Dealernews Research By Lenny Sims
BY THE BOOK
J.D. Power Valuation Guide
P
owersport vehicle values across the board had a strong year. In the 2020 Year-End Review Powersports Market Insights, analysts from J.D. Power Specialty Valuation Services noted that used powersports vehicle prices began increasing in the second quarter of 2020 as the pandemic shifted consumer focus to more outdoor recreational activities. Similarly, dealers said they had record sales and very little inventory. In the motorcycle segment, cruiser and sportbike values increased steeply once warmer months arrived. Cruisers finished the year 2.2% ahead of last year, but that difference was much greater if we compare the 2nd half of 2019 with the 2nd half of 2020. Not only did the bleeding stop in this key segment, but we saw some serious signs of recovery. Even stronger gains were seen in the UTV market. Side-bysides really took off in the second quarter of 2020. Utility side-by-sides brought 8.7% more revenue year over year. Sport side-by-sides brought 6.5% more revenue year over year.
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Additional findings in the quarterly report recap saw a number of interesting trends, including: • Significant used price increase in Q2 through Q4 among all powersports categories • Surge in traffic views for the motorcycle segment starting in May 2020 • Surge in traffic views for the side-by-side segment in April through May 2020 Demand could start looking more typical once the pandemic recedes and consumers start spending more on travel. However, the events of 2020 attracted a new crop of enthusiasts to our industry, which should support the market going forward.
