Harley-Davidson's Q1 2023 Results: Credit Losses and Sales Drop.
Harley-Davidson's credit losses in Q1 were partly due to a shortage of repossession agents, as the repossession industry sees an uptick in demand amid more Americans struggling to afford their car payments. The shortage combined with a decline in retail bike values contributed to realized credit losses of about $52.6 million. Many repossession agents left the industry during the pandemic when business largely dried up due to stimulus measures. The company is making enhancements to its repossession strategy and expects a seasonal recovery in credit losses to reduce the loss rate in the coming quarters.