VIBRANT V-TWIN MARKET2016

PowerNews
TM
www.npauctions.com
Spring has sprung and the V-Twin sector is
revving up! Harley-Davidson stock is paying
dividends, Indian is on the warpath and Victory
is on the gas with the launch of the Octane.
After appearing to go into hibernation in Q4, the
big V-Twin industry is back on the throttle. The
V-Twin Expo in February and the unofficial kickoff
to 2016 at Daytona Bike Week demonstrate the
V-Twin market is back with a vengeance. Polaris
plans to prosper with new offerings from Victory
and Indian, but they have a long way to go to
topple The Motor Company, who is investing $70
million into retaining the title.
Where better to fire a shot across the V-Twin
industry's bow than at the 75th Daytona Bike
Week bash? After unveiling the Octane and
Stealth model Victory motorcycles to dealers
and the media, Bike Week witnessed a
substantial public push on the reinvigorated
brand. Add the Hooligan Indian Scout Sixty dirt
trackers rolling into the beachside biker's mecca
and it is clear that Polaris planned to crash what
had been basically a private party for Harley
for decades. Throw in the launch of the new
Springfield model targeted right at the Harley
Road King and an AMA Pro Flat Track racing
legal 750cc powerplant announcement and it
looks like the Indian vs. Harley rivalry is back!
“Bike Week kicks off the riding season and
serves as the perfect place to showcase our
modern American muscle with the all-new
Victory Octane – the lightest, most powerful and
quickest Victory Motorcycle ever produced,”
says Steve Menneto, President of Motorcycles
for Polaris Industries. “Victory’s goal this year is
to highlight the outstanding performance of all
of our models, and Victory’s activities and
VOLUME 9 • APRIL 2016
VIBRANT V-TWIN
2016
MARKET REVS UP!
displays in Daytona are the perfect place to see
how we’re pushing the performance envelope.”
Coinciding with Polaris' Victory party is the
Indian uprising. Indian invited race fans to witness
the Roland Sands Design Super Hooligan Indian
Scout Sixty dirt trackers in action during Daytona
Bike Week. Following on the heels of IV League Flat
Track races in California, the RSD Super Hooligan
Indian Scout Sixty race bikes went on tour leading
up to Daytona, with races at The One Show and
Mama Tried events.
As if this weren't enough, Indian announced
their new Springfield. As Cycle World magazine
quipped: "Attention Road King, someone wants
your throne." CW Editor-In-Chief Mark Hoyer says,
"Clearly, Indian has observed the highly successful
model-proliferation playbook developed in
Milwaukee. As well it should. The core product
from Indian is well designed and engineered,
making the work to produce more good models
from the basic platforms relatively straightforward.
The Springfield is one of those good models."
Taking Stock Of The Situation
So is The Motor Company worried about abdicating
their V-Twin crown? The answer would appear to
be a definitive and resounding "NO!"
Harley-Davidson came out swinging for 2016
with the most powerful collection of cruisers in
the brand’s 113-year history. In a further show of
strength, the Harley-Davidson, Inc. (NYSE: HOG)
Board of Directors approved a 35 cent per share
cash dividend for the first quarter of 2016 — an
increase of 12.9% compared to the 2015 Q4
dividend of $0.31 per share.
This dividend was paid on March 4, the day after
the Indian Springfield unveiling. Coincidence?
Perhaps not. The Board also authorized the
repurchase up to 20 million shares of HarleyDavidson common stock (this is in addition to the
existing share repurchase authorization the Board
approved back in June 2015. As of the end of
2015, 9 million shares remained on that share
repurchase authorization).
In October, Harley doubled down by unveiling
plans to increase its customer-facing marketing
65% and boost investment in new product
development by 35%. Approximately $70 million
is being invested to drive demand, focused in four
areas: increasing product and brand awareness;
growing new ridership in the U.S.; increasing and
enhancing brand access; and accelerating the
cadence and impact of new products.
"We are focused, with strength and resolve, on
growing demand and building on our substantial
market leadership position," said Harley CEO/
President Matt Levatich. "Although we expect
the macro-economic environment to remain
challenging, we are confident we'll continue to lead
with our powerful brand – not simply because of our
substantial strengths, but through our increased
demand-driving investments and our incredibly
talented and passionate employees and dealers."
