Motor Industry News
My Car Check Trade motorcycle market overview August 2015
Huge growth in new naked sales and downward seasonal adjustment in used values
“The most eye-catching figure is the 31.5% growth in the naked style sector” - Rob Hobson
My Car Check 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, moped and scooter markets.
My Car Check Trade’s motorcycle expert, Rob Hobson, commented: “So the weather deteriorated just as the school holidays started – far from an ideal scenario for the UK bike market. Suddenly, it feels more like late autumn than the height of summer.
“At least there’s some good news in the latest sales figures, which show that 60,965 new machines were registered in the first six months of the year, an increase of 12.9% on the same period last year. The most eye-catching figure is the 31.5% growth in the naked style sector, which equates to around 4,000 more bikes. Another standout statistic is the worrying decline in the moped sector, with sales to the end of June down by 10%.
“While many question the level of retained profit being generated from these new bike sales, the positive headline figure gives us something to shout about and more new bikes will boost the future used bike parc.
“The used market seems to have stagnated a little of late with a noticeable reduction in the number of bikes being offered for sale. We can expect this lull to pass as people look to cash in their bikes towards the end of the year, usually from late August onwards. However, we’ve heard from several sources that people are hanging on to their bikes a little longer and certainly not letting them go cheap.
“Generally, used demand is apparently pretty good. As usual, the cream of the crop with full service history (FSH) and below average mileage will move quickly through the trade.
“Demand and availability are fairly well balanced at the moment, so we don’t see any major changes in the short term. The issue of cash flow will become increasingly pressing for many in the trade as autumn approaches, leading to a higher level of caution when assessing used stock. This can work to the advantage of the big dealer groups, whose buying decisions are not constrained in this way.
“This month, we have eased used values pretty much across the board, reflecting the fact that the peak buying season is already behind us. Looking ahead, we expect a greater margin between top-end used stock and less perfect examples. Private sellers would be well advised to take advantage of quieter workshops and maximise the value of their bike prior to sale.”