Side by sides in both utility and sport categories began the first quarter with strong values, while motorcycles continued a downward trend, according to NADAguide’s Powersports Market Insights report.
Utility side by sides started the year off strong at $8,143 in January and February compared with $7,817 the same time the year prior. Values declined slightly in the intervening months to $7,887, but still remained higher on a year over year basis.
Sport side by sides continued their upward growth from the last four years. The powersports vehicles concluded the first quarter at $10,706, up from $10,586 the same time the year prior. While sales are up, dealers will still want to monitor steeper depreciation, according to the report.
“Utility Vehicles as a segment exploded in both popularity and value retention — both things obviously highly correlated — starting about a decade ago,” Scott Yarbrough, editor of the Black Book Official Motorcycle & Powersports Value Guide, told Powersports Finance. “As the popularity of the segment grew, the manufacturers added models until they appear to have reached a saturation point a few years back, which has led to a corresponding drop in the average value retention of the segment, though still higher than the overall Powersports averages.”
Meanwhile, motorcycles saw the downward trend in value continue, with “rough weather” contributing to the decline, Lenny Sims, vice president of operations of NADAGuides, told PSF. Cruisers finished the quarter with $5,556 , up from $5,473 the same time the year prior. However, values are still lower than they were in 2015 and 2016. Sportbike sales saw a decline, down to $5,731 from $5,982 same time the year prior.
While the powersports market saw mixed results for the 1Q, motorcycle values will still follow the typical trends and will see numbers pick up during peak riding season in the spring and summer, Sims added.Like This Post