As expected, the powersports market is currently undergoing a change in focus from selling street bikes and watercraft, which are warm weather units, to selling ATVs and utility vehicles as cooler fall weather approaches. Prices declined again during July, and the pace at which they are dropping for most segments has picked up compared to June.
At a number of recent auctions, we have seen less demand for “warm weather” units, which leads to the corresponding drops in average transaction prices. There has also been a substantial increase in “No Sales” and “If Bids.”
Most dealers are finished adding inventory for the summer and are in the process of selling off available stock and replacing it with highly desirable and/or customer-specific units.
The personal watercraft and jet boats segments, which usually move together as one, have headed in separate directions this month. The personal watercraft, as would be expected for the time of year, dropped by 1.5 percent, while jet boats actually increased by .3 percent. This is likely a reaction to Sea-Doo’s exit from the jet boat market late last year and demand outstripping existing supply.
Among the declining segments, off-road bikes lead the way at -3.3 percent, closely followed by scooters at -3.2 percent and cruisers at -3 percent. Street bikes and dual sports are down by -2.4 percent and -2.3 percent, respectively.
The only segments showing positive movement are the ATVs and utility vehicles. ATVs are up .5 percent, while utility vehicles remain unchanged. I know current summer temperatures make it hard to think about the snowmobile segment of the powersports market, but it is down 1.5 percent but trending up soon as fall and winter season nears.