If pre-owned powersports were its own OEM, it would likely be the industry’ s top-selling brand.

BY BRENDAN BAKER EDITOR-IN-CHIEF

That’ s not hyperbole. As dealers continue to navigate a market still adjusting to the post-pandemic hangover of excess inventory, higher interest rates, and changing consumer behavior, many are finding that used units have become one of the healthiest and most profitable segments in the dealership.

According to National Powersport Auctions( NPA) Vice President of Business Development Tony Altieri, 2026 is shaping up to be one of the strongest years for pre-owned inventory since the Covid-era boom.

“ Pre-owned provides dealers with a ton of freedom,” Altieri said during a recent PSB Power Hour podcast.“ You get to be your own OEM. You decide what inventory you stock, what price points you carry and how diverse your inventory mix is. The challenge is that freedom comes with responsibility. You have to manage it correctly.”

That responsibility, dealers are discovering, is paying off.

USED VALUES CONTINUE CLIMBING While new-unit sales have faced headwinds over the past two years, the pre-owned market has quietly gained momentum.

According to NPA auction data, average wholesale prices in 2026 have risen significantly compared to both 2024 and 2025. Prices surged early in the year, climbing 5 % −7 % in January and February before seeing another substantial increase in March. Even after adjusting for inflation and rising MSRPs, used values remain stronger than historical norms.

“ When we compare wholesale values against MSRP, we’ re still seeing better performance than we saw in 2019,” Altieri says.“ Even after accounting for inflation, used values are performing exceptionally well across the powersports segment.”

While prices have begun their normal seasonal decline heading into summer, values remain roughly 10 % higher than they were at this point last year. A combination of factors is driving that strength.

Consumers remain price-conscious. Financing costs, while easing slightly, remain elevated compared to pre-pandemic levels. At the same time, new-unit MSRPs have continued climbing. The result is that many shoppers are finding greater value in pre-owned units.

“ When things become more expensive, consumers tend to see more utility in used inventory,” Altieri explains.“ A customer shopping based on monthly payment isn’ t necessarily looking at a new unit. They’ re looking for something that fits their budget.”

THE EFFECT STILL LINGERS The current market can’ t be understood without acknowledging the ripple effects of Covid. During the pandemic, dealers had little to no access to new inventory. That forced many dealerships to become more aggressive and sophisticated in sourcing pre-owned units. Dealers who previously dabbled in used inventory suddenly made it a core part of their business. Some became very good at it.

“ We saw dealers that were already strong in pre-owned go all-in,” Altieri says.“ At the same time, dealers that had never really focused on

it developed the skills and processes needed to make it a major profit center.”

Those lessons haven’ t been forgotten. Today, many of the industry’ s largest dealership groups view pre-owned as a key growth strategy rather than a secondary revenue source. The ability to accept virtually any trade— regardless of brand— has become increasingly important.

“ If you’ re a Harley-Davidson dealer and someone walks in with a Kawasaki or a Yamaha, you need to be able to evaluate that trade correctly,” Altieri says.“ Whether you retail it, wholesale it or send it to auction, you want to be in a position to make money.”

POSITIVE EQUITY RETURNS One of the more interesting developments in 2026 is how stronger used values are helping support new-unit sales. Many consumers who purchased vehicles during the pandemic are finding themselves with more equity than expected. As wholesale values rise, trade-in values rise as well.

“ Now consumers can come in and discover they have positive equity in their trade,” Altieri says.“ That allows them to move into a new unit with a payment that’ s closer to what they’ re already paying.”

Rather than cannibalizing new-unit sales, strong used values are actually helping generate trade activity and fuel dealership transactions. It’ s a dynamic many dealers haven’ t experienced in several years.

THE ELEPHANT IN THE ROOM Despite the positive trends in pre-owned, inventory remains one of the biggest concerns facing the industry. While dealer complaints about floorplan interest expenses have diminished somewhat thanks to OEM support programs and reduced allocations, overall inventory levels remain historically high.

NPA’ s analysis of dealership management system data shows new-unit inventory in the channel remains well above pre-pandemic norms. Several factors contribute to the increase.

Dealers are carrying more brands than they did before Covid. OEMs continue expanding dealer networks and floor presence. At the same time, many manufacturers have provided financial assistance programs that make carrying inventory less painful. The downside is obvious. And eventually, that inventory has to move.

“ We’ re not hearing as much pain from dealers because floorplan support has helped,” Altieri says.“ But there’ s still a lot of inventory sitting in the channel. At some point we’ re going to have to reckon with that.”

The industry incentives could create challenges for the used market later this year. When OEMs begin offering large rebates or promotional discounts on aging new inventory, used values often feel the impact.

“ If a dealer suddenly has a $ 4,000 incentive on a new unit, that immediately affects the value of comparable used units,” Altieri explains.“ The used market adjusts because consumers now have a lower-priced new option available.”

VELOCITY BEATS MARGIN Perhaps the biggest lesson dealers have learned over the past several years is that inventory velocity matters more than holding out for maximum gross profit.

The days of parking a used unit for six months while waiting for the perfect buyer are increasingly risky. Every day a unit sits on the floor, market conditions can change. Seasonal demand shifts. Incentives appear.

The faster dealers can turn inventory, the more control they maintain over profitability.

“ If somebody offers you a fair profit tomorrow, take it,” Altieri says.“ Move the unit and reinvest that money into another opportunity.”

That philosophy has become easier to execute thanks to improved technology.

TECHNOLOGY CHANGES GAME The rise of inventory management platforms, market analytics tools and artificial intelligence is helping dealers make better decisions about what to buy, how to price inventory and when to sell.

Altieri believes many dealers are only beginning to scratch the surface of what’ s possible. A dealer can now analyze years of sales history in minutes, identifying which units generate the highest margins, sell the fastest and perform best in specific markets.

“ The information is there,” he says.“ The dealers who are using data and technology effectively are the ones seeing the best results in pre-owned.”

Speaking to NPA’ s Tony Altieri on a recent Power Hour, he had a chart that showed AWP climbing.

However, Altieri cautions against adopting technology simply because it’ s available. Dealerships still need people who understand how to interpret the information and apply it correctly.

“ Technology by itself doesn’ t solve the problem,” he says.“ You need someone in the dealership who understands how to use it.”

A BRIGHT SPOT As the powersports industry continues working through elevated inventory levels and evolving consumer demand, the pre-owned market remains one of the clearest bright spots.

Consumer interest remains strong. Values are healthy. Trade-in activity is improving. And dealers are becoming increasingly sophisticated in how they manage used inventory. For many retailers, pre-owned is no longer viewed as a side business. It’ s becoming a cornerstone of dealership profitability.

“ The best operators we know are preowned heavy guys,” Altieri says.“ They understand how to manage the inventory, and use the market to their advantage.”

In a market where every margin opportunity matters, that may be the most important lesson of all.