June Wholesale Pricing Highlights

June experienced the natural decline in wholesale pricing we see each year as the market enters summer.

NPA_JuneMarketReport_2015June Shows Promise for the Summer Months

[dropcap]J[/dropcap]une experienced the natural decline in wholesale pricing we see each year as the market enters summer. Every category (except snowmobiles, which are volatile month-to-month) saw a decline in the Average Wholesale Price (AWP) over the previous three month average. When compared to last year’s values, however, June performed better than expected.

Last June we saw a steep drop off in values halfway through the month. This June we saw a smaller drop in bidder participation and a softer decline in values at the beginning of the month that stayed consistent across the nation as the month progressed.

The off-road category continues to perform well with all three categories – ATV, SxS and MX – showing positive numbers over June 2014. The demand for off-road products has remained high all year, and we have seen this segment regularly outperform other segments due to higher demand and lower supply at auction.

Domestic and metric cruisers saw larger declines from last year’s AWP, with the metric cruiser category falling 12 percent below June 2014. As reported previously, the double digit loss is not a reflection of demand as much as it is a reflection of older and lower condition product being offered in the auction lanes as repossessed units age and dealers hold newer inventory on their showroom floors.

Summer Outlook
Although pricing is trending above last year’s results, we expect average wholesale pricing to continue its seasonal decline as the market moves through the summer months. Smart dealers will take this into account when pricing trades or buying off the street. Overall we estimate this summer will have a more gradual pricing trough as increased financing and continued strength in pre-owned demand nationwide maintain their positive trends.

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