Dealernews Research By Lenny Sims
BY THE BOOK
J.D. Power Valuation Guide
R
emember when Cuba Gooding Jr. makes Tom Cruise scheme “Show Me The Money!” In Jerry Maguire? Well here it is! The final tally is in and the numbers were up in 2020. In the motorcycle segment, cruiser and sportbike values increased steeply once warmer months arrived.
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.
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.
Additional findings in the quarterly report recap saw a number of interesting trends, including:
Even stronger gains were seen in the UTV market. Starting in Q2 of 2020 side-by-sides really took off. Utility side-by-sides brought 8.7% more revenue year over year. Sport side-bysides brought 6.5% more revenue year over year. In fact, powersport 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
36
• 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 vaccines kick in, 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.
