As far as I was aware, Ducati (Italy) are paid by a (US based) finance company the moment a bike leaves the factory and the dealer owes and pays interest to the finance company until the bike is sold when the outstanding debt is settled. Dealer’s stock is verified monthly by an independent stock taker representing the finance company. Don’t know how common this model is but if I’ve understood it correctly, if a dealer goes bust, Ducati has been paid for the stock and the risk is carried by the finance house. Andy
what a shit model for a dealer. Why would you sign up to terms that say you must have bikes, you must pay interest on bikes you won't sell and you must carry all the stock risk!
Clearly works for Ducati but gives a small insight as to why quite a few (UK) dealers walked away, especially when they were required to provide the corporate dealership showroom and facilities, at their own cost. Andy
St.Neots Motorcycles gave up the Ducati franchise years ago, after Ducati demanded unrealistic commitments. Same happened earlier with Honda. Ducati and Motorrad dealerships seem light years away from the old school dealers, that aren't staffed by suits with shiny shoes.
same with Ducati Wolverhampton, Ducati Italy wanted £50000 plus to revamp the showroom in a corporate upgrade. Wolves said no! Now an MV dealer and "ducati independent"
https://www.dfcapital.co.uk/commercial/ Looking at that there is no need to pay a 3rd party Finance company to pay for stock, funds available to pay direct.
Indeed, I maybe wasn't clear, that was aimed at those that believed that Ducati forced dealers to take stocking finance from a US based 3rd party on dictated terms, not the case as each business is able to agree their own financing arrangements, either direct or via a funding vehicle such as DF.
On the Glasgow web site statement, they say they will be moving (out of their new state of the art premises ) to new locations later in 2021. Funding the millions it must have cost to build that showroom must have played a huge part in its downfall.
Or the property is in a different company and will be rented by that company to AN Other and the Ducati Glasgow operating Co will find cheaper premises to rent.
i dont think telling somebody the second they walked through the door "used bikes upstairs"with no hello helps much either. especialy as the fella could afford to buy any number of bikes in the shop that took his fancy.
That is one of the reasons for their high cost base. I understand that their staffing levels and wage bill is on the high side of high too.
