CDK Lightspeed data shows pre-owned trends
Data from CDK Global Recreation’s Lightspeed DMS shows that motorcycles lead all segments with 22.4 percent of all new units sold with a trade on the transaction. Similarly, 19.9 percent of pre-owned motorcycle sales are sold with a trade on the deal.
In Canada, the same study shows that snowmobiles lead the way with 20.9 percent of new units sold with a trade on the transaction. When pre-owned snowmobiles are bought, however, pre-owned sleds are purchased on a trade with only 12.9 percent of the deals.
The study also shows the type of pre-owned unit that is traded in for a new unit. In the U.S., pre-owned-snowmobile-to-new-snowmobile transactions occurred at a rate of 92.1 percent. Motorcycle-to-motorcycle deals happened 95.8 percent of the time.
When the percent of pre-owned units sold by inventory age (0-369 days) is considered, the study of more than 235,000 pre-owned units sold shows that 16 percent of used units are sold within nine days of acquisition by the dealership. And 1 out of every 200 used units will remain in stock for over a year.
The 90-day benchmark shows that nearly 75 percent of pre-owned inventory is sold within 89 days of acquisition.
When considering the top 10 metric units sold by dealerships who use the Lightspeed DMS, the Honda FourTrax Rancher 4X4 ATV topped all pre-owned units sold during the November 2015-October 2016 time period. The Suzuki GSX-R600 was second. The metric top 10 pre-owned unit sales had an average gross margin percentage of 21 percent.
The Harley-Davidson Street Glide took the top V-twin spot. The top 10 sold pre-owned V-twin models had an average gross margin of 18 percent.