INDUSTRY RESEARCH

Dealernews Research

By Lenny Sims

BY THE BOOK

J.D. Power Valuation Guide

Remember 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.

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. 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 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.

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 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.

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. J.D. Power/NADA Guides, Inc.

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