Year-over-year seasonal auction values for dual sport and motocross (MX) ticked up in February, spurred by better quality bikes being remarketed, Tony Altieri, Director of Business Development at National Powersport Auctions, told Powersports Finance.
The two off-road categories tend to have lower volumes, which increase the variability of the average sales price (ASP) from month to month.
Growth for dual sports and MX in February was driven, in part, by metric OEM captives such as American Honda Motor Finance and Yamaha Motor Finance lending more off-road bikes as a means to reach younger riders.
For More Data: Side-by-Side Auction Volume Grows 50% in February
“I think a lot of folks in the industry have said, ‘Hey, we need to be somewhat focused on creating opportunities for younger people to get into motorcycling,'” Altieri said. “The natural point where a lot of folks have exposure to that is in off-road. You can have a small displacement dirt bike that a young kid can learn [to ride] on. So, a lot of OEMs have started to offer more options at those lower displacements.”
Repossessions for off-road bikes tend to happen earlier in the term, Altieri added. The bikes coming into auction are cleaner, in better shape, and are newer models, which leads to higher pricing.
Overall, seasonal pricing for all categories in February was in line with prior years, and it’s expected that value will begin to fall in line with five-year trends. However, pricing was softer than expected, “which would make me believe that we’ll probably see a longer extension of that spring pricing where typically it will start to trail off in June or July,” Altieri said.