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Used Dealer Eager for Declines After Flat Auction Pricing in 2018

American Motorcycles is keeping a close eye on how motorcycles perform at auction this year after seasonal wholesale values stayed high in 2018 and failed to dip as “they usually do,”  General Manager Blake Luecke told Powersports Finance.

“Our biggest challenges are inventory acquisition,” Luecke said. “The hardest thing is being able to acquire the inventory at a price that returns sufficient margin for our dealership.”

As a used dealership, American Motorcycles utilizes auctions, online listings, and “personal relationships” with other dealerships to build up inventory, Luecke said, adding, “I wish there was a magic place to order used motorcycles, but I haven’t found that just yet.”

For More: Wells Fargo CDF Plans Dealer Education on Valuing Trade-Ins

While it’s too early to determine how wholesale values will fare this year, American Motorcycles will be watching the wholesale market to see how prices and trends compare with previous years, Luecke added.

Almost every vehicle category saw an increase in annual wholesale price year over year in January, according to data from National Powersport Auctions. Metric-cruisers and dual sports bikes were the only categories that saw declines, dropping 1% and 3% year over year, respectively. NPA expects the powersports marketplace to follow historical trends and gain momentum through midyear.

Bedford, Texas-based American Motorcycles sells mostly Harley-Davidsons. The dealership works with lenders such as MB Financial, Speed Leasing, Motolease, FreedomRoad, and Fuel Capital Group.

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As Associate Editor of Powersports Finance, Matt Wood reports on the latest developments and trends of the powersports finance world, from innovation to new partnerships. He's also a movie/TV show buff and is willing to argue about Lost anytime. Former bylines include Scout Media and CinemaBlend.

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