In the month of April, Average Wholesale Price (AWP) points remained stable. Some additional price strength appeared in Domestic Cruiser, Sport and Off-Road products over the prior three months, with more modest performance in Metric Cruisers and some decline in Dual Sport due to product mix. Compared to last April, average prices were generally softer, which is due to slightly older product mix so far this year. Buyer appetite remained solid, coming in on par with March as dealers continue to need to restock inventory. Dealers are reporting to us that spring is going well, with some needing more inventory and some still well-stocked from what they acquired last month.
The total auction volume sold in April declined from March. This is partly due to the auction cycle starting earlier in the month in addition to strong retail volumes keeping potential consignments in dealers’ showrooms. Repo volumes continue to inch upward, largely due to increased powersports lending activity.
Bidder participation also declined from March, which was in sync with lower available volume. However, bidding was strong in both live and online auctions. This includes solid results in the second NPA Harley-Davidson Open Auction as well as month-end factory liquidation sales for OEM clients.
We expect retail demand for pre-owned to be solid into June. Unknown at this time is whether the increased sales volume is due to consumers buying earlier this year because of better weather or due to a general uptick in consumer demand. Dealers taking trades or buying off the street should begin thinking in May about what to price them at – auction values should still be strong, but will begin declining when those trades eventually enter the wholesale market. By planning prior to the usual market shift, dealers can soon begin to pencil back the trade-in values they offer from current NPA Value Guide averages so they are in their inventory “right” come summertime.
All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com or call (888) 292-5339