Sales activity for used motorcycles remained stable in July, with used-only dealers enjoying a fair season. Dealers selling both new and used machines reported weaker used performance, with enquiries shifting towards new models instead – possibly as a result of attractive manufacturer promotions.
Some riders are opting to hold onto their machines rather than upgrade, reflecting a decline in consumer confidence. The market is highly price-driven, with Yamaha’s MT range, from 125cc to 900cc, proving especially popular. As with the new market, pleasant weather has played a significant role, keeping workshops busy and riders on the road. Stock levels remain healthy, though some dealers are intentionally maintaining lean inventories.
New Motorcycle Market
After a large decline in registrations in June, data published by the Motor Cycle Industry Association showed an improvement for July, with registrations just 2.4% behind last year. Following a period of being the biggest casualty, road sports recovered in July, seeing a growth of 15.5%. Mopeds, scooters and adventure machines also recorded an uptick. However, after showing growth in June, tourers declined by 8.9% in July. Overall, year-to-date registrations as of the end of July were 17.8% behind those of last year.
Recent feedback from dealers continues to suggest a challenging market, though some are managing to meet their targets thanks to keen manufacturer promotions. The fine, warm and dry weather prevalent since early spring has also likely given the market a much-needed boost.
Demand for 125cc machines is falling, as delivery companies transition to using electric bicycles to save costs. Mid-range retro-style machines remain popular due to their affordability and appeal across all age groups; however, high-end models priced at more than £10,000 are struggling. With attention turning towards the upcoming autumn budget, there is concern among dealers about how this may further impact consumer confidence and the running of businesses.
Outlook
The first half of July continued the warm and dry theme of early summer, however the second half of the month saw a shift to more changeable conditions.
Glass’s expects values to weaken slightly across most segments in the coming weeks as the summer season nears its end.
Paul McDonald
Senior residual value analyst