Motor Industry News
MyCarCheck.com/Trade Motorcycle Market Overview June 2014:
New sales up 16.1% as PCP deals pile pressure on excess stock
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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: “Let’s start with a real positive: the 2014 new bike market was up 16.1% from 1 January to the end of April compared to the same period last year. Even the supersport and scooter sectors are showing increases, with only adventure sport and moped sales slightly down.
“This is great news and better than many had predicted, despite expectations of growth compared to the miserable sales levels experienced at the start of last year. Dealers have told us that the damp weather at the start of May slowed showroom traffic but, while not universal, there is a general feeling of confidence in the market. Indeed, some say they are having their best year for quite some time, with stronger demand for both new and used stock.
“Several dealers have expressed concerns about new bike availability from a couple of the Japanese suppliers. While this might not be an issue now there are concerns that it could affect sales later in the year. It comes as little surprise to see the Yamaha MT07 and the Kawasaki ZX1000 SX in the top ten model listings.
“The used market is currently more complex. Dealers say demand is good and values are holding up well, although some highlighted the problem that the growth in PCP deals has caused. Late model and certain pre-registered or demonstrator new stock is proving altogether more difficult to sell as the low deposit and monthly payment offered by a brand new bike on PCP terms is more attractive.
“This issue could be exacerbated by an increase in the number of PCP sales. However, when dealers try to sell their excess and over-age stock into the trade, they are surprised by the low bids. This is despite offering exactly the kind of good clean stock the market is supposedly short of. Traders express the desire to buy but, with a keen eye on retail values, they are very cautious as to how far they are willing to go.
“This is creating a bit of uncertainty in the market as how strongly dealers will bid is based on their own unique stock holding and recent sales. Strength remains in the 5 to 10 year old used bikes, pretty much across the range of styles and models.
“We are now approaching the watershed period where people have purchased a bike for the summer months, prepared it and attended the IOM TT. This is usually followed by a lull where showrooms become a little quiet. What will the summer months bring? If we are blessed with a good prolonged period of sunny dry weather then values should remain stronger for longer.”
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.