Motor Industry News
MyCarCheck.com/Trade Motorcycle Market Overview May 2013:
Classic bikes in good condition retain their value almost infinitely
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MyCarCheck.com/Trade is the trade valuations arm of CDL Vehicle Information Services. Based on cutting-edge industry data and feedback from independent and franchised dealers, these monthly bulletins highlight the most significant trends in the UK motorbike and scooter market.
MyCarCheck.com/Trade’s motorcycle expert, Rob Hobson, commented: “With a quarter of the year gone we can only reflect on a period which has served to increase the pressure on dealers’ reserves. With improved weather conditions and lighter evenings the market is starting to pick up a little, but reports from across the trade suggest sales have yet to really take off.
“New bike sales are running at just over 11% down against this time last year. It is still reasonable to expect that the market will finish pretty much in line with 2012, but dealers will have to work hard to catch up what has been lost in the first quarter. The good news is that, in the short term, the market should get a lot busier.
“MOT and service requests are already increasing as people get their bikes ready for the coming weeks, or refurbish them following a harsh winter. The bottom line is that, while used bikes are thin on the ground and demand is expected to remain strong, there continues to be an overriding lack of confidence affecting trade bids. Dealers are prepared to pay a little extra to secure anything in above average condition and, crucially, with low to below-average mileage. Anything else has to be judged against current cash flow limits and with a certainty that it will retail quickly.
“The fluctuations in demand make it difficult for dealers to be really ambitious. In previous years you could confidently go out and fill your showroom with used stock at the start of the year and reap the rewards as the weeks passed. Currently there is no sustained ‘season’ and, with cash flow so tight, there is a view that it is better to keep your powder dry rather than buying anything to fill the gaps on the showroom floor. As a consequence, dealer stocks are well below the norm for this time of year.
“There are positive signs though that this market will improve in the long term. It is clear that there is real growth in the 50-125cc markets and many of these riders could well progress to bigger bikes. There are also indications that the number of owners dropping out of the market due to financial pressure has now slowed. Those still involved, while they may be holding onto their bikes a little longer, are committed and will look to upgrade at some time.
“We have adjusted values upwards slightly this month, pretty much across the board. There are no real winners or losers in terms of individual models as condition and history are the main drivers. Late-model plates are still under pressure as the price to change from a two or three year old to nearly new machine is prohibitive.
“Where used car values tend to fall off a cliff at a given age, used bikes can retain their value almost infinitely based on their condition. The classic scene is growing ever more important as last month’s Stafford Classic Bike Show demonstrated. It just goes to show that even in these difficult times there are still success stories around the trade.”
MyCarCheck.com/Trade provides buyers and sellers with all the vehicle price data they need: ready to retail, trade, average, retail and Cat D. As a free bonus, it also provides the annual road tax cost and key DVLA information, including the make, model, colour, engine size, body style, fuel type and date of registration.
Simply enter a car, van or motorcycle registration and the vehicle’s mileage to get an accurate valuation and additional information in an instant. Once signed up you can check as many vehicles as you like at no extra cost.
The MyCarCheck.com/Trade team includes:
Gavin Amos has 15 years’ experience in the used vehicle sector. After starting out at CAP he worked in several dealerships, progressing into management. He has hands-on experience of sourcing and disposing of stock, both to trade and retail customers.
Alan Senior has spent 34 years in used vehicle valuations. In 17 years at CAP he was Senior Editor for both the Black and Red books.
David Hill specialises in LCVs. He worked with Renault, LDV and Isuzu Trucks before spending 10 years as CAP’s Light Commercial Vehicle Editor then 5 years as national used vehicle sales manager for Iveco. He joined CDL in 2011.
Rob Hobson specialises in motorbikes and scooters. After leaving a dealer role to launch CAP’s Green Book, he worked in business development for Piaggio.
Gerry Clancy specialises in motor auctions. He has been selling trade valuation products since 1997 with both CAP and Glass’s.