Motor Industry News
MyCarCheck.com/Trade Motorcycle Market Overview March 2015:
New sales up again but used margins squeezed as trade values increase
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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 markets.
MyCarCheck.com/Trade’s motorcycle expert, Rob Hobson, commented: “The bike market often needs a glimmer of spring to kick start it, but not this year. It is great news that so far in 2015 new bike sales are up 11% on the same period in 2014. When you consider that the weather has been cold and damp, which usually restricts showroom traffic, this bodes well for dealers as we enter the main season.
“In fact, the new bike market has now recorded year-on-year growth for 13 consecutive months – a very welcome recovery following years in the doldrums. While it comes as little surprise that the naked and adventure-sport sectors continue to show the biggest increases, there are positive signs for all styles beyond Super Sport.
“We have increased trade values this month but retail values are only expected to strengthen once the market picks up properly. The short-term squeeze on dealers’ operating margins should therefore ease over the next few months.
“Larger franchise operations in particular say they are busy, with ‘15 registrations looking reasonably good and some exciting new models arriving in showrooms. This is in sharp contrast to many smaller retailers, who need repair work and demand for accessories to pick up in order to boost turnover.
“Demand for stock in the used market remains strong and looking ahead we can only see values increasing pretty much across the board. We often hear that ‘Sports bikes are dead’ but that’s far from the whole story. What we have are clear divisions within this sector. Dealers want the top quality low mileage clean examples, while private buyers are looking for good mechanical integrity older examples for track day use. This split demand means even quite bruised and battered examples can make surprisingly strong money.
“Perhaps due to an increase in fees on the best known internet auction site, sellers are looking for other routes. The quality of online adverts has improved dramatically over the last five or six years, as has the quality of many of the bikes offered, although we’d always urge consumers to use a provenance service such as mymotorcyclecheck.com.
“For the trade, it is becoming increasingly difficult to source sufficient used stock to supply demand. For smaller operations especially, this often means being out there at night after the shop has closed, hunting down those bargains. Getting good results for the time invested is key. In truth it has never been easy, but it is getting harder.
“A big auction at BCA Peterborough at the end of last month featured a large contingent of Black Horse repossession stock, on offer for the first time for a number of months. The turnout was high as expected and hammer prices reflected the demand for such clean stock.”
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.
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.