Metric cruisers defy normal seasonal rise
[dropcap]A[/dropcap]verage Wholesale Pricing in May began to slide from the prior spring months, with all major categories declining three percentage points from the prior three-month average. Metric cruisers continue to defy the normal seasonal rise, staying flat through the spring largely due to an older model age product mix. Off-road products generally declined somewhat as well, with a larger decline in side-by-sides due to a strong comparable last month.
Compared to last year, off-road is up slightly and cruisers were down, especially metric cruisers due to the mix of age and condition being off from last year. In general, the mix of product sold is older than months past, and the condition remains slightly less than prior years.
When compared to NADA Clean Wholesale values, wholesale pricing trends are more consistent, thanks in part to book values more closely resembling auction results, as well as the fact that price-to-book values are less sensitive to product mix.
The mix of volume amongst product categories remained roughly unchanged in May, with domestic cruisers continuing to be the most common product category. Wholesale volumes sold were roughly flat with the prior month and were roughly the same as May last year. Dealers continue to report robust used retail sales as consumers seek out mid-price product and pre-owned retail financing continues to improve.
Vehicle model age remained steady in May at an average of more than six years old. The average condition of units sold remained even with prior months and below last year. Wholesale units in general are older and slightly rougher than last year.
MSRP of units sold grew in May, reflecting a slightly more expensive product mix despite the older average model age. The MSRP for any specific model year is generally up for 2014 models going through the auction, with domestic cruiser and side-by-side MSRP up notably, and lower MSRP for 2014 sport and metric models than prior years.