April repossession sale volume for domestic cruisers fell more than 25% year over year, which is “abnormally high” for the segment, according to data National Powersport Auctions provided to Powersports Finance.
Specifically, domestic cruiser repo volume fell 25.7%. The decline was driven by the high volume of cruisers that were sold at auction last year due to an “extra week of inventory,” Tony Altieri, NPA’s director of business development, said in the report. Despite the decline, domestic cruisers are still following normal seasonal trends, Altieri added.
Every vehicle segment saw a year-over-year decline in repo volume. Dual sport bikes followed domestic cruisers, dropping 24.1% compared to the same time the year prior. ATVs declined 11.1%, while metric cruisers dropped 10.1%. Sport bikes, motocross (MX), and side-by-sides declined less than 5% year over year.
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Another contributing factor to the decline in repo volume at auction is that lenders have reported an improvement in portfolio performance. Delinquencies are down year over year, thus fewer repossessions.
“We’re seeing volume growth from new lenders testing the powersports finance market, while most major lenders continue to see repo volume declines due to strength in portfolio performance across the credit spectrum,” Altieri said. “Defaults remain at all-time lows, and originations continue to march upward.”Like This Article