First Impressions
2014 is here, and January has made a strong first impression! From San Diego to Atlanta, the wholesale pre-owned market has exceeded early year expectations. Will this trend continue or will Spring 2014 parallel 2013?
The early months of 2013 were stronger than the years prior and the powersports industry seemed to be on the cusp of a breakthrough. As the Spring of 2013 unfolded, the weather faded into below average riding conditions, resulting in the riding season passing us by before it even began.
We believe January 2014’s performance reflects a blend of renewed optimism and increased retail demand. Even with the severe weather so far this winter, dealers have told us that retail customers are in their stores and that they are interested in new models, accessories and apparel. It seems the retail buyer is tired of waiting and has enough confidence in the economy to spend money on the things they enjoy and overlook the possibility of another wet spring, which we are seeing in the pre-owned supply chain.
Dealer Participation
We are seeing an increase in dealers participating across our four auctions from the Fall, for both buying and consigning. While a small percentage of these dealers are new, many are dealers we have not seen in a few years due to the difficult economy. To see them participating in the lanes, making purchases and stocking their inventory are all signs of a strengthening economy, and more importantly, a growing powersports industry.
Longterm Forecast
The next few months will depend primarily upon the weather and overall economic confidence. Weather permitting, we expect an increase in average wholesale prices across the major categories through April, then declining as normal in the summer months as seasonal retail demand wanes.
We do not expect the same degree of softness as 2013, however, provided that this coming spring’s weather is more moderate and economic conditions hold steady. We are optimistic that 2014 will be a good year for the powersports industry.
MPN has partnered with National Powersport Auctions (NPA) to provide our readers with a monthly recap of pre-owned wholesale powersport sale results. NPA is the largest provider of pre-owned vehicles.
