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Auction pricing and volume peak in spring

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April 8, 2013
Filed under Features

As warm weather brings the start of motorcycle season, it also leads to higher pricing and volumes at auction, National Powersport Auctions reported.

“Both pricing and volume peak in spring, which the reverse of the law of supply and demand,” NPA COO Jim Woodruff said. “This is driven by the typical powersports selling season and consumer payment habits and is actually good for both dealers and lenders/consignors — banks get top dollar when supply is highest, and dealers have more product to choose from when they need it the most.”

In an analysis of about 300,000 NPA non-factory sales transactions from 2008-13, NPA found sport and cruiser motorcycles follow the spring increase trend closely. UTVs and ATVs peak slightly in the spring, but overall prices stay fairly stable. Sport ATVs and off-road bikes have strong sales peaks in the spring, with steady declines into the fall and winter. PWC sees the greatest variance in price over the year, with a slight delay in the peak closer to summer.

For the combined powersports categories, pricing and volumes vary 5-10 percent throughout the year. Pricing can also vary up to 5-10 percent in a month, NPA reported.

The five-year analysis found prices generally rise 1-3 percent per year as MSRPs increase, although 2009 was an exception as demand waned and supply peaked during the recession. Through February, 2013 is showing higher average seasonal pricing than 2012 in most categories, except for sport bikes, which are flat, and PWC, which are highly variable.

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