Owning a Harley-Davidson motorcycle is the dream of many bikers. It is also a collector’s item that has provided healthy investment returns over the years. 

The Harley market has been growing steadily in the US. According to Forbes, Harleys accounted for 55.5% of the new heavyweight motorcycle (between 750 and 1,200cc) registrations in 2015. 

In the US, heavyweight motorcycles make up 85% of the total motorcycle market. Trefis, an analytics solutions provider led by Massachusetts Institute of Technology engineers and Wall Street analysts, expects the US heavyweight motorcycle market to grow at a compound annual growth rate (CAGR) of 4% until 2020. 

Harleys have attracted handsome returns at auctions. A 1927 Harley-Davidson FHA 8-Valve V-Twin racer was sold to an Australian bidder for A$600,000 at Shannon’s Melbourne Spring Auction in 2015. The rusted light green motorcycle, one of only a handful of Harley-Davidson 1,000cc 8-Valve racers left in their original condition, was initially expected to sell for about A$100,000.

In 2014, the “Captain America” Harley-Davidson Panhead used by actor Peter Fonda in the movie Easy Rider was reportedly auctioned off for US$1.62 million — the largest sum ever paid for a motorcycle. However, as there was doubt over the authenticity of the bike, the sale fell through. 

The late Hollywood actor Steve McQueen’s 1912 Harley-Davidson X8E Big Twin was sold for US$82,800 at a Bonhams auction on Jan 26. According to www.nadaguides.com, an X8E in mint condition is worth US$98,680 while one in poor condition is worth US$16,700. 

In 2014, the Harley-Davidson Dyna Super Glide that had been presented to Pope Francis was auctioned off for a staggering US$364,476. The Harley Davidson Dyna range currently retails at US$15,000 to US$20,000.

However, these numbers do not necessarily translate into good returns in the Malaysian secondary market. Hence, it is better to sell a vintage or classic Harley than a new or reconditioned one. 

Alex Lock, senior sales executive at NZ Wheels Sdn Bhd, a Mercedes-Benz dealer, says, “The US and Malaysia are two totally different markets. The price of Harleys in Malaysia has no correlation with prices in the US as we have to factor in the high tax incurred.”

Ron Lim, a sales manager at Lamborghini Malaysia, concurs. “The Harleys in Malaysia are slightly more than double the prices in the US because of the tax. So, our market can never be as good as the US,” he says.

Datuk James Supramaniam, developer at Oceanplan Builder Sdn Bhd, says, “In terms of new Harleys, the prices have gone up. Every model has increased by RM10,000. The Street and V-Rod are now RM190,000 while the Touring Road King is RM188,000. The price increase was due to the currency depreciation and fitting of a new engine.”

Datuk Alex Lau Jack Soon, director at Pacific LK Logistics Sdn Bhd, says although Harleys are more expensive in Malaysia, they are still cheaper than in other Asean countries. 

“Harleys in Malaysia are cheaper than in some countries in the region, especially Indonesia. Harley-Davidson outlets closed down in Indonesia because of the price range. Their prices were double that of ours because of the luxury tax,” he says.

“Harleys are better priced in Thailand. They are slightly cheaper there than in Malaysia and Indonesia. In Singapore, they are a lot cheaper — about 30% cheaper.”

There are nine Harley model families — the Street, Sportster, Dyna, Softail, V-Rod, Touring, S Series, CVO and Trike. The most common models in Malaysia are the Dyna, Softail and Touring.

Vintage bikes

Like classic cars, vintage motorcycles have a higher resale value than newer ones due to their scarcity. Vintage bikes are classified as those older than 25 years.

“It can be said that the resale price of classic Harleys exceeds the original price. So, those who buy classic bikes do not lose money. The worst that can happen is that they can sell it at the same price they bought it for,” says Lim. 

He adds that the price appreciation of classic motorcycles are similar to that of classic cars. “Say you bought a Softail Fat Boy for more than RM40,000 about 25 years ago. You could probably sell it for RM60,000 today. So, in a way, you get your money back — although in my opinion, you do not actually make money because of the cost of maintaining the bike for so long.”

David Tham Wee Seng, manager at Hemijaya Sdn Bhd, an events management company, says it is uncommon to see a vintage Harley on Malaysian roads. “Such Harleys are not commonly seen in this country.”

Lim says, “In general, most people sell their first Harley to buy newer and better models as they are much improved and easier to ride. They usually sell their bikes after five years. But there are a few owners who hold on to them — I am one of them.” 

