fbpx

‘Dog Days’ of August Brings Modest AWP Dip

screen-shot-2016-10-19-at-9-06-24-amTemperatures during the “Dog Days of Summer” tend to be the hottest in August, and the opposite can be said for the “Dog Days of Powersports” when it comes to wholesale pricing. As 2016 continued its normal march, Average Wholesale Prices (AWP) declined further in August compared to the prior three months as the wholesale season reaches its annual bottom. AWP for all major categories declined 2-10% from the prior three months, with street motorcycles down 7-11% and off-road down 1-4%. Interestingly, when comparing AWP to last August, metric cruiser AWP actually rose 5% and other categories were mixed. This suggests that this year’s bottom is not as severe as 2015, all else being equal.

One change occurring this year is that the average model age for domestic cruisers has been relatively stable. Average model age at time of sale has been steadily growing each year as the repo pool ages, but this year domestic cruisers have been relatively flat and the aging of metric cruisers has slowed. In addition, the overall mix of product by type has remained stable, slightly reversing the trend towards a higher ratio of domestic cruisers and reflecting some growth in the ratio of metric cruisers and sport bikes.

As expected, wholesale pricing dropped a few more points in August. From this point forward, prices should remain relatively flat and start their upward trend later in the year. Pre-owned powersports remain a popular option for consumers, but retail sales for new powersports units were soft in Q2 and mixed so far in Q3. As a result, OEM incentives have been aggressive this summer and new product announcements and rumors surrounding the summer dealer shows have dampened wholesale prices on prior-year models. However, we believe that most of the resulting pressure on vehicle pricing has already been priced in, and that savvy dealers will see the next few months as terrific buying opportunities. With both floor plan and retail consumer financing readily available, 2016 should continue its normal trend as the powersports market finishes out the year.

All data provided by National Powersport Auctions. For more information, please visit www.npauctions.com or call (888) 292-5339

You May Also Like

The Future of Buying: Navigating Powersport Consumer Trends

Insights into a study on the future of powersport shopping.

Future of Buying Study

In late summer/early fall of 2023, Rollick conducted a "Future of Buying" study to understand consumer shopping behaviors in the outdoor recreation space, receiving feedback from nearly 27,000 participants. 

The study, which had an impressive response rate of up to 30% in some cases, was enabled through collaboration with 27 Rollick clients across the powersports, RV and marine industries. The findings aim to communicate how consumers interact with brands and dealers and the technologies utilized during their shopping experience.

Racer and Dealer Sponsorship Must Be a Two-Way Street

You’re better to have no racers than the wrong racers.

How to Respond to Digital Leads

Timing, presence and tools are all critical.

Digital leads
How to Attract, Retain and Develop Talent

This recorded AIMExpo education track features a panel of dealers discussing their hiring and retention practices.

MPN talent panel, AIMExpo 2024
How to Grow and Excel in Digital Retailing

This recorded AIMExpo education track discusses the world of digital retailing and why you need to be there.

MPN Digital retailing panel, AIMExpo 2024

Other Posts

Experienced Additions to NPA RV and Marine Services

Shannon Bennett joins in Florida, and Tom Wilkinson steps up in Georgia.

npa-new-hires
NPA Pre-Owned Market Update: February 2024

Average wholesale prices continue to improve, reflecting dealer sentiment and demand for pre-owned.

National Powersport Auctions, NPA, Market Report
Establishing the Right Pay Plan for Your Dealership’s F&I Team

In an industry where skilled F&I professionals are in high demand, an attractive, fair and equitable pay plan becomes a key tool.

Motorcycle dealership F&I
Maximize Every Sale With F&I and PG&A

This recorded AIMExpo education track discusses how the bike is just the start of the sale.

MPN F&I panel, AIMExpo 2024