fbpx

Average Wholesale Pricing Relatively Stable

Average Wholesale Pricing (AWP) in September stabilized from the lows seen in August. Compared to the last three month average, AWP for Metric Cruisers and ATVs were up 3-6%, while Domestic Cruisers, Sport bikes, MX and Side-by-Sides slid 5-8%. On a year over year basis, Domestic Cruiser AWP actually rose while other categories were down 3-8%.

Much of the decline from last year is due to older product mix rather than softer demand. Wholesale prices rose relative to clean NADA wholesale values for almost all categories month-month, partly due to book changes at the beginning of the month and partly due to slightly stronger demand on a comparable-model basis.

Higher Metric Product Mix
An interesting trend that emerged in the September data is a seasonal shift in product mix towards a higher ratio of metric product vs. Domestic Cruisers. The same Q3 dip occurred last year with a subsequent rebound in Q4. Most of the shift is towards more metric On-Road product.

Possible explanations for this apparent product mix seasonality may be related to OEM product release cycles, differences in repossession characteristics, and differences in the inventory management strategies of domestic vs. metric dealerships. Nothing in the pricing or volume data suggests any impacts yet from the recent hurricanes.

Stocking Early
Another interesting seasonal characteristic of the wholesale powersports market is the mix of buyers that participate at various times. There is a core dealer segment that consistently uses the auction buy/sell process to optimize their inventory. Then there are dealers who prefer to preserve their capital and stock up just in time for the Spring selling season, while other dealers prefer to use their capital to stock up in the Fall before prices rise.

While there is no right or wrong strategy, the value buyers appear to be participating much earlier this year, starting in September vs. around November in years past. Only dealers anticipating a healthy, competitive 2018 retail market would have the motivation to get a head start on their peers, which we view as another sign of strength for the pre-owned market.

All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com.

You May Also Like

Being a Leader vs. a Boss: Keeping Your Dealership Team Intact

There are many reasons people leave a job, so how do you keep good employees at your dealership?

dealership employees

Why are we always trying to fill positions in our business? Why do techs often leave right in the middle of the high season? How come we can’t find good parts people or sales people?

Of course, there are many reasons that people leave a job. It might be disagreements with management, a long commute, thinking the grass is greener, they want to live elsewhere or the always classic "we aren’t paying enough." The reasons go on and on. That said, there are many things that we can do to keep employees on staff.   

Why Adventure Motorcycles Have Surged in Popularity

The wide range of riding and customization options makes these bikes a fit for a vast array of riders.

adventure motorcycle, rider
Confidence Is Crucial During Sales Negotiations

It has always seemed to me that PDI, freight, and documentation charges are one of those things that should be non-negotiable.

customer, motorcycle, negotiation, dealer, salesman, dealership, confidence
Apparel Pro: The Jeans You Should Be Wearing

Wearing just any old pair of jeans isn’t going to cut it when you go riding.

biker, motorcyclist, rider, jeans, pants
Passing the Torch at Valley Cycle Center

James Myers’ father made it clear that passing the torch at Valley Cycle Center, a Virginia-based powersports dealership, would not be like a monarchy — no simple handing over of the scepter and crown when the time came. James and his brother were going to have to earn it. Find out how James has led

Other Posts

Movarna Looks to Redefine the Collectible Vehicle Market

Movarna will host an online auction platform for collectible automobiles and motorcycles.

Movarna, online auction, collectible vehicles
Indian Motorcycle St. Paul and Twin Cities Indian

From the beaches of North Carolina to the land of 10,000 lakes, Tim Sutherland learned to adapt and succeed with his dealerships.

How To Keep Your Dealership’s Marketing Profitable, Even During Tough Times

These five tips will help your marketing remain effective.

marketing, targeting, business concept
Valley Cycle Center

Cycling through constant changes in the industry.

Valley Cycle Center