In a branding tour de force, Harley-Davidson
celebrated the 75th anniversary of Daytona Bike
Week in style with custom bike shows, demo rides
and a special outreach to those on the front lines.
see VIBRANT V-TWIN MARKET p2
IN THIS ISSUE
VIBRANT V-TWIN MARKET
EDITOR’S NOTE -THINKING AHEAD
EFG - CERTIFIED PRE-OWNED PROGRAM
BUELL IS BACK - EBR RETURNS
MOTORCYCLE SALVAGE BILL
MEDIA - POWERSPORTS FINANCE
CALENDAR - UPCOMING AUCTIONS
NPA ON THE MOVE - DESERT TRIP
THINKING
AHEAD
By Jim Woodruff
Spring is my favorite time of
year: the days are longer,
the air is warmer, and retail
traffic is increasing as buyers
are shaking off winter. Over
the next 3-4 months most
dealerships will do a majority of their annual sales.
The spring selling season brings a lot of trade-in,
Craigslist and eBay opportunities because the retail
market is strong and consumers are motivated. Yet
all too often we experience dealers who purchase
units at spring prices only to end up selling later at
fall prices. Besides the loss in value, those units
also take up floor space and capital during the
busiest transactional months of the year.
One way to expand margin and inventory
management beyond your peak season is by
investing in your pre-owned product with a one- to
two-month-ahead mentality. By pricing purchases
for the future rather than today, you can be
competitive but less prone to future downside.
Thinking ahead during the purchase makes it
easier to retail units at a discount if needed. Thinking
ahead also makes it less painful for any units that go
straight to auction - or that eventually get wholesaled
or auctioned later if they sit more than 90 -120 days.
Below are six suggestions to help your Summer, Fall
and Winter be as good as your Spring.
• Take every trade you can and either retail it, or
promptly wholesale it via auction as-is
• Buy trade-ins and off the street purchases with the
likely future wholesale auction value in mind
• Use NPA Value Guide to get current values, then
adjust downward depending upon how long you
might hold the unit. Remember that wholesale
pricing is generally higher in spring and less in
late-summer through winter.
• Adjust your inventory turn times – turn faster in Spring
(45-60 days) and slower in fall-winter (90-120 days)
• Adjust retail pricing after 25 days and again at 35
days, then wholesale via auction after your age limit
• Check your inventory against NPA Value Guide at
least once per month and promptly liquidate slow
movers as well as units that are depreciating quickly
By following these six suggestions you can avoid
being stuck with too much inventory and too
much money invested to liquidate. Thinking ahead
lets you enjoy your spring – and the rest of your year
as well!
CONTRIBUTORS
NPA San Diego, 12400 Stowe Drive • Poway, CA 92064
TOLL FREE 1.888.292.5339 • Fax 858.513.1599
© 2016 National Powersport Auctions
SENIOR EDITOR ..............Robin Hartfiel
PRODUCTION EDITOR ... Jim Woodruff
ART DIRECTOR. ...............Efraim Manuel
MANAGING EDITOR ....... Ryan Keefe
SECTION EDITOR ........... Sara Spohr
SAN DIEGO • DALLAS • CINCINNATI • ATLANTA
VIBRANT V-TWIN MARKET
At a venue known for speed – Daytona
International Speedway – they took a moment
to slow down and say “thank you” by inviting a
group of military personnel and first responders
to take an unforgettable ride around the “World
Center of Racing” during Bike Week festivities.
This parade lap is just the start of free training
for military and law enforcement professionals
as a way to get more enthusiasts on bikes.
Now through the end of 2016, all current and
former U.S. military, and first responders,
including law enforcement officers, firefighters
and EMS professionals are invited to learn to
ride for free through Harley-Davidson’s Riding
Academy program.
“Our offer of free motorcycle training for all
U.S. Military and First Responders is all about
expressing our appreciation for their service, so
they can enjoy more of the freedom they work
so hard to protect,” said Dino Bernacchi, HarleyDavidson U.S. Marketing Director. “We’re
honored all of these riders joined us today.
What a great way to celebrate 75 years at
Daytona Bike Week, kick off riding season,
and salute those who help protect everyone’s
personal freedom.”
Showtime!
Guests were also invited to throw a leg over
Harley’s newest bikes – the CVO Pro Street
Breakout, the Low Rider S, and the Road Glide
Ultra with its clean sheet design - and all available
for demo rides in Daytona.
