As the powersports industry heads into 2020, dealers and lenders will likely see higher auction volume and flat pricing, Jim Woodruff, chief operating officer of National Powersport Auctions, told Powersports Finance.
While concrete predictions about next year can be made in December, some factors can be determined based on how 2019 has performed.
“Through the auctions, we will see continued growth in volume, both from dealer inventories as well as from bank repossessed inventory — which is healthy,” Woodruff said. “The repossession won’t be because of default rates, it will be because of more lending and portfolio growth going on, and so there’s a natural growth in volume that goes with that on the auction side.”
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Additionally, weather will likely have a more muted impact in 2020 than it did in 2019 because it’s “rare” for there to be two rainy seasons in a row, Woodruff added. Peak pricing occurred in March, which was softer and later than the standard timeframe of February. The delay was due, in part, to an extended rainy season that impacted retail sales.
“I hate blaming things on weather, but I do think it had an impact this year,” Woodruff explained. “I think that [sales] didn’t recover as much as people might have wanted. There’s an expectation that the people who didn’t buy [a vehicle] when it was raining would come to buy one in June, July or August; some did, but not as many as we might have hoped.”
While economic factors like tariffs have prompted uncertainty heading into 2020, preowned vehicles will likely remain unscathed. “People have jobs, and they’re going to buy motorcycles,” Woodruff stated. “Whether it takes effect in 2020 or not, some of the Motorcycle Industry Council ridership initiatives that were revealed [this month], with more details to come, we may start to see some of the fruits of that later in 2020 and going into 2021.”
Join us for Powersports Finance Summit 2019, October 23-24, at the Hilton San Diego Bayfront. At the Summit, lenders and dealers will have the opportunity to learn new information that will help their business grow, discuss the latest industry data and trends, and network to form new relationships with fellow attendees and vendors. Register now at www.powersportsfinance.net.