Vehicle prices tend to take a dip during the summertime, but the summer seasonal price adjustment didn’t happen until much later than it traditionally does, pointing to healthy demand used market, Jim Woodruff, Chief Operating Officer at National Powersports Auction, told Powersports Finance.
“There is a seasonal price impact in powersports that is fairly pronounced,” Woodruff said. “In general, springtime has the strongest pricing and mid to late summer and into the fall is the low point in pricing.”
Normally, prices begin to adjust in June and July, but this year it didn’t happen until August. This indicates that dealers needed more inventory, pointing to a healthy used vehicle market.
Used vehicle sales have seen an uptick at dealerships such as Buy Your Motorcycle, while others like Prime Motorcycle are looking for full spectrum lenders to better grow their used sales. Due to well-built vehicles becoming cheaper alternatives to new motorcycles, they are attracting customers with better credit, leading dealerships to turn to the auction to grow their inventory.
“In the first part of the summer, it falls off pretty quickly and we just didn’t see that this year,” Woodruff said. “We saw some decline in June and July, but not as much as we expected until we got to August. What that tells us is that pricing was coming down but because it was staying stronger than usual — particularly in July, we had record buying in July. Pricing staying strong means that dealers needed the inventory.”
NPA holds auctions at five locations nationwide, offering between 1,200 and 1,500 powersports vehicles a month. The auction house is preparing for the grand opening of a new location in Madison, Wisconsin, which will hold its first auction on September 13. NPA is also looking to expand in Northern California.
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