Dealernews Research By Lenny Sims
BY THE BOOK
J.D. Power Valuation Guide
V
alues continue to crush the previous two years. Interest in all segments of the powersports industry remains hot as new enthusiasts continue to enter the market and existing riders look for new bikes and side-by-sides. A lack of new unit inventory has caused a corresponding spike in look-up activity and Q4 2020/preliminary Q1 2021 lookups are higher than they have ever been! The numbers don’t lie! 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 experienced near-record sales despite having very little inventory. Lack of new units in the motorcycle segment caused cruiser values to increase steeply, and they are now running 2.2% ahead of last year’s 5.2% increase — a combined 7.4%
30
increase in the middle of the Pandemic is a pretty serious bump! And the surge is just beginning heading into the warmer summer months. Sportbikes saw an even greater uptick, finishing the year 4.8% over 2019 and 8.3% more than 2018. This bodes well for a strong summer selling season as vaccines increase and the world opens up. Inventory issues are the real limitation here, not pent up demand. Of course dirtbikes and side-by-sides continue to explode. UTVs stayed strong in the most recent period. The utility segment values came in a whopping 8.7% higher than the same period of 2019. The sport segment machines brought in 6.5% more money year-over-year in 2020, based on a strong second half of the year. Bottom line: The powersport industry continues to benefit from customers shifting their discretionary income from vacations to other forms of entertainment. Getting out on the trails and roads solo or with a few other folks will continue to be a low-risk, high-fun adventure as the world gradually emerges from its COVID cocoon.
