Motor Industry News
PCP popularity drives 10-15% increase in new bike registrations
“Who wouldn’t be attracted by low monthly payments and the option to swap into a new bike on a regular three-year cycle?” - 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: “Unless sales completely stall over the next few weeks, we can safely assume the new bike market will finish the year 10-15% up on 2014. More than 80,000 bikes were registered to the end of August, a 13.2% increase.
“It should be noted that the majority of these sales were achieved through PCP finance agreements, and some question whether these are good for the long-term health of the industry. There’s no doubt that PCP makes absolute sense for many motorcycle buyers. Who wouldn’t be attracted by low monthly payments and the option to swap into a new bike on a regular three-year cycle?
“The concern is there may be something of a ticking time bomb in terms of plummeting used values. There is the issue of the amount the finance company sets for a vehicle at the end of the agreement compared to what it is worth to the trade. There is also a potential problem in owners not having as much equity in their existing bike as they expected.
“We have a fairly fixed number of buyers in this industry and used motorcycle values have been relatively stable for some time. Any significant change to this equation will have a big impact on the market as a whole. The example of dealer demonstrator values should serve as a warning.
“We are of course moving into the quieter months as the dark nights approach and retail demand reduces. There has been a general dip in trade bids of late and this is reflected in our valuations for October. However, thanks to the lack of top end clean retail stock in the 5-10 year sector, we don’t expect any major drop in these values.”