Ho-Ho-Hope You’re Ready for 2025!
As we approach the end of 2024 and set our sights on the new year, we’re encouraged by recent trends in wholesale pricing and inventory performance. November’s average wholesale price (AWP) data offers insights into dealer sentiment and hints at what may lie ahead in the powersports market. Dealer optimism has improved, buoyed by clarity following the election and the momentum of the holiday shopping season. Manufacturers have ramped up year-end incentives and promotions to clear inventory and spark consumer interest. We see reasons for cautious optimism while inventory buildup and financing hurdles remain challenging. With tax refunds set to bolster consumer purchasing power in Q2 and financing dynamics becoming more favorable, the economy is paving the way for improved dealership traffic.
November Overview
The domestic cruiser and ATV/side-by-side (SxS) segments led the charge with robust gains in AWP, reflecting strong demand. On-road motorcycles continued to exhibit consistent and predictable value trends, aligning with historical stability. Off-road segments showed improving trends, and personal watercraft (PWC) and snowmobiles experienced significant jumps in AWP, primarily driven by a cleaner, newer inventory mix. Conversely, RV/camper pricing declined for the third consecutive month, while boat values softened after reaching unusually high levels earlier in the year.
Holiday Momentum and Beyond
The holiday season is a pivotal period, with consumer spending peaking between Thanksgiving and Christmas. Maintaining visibility and offering competitive pricing on new and used products will be critical to capitalize on this demand surge. We expect pricing trends to continue their gradual upward trajectory through the remainder of Q4. As we move into the early months of 2025, AWPs are likely to climb further, especially in anticipation of the spring selling season. This presents a strategic opportunity for dealers looking to acquire high value used inventory.
From all of us at NPA, thank you for your partnership. We wish you a Merry Christmas, Happy Holidays, and a prosperous New Year filled with growth and opportunity!
