Powersports Market Remains Strong

By Staff Writer June 17, 2022

Black Book’s Specialty Markets Update shows the overall state of the powersports market is much the same as it has been for the past few months. Prices remain substantially elevated from historical averages, high consumer demand (though it is easing) and OEM supply constraints are combining to limit a return to more “normal” market conditions.

Street bikes are one segment that shows a value curve that looks like it could have come straight out of pre-pandemic times, according to Black Book. Values have increased steadily from January onwards and appear likely to peak in early July, the traditional high point in the market. The early months of this year’s selling season are a bit weaker than in the past, but since starting value levels were elevated, these numbers still represent a strong market for these bikes.

“Despite rising inflation and growing pessimism among the general public about the direction of the economy, Powersports values see strong growth across nearly all segments this month,” said Scott Yarbrough, senior analyst, motorcycle & powersports. “Prices are up in all warm weather segments except metric cruisers, which are down only slightly. Continuing a trend we have been seeing since spring started, watercraft and jet boat values are up substantially once again. Last month we commented on how pricing increases were somewhat muted from historical averages for the season, but they have bounced back as we enter the summer months.”

Dealership revenue from new and used sales declined an average of 2.1% in April from the same period last year, according to data provided by CDK Global to Powersports Business. This was less of a drop than March’s 4.8% decline compared to last year. Contrasting with the drop in sales revenue, service department sales were up 7.8%, building upon February and March’s 4.6% and 4.7% increases.

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Last modified on Friday, 17 June 2022 13:20