While the OEMs’ jockeying for position took
center stage during Bike Week, the aftermarket
got to see the opening act at the annual V-Twin
Expo weeks before Daytona. For nearly two
decades, V-Twin Expo has brought together
business-minded industry professionals each
February to network, collaborate and exhibit
the latest products for the V-Twin market.
"Dealers want to see what's new right before
EFG COMPANIES
CERTIFIED PRE-OWNED PROGRAM
EFG Companies, an industry innovator of
consumer and vehicle protection programs,
announced the launch of a Certified
Pre-Owned Program designed specifically
for powersports dealers “As the powersports
market continues to recover, we know
dealerships need showroom traffic now,”
said Glenice Wilder, vice president of
powersports, EFG Companies. “Our CPO
program provides dealerships with an
immediate means of capturing market share
based on current consumer drivers. We are
motivating customers to a make a purchase
based on value that they can only get with
a strong CPO program, and our relationship
with NPA makes it easy for dealers.”
EFG’s CPO program provides consumers
with complimentary limited powertrain
protection on name-brand pre-owned
motorcycles. As an added benefit,
continued
from cover
the riding season kicks into overdrive during
Daytona Bike Week," says show producer and
founder Jim Betlach. "We just give the industry
what it is asking for."
"The show reflects the size of the industry,"
he explains. "Nothing more, nothing less." A
true microcosm of the market, the show has
expanded and contracted during the sometimes
turbulent ride since 2000. "During the chopper
craze when we had dozens of aftermarket
frame makers and specialty OEMs like Big Dog,
American IronHorse, two different Indians and
the like, the show expanded." When the chopper
craze crashed and the overall market tanked in
2008, the show contracted accordingly. However
the date and the location stayed constant, again
based entirely on what the market wanted.
"We don't do anything crazy, we just do what
the market wants," adds Betlach. The good news
is that the market wants to expand in 2016. Of
the 200+ exhibitors on the floor plan, better than
10% are first-time exhibitors, including big guns
from the automotive market like MagnaFlow
exhausts and Red Line Oil. "New players
are always good to have in the game and it
reflects that the V-Twin market is continuing to
rebound… 10% growth is well ahead of national
average and most other segments of the
powersports market.
Boom Goes The Bottom Line!
According to the latest MIC data (see MIC
Snapshot on page 4) all on-highway motorcycle
sales were up 6.4% through the end of 2015,
while the total motorcycle market (dirtbikes,
dual purpose and scooters combined) was up
4.7%. V-Twin Expo's growth and overall strength
of the V-Twin sector are definitely ahead of the
curve! Add in the innovative new product Polaris
is bringing to the party and Harley's investment
of $70 million into engaging new riders, and the
domestic V-Twin market is on the fast track!
motorcycles purchased by dealers from NPA
with an overall NPA Condition Report score
of 75 or higher will automatically be eligible
for the program (brand, year, mileage, engine,
transmission and frame score limits apply).
All vehicles are pre-qualified so no additional
service inspection needs to be completed
by the dealer.
Dealers purchasing a CPO-eligible
motorcycle can simply opt-in to EFG’s
CPO program to retail the motorcycle as
Certified Pre-Owned and market it to retail
customers. Based on a recent thirdparty survey, 63 percent of powersports
consumers place a higher value on CPO
motorcycles by $500 to $1000.
Wilder also stated, “A program like this
is perfect for an independent dealer
who wants to add value to their inventory
without the hassle of performing their own
inspections. This program increases buyer
confidence and has customers coming
back again and again.”
VOLUME 9 • APRIL 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P2
BUELL IS BACK
EBR RETURNS
WITH AN AUCTION
MOTORCYCLE
SALVAGE BILL
FAST
TRACKED
TO
SUCCESS
Tennessee title trouble will soon be a thing of
the past. SB 1994 009256 by Senator Ketron
and HB 1450 009256 by Representative Kane,
closed a loophole in the law that applies to
salvage, nonrepairable, rebuilt, and flood vehicle
certificate of title requirements. The new law
amends TCA Section 55-3-211 by appropriatly
including motorcycles in the state's definition
of a vehicle. This bill passed just before
the spring recess and is just waiting for the
Governor’s signature.
"What the legalese means is that the state of
Tennessee inadvertantley allowed for insurance
companies to take advantage of a loophole to
not disclose salvage on motorcycles," explains
Al Sands, NPA's Director of Customer Care, who
worked tirelessly with HDFS, the Motorcycle
Industry Council, local dealers and insurance
underwriters to clear things up. "Basically they did
not have to brand motorcycle titles as salvage.
