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A 2024 Harley-Davidson CVO Road Glide ST starts at $42,999. A 2024 Ducati Multistrada V4 RS has an MSRP of $37,995. A 2024 BMW M 1000 RR starts at $33,345. Do these prices seem outrageous? Particularly considering that they are not one-off boutique-built machines; they are from manufacturers who build tens of thousands of motorcycles each year. So how much is too much?
Motos that cost more than cars
In some cases, the above prices exceed the prices for decent-sized family cars. What is driving the high prices for motorcycles such that some mainstream motorcycles cost more than a family’s four-wheeled transportation?
Harley-Davidson’s 2024 CVO Road Glide ST can set you back more than many family SUVs. Photo: Harley-Davidson
Certainly, material and labor costs have increased, so we can expect motorcycle manufacturers to increase their prices. But do the machine’s asking prices make sense? Isn’t there far more material and labor in the production of an automobile? Why are motorcycles getting so expensive?
Frankly, I can’t give you a definitive answer. I haven’t found any detailed studies that directly examine the cost to manufacture motorcycles and automobiles. But I do have a guess as to why some motorcycles are hugely expensive, and the answer is quite simple. It’s because “we” are willing to pay those high prices.
Creating desirability
Take Harley-Davidson as an example. Their current CEO, Jochen Zeitz, has consistently raised the price (and reputed quality) of their motorcycles in an attempt to make them into what he says are the most desirable in the world. He’s successfully limited production to reduce supply and, as a result, raised the prices of Harley’s.
Ducati is also known for its Italian styling and purported performance. While not taking the same road as Harley’s Zeitz, Ducati tries to make their bikes more desirable using their perceived performance pedigree and outstanding styling. And Ducati’s sales are up.
BMW’s M 1000 RR is very sporty and very capable, but would you pony up the $33,345 asking price? Photo: BMW
Eating it up
And if we examine the situation more closely, we are literally buying their sales pitches. Some of us are paying more for a motorcycle than a family automobile. And so, I have to ask, “Is there a point where the average rider determines that owning a motorcycle is too expensive?” I certainly have a cutoff point, and I imagine that most of the motorcycle-riding public has one as well.
Income
Of course, personal income has a significant effect on how much a person is willing to spend on a motorcycle. But in some cases, it does not stop a person from buying or trying to buy a very expensive motorcycle. For example, Harley-Davidson continues to limit production and raise prices. And they have a separate finance branch to offer financing to potential buyers.
Affordability and repossession
However, the MoCo has recently seen a higher rate of repossession than it had in the past. Lots of things can affect the number of repossessions a manufacturer has to make. But could a significant part of it be that people who really can’t afford a particular motorcycle go out and buy one anyway? Do these people have a limit on how much they would spend on a motorcycle? Apparently not.
Do you have a limit?
What do you think? Is there an absolute cutoff limit where you would say, “That’s too much money for a motorcycle, any motorcycle?” And if you do, what is that limit?
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