In the world of powersports sales , buyers often face a key decision : whether to buy a new or used unit . This choice can affect everything from the purchase price to maintenance costs . Cycle Trader offers detailed marketplace search data that shows how the market for new and used NICOLE SCHANTZ motorcycles is changing . By looking at this data , dealerships can understand what customers want and adjust their strategies . This helps them improve inventory mixes , marketing , and customer service , making their business more successful .

USED MOTORCYCLE REGISTRATIONS HAVE INCREASED YEAR OVER YEAR

Throughout 2023 and continuing into 2024 , registrations for used powersports vehicles

consistently outpaced those for new models every month . According to motorcycle registration data from Statistical Surveys Inc ., Cycle Trader ’ s sister company , there was a 14 % increase in used motorcycle sales by February 2024 .

CONSUMER BRAND PREFERENCES BASED ON SEARCH VOLUME

Top Powersports Brands on Trader Interactive marketplaces by Search Results Impressions Jan- April 2024 New : 1 . Honda 2 . Kawasaki 3 . Yamaha 4 . Can-Am 5 . Polaris

Used : 1 . Harley-Davidson 2 . Honda 3 . Yamaha 4 . Kawasaki 5 . BMW

Consumer brand preferences have remained impressively consistent , with Honda , Kawasaki , and Yamaha emerging as the trio of frontrunners in the mostsearched powersports listings . This trend spans the entire Trader Interactive network , including Cycle Trader , ATV Trader , PWC Trader , and Snowmobile Trader , holding strong since 2022 . These powersports brands haven ' t just captured the most searches ; they ' ve also seen impressive growth relative to other manufacturers . Kawasaki ' s searches grew by 1 million from 2022 to 2023 , Yamaha ' s by 22 million , and Can-Am ’ s by 14 million during the same period . Between 2022 and 2023 , there was a 19 % increase in Can-Am unit listings , a 16 % increase in Kawasaki listings , and a 12 % increase in Yamaha listings on our marketplaces . Leveraging premium advertisements for these brands ' listings has shown that dealers focusing their marketing strategies on these leading models have gained significant visibility , sparking more interest from prospective buyers .

TOP 5 POWERSPORTS CATEGORIES BASED ON SRP JAN- APR 2024

1 . Cruiser 2 . Sportbike 3 . Touring 4 . Standard 5 . UTV / Utility Although Honda , Kawasaki , and Yamaha are popular among consumers , there is a growing opportunity to capitalize on the increasing demand for Off-road units , particularly Polaris and Can-Am , which have consistently ranked in the top five since 2022 . With brands expanding their product offerings and the versatility of ATVs for both leisure and work purposes , consumer interest in Off-road vehicles has surged , making UTV / Utility a top five category in 2024 . By showcasing and promoting these brands , dealers can tap into new possibilities to meet changing consumer preferences and drive sales .

On the flip side , the used market showcases a slightly different pattern in brand preferences when compared to new vehi-

See Cycle Trader , Page 13

Well , it happened again . For the fourth time in the last four years , a major underwriter has left the Garage Insurance market . In the last few weeks , K & K Insurance quietly made the ZACH MATERNE decision to cancel their motorcycle and powersports franchised insurance program . K & K was unique because they were the only underwriter who would write dealers of any size , in all 50 states . They now join the list of underwriters who have turned their backs on our industry , joining Philadelphia , Harco , and Sentry ( for non-Harley dealers ).

WHAT DOES THIS MEAN FOR DEALERS ?

In an already stressed market , with so few underwriters , K & K was always the consistent

option , specifically for smaller dealers . This now puts more stress on the remaining options , which undoubtedly will affect premiums and underwriting guidelines industry wide .

WHY DOES THIS KEEP HAPPENING ? Commercial insurance carriers may exit markets due to various factors . Profitability is a primary concern , with carriers leaving unprofitable sectors to safeguard financial stability . Risk management plays a crucial role , as carriers assess and mitigate exposures to high-risk segments . Regulatory changes can prompt exits to ensure compliance with evolving standards . Strategic shifts , mergers , and acquisitions may lead to market realignment or consolidation efforts . Market dynamics , including economic conditions and competition , influence decisions to enter or exit markets . Underwriting performance impacts carriers ’ decisions , with exits from underperforming sectors to improve profitability . Capacity constraints , such as insufficient reinsurance support ,

also affect market participation . Ultimately , carriers prioritize profitability , regulatory compliance , and strategic alignment to ensure long-term viability and success in the commercial insurance landscape .

WHAT HAPPENS NOW ? Depending on your state ’ s laws , a notice of cancellation will be sent to you no later than 30 days before your renewal . If your current policy is with K & K , I would suggest reaching out to your broker as soon as possible to see what their plan is for an alternative at your renewal . Communication is key ! While K & K ' s exit may leave a void , there are still other underwriters in the market willing to provide coverage . Your broker should help navigate this transition and find the best solution tailored to your dealership ' s needs

FEW OR NO ADDITIONAL OPTIONS One often overlooked factor in this search is the varying access brokers have to different insurance markets . Not all brokers have equal access , and some markets require specialized

appointments that are only granted to offices with specific expertise , particularly those handling dealerships .

Work with brokers who have a deep understanding of the dealership market and have established relationships with underwriters specializing in Garage Insurance . These brokers are more likely to have the necessary appointments to access alternative markets and can effectively advocate for dealerships ’ needs .

The departure of K & K Insurance highlights the importance of broker access in the Dealership Garage Insurance market . The brokers not only manage the relationships with their current markets but are always searching for emerging markets . By partnering with knowledgeable and experienced brokers , dealerships can navigate the insurance landscape with confidence and secure the coverage they need to protect their business assets .

Zach Materne is a Property & Casualty risk consultant for Apiar Commercial Risk Management .