Dealers take cautious stance on pricing

It's that dreaded phrase again, yes the credit-crunch is having an effect on used trading. Dealers take cautious steps

AS DEMAND for used motorcycles continues to be slow and current
economic conditions display little sign of improvement, dealers are
cautious of placing overly optimistic prices on second-hand stock, wary of losing potential sales to competitors.

In a recent trade survey, 79 per cent of dealers reported
that recent demand for used machines has either stayed the same or
fallen in comparison to last year.

Stock levels for over a third of dealers are down on the same period in 2007, and this would typically lead to a strong rise in retail and trade prices. Yet feedback from the motorcycle trade indicates that values have not gained full strength, despite expectations that they would.

Randal Thomas from Glass's price guide, said: “With little immediate sign of an improvement in economic conditions, the late start to the season has narrowed the window of opportunity before the market traditionally begins to lose momentum around the middle of the year. In this respect we can only hope to be proved wrong during two or three months of glorious weather and consequently brisk retailing.”

Despite this slackening in activity there were signs that, should the
used market receive a boost, then the supply of machines would struggle to keep pace with demand.

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