Inclement winter weather drove down auction volume in January, according to data National Powersports Auction provided to Powersports Finance. Specifically, volume in every vehicle category except for off-road motorcycles (MX) declined in that month.
Year over year, auction volume for ATVs, side-by-sides, cruisers, and dual sport bikes dipped from low-single-digit to high-teens, the report said.
While volume typically peaks in the spring, there is ordinarily a “slow build of the inventory” coming out of December, the report added. However, winter weather challenges slowed originations in late 2018, while decreasing default rates contributed to the difference in year-over-year volume.
The metric cruiser category saw the largest decline in January, falling nearly 20%. The dual sports category followed closely behind. Side-by-sides declined the least at under 5%.
For More Powersports Data: Sports Bike Auction Volume Climbs Amid Market Decline
Meanwhile, off-road motorcycles (MX) climbed nearly 40% in repossession sales volume in January, though, the actual unit count rise was “fairly small,” NPA Director of Business Development Tony Altieri told Powersports Finance. MX constitutes “a low percentage of overall unit count,” the report said. “Consequently, incremental gains in volume can produce significant percentage based shifts.”
The rise in MX volume was primarily driven by “two larger lenders that increased originations in the category,” Altieri added, “So, an equivalent increase in repo volume was expected.”