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SNEAK PEEK
INTO 2017
TM
www.npauctions.com
VOLUME 10 • JULY 2016
A BUMPER CROP
OF NEW PRODUCTS
The late, great industry guru John Wyckoff
proclaimed customers only care about two things:
What's new and what's on sale! The new bikes
being rolled out with great fanfare by the OEMs
today will be the units on sale at the auctions
tomorrow. Two wheels, three wheels or four,
everyone from BRP/Can-Am to Ducati and Harley
to Yamaha has rolled out some pretty amazing
new vehicles! The bumper crop of innovative new
machines bodes well for the entire industry.
Can-Am has changed the perception of
trikes with a hot rodded Spyder while Yamaha
introduced a paradigm shift in the sport UTV
world with the announcement of its new Sport
Shift YXZ. Meanwhile, Harley is determined to
maintain market share and move product into
new consumer niches, and Kawasaki is proving
good things come in small packages with their
all-new Z125 PRO.
Call it a baby Ninja or a Grom on steroids, the Z125
may be small in size, but it is big on fun! Kawasaki
says the Z125 PRO is a nimble streetfighter that’s
designed to defy what a lightweight motorcycle
should be. Kawasaki claims, "This easy to ride
bike delivers the freedom and excitement of
motorcycling for new and experienced riders
alike." To prove the point, they turned
the leading motorcycle magazine
editors loose on the streets of San
Francisco… with GoPros and predictable
results! "With radical Kawasaki 'Z' styling, the
Z125 PRO is your invitation to the rebellious side
of fun…" See what Kawasaki means by visiting
www.gotosite.co/z6MTp.
Three-wheelers are upping the fun factor too.
New for 2017 within the popular Can-Am Spyder
family is the F3-S with SPORT Mode. "SPORT Mode
allows you to perform controlled rear tire spins,
which enhances the fun factor while maintaining
vehicle stability," says the Canadian company.
Highlighting the Can-Am connection to auto
racing, BRP is introducing the 2017 Can-Am Spyder
F3-S Daytona 500 Edition featuring SPORT Mode.
For those skeptics who may not have noticed,
Can-Am has quietly sold more than 100,000 units
in the past decade.
Ducati is also on the fast track when it comes to
unit sales and product innovation. "In
2015 Ducati sold more than 50,000
bikes without growth being a goal
in itself: it was, rather, the result
of our customers being extremely
satisfied with our products," stated
Ducati CEO Claudio Domenicali.
After a long period of shrinkage, the
motorcycle market is now showing
promising signs of recovery and
this, together with the effects of
continuous product innovation, allowed
Ducati to increase sales in the first ten
months of 2015 by more than 20%.
That number continues to rise courtesy of strong
U.S. sales. In fact, Ducati held its world launch
of the XDiavel in San Diego, NPA’s figurative
backyard. The Ducati World Première showcased
several other new bikes: two new Scramblers, the
Flat Track Pro version and the all-new Sixty2; the
new Hypermotard 939, Hypermotard 939 SP and
Hyperstrada 939 family; the new Panigale 959; the
Multistrada 1200 Pikes Peak and the Multistrada
1200 Enduro.
Outside the world of exotic Italian machines,
Yamaha is shaking things up closer to home
by shifting all ATV/UTV production to Georgia
and pushing the product envelope to the limits.
“Yamaha shocked the motorsports world last year
with the introduction of the first pure sport Sideby-Side with a manual transmission, said Mike
Martinez, Yamaha’s VP of ATV/SxS operations.
"The enthusiasm continues as we expand the
category with the YXZ1000R SS with paddle
shifters and automatic clutch."
In areas where Polaris rules the roost with RZRs
see SNEAK PEEK INTO 2017 p2
IN THIS ISSUE
SNEAK PEEK INTO 2017
EDITOR - BIG ON TITLES
NPA'S NEW DALLAS LOCATION
EFG - EAGLERIDER FLYING HIGH
WELLS FARGO CDF
MIC ON CAPITOL HILL
MIC NUMBERS
RIDE FOR KIDS CHARITY AUCTION
WHEN IT
SNEAK PEEK INTO 2017
PAYS TO BE
BIG ON TITLES
By Jim Woodruff
As the spring market comes to
an end and summer settles in it
reminds us to slow things down
a bit. Reflect. Get back to basics.
