November 2016 AWP In Review

npa_1[dropcap]A[/dropcap]verage Wholesale Prices (AWP) showed surprising resilience in November, coming in above both the prior three-month average and last year’s November average.

Even domestic cruiser pricing, which has been softer than usual the last few months, was up in November. This is partly due to the seasonal shift in dealer appetite for inventory as well as what appears to be an end to the rising model age of vehicles sold.

Street categories rose 5-6%, while off-road categories were relatively flat. Side-by-Sides were the only category that showed softness, which is largely due to a rise in available inventory and a lower price point product mix.

In comparison to clean NADA wholesale book values, the seasonal trends have been on track with historical trends. Although the trend curves are shaped similarly to prior years, average Price/Book ratios have been running lower the last few months than what we would typically see.

This lower average P/B is more evident in domestic cruisers (82%) and ATVs (86%) than other categories. Metric cruisers and sport bikes have been the closest to historical book values (both 83-85%).
Average model age for units sold dropped, which is common this time of year as the new model year transition occurs.

The average model age for metric cruisers continues to remain stable instead of the steady rise seen in prior years, and their average mileage has remained flat as well. This should lift future prices for metric cruisers and we expect some price improvement in the coming months for domestic cruisers as well.

Macro-economic indicators continue to do well, despite softness in certain regions related to oil and agriculture. In addition, the election cycle has come to a close, ending with it the doubt and uncertainty surrounding who will be in charge.

Taken together, the traditional consumers that make up the backbone of powersports have a lot of reasons to be optimistic, as do the powersports dealers who serve them. If retail financing continues to grow, that optimism should translate into a great year in 2017 for both new and used powersports sales.

And if history is any guide, we should start to see that optimism appear in our wholesale pricing data in the coming months as dealers use the auction process to prepare for the spring selling season. During this holiday season, that would definitely be something we can all be thankful for.

You May Also Like

How Motorcycle Windshields and Fairings Impact Riding Performance

Windshields and fairings aren’t just there to make the bike look good.

windshield, fairing, motorcycle

At first glance, putting a windshield on a motorcycle seems more aesthetic than functional. After all, unlike automobiles, where windshields help enclose the cab to protect riders from the elements, motorcycle riding is all about the freedom of feeling the wind in your face.

That said, too much wind in your face can be a detraction from the riding experience, and that’s precisely why motorcycle windshields and fairings exist. In fact, aftermarket manufacturers of these products ride bikes from various OEMs extensively to see which areas need increased wind protection.

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
Are UTVs Replacing ATVs?

UTVs’ recent surge in popularity has sparked concerns about the future of ATVs.

Suzuki KingQuad

Other Posts

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
Unleash Your Experts: How to Be a Long-Tail Resource for Powersports Enthusiasts

Closing deals and providing service are a dealer’s bread and butter, but your dealership has far more to offer.

dealership employees
To E-Bike or Not to E-Bike?

When it comes to e-bikes, it’s the wild, wild West out there.

Ep. 121: Some OEMs Are Making Waves

Jacqui and Josh bring us news and updates from several OEMs with big announcements.

on the throttle