August vehicle values for the powersports segments dropped nearly across the board as seasonality took effect, according to data Black Book provided Powersports Finance.
While the end of the summer usually sees a drop in values, a decline in most segments may have also been spurred by economic news, such as the inversion of the yield curve, Senior Analyst Scott Yarbrough speculated in the report.
The yield curve measures the value of bonds over a rate of time, with long-term bonds growing more profitable the longer they mature. When long-term bonds are less valuable than short-term bonds, the yield curve inverts, and this is seen as a sign by economists of an upcoming recession.
Breaking it down, scooter values declined the most, dropping 6.9% month over month. Scooter values in earlier months had been “really strong,” so a drop in price “may be nothing more than a correction for these units, and the reason for their outsized decline compared to other segments,” Yarbrough explained.
For More Read: On-road values decline, Black Book says
The cruisers category had the second-biggest decline in August values. Specifically, metric cruisers fell 3.9%, and domestic V-twins dropped 3.7% month over month.
The off-road segment also saw declines in value, which is “particularly noteworthy as they usually appreciate at this time of year as hunters and campers begin their seasons,” Yarbrough said.
Off-road bikes declined 3.5%, while UTVs dropped 3.2% and ATVs fell 2.8%.
The lone exception to the value drops was the snowmobile segment, which grew 0.7% month over month.
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