NPA Regional Sales Manager, Tony Avello, with Erik Buell, Bill Melvin Jr., and Bill Melvin Sr., the new owners of EBR Motorcycles at the reborn EBR Plant
in East Troy, WI. They are standing with the first bike off the production line that will be auctioned off for charity, with the proceeds going to military veterans.
After being brought back to life when
Bill Melvin of Liquid Asset Partners
bought EBR at a bankruptcy auction, it is
appropriate that the first new bike be auctioned
off. EBR Motorcycles is planning to auction
serial #1 and donate the proceeds of the first
American patriotic bike to a national charity
that assists American military personnel
and veterans.
Did somebody say auction? NPA Regional
Sales Manager Tony Avello was on hand
for the official re-launch of the EBR brand
and to offer assistance with the planned
charity auction.
“The launch of EBR Motorcycles in 2016 is
very exciting for American motorcyclists and
the Buell Nation around the globe,” states
Bill Melvin. “The team at EBR is top-notch
and they have worked enthusiastically
towards this day. It’s a great day for America.
America can succeed in manufacturing a
high-performance sportbike that competes
with the fastest motorcycles in the world.
The excitement over EBR from riders is stunning,
and dealers are quickly expressing their
interest in being an EBR dealer. EBR is ready
to twist the throttle and enjoy the ride!”
Founder and CTO, Erik Buell said, “We
are glad to see the talk all over the Internet
and Facebook about the launch and
those coming to the Launch Party event.
It is always fun to meet riders in person, that’s
what brings joy to the job!”
For 2016, EBR Motorcycles is focused
on their restructuring, as well as updates
on their 2017 models and development of
2018 motorcycles and future innovations.
EBR Motorcycles will continue to work
closely with its race sponsors and privateer
race teams - who are succeeding in racing
EBRs worldwide.
“Working with Erik and EBR to develop an
innovative superbike like the 1190 is just
an amazing experience,” said Dan Hurda,
Director of Engineering. “And on top of that,
we are working on so many other exciting
designs for the future. It’s the kind of job
every kid who goes to engineering school
dreams of.”
Dealers interested in selling EBR
Motorcycles should contact Sales@
LiquidAP.com to receive an information
packet on becoming an EBR dealer. Anyone
interested in more information about the
EBR Motorcycles partnership, investment
opportunity, or purchasing assets that are
in excess to current production should
visit www.LiquidAP.com.
NPA CALENDAR
As you can imagine this exposes the consumer
when they have a clean title but a salvage record
on the vehicle. It left innocent parties with an
asset that was misrepresented… and worth far
less to re-sell."
"As a franchised motorcycle dealer in
the
state
of
Tennessee
representing
Harley-Davidson,
Indian
Motorcycle
and
Victory Motorcycle, I feel strongly that this bill
is monumental when it comes to protecting
consumer rights," says Ricky Kelley of HarleyDavidson of Columbia Superstore. "A service like
CarFax or InstaVIN tells the consumer about an
automobile's history, and when auto titles should
be branded as 'SALVAGE' — the motorcycle
consumer deserves to buy with the same
confidence that a motorcycle has no salvage
history." A similar challenge exists for dealers
in Illinois and a letter has been sent to
Illinois Senator John J. Cullerton in hopes of
circumventing the issues there. Legal eagles
can get all the details at:
www.wapp.capitol.tn.gov/apps/BillInfo/
Default.aspx?BillNumber=HB1450
VOLUME 9 • APRIL 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P 3
MEDIA WATCH
POWERSPORTS
FINANCE
“There’s
no
wholesale
financing
available for our dealerships.” “We
can’t find retail financing for our
customers.” We’ve all heard comments
like these, but where can we go to
learn and share more information?
When GE Commercial Distribution
Finance announced their shift to
Wells Fargo and Capital One decided
to exit the space last year everyone
wondered who would take their place
and help the OEMs and dealers provide
the
necessary
financing
Given
everything going on in the industry
during the past year, the need to know
has never been greater. Enter
PowerSports Finance.
“PowerSports Finance is produced by Royal Media, the same company
behind the auto finance industry’s leading publication, Auto Finance
News, and premier industry event, the Auto Finance Summit,” explains JJ
Hornblass, Executive Editor/Publisher. “The goal is to fill the information
void from a financing perspective.”
