MOTORCYCLE DEALERS TARGET PART-EXCHANGES TO BOOST USED STOCKS
April 30 2009.

Limited availability of second-hand motorcycles and increasing showroom traffic have caused growing concern amongst retailers as many attempt to rebuild used stocks in anticipation of further demand, according to Glass's - publisher of Glass's Guide to Motorcycle Values.

Stock holdings have diminished in recent months, and dealers are now turning to part-exchange machines as the most promising source of supply.

"Franchised motorcycle dealers are making the most of their ability to offer attractive prices for part-exchanges, provided that at least some margin is retained on the new machine, in order to increase their intake of used stock," explains Randal Thomas, Editor of the Guide.

"We are also aware that cash buyers in the trade are willing to pay significantly above Glass's Guide figures in order to win a particular piece of stock and are also prepared to accept a smaller margin on the subsequent sale," he adds. "However, we would caution that they always need to have confidence that such a transaction will indeed yield a viable return."

Despite this situation, it is notable that reports of higher trade prices are not in all cases matched by similar reports of high retail transaction prices and tighter margins are frequently inevitable.

"To reflect the continuing, even growing, shortage of good or average quality second-hand machines, we have recorded a firm rise in trade values. All the same, we are aware that retail values are pushing up towards the upper limit of what is currently sustainable," Randal concludes.