MIXED FEELINGS OVER PROSPECTS FOR USED MOTORCYCLE MARKET
January 7 2009.

Used motorcycle retailers have differing views about anticipated trading conditions during 2009, according to EurotaxGlass's - publisher of Glass's Guide to Used Motorcycle Values.

"Despite signs of severely weakened high street spending, some are looking forward with a positive attitude in the hope that there will be some pick-up in sales of second-hand motorcycles, a trend which often occurs at the start of a new year," explains Randal Thomas, Editor of Glass's Guide to Used Motorcycle Values.

"These dealers are also of the view that, providing spring brings an improvement in weather, consumer interest will climb, bringing an influx of potential buyers to the showrooms."

However, other retailers are taking a more cautious stance on the outlook for 2009. "With sales activity now reaching its lowest point of the year, there are heavy discounts on both new and used machines and some consider that used values are too high. The more pessimistic dealers are concerned that the situation will not improve substantially over the next couple of months."

If sales activity does improve, trade demand will rapidly overtake availability, leading to an uplift in prices, explains Thomas.

"Low volumes of new motorcycle sales over previous months has limited the in-take of part-exchanges entering dealerships and this has prevented inventories from being replenished quite as frequently. Small quantities of second-hand machines, combined with a sharp increase in buyers seeking them out, will contribute to an increase in transaction prices for those units that are on the forecourt," he concludes.