Sales activity for used machines in June remained buoyant, with many dealers experiencing a stronger year compared to 2024, particularly in recent months. Consumers are turning to the used market as a more affordable alternative, even after considering manufacturer promotional campaigns for new bikes. However, this is not the case for all dealers, with some reporting that used sales are slightly down from last year.
A broad mix of machines are selling well, from smaller scooters to mid-range machines, particularly adventure and modern classics. Expensive, larger capacity machines are more of a challenge to sell, due to size and affordability constraints.
The majority of dealers report they are satisfied with their stock levels, with no major concerns.
New Motorcycle Market
Data published by the Motor Cycle Industry Association showed another month of decline, with June registrations 18.6% lower than last year. Once again, road sports was the biggest style category casualty, suffering a decline of 32.4%, while touring was the only category to see growth, increasing by 21%. Meanwhile, year-to-date registrations to the end of June were 20.1% behind last year.
Recent feedback from dealers suggests a challenging market, characterised by low consumer spending confidence and interest rates that remain too high for some. Although manufacturers’ deals and campaigns are boosting enquiries, there are suggestions that they are not having as much effect as hoped. Insurance premiums continue to be a major obstacle, with dealers having orders cancelled because of the high premiums being requested. However, it was not all bad news, with some dealers only marginally down on last year, whilst others had a stronger June. That said, some of the growth could be attributed to there being fewer dealers this year, giving each a wider catchment area.
Outlook
The warm weather continues, with June being the hottest on record for England and the second hottest for the UK. July has started on a similar note, and the weather has been a huge boost for the industry this year, highlighted by more riders out on their machines.
Glass’s expects residual values to remain firm across most sectors in the coming weeks.
Paul McDonald
Senior residual value analyst