shops.

But the landscape has changed drastically. Eagle Rider (Franchisor) has entered into a deal with Harley Davidson that FORBIDS THEM FROM RENTING ANY OTHER BRAND. And this deal - made without any input from the franchisee network - also binds all franchisees. So if they want to continue renting other brands, they will lose their franchise.

To be concise, this sucks.

In fact, I wonder why the Justice Department isn't looking into it. This is blatantly a monopolistic practice by H-D - which already controls most of the market for big cruisers - and could be a violation of the Sherman Anti-Trust Act. I'm not privy to the franchise agreement itself, but it is surprising to me that the franchisor can make such a major change in the business model without consulting the other parties to the agreements.

If anyone out there knows more details (or knows that I'm wrong about something), I would appreciate the input.

 

[rightwinger]

Opportunity for someone else to fill the void by offering a greater number of options

Maybe rent some classic bikes

 

[Marion Morrison]

For those who do such things (I do), motorcycle rental took a giant turn for the worse a few months ago, and I doubt that very many people are aware of it.

Eagle Rider is a nationwide company that rents motorcycles on a short-term basis. Many Harley Davidson dealers have also provided rentals for many years - a little more costly - but if you rent on vacation you could usually rely on either an Eagle Rider or a H-D rental agency being in the area. Eagle Rider also rents Harley's, if that's what you want.

The advantage to Eagle Rider is that they rent many different brands. I like to rent a big touring bike, so I've rented Indians, BMW's, and a Goldwing from Eagle Rider, as well as a couple of Ultra's at Harley shops.

But the landscape has changed drastically. Eagle Rider (Franchisor) has entered into a deal with Harley Davidson that FORBIDS THEM FROM RENTING ANY OTHER BRAND. And this deal - made without any input from the franchisee network - also binds all franchisees. So if they want to continue renting other brands, they will lose their franchise.

To be concise, this sucks.

In fact, I wonder why the Justice Department isn't looking into it. This is blatantly a monopolistic practice by H-D - which already controls most of the market for big cruisers - and could be a violation of the Sherman Anti-Trust Act. I'm not privy to the franchise agreement itself, but it is surprising to me that the franchisor can make such a major change in the business model without consulting the other parties to the agreements.

If anyone out there knows more details (or knows that I'm wrong about something), I would appreciate the input.

Sounds like an opportunity is opening up there. I would want to rent a CBX if I rented a bike, or an Interceptor.

Maybe an RD400. Goldwings would probably be what everybody wants, though.

 

[DGS49]

I've often thought that a business might be possible renting desirable older bikes, which can be bought for just a few thousand dollars. As mentioned above VFR's, Goldwing 1500's, Maybe some big Japanese cruisers.

It's so obvious, but I've never heard of it being done.

As for newer big bikes (like Eagle Rider used to have), I think the problem is that they depreciate too quickly. Harley's are different, because a dealer can rent them out until they have a few thousand miles on them, and still sell them at a profit. But for a used BMW or even an Indian, the value drops like a rock.

 

[rightwinger]

I've often thought that a business might be possible renting desirable older bikes, which can be bought for just a few thousand dollars. As mentioned above VFR's, Goldwing 1500's, Maybe some big Japanese cruisers.

It's so obvious, but I've never heard of it being done.

As for newer big bikes (like Eagle Rider used to have), I think the problem is that they depreciate too quickly. Harley's are different, because a dealer can rent them out until they have a few thousand miles on them, and still sell them at a profit. But for a used BMW or even an Indian, the value drops like a rock.

I have seen places that rent classic cars, I don’t see why they couldn’t offer motorcycles also

Motorcycles rent at a premium, don’t see how they can lose money.

 

[DGS49]

Overhead is a bitch. It's not just some enthusiast renting cheap bikes out of his garage. You need a storefront, advertising, insurance, full-time staff, licenses. How much could you get for rental of, say, a 2002 VFR? $50/day? Not much more than that.

As I ruminate about it, a small motorcycle repair shop might be a good platform for this business. They have the mechanics, the licenses, and the knowledge already. Add a f/t marketing/business guy and $50,000 in inventory and you're in business.

 

[Uncensored2008]

For those who do such things (I do), motorcycle rental took a giant turn for the worse a few months ago, and I doubt that very many people are aware of it.

