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120

AVERAGE UNIT COUNT SOLD BY DEALER BY REGION

80 74

60

40

20

0

West South Midwest Northeast California Northwest

Source for all charts on pages 11 & 13 : Lightspeed

National Powersport Auctions ( NPA ) says that average wholesale price ( AWP ) historically dips from the March-April peak . In “ normal ” years ( 2018 , 2019 ), late spring pricing will come in 5−7 % lower than in prior months . While early May AWP trends appear to be strong , dealers typically begin to downshift their buying habits as the selling season transitions into summer . As NPA has highlighted for over six months , contending with higher inventory levels will be the biggest challenge dealers face this year .

Continued promotional activity and rate subvention on new products will help move units in the short term . However , it could have a massive impact on used value trends and dealership profitability in the back half of the year .

According to Tony Altieri , vice president of business development at NPA , the first part of June showed pre-owned had strong holding power vs . the previous two months . " I didn ' t have that on the bingo card ," he posted on LinkedIn .

But why is it holding up so well , considering the high levels of new inventory sitting in dealerships right now ? Altieri says that it is because of these five things :

1 . USED provides " value " ( perceived or

13 %

USED UNITS PURCHASED - PRODUCT CATEGORY

18 %

9 %

2 % 1 % On Road UTV Off Road ATV Snowmobile Scooter

58 %

real ) to monthly payment-conscious customers . Retail Price points are lower , so the monthly payments ( even with high rates ) are more digestible to customers .

2 . Hefty incentives cause margin compression on NEW . While USED pricing is influenced by promotional activity on NEW , Dealers still have the ability to take-in and

See Pre-Owned Sales , Page 13

AVERAGE UNIT COUNT SOLD BY DEALER BY REGION

40 % 35 %

34 %

30 %

28 %

25 % 20 % 15 %

15 %

13 %

10 % 5 %

6 % 4 %

0 % South Midwest West Northeast California Northwest