Motor Industry News
MyCarCheck.com/Trade Motorcycle Market Overview May 2014:
New sales up and used demand… is ‘feel good factor’ finally back?
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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: “By the end of March the new bike market was up 12.6% on the year-to-date (YTD). Registrations in March, which saw the introduction of the new 14-plate, were up more than 18% on the same month last year. Although showroom demand has been a bit hit and miss, most dealers agree things are bouncing along pretty well.
“Some exciting new model introductions and good weather conditions can only be positive. Significantly, six of the top ten best-selling models during the first quarter of 2014 were motorcycles above 600cc. This is an important change from the last couple of years, where 125cc motorcycles have dominated. While sales of larger capacity machines are good for dealer turnover, any slowdown in 125cc new sales has to be a concern as this reflects where the market is heading.
“Yamaha’s critically acclaimed and keenly priced MT0-7 has been well received in dealer showrooms. This, along with rival manufacturer promotions (including Kawasaki’s ER6 pre-registration and price realignment), has seen an increase in registration numbers in the naked style sector. In fact, only the supersport sector is down YTD, a trend which is not reflected in the used market.
“While not critical yet, concern is growing about the lack of used replacements. There is strong demand for used stock across the board and traders report that buying directly out of the private market is becoming increasingly difficult. Sellers are well aware of how sought after their bikes have become. As a result, those big profit earners are few and far between and margins are being squeezed. Used values have mostly strengthened slightly again this month. Transaction prices will dictate how far this can go.
“The recent Bawtry Motorcycle Auction was well attended, with over 100 bikes on sale. One or two bikes raised eyebrows as they neared dealer retail money. Many familiar trade faces were in attendance, clearly with a view towards sourcing used stock. Many bikes were sold outright rather than provisional only bids.
“Anecdotal evidence suggests that a substantial number of people who dropped out of the market when finances got tight are now looking to get back onto two wheels. As an example, one colleague has just bought a used bike and four of his friends have followed suit – one before even taking his test.
“There finally appears to be a genuine feel good factor across the trade, although it has been so tough for so long it is still clouded by caution. We are some way from ‘the good times’, but there are opportunities out there. Let’s hope that as the economy improves we see steady growth rather than the boom and bust which always seems to afflict the two-wheel market. With summer upon us we can certainly expect the market to remain buoyant for the immediate future.”
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 motorcycle, car or van 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 35 years’ experience in used car valuations. After a decade running a franchised dealership he spent 20 years at CAP where he was Senior Editor of the Black and Red books and co-founder of the Green book, then two years as editor of Parkers Guide before co-founding VIP Data valuation services.
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.