Harley-Davidson Motorcycle Trust 2022-A: 2025 Annual Performance Update

I’ve reviewed the latest filing for the Harley-Davidson Motorcycle Trust 2022-A. To keep things simple: this isn't a company that sells motorcycles. It is a "trust"—a financial vehicle holding a pool of loans from people who bought Harley-Davidson bikes. As an investor, you collect the interest payments from those motorcycle owners.

Here is how that pool of loans performed in 2025.

1. What does this trust do?

This trust manages a group of motorcycle loans from Eaglemark Savings Bank. When the trust started in 2022, it held about $800 million in loans. Harley-Davidson Credit Corp. collects monthly payments from riders and passes that money to investors. The trust doesn't make bikes; it manages debt and pays investors based on their seniority level.

2. Financial performance and health

The loans are showing signs of stress as the trust matures.

• Loan Losses: The loss rate—the percentage of loans that went into default after accounting for recoveries—rose to 3.44% in 2025, up from 3.31% in 2024.
• Delinquencies: Loans that are 30+ days late climbed to 5.77%, compared to 5.34% last year.
• Pool Factor: About 38% of the original loan balance remains. This shows the trust is steadily paying down the principal.

In plain English: more people are struggling to make payments, and the remaining loans are becoming riskier.

3. Major wins and challenges

The main challenge is the economy. Inflation and higher living costs make it harder for riders to pay their bills. Additionally, when the trust repossesses a bike and sells it, they get less money back. The average recovery rate dropped by 1.5% compared to 2024 because demand for used motorcycles is cooling.

On the positive side, the trust follows all legal requirements. The reserve account—a cash cushion for missed payments—remains fully funded at $4 million. This provides a buffer against further credit issues.

4. Key risks

If you are considering this investment, keep these three risks in mind:

• Economic Pressure: If inflation stays high, more riders will likely miss payments. This reduces the cash available to junior investors.
• Sub-prime Lending: The pool includes many borrowers with lower credit scores. While this generates higher interest, it creates "tail risk" where defaults often speed up as the trust ages.
• Resale Values: If used Harley-Davidson prices drop, the trust loses more money when it sells repossessed bikes.

5. Future outlook

The trust continues to manage these loans until they are paid off. In July 2025, the company sold certain residual certificates to manage its cash flow. Expect delinquency rates to remain high as the remaining loans reach their final due dates over the next 18–24 months.

Bottom Line: The trust is working as designed, but the underlying loans are getting riskier. To stay informed, keep a close eye on the reserve account balance and the monthly loss rates in upcoming filings to ensure your investment remains protected.