Recent reports on new unit sales have been less than optimistic. The good news is that for pre-owned motorcycles and ATVs, everything is as good as or better than prior years. Average Wholesale Prices (AWP) declined in July from their prior three-month average, and they did so right in-line with what we’d expect this time of year.
Domestic cruiser prices actually increased in July due to a larger than usual amount of late-model inventory. Overall, AWP for most other major product categories declined ~5-7% from the prior three-month average and declined 3-5% from last July’s values.
Softer Bottom
While demand softened in July like expected for this time of year, the decline has been more gradual and less significant than the last few years, even though the average model age and mileage is flat to up. Power buyers have continued to purchase needed inventory in the auction lanes while bargain buyers are showing up a little earlier in the season than in past years.
Newer, Higher-Mileage Inventory
The mix of product for most on-road and off-road categories was similar to prior months, with a slightly older average age in the metric cruisers. Domestic cruisers were an exception, however – an influx of late-model, higher-mileage touring bikes skewed the domestic mix to a younger average age and higher price point, which is the main reason the AWP for domestic cruisers rose in July. Demand was solid, but if the domestic product mix was constant for the month the average price would have seen a more typical softening.
Show and Tell
The next three months are filled with various industry shows, including the flagship AIMExpo, OEM dealer shows, finance industry events and more. It’s an exciting time of year with product announcements, new strategies and fresh ideas for the coming year.
One thing is clear – consumers want pre-owned products in addition to the newest models, so now is the perfect time for dealers to right size and freshen their inventories while maximizing the art of taking every trade. In retail, every day is show and tell on the showroom floor.
All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com.