PowerSports Finance came to fruition last summer when Auto Finance
News polled lenders and found a significant portion of the institutional
lenders serving the automotive market were looking for more information
about powersports. Subsequently, they hosted the Inaugural Powersports
Finance Summit in Las Vegas last October. Although there is a long road
ahead of them, they are steadily producing new stories and information
about powersports every day.
“PowerSportsFinance.com is the first news outlet to focus solely on
the powersports lending market,” adds Hornblass. “It offers industry
professionals the first dedicated forum to share insights, best practices and
practical intelligence on the financing of motorcycles, ATVs, jet skis, RVs and
other specialty vehicles.”
In addition to PowersportsFinance.com, Powersports Finance Quarterly
was just launched. The digital magazine, daily e-newsletter and website are
available to new and current subscribers.
“The team at Powersports Finance are making strides at bridging the
knowledge gap between the auto and powersports industries. Subscribe
to their mailing list and receive daily e-newsletters and the quarterly print
publication. You can also join the PowerSports Finance community on LinkedIn
and Twitter. Visit www.powersportsfinance.com for more information.
NPA ON THE MOVE
MIC SNAPSHOT
OVERVIEW & SNAPSHOT
THROUGH DEC 2015
The 2015 total new retail sales numbers are in and the news is
good. The motorcycle market continued its incremental growth,
ending up 3.6% last year with more than half a million new
motorcycles being sold. The Motorcycle Industry Council (MIC)
final numbers for Q4 show total on-highway sales of nearly
351,000 units, up 4.9% over 2014. Dirt bike sales were also up
1.9% in 2015 and dual-purpose bikes increased 7.8%. Much
more detailed figures, including make and model breakdowns
are available to MIC members, as is their comprehensive
Statistical Annual. Every powersports dealer should become
an MIC member and enjoy access to much of the same data
and information as the OEMs, including snapshots like this
one. For more details on the benefits of MIC membership, visit
www.membership.mic.org
DECEMBER 2015
VEHICLE TYPE
GENERAL TYPE
2015
CURRENT
2014
PRIOR
UNIT
CHANGE
ATV
ATV
27,435
28,518
-1,083
PERCENTAGE
CHANGE
-3.8 %
MOTORCYCLE
DUAL
2,351
2,129
222
10.4 %
MOTORCYCLE
OFF-HWY
11,877
12,049
-172
-1.4 %
MOTORCYCLE
ON-HWY
15,317
16,615
-1,298
-7.8 %
MOTORCYCLE
SCOOTER
1,622
1,668
-46
-2.8 %
MOTORCYCLE
TOTAL
31,167
32,461
-1,294
-4.0 %
GRAND
TOTAL
58,602
60,979
-2,377
-3.9 %
2015 YEAR-END
VEHICLE TYPE
GENERAL TYPE
2015
CURRENT
2014
PRIOR
UNIT
CHANGE
PERCENTAGE
CHANGE
ATV
ATV
228,380
229,552
-1,172
-0.5 %
MOTORCYCLE
DUAL
36,917
34,249
2,668
7.8 %
MOTORCYCLE
OFF-HWY
82,844
81,261
1,583
1.9 %
MOTORCYCLE
ON-HWY
350,869
334,488
16,381
4.9 %
MOTORCYCLE
SCOOTER
30,065
33,528
-3,463
-10.3 %
MOTORCYCLE
TOTAL
500,695
483,526
17,169
3.6 %
GRAND
TOTAL
729,075
713,078
15,997
2.2 %
DESERT TRIP TO
GORDONS WELL SAND DUNES
Another year had come and gone and another sand-filled getaway with NPA friends and family was in
need. A caravan of ~30 adventurers rolled out Friday night and made the trek to Gordons Well Sand Dunes
just East of El Centro, CA. A weekend of fun under the sun was had by all! Thankfully there were no broken
bones - just a few damaged egos and mangled toys. Luckily, Vey’s Powersports had a test day set up no
more than a football field away and a few fortunate souls got to test drive the new Yamaha YXZ1000. So
how does this compare to other side-by-sides? Two words: Manual Transmission. This helps fuel economy,
connects horsepower to the ground and adds to the overall excitement of driving a side-by-side. All in all it
was another great weekend trip and we all lived our passion for the powersports.
VOLUME 9 • APRIL 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P4