Retail values in the market have revealed only slight pricing-level changes for most segments in the past month.
“It’s kind of in line with what I’ve seen over the past,” Scott Yarbrough, editor of Black Book Official Motorcycle & Powersports Value Guide, told Powersports Finance today. “The market tended to have a much bigger drop in the winter — from October through December — and then starting in January we would start seeing it go back up.”
The unseasonably warm winter slowed the rise in retail values for some powersports segments, including snowmobiles, which show only a 0.5%, or $22, increase this month, according to the February Black Book Market Insights.
“You’ll see the prices rise a bit with a really snowy winter,” Yarbrough told PF. With the warmer weather earlier in the winter season, consumers did not have snowmobiles on their minds, and “there has been very little activity on them with only a slight increase,” he added. Snowmobile values are expected to increase next month after results show the blizzard that hit the East Coast in late January.
Wholesale values are also expected to increase over December and January, said Yarbrough. “Overall this year, pricing has been flatter. It didn’t drop quite as such in the fall as it usually does. You’re still seeing a little bit of a decrease in values — we are talking small amounts — but I do see it picking up, heading into the future.”
The changing seasons are among many factors that affect the powersports market, Lenny Sims, vice president of operations at NADAGuides, told Powersports Finance. “Powersports is more than an enthusiast market, it’s also a lifestyle market,” he added. People use their motorcycles as a form of transportation, and the seasons affect the financing and demand for each category in cycles.
“Street bikes might be a little softer, obviously with the winter that just hit the East Coast, but you’ve got the hunters and ranchers who use the ATVs, side-by-sides, and snowmobiles during this time,” Sims added. “[Powersports] really just kind of cycles — not slow down — during the winter. It’s a little more bulletproof of an industry.”