Increased origination volume in May led to lower auction volume for every vehicle segment except dual sport bikes, according to data National Powersport Auctions provided Powersports Finance.
Specifically, lenders are seeing growth in the off-road space, Tony Altieri, business development manager of NPA, said in the report. “Nearly all major lenders are reporting year-over-year origination growth in off-road motorcycle, side-by-sides and ATV categories,” Altieri said. “The trend of increased originations and declining default ratios continue to be the narrative coming from most powersports finance companies.”
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Additionally, near-prime and subprime lenders are seeing “increased activity” in the sport and metric cruiser segments, Altieri added.
Meanwhile, dual sport bikes increased 16% in auction volume year over year. Metric cruisers declined most, dropping 32.6% compared with the year-prior period. Sport bikes followed, decreasing 30.8% in volume year over year.
The domestic cruiser, ATV, side-by-side and motocross (MX) segments posted auction volume declines less than 15%. Specifically, side-by-sides declined 14.5%; ATVs fell 12.1%; domestic cruisers fell 11.9%; and the MX segment declined 4.7%.