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2018 'should be a better year for the trade'

In its Monthly Motorcycle Survey for December 2017, Glass’s Guide writes:

In view of the final quarter of 2016 featuring inflated pre-registrations in preparation for Euro 4, it was little surprise to see registrations in October lag behind those of last year.

Without doubt, 2017 has been a turbulent year, particularly with the political landscape and this has had at least some impact on the industry. Also the market has been clouded by a high number of pre-registered machines which have hindered new sales.  However, 2018 is almost here and with a host of new models in the pipeline, many of which previewed at Motorcycle live, there is plenty to look forward to next year..
 
Motorcycle Live 2017 took place at its usual location, the NEC from the 18-26 November. The atmosphere was buzzing with a high number of manufacturers attending and with a final attendance of 107,072 motorcycling fans visiting over the nine days, the show was once again a great success.  Following this, the Carole Nash MCN London Motorcycle show takes place 16-18 February at Excel London.  

Economic uncertainty will continue in 2018 but due to the fact that Euro 4 will be more established with pre-registered machines exiting the market and stronger model line ups, there are reasons to be optimistic that 2018 will be a better year for the motorcycle industry.

 

Used market

 

First of all, Glass’s hope all our customers had a great Christmas and will enjoy a prosperous New Year with our best wishes for 2018!
This month’s analysis of dealer visits combined with completed surveys indicated that there has been little change in opinion of market conditions versus last year. Similar to last month’s report, 40% were of the opinion that sales in November were broadly in line with last year, 40% thought they were not as good and 20% reported an improvement.
Whilst a number of dealers continue to report strong demand, they are struggling to source the correct stock and this is hindering potential sales.  Continued slower new sales are inevitably generating less part exchanges too, which would not help availability.  However, there is some hope on the horizon for next year as an increasing number of PCP deals reach the end of their term, which should ensure a steady influx of quality machines into the market.  This will enable more dealers to offer an increased range to meet demand.  However, as always it wasn’t all bad news with some dealers reporting stronger sales as a result of decent warranties, which have seemingly increased consumer’s confidence to make used purchases.
Stock availability was overall reported to be broadly in line or worse than last year with 47% confirming lower levels, 47% felt they were broadly in line and 6% said the situation had improved.  Interestingly, there are a few dealers who hold the opinion that there are plenty of quality used bikes in the market now.  Could this be an influx beginning to occur as a result of PCP contracts reaching the end of their term?
Feedback for dealers own stock levels was rather mixed with 27% feeling they had improved, 40% holding the view they were broadly in line and 33% saying they were not so good. 53% stated their stock levels were about correct, 27% believed they were too low and 20% felt they were too high.
Despite being in the depths of winter, purchasing activity is likely to increase in January as dealers look to build their stock levels in preparation for the new season. Taking this into consideration, the majority of values have been held, except where trade feedback and evidence from the market-place has indicated other adjustments where necessary.
 

 

 

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