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BOOK J.D. Power Powersports Market Overview

Curiouser and curiouser, as Alice remarked. While the powersports industry that had been bucking the trend has finally contracted, the auto industry is seeing some Q1 upturns. While higher interest rates, a possible return to seasonal demand trends, and increased spending on other forms of entertainment and travel are likely factors behind the recent depreciation in powersports.

“Despite economic headwinds, the auto industry is on track to deliver year-over-year sales growth alongside record transaction prices and record consumer expenditures for the month of February,” says Thomas King, president of the data and analytics division at J.D. Power. “Improving vehicle availability is allowing more retail and fleet customers who have been waiting on the sidelines to finally buy a new vehicle.”

Total new-vehicle sales for February 2023, including retail and non-retail transactions, are projected to reach 1,117,100 units, a 7.2% increase from February 2022 according to a joint forecast from J.D. Power and LMC Automotive. February 2023 has the same number of selling days as February 2022.

New-vehicle retail sales for February 2023 are expected to increase when compared with February 2022. Retail sales of new vehicles this month are expected to reach 907,900 units, a 0.1% increase from February 2022. By comparison the powersports industry seemed to hit the brakes in Q4. Values for the most recent 10 model years of cruisers averaged 3.0% lower in the SeptemberOctober period compared to year-prior. Year-to-date, this segment is still 6.0% higher. Sportbikes averaged 5.6% lower in September-October 2022 compared to the same period of 2021, but 3.8% higher year-to-date.

In the side-by-side segment, values for the most recent 10 model years of utilities averaged 2.7% lower in the September-October period compared to year-prior. This category is still 7.4% higher in the first 10 months of 2022 compared to the same period of 2021. Sport side-by-sides averaged 1.2% lower in the September-October periods, but 12.0% higher year-to- date.

Supply of new side-by-sides and motorcycles were not yet back to normal at the close of Q4, which will help keep depreciation in check. But as products begin to fill the pipeline hopefully we will see the same sort of recovery King notes for the car guys.

J.D. Power Specialty Valuation Services (formerly NADAguides) is a leading provider of specialty vehicle valuation products and services to businesses. The team collects and analyzes tens of thousands of wholesale and retail transactions per month, and delivers a range of guidebooks, web service data, analysis and digital data solutions. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

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JANUARY ‘23 VS. AVG OF PRIOR 3 MONTHS AVERAGE WHOLESALE PRICE CHANGE