Formerly known as NADAguides, in Troy, Michigan based J.D. Power Specialty Valuation Services' 2020 Year-End Review - Powersports Market Insights, analysts note that used powersports prices began increasing in the second quarter of 2020 "as the pandemic shifted consumer focus to more outdoor recreational activities.
"Similarly, dealers said they had record sales and very little inventory. In the motorcycle segment, cruiser and sportbike values increased steeply once the warmer months arrived," said Lenny Sims, Vice President Business Development and Strategy at J.D. Power SVS. "Pricing on cruisers finished the year +2.2% ahead of 2019, but that difference was much greater if we compare it to the 2nd half of each year.
"Side-by-sides really took off in the second quarter - Utility SXS brought +8.7% more revenue year over year. Sport SXS units brought +6.5% more revenue year over year."
In other findings, the quarterly report also found that there was a significant used price increase in Q2 through Q4 among powersports categories; a surge in traffic views for the motorcycle segment in May 2020; and a surge in traffic views for the SXS segment in April through May 2020.
The company says that powersport values across-the-board had a strong year as new enthusiasts entered the market and existing riders shopped for new bikes and SXS. "Starting in the 2nd quarter, the pandemic shifted discretionary funds from restaurants and vacations to recreational equipment and vehicles."
The beleaguered sportbike segment is said to have seen an even greater uptick, finishing the year +4.8% ahead of 2019, with similar acceleration in the second half of 2020.
"Demand could start to look more typical once the pandemic recedes and consumers start spending more on travel, but the events of 2020 attracted a new crop of enthusiasts to our industry, which should support the market going forward."