A Harley owner could also make a return on limited edition bikes, such as the anniversary editions, says Nick Lum, marketing director of direct sales at Optimo International, an importer and wholesaler of consumer goods. “Every five years, they will come up with an anniversary edition. And of course, it will have a higher value or price.”

Examples of limited edition models include the 2008 Harley-Davidson Road King Classic 105th Anniversary EDTN and the 1988 Electra 85th Anniversary Edition Harley-Davidson. According to Amirin Rasydan, a sales adviser at Harley-Davidson Kuala Lumpur, these bikes originally retailed for RM100,000 to RM200,000 and the current resale values are similar. But for those who are eager to sell their Harleys, they may be willing to go as low as RM96,000 and RM79,990 respectively, as seen on e-commerce portal Mudah.my.

Harley owners who modify their motorcycles to suit their personal taste will help boost their prospects of being sold. According to Lim, modified bikes do not necessarily push up prices, but they make the bike easier to sell as it is unique. 

Lock agrees. “Usually, people allocate RM10,000 to RM20,000 — which is 20% to 30% of the price of the bike — for this, although it is just as easy to spend up to RM100,000 on modifications. This makes it easier to sell the bike to some buyers,” he says.

Lim says there is little profit to be made from selling a non-vintage or second-hand Harley in Malaysia as the local market is much smaller than in the US. “The selling price normally drops from the time you buy it and its depreciation depends on how old the bike is.”

Nicholas Ong Nam Keat, director at ONK Auto Enterprise, a used car dealer, elaborates. “From what I understand, years ago, Harley made a huge profit in Malaysia. Prices of the bikes were high, so were their second-hand value. Because of that, as well as the limited number of sellers, the bikes had a very good reserve value.”

According to the eight members of the Heaven Road Bikers Motor Club (HRB MC), an unofficial Harley-Davidson owners club, there has been a rise in ownership of Harleys in Malaysia. However, prices on the secondary market are not improving because there has been an influx of reconditioned bikes into the market.

“In 2000, only about 12 Harleys were sold — hence, an average of one bike a month. After Naza Prestige Bikes Sdn Bhd, a subsidiary of the Naza Group of Companies, took over in 2008, there was a jump in sales,” says Lau. 

“If I am not mistaken, in the first year after the takeover, Naza sold 200 bikes. The following year, it sold 300 to 400 bikes and it kept increasing from there. Perhaps this is due to its effective promotional activities.

“The local market for Harleys was not great until the last couple of years. This was due to the influx of second-hand Harleys from other markets. This made a lot of difference — doubling or tripling the sales of Harleys in the country. Sales in the secondary market increased at least twofold.” 

Lim says, “A few years ago, the government decided to allow the import of used Harleys. Previously, only new bikes were allowed to be sold here.” 

The import of used Harleys has affected the price and market, says Ong. “Prices have dropped a lot. Now, as our currency is depreciating, the import duty has gone up. The market is bad now, so the price of second-hand Harleys will not go up.” 

Buying and reselling Harleys

There are two channels to buy Harleys in Malaysia — either through the flagship Harley retailer or one of the importers of vehicles. “There are plenty of private importers, some of which are car dealers that bring in used Harley bikes. However, if you want a brand-new Harley, you will need to get it from Naza (the sole importer and dealer of Harleys in Malaysia),” says Michael Lim Chee Keong, a service centre manager at Hino Motors Sales (M) Sdn Bhd.

These bikes are also sold on online marketplaces such as Mudah.my. A check on Feb 7 showed that there were 245 Harleys for sale in Malaysia, ranging from a 1993 Harley-Davidson Ultra Classic Electra Glide to a 2015 Harley-Davidson Road Glide Special. 

On the marketplace, the cheapest Harley offered is the 2011 Harley-Davidson VRSCF V-Rod Muscle (RM32,000) while the most expensive is the 2009 Harley-Davidson CVO Softail Springer 2009 (RM250,000). 

Lum says the prestige of owning a Harley surpasses that of owning other motorcycles because of its history and heritage. “The Harley has character. And you can hardly find a bike that is more difficult to ride than a Harley. But they are well liked because they are elegant, they sound good and it is a lifestyle brand,” he adds. 

“It is so recognisable that when it comes to biker groups, people will only classify it as a Harley biker group or other biker groups. Harley or others — that is the distinction.”

Like many passion investments, Harley owners hardly factor in the monetary benefits when buying the iconic bike, says Lim. “We are living our childhood dream. When we buy a Harley, we hardly think of making a return. We buy it because we love the feeling of riding a Harley. You cannot get the same feeling with other bikes.”

The beginner’s guide to Harleys

For those who wish to own their first Harley, the Heaven Road Bikers Motor Club has a few tips:

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.