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Motorcycle sector values will lead the way in 2021 says cap hpi

Latest analysis from cap hpi reveals motorcycle values will continue to remain strong over the next few months, as it reveals the sector performed better than other parts of the industry.

May 18 2021, LONDON – cap hpi, part of Solera Holdings, Inc., a global leader in risk and asset management data and software solutions for the insurance and automotive industries, predicts that 2021 will continue to see strong used motorcycle values in the short to medium term.

cap hpi sights a combination of factors for the strength of the market. In 2020 new registrations for the powered two-wheel market only reduced by 2.6% over the previous year. There has been a large increase in demand for learner legal machines as people continue to avoid public transport. cap hpi’s experts expect this popularity to remain for some time as a direct consequence of COVID-19. In 2020, sub-50cc sales grew by 21.4%, and the engine band between 51cc to 125cc increased by 14.8%, the latter having a 37.2% share of the total powered two-wheel market. Some of this increase is associated with the move to Euro 5 standard machines. Interestingly and by contrast, registrations for larger capacity motorcycles (over 125cc) dropped by as much as 14.1% over the previous year (2019),

cap hpi predicts that whilst dealers will benefit from short term increased demand following the easing of the lockdown in the UK, they will also need to contend with increased competition for limited stock. Robust used values will be the order of the day as the motorcycle sector is forecast to maintain its popularity throughout 2021 despite the challenges of the pandemic. An example which has shown robust values during the last twelve months is Honda’s perennial best seller the PCX 125 Scooter. With increased commuter demand and vastly reduced new stock, recent examples have been performing exceptionally well, but will stabilise as supply of new stock increases.

Values for collectables and machines considered to be modern day classics are proving popular with prices increasing. Sports and custom bikes from the 1980s & 1990s and more recently from the start of the 21st century, have become very desirable and now sell for many times their original price new, such as the Ducati 1000 sport classic models.

Commenting on the market, Alan Elsworth, Motorcycle Editor at cap hpi explained:

“The demand has remained similar to previous years, but supply has reduced. The effect is compounded by an exchange rate that is favourable to traders in the Euro zone. This is nothing new, but as online auctions have increased, dealers as far away as Poland, Croatia and Cyprus are increasingly looking to UK shores, consequently the increased competition, coupled with the lower used stock levels has resulted in increasing used values.

“Prudent dealerships started to seek used stock at the end of 2020 as in normal years, but as the country prepares to loosen restrictions, shortages throughout the lockdown are being compounded by the start of the 2021 leisure rider season. The pent-up demand from riders wanting to get out on to the roads as the weather improves and Lockdown eases will give dealerships plenty of opportunity.”

cap hpi expects both values and competition to remain strong and offers motorcycle dealers free analysis and advice on the latest movements. For more information on motorcycle performance and information click here

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