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Business Management

NPA: September AWP in Review

Off-Road Up, On-Road Slowing Down

As temperatures start to cool down, the off-road category in the wholesale powersports market is heating up. With hunting and desert seasons quickly approaching, the off-road segment is experiencing continued demand.

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Compared to three-month Average Wholesale Prices (AWP), the off-road categories have increased across the board, most notably a +9% and +10% increase in ATVs and side-by-sides. Off-road prices are also up Year over Year (YoY) and are at five-year highs in seasonal AWP.  

As off-road rises, on-road categories have started to slow as we near the winter months. All major on-highway categories are flat or down vs. their three-month average AWP, which is expected this time of year. When comparing September’s AWP for on-road categories YoY, we see all categories are still up double digits over last year.

Model Ages Varied

Off-road’s average model age dropped more than one year in September. This was a major influence in off-road’s rise in AWP for September. Unlike the off-road category, the on-road categories average model age was mixed. Overall vehicle condition scores did not fluctuate much for most categories, but they have been declining in the sport and dual sport categories. 

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Q4 Predictions

As we enter the typically slower months of the powersports season, the pandemic-related increases in buyer demand and first-time riders are keeping values higher than usual. We expect on-highway vehicle AWP to gradually decline through the end of the year, while off-road will remain solid. 

Inventory management will be key to pre-owned success this holiday season. With limited supply, stocking the right inventory and managing days in inventory will result in a more profitable winter. 

Link: NPA

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