Harley-Davidson Motorcycle Trust 2024-B Annual Performance Review

I’ve been reviewing the latest filings for the Harley-Davidson Motorcycle Trust 2024-B. To be clear, this isn’t a company that builds bikes; it is a financial tool. It holds a pool of motorcycle loans, and as customers pay back their loans, the trust uses that money to pay you. The trust started in 2024 with about $800 million in customer loan contracts.

Here is how things looked for the 2025 fiscal year:

1. How the Trust Works

Think of this trust as a bucket of loans. Harley-Davidson’s lending arm bundles customer loans and puts them into this bucket. You hold pieces of this trust—called Class A, B, and C notes. You get paid as customers make their monthly payments. The trust pays investors in a specific order: Class A investors get paid first, followed by Class B and C. This structure is designed to provide a layer of protection for senior investors.

2. Financial Performance & Health

The data shows a slight cooling in performance compared to last year:

• Loan Losses: The percentage of loans that went bad rose to 3.44% in 2025, up from 3.31% in 2024. This represents a loss of approximately $27.5 million from the original $800 million pool.
• Late Payments: The number of loans at least 30 days behind increased to 5.77% from 5.34%. Roughly $46.1 million is currently past due, which is a metric to watch for future defaults.

3. Market Challenges

The current economic environment is impacting performance. Inflation has made it more difficult for some customers to keep up with monthly payments. Additionally, when the trust repossesses a bike and sells it, the proceeds are lower than in previous periods. The amount recovered from these sales dropped by 2.5% as the market for used premium motorcycles has softened.

4. Risk Factors

The trust is currently balancing growth with credit risk. About 18% of the loan pool now consists of "sub-prime" borrowers—those with credit scores below 660. While these loans often carry higher interest rates, they also carry a higher statistical likelihood of missed payments. If economic conditions remain tight, these losses could continue to climb, which would reduce the financial cushion protecting your investment.

5. Operational Stability

The investment is running smoothly from an administrative perspective. Auditors confirmed that the team managing these loans is following all established protocols, with no issues found in how they handle money or manage accounts. Furthermore, the trust kept its $8 million reserve account fully funded all year, ensuring there is cash available to pay interest even if borrower payments are delayed.

The Bottom Line

This trust is performing its core function, but the underlying loans are showing more stress than they did a year ago. With a 3.44% loss rate and rising late payments, the margin for error is tighter. If you are considering this investment, keep a close eye on delinquency rates and watch how the company manages repossession values in this cooling market.