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Higher origination slows May auction volume

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.”

For More Data: Dirt Bike Prices Surpass Seasonal Auction Trends

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%.

via NPA

Matthew Wood

Matt Wood is the Associate Editor of PowerSports Finance, where he is responsible for covering all the latest news, trends, and innovations with powersports lenders and dealerships. Previously, Matt was a writer for Auto Finance News before switching full-time to PowerSports Finance. He is also an experienced entertainment news writer covering pop culture, movies, and TV shows. Matt received his Bachelor’s degree in Communication from Rowan University in New Jersey.

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