When purchasing bikes at an auction, off the street or
from craigslist, it is always a good idea to know what sort
of title you are dealing with. Is it Clean, Salvage or True
Mileage Unknown? Most importantly, do you have all your
titles organized and ready to go before the auction truck
arrives at your front door? Over the years we have seen and
heard everything from mail trucks caught in snowstorms to
my dog ate my title! Delays don't happen very often but
when they do it can be a hassle for all parties involved.
Here are some reminders and tips on titles that might help
keep you out of a jam.
• Have a good filing system and designate a point person!
• Know what vehicles your state requires you to
title. As a new dealer it’s hard to know everthing
but knowing what is required of you will save
you time and money. The NADA Title and Registration
Textbook can be an invaluable resource.
• Always verify titles against the actual VIN, odometer and
engine number if applicable before finalizing a deal.
• For maximum protection before finalizing a deal,
always run an InstaVIN check (and KSR if you operate
in California) on a vehicle’s VIN to detect any potential
title issues with Salvage, TMU, etc (as well as DMV fees
due in CA).
• Switch titles into your dealership’s name. Once
a title is in your dealership's name issues can be
more easily resolved by the DMV prior to selling
to a retail customer.
• Get to know your DMV Clerk. This can be extremely
helpful when you need help, a duplicate is needed,
or you encounter a tricky question. If duplicates are
needed and the title is in your dealership’s name
the process to duplicate is faster and easier.
• Create a Pre-Auction Checklist of the titles you will need
to send and pull them promptly.
• Always make copies of the front and back of titles
before mailing.
• Always send titles by trackable mail.
• Keep copies of the title and tracking number together
until unit has sold.
• Send any applicable Power of Attorney, Lien Releases,
Affidavit of Repossession or Correction Forms to auction
location as well to save everyone time and headache.
• And remember, have a good filing system!
Paperwork is a lot more fun and effective when you have
a game plan. Summer can be the ideal time to retrain
staff or perfect processes before next year’s busy season.
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
because of their automatic transmission,
Yamaha now becomes a serious alternative.
Their all-new Sport Shift (SS) system is a
sequential 5-speed manual transmission
featuring Yamaha Chip Controlled Shift (YCC-S)
technology. This system combines the power,
durability and efficiency of a traditional manual
transmission with an advanced automatic clutch
system that replaces the foot-operated clutch
pedal with F1-inspired paddle shifters mounted
to the steering column. Don't forget the Launch
System to really liven things up.
“From all-new youth ATVs to pure sport
performance, Yamaha continues to lead
ATV and SxS development with
the most innovative and reliable
models in the industry,:" adds
Martinez. "The 2017 YXZ1000R
& YXZ1000R SS are proof
that Yamaha is the leader in
powersports
performance.
With a 998cc inline triple engine
mated to a 5-speed sequential
shift gearbox, massive FOX
Shox front and rear, and styling
the competition can’t touch,
the YXZ is in a
class by itself —
NPA ON THE MOVE
Time flies! It seems like we just rang in the
new year, but the year is already half over as
Q2 comes to an end. We are looking forward
to powering through the rest of the year with
several big milestones in store for National
Powersport Auctions and our dealers.
With the powersports industry returning to
steady growth and healthy increases in both
new lending and pre-owned sales, it's time for
our next big endeavor: relocating our Dallas
facility. "Encompassing 140,000 square
feet, the brand new facility in Flower Mound
exemplifies our standard of what a warehouse
should be," says NPA Dallas General
Operations Manager, Jeff Stalder.
“We have enjoyed the evolution of our Dallas
presence and with 45,000 square feet more
to work with, the new facility is a win-win for
everyone,” Stalder states. "There will be more
CR bays allowing us to process vehicles with
greater efficiency and more room for our
continued
from cover
the only true pure sport side-by-side
ever developed."
Although we covered the vibrant V-Twin market
space extensively last issue, Harley-Davidson
has continued to twist the throttle. Harley has
nearly 50% of U.S. on-highway market share,
and they have added additional bikes to a list of
EVERYTHING IS
BIGGER IN TEXAS!
vehicles and customers."
Other benefits for the new building include a
dedicated stand-alone facility with major street
access and more indoor storage. "The new
building is closer to the airport and has plenty
of parking and a larger loading area." It will also
include expanded training and meeting spaces.
NPA Dallas opened 12 years ago as NPA's
third facility. "We opened Dallas to better
service the central US vehicle volume and
allow our dealers in Mid-America to more easily
participate in auctions," adds Jim Woodruff,
NPA's COO. "Throughout the years, tens of
thousands of vehicles have rolled through
the lanes and we are excited to continue this
journey in our new facility."
Construction is slated to begin this summer
and we are anticipating a late Fall Grand
Opening. Stay tuned for more details as
they develop.
VOLUME 10 • JULY 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P2
new and refreshed 2016 models.
In a move that shows a determination to
maintain market share and move product into
new consumer niches, The Motor Company has
announced the addition of two new motorcycles
to its lineup. The CVO Pro Street Breakout and
Low Rider S are targeted at the growing young
WELLS FARGO CDF
urban motorcycle segment. The Low Rider S features
the Screamin' Eagle Twin Cam 110 matched to a
deep-breathing intake and free-flowing exhaust
system that are said to boost performance to 115
pound feet of torque. The big boost in performance
still comes in at a relatively low $16,699 price for the
Low Rider S. It joins the previously announced Fat
Boy S and Softail Slim S in the cruiser segment.
Powered by the same hot rod motor
package as the Low Rider S, the CVO Pro Street
Breakout is a limited-edition offering. In addition to
the two other S series bikes, The Motor Company
had already announced the Road Glide Ultra and
upgraded versions of its Heritage Softail Classic,
Iron and Forty-Eight.
Now that we know what's new, what is on sale?
All this new model innovation means more
new sales and customers, more tradein opportunities, more action at the
auctions and more market expansion
as innovative vehicles like these
engage customers the motorcycle
market may have missed in years
past. Wyckoff's wisdom would
surely have told us that to prepare
for tomorrow's pre-owned sales,
look no further than the seeds of
innovation being planted today.
COMMERCIAL FINANCING'S
NEXT CHAPTER
economy are becoming focal points – oil and
agriculture, for example, are tempering some
By Jeremy Jansen
OEM's plans for new products by the end of
Motorsports Group President the year, and global economic headwinds
have become cautious at best as we close
Wells Fargo CDF
out the second quarter. Still, sales are up year
over year and the overall dealer and consumer
market has been trending as expected in the
It’s been an exciting year for Wells Fargo first half of 2016 versus last year’s numbers.
Commercial Distribution Finance (CDF). Wells The market is expected to maintain similar
Fargo acquired the North American business performance through the close of the year.
of CDF from GE Capital on March 1, 2016, as
CDF continues to maintain quality
well as the Asia business of CDF on July 1, relationships with industry leading OEMs
2016, to bring additional capacity to dealers and as such has been growing with them in
operating internationally. The acquisitions for 2016, posting single digit first half growth.
the remaining international CDF businesses The depth of CDF’s business is also on
in Australia, New Zealand and Europe, Middle display via the continued rollout of our Dealer
East, and Africa (EMEA) is expected to be Insights tool. Dealer Insights provides a portal
completed by the end of 2016.
through which powersports dealers can get
Since then, we have been fully focused on real-time data to inform business decisions
providing the same level of service CDF has as they pertain to inventory, demographics
always provided to our OEMs and dealers, and financing.
while leveraging the new capabilities and
As opportunities abound for the industry
programs that Wells Fargo brings to the table in the second half of the year, we’re excited
for our network of dealers.
to see what’s in store for CDF in the latter half
All told, Wells Fargo CDF provides floorplan of 2016.
financing to 40,000 dealers across the globe,
including about 4,100 in U.S. motorsports
and 700 in Canadian motorsports.
According to CDF data, the powersports
market got off to a fast start in Q1 but slowed
during Q2. Certain components of the
VOLUME 10 • JULY 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P 3
EAGLERIDER
FLYING
OF PRE-OWNED
UNITS A SUCCESS
HIGH SALES
With an industry still struggling to recover from the
lasting effects of the Great Recession and some
consumers being wary of purchasing pre-owned
motorcycles, Chris Clovis, VP of Sales for EagleRider,
knew he had to approach the market from a different
angle. He had three specific goals in mind:
1) Increase EagleRider’s market presence outside
of their rental image
2) Offer consumers something they couldn’t get
anywhere else
3) Measurably increase sales
In response, Clovis worked together with EFG
Companies to develop the EagleRider Certified
(ERC) program specifically to motivate purchases
of his pre-owned motorcycles. The program also
gives EagleRider dealerships the flexibility to further
enhance their sales by increasing their sales prices
on ERC units.
“Certified pre-owned programs are common in
the automotive realm, but rare in the motorcycle
industry,” claims Clovis. “The key is value — offering
consumers pre-owned motorcycles for significantly
less than new, while still providing the powertrain
protection, roadside assistance, mechanical
inspection, and financing of a new bike."
He adds that combined with a 5-day exchange
guarantee, consumers