Domestic V-twin cruisers unexpectedly dropped 4.5% in vehicle values, a “precipitous” decline for the segment, according to data Black Book provided Powersports Finance. It’s unclear whether the drop will be a one-time event or a new trend Senior Analyst Scott Yarbrough wrote in the report.
Domestic cruiser values have been dropping since June, but October featured the most significant decline. Values fell 3.3% in August and 2.5% in September.
By comparison, domestic cruiser values dropped 2.6% in October 2018.
“A normal variance of a few tenths of a percentage point is customary for these two segments, but when we start to see larger variations like this month, it is always important to keep an eye on the market,” Yarbrough told PSF. “Sometimes a particularly large group of bikes moves through one or more of the auctions, or local weather conditions or other external factors may skew results in any given month, but over time these will average out. At this point, it is more likely this is just a blip. Still, everyone should keep a close eye on these bikes over the next month or two to see where they are headed, especially as this segment is, in general, gradually declining in value performance from years past.”
Additionally, domestic cruisers took a “disproportionate hit” relative to the rest of the on-road segments, Yarbrough said. Street bikes and scooters fell 2.5% and 2.2% month over month, respectively. Metric cruiser values dropped 2.7% in October, which is 0.3% more than last year.
The only segment that decreased in value more than domestic cruisers was off-road bikes, which fell 4.8% month over month. However, even though the percentage drop appears larger, the dollar amount of off-road bikes is “much smaller” than cruisers, so the value drop is “less concerning,” Yarbrough said.
Meanwhile, UTV values dropped 2%, and ATV values fell 1.1% month over month.