Metric cruisers and MX Segments struggle
Average Wholesale Pricing (AWP) softened further in August. Street categories declined from both the prior 3-month and prior year averages, while off-road categories declined from the prior 3-months and held roughly flat from last year. Domestic cruiser pricing declined 7% from the prior 3-month average, but is generally following typical seasonal trends.
Pre-owned metric cruisers have been hit especially hard this year – pricing declined 16% from the prior 3-month average and 21% from last year, continuing to fall well below the typical seasonal variation. Analysis into street categories suggests that the declines from the recent average are largely due to waning market conditions related to the time of year (peak selling season over, new models being introduced, and rebates). In addition, wholesale metric cruisers continue to be older than in prior years, reaching an average wholesale model age of 9-years versus roughly 6-years for all categories combined.
Off-Road category pricing was mixed, with declines for MX and side-by-side (SxS) products and gains for ATVs from the prior three months. SxS pricing fell a notable 23% from the prior three months and 25% from last year, but is not actually representative of market conditions – further analysis shows that this is largely due to a shift in product mix due to a temporary influx of lower-priced Chinese manufactured units sold during the period. SxS pricing would have otherwise been down only slightly with the season.
In general, the mix of product sold overall remains older than months past with some slight improvement in average vehicle condition.
To recap, the pre-owned market is following the seasonal trends consistent with years past. The two categories that are not performing as expected are the metric crusiers and MX. Both have dipped below seasonal trends due to model age, product mix and lighter demand. We expect the MX category to rebound quickly, but believe the metric cruiser market will experience reduced pricing through fall.
All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com or call (888) 292-5339.
