NPA data shows consignment ratio climbing
A National Powersport Auctions Wholesale Powersports Market View of ATVs provided exclusively to Powersports Business shows that 30 percent of all ATVs sold at NPA auctions through April 2012 were consigned by dealers. The report includes sport, utility and side-by-side units.
It’s an upward trend that shows that in 2007, only 12 percent of all ATVs sold at NPA auction were consigned by dealers. The ratio dropped to 9 percent in 2009 before hitting its five-year high in 2012, according to a report by NPA chief operating officer Jim Woodruff.
Utility ATVs are consigned from dealers slightly more often, whereas utility ATVs are clearly the most auctioned repossessions. For 2012, the consignment split among side-by-side/sport/utility ATVs is 19/37/44 percent, and the repo split of the same ATV segments is 16/34/51.
The study also shows that utility ATVs have maintained their popularity at auction over the past five years. Utility ATVs went from 52 percent of all wholesale ATVs sold in 2007 to a steady 49 percent through April 2012. Side-by-sides accounted for 2.5 percent of all wholesale ATVs sold in 2007 by NPA, rising to 17 percent year-to-date. Sport ATVs have dropped from 45 percent of all ATVs sold at auction in 2007 to 35 percent year-to-date.
ATV volume peaked in 2008 with 32 percent of all powersports units sold (motorcycle and ATV). ATVs declined to 25 percent of the total ATV/motorcycle units sold at auction in 2011. Today, ATVs comprise 22 percent of the total powersports units sold at auction.
Dealers are becoming more and more comfortable with buying ATVs on the NPA eSale in 2012. In 2007, 2 percent of ATVs sold by NPA were sold via eSale. In 2012, that number has increased to 28 percent. In 2007, 21 percent of ATVs sold by NPA were sold via NPA’s simulcast. That number has increased to 44 percent in 2012.
Who's selling? Who's buying?
Though the mix has shifted over time, the Southeast is generally the leading source of ATVs. The southern half of the U.S. has consistently accounted for approximately 75 percent of ATV sources from 2007 to date. The North Central and Northwest regions are the smallest sources of ATVs at auction.
Though the mix has shifted over time and varies from sources, domestic ATV buyers from the Southeast tend to be the biggest consumers of wholesale ATVs. From 2007-09, the Southern portion of the U.S. comprised about 70 percent of all ATV buyers at NPA auctions. That number shifted to about 60 percent from 2010-12. The Northwest tends to be the weakest buying base of ATVs from NPA auctions.