For the last five months, we have seen the normal decline in pricing due to the lack of demand in the summer months. November is the first month since spring to show an uptick in average wholesale price across a majority of categories. NPA feels this upward trend in average wholesale price will continue into the spring of 2014.
November’s average wholesale price is up over previous months in several categories but overall, the monthly average wholesale price in 2013 remains below the monthly average wholesale price in 2012. This has been a trend throughout 2013 for most categories, and NPA feels this is due to several contributing factors including a soft spring, slow summer and the launch of new models later in the year.
Overall, live auction bidder participation is up in November as well compared to the prior three months, based on the ratio of bidders to available product. The November conversion rate (units sold vs. units offered) on NPA eSale has also improved over the prior three-month average along with a rise in units sold. NPA considers these as signs of both rising demand and rising product availability heading into spring, reinforcing the belief that the wholesale market will continue to rise in a normal seasonal fashion.
NPA expects to see pre-owned values rise for the remainder of 2013 and into 2014. NPA also expects a gradual increase in repos along with a rise in dealer demand as we near the spring buying season of 2014. NPA feels that these positive early indicators show a strengthening market and will ultimately result in a strong Q1 and Q2 of 2014.
MPN has partnered with National Powersport Auctions to provide our readers with a monthly recap of pre-owned wholesale powersport sale results. National Powersport Auctions is the largest provider of pre-owned vehicles, selling approximately 5,000 each month. We hope you enjoy this new segment.