Auction prices in the spring will likely peak earlier than they did last year, following a strong dealer turnout at auctions in January, Jim Woodruff, chief operating officer of National Powersport Auctions, told Powersports Finance.
“Last year’s peak was in March, so we may see a smoother peak rather than an abrupt rise and abrupt falling,” Woodruff said. “We’re going to see a longer pricing trend into the May and possibly June time frame.”
There has already been an uptick in auction pricing, driven by strong dealer attendance at auctions this month. While dealer participation was more muted in the fall, any “doubt and uncertainty” such as the presidential election “is not stopping people at this point,” Woodruff added.
While pricing always peaks during the spring season, the month can vary. However, because “dealers were holding out through the fall more than they normally would, I think it’s going to be a strong spring,” Woodruff explained. “One of the things that some people might then think about is trying to find the market and hit the peak when they’re selling or avoid the peak if they’re buying. Honestly, it’s not going to matter. It’s going to be a good spring, no matter what side of the fence you’re on, no matter when you as a dealer buy or sell inventory.”
Throughout 2020, auctions will likely experience higher volumes with flatter pricing. During the spring, lenders have their highest repo volume, so pricing will be at more optimal levels during the busiest buying season.
“The good news is that at the point in time at which lender volumes are the highest, pricing is also the best for them,” Woodruff said. “So that helps the lenders minimize their losses during that time when their volumes are the highest.”