Eagle Rider is a nationwide company that rents motorcycles on a short-term basis. Many Harley Davidson dealers have also provided rentals for many years - a little more costly - but if you rent on vacation you could usually rely on either an Eagle Rider or a H-D rental agency being in the area. Eagle Rider also rents Harley's, if that's what you want.

The advantage to Eagle Rider is that they rent many different brands. I like to rent a big touring bike, so I've rented Indians, BMW's, and a Goldwing from Eagle Rider, as well as a couple of Ultra's at Harley shops.

But the landscape has changed drastically. Eagle Rider (Franchisor) has entered into a deal with Harley Davidson that FORBIDS THEM FROM RENTING ANY OTHER BRAND. And this deal - made without any input from the franchisee network - also binds all franchisees. So if they want to continue renting other brands, they will lose their franchise.

To be concise, this sucks.

In fact, I wonder why the Justice Department isn't looking into it. This is blatantly a monopolistic practice by H-D - which already controls most of the market for big cruisers - and could be a violation of the Sherman Anti-Trust Act. I'm not privy to the franchise agreement itself, but it is surprising to me that the franchisor can make such a major change in the business model without consulting the other parties to the agreements.

If anyone out there knows more details (or knows that I'm wrong about something), I would appreciate the input.

If there is a market for the other bike, someone will fill the void.

 

[Jarlaxle]

For those who do such things (I do), motorcycle rental took a giant turn for the worse a few months ago, and I doubt that very many people are aware of it.

Eagle Rider is a nationwide company that rents motorcycles on a short-term basis. Many Harley Davidson dealers have also provided rentals for many years - a little more costly - but if you rent on vacation you could usually rely on either an Eagle Rider or a H-D rental agency being in the area. Eagle Rider also rents Harley's, if that's what you want.

The advantage to Eagle Rider is that they rent many different brands. I like to rent a big touring bike, so I've rented Indians, BMW's, and a Goldwing from Eagle Rider, as well as a couple of Ultra's at Harley shops.

But the landscape has changed drastically. Eagle Rider (Franchisor) has entered into a deal with Harley Davidson that FORBIDS THEM FROM RENTING ANY OTHER BRAND. And this deal - made without any input from the franchisee network - also binds all franchisees. So if they want to continue renting other brands, they will lose their franchise.

To be concise, this sucks.

In fact, I wonder why the Justice Department isn't looking into it. This is blatantly a monopolistic practice by H-D - which already controls most of the market for big cruisers - and could be a violation of the Sherman Anti-Trust Act. I'm not privy to the franchise agreement itself, but it is surprising to me that the franchisor can make such a major change in the business model without consulting the other parties to the agreements.

If anyone out there knows more details (or knows that I'm wrong about something), I would appreciate the input.

Pablum. As of right now, Eagle Rider still rents Honda, Indian, BMW, Triumph and Ural motorcycles, along with Polaris Slingshots.

 

[DGS49]

Yes. I'm not sure what's going on there. Our local Eagle Rider franchisee doesn't go along with much of the corporate stuff. Often, when there is a national promotion they don't participate. In any event, he told my son some months ago the story about Eagle Rider going all-Harley. Now, i've seen promotions where ER corporate is emphasizing the off-brands. I'm not sure what to make of the local guy. As said above, I like to rent from them when traveling, bot no Harley's.

 

[Admiral Rockwell Tory]

It is not an anti-trust issue as long as someone can start another company to rent the other models. Why don't you get some investors together and do just that?

 

[DGS49]

I've had many discussions over the years with people who suggested that renting USED bikes - mainly Japanese - could be a viable business opportunity. They can be purchased for incredibly low prices and they are very reliable. Interesting thought, I but I can't see any getting around insurance issues, needing a VERY GOOD mechanic in house, and general overhead requirements that might make it un-viable during the cold months.

On a much smaller scale, I was looking to "rent" a bicycle in florida for two weeks recently and found that the reputable bike shops wanted a couple hundred bucks, which is insane. So I bought a bike on Craigslist, then returned in two weeks later about half what I paid. The guy who sold it to me has a little part-time business buying and selling bikes, and occasionally doing what he did with me. he buys them for $40 or $50 at garage sales, tunes them up and replaces what needs replacing, then sells them for a hundred or so. Not enough to support himself, but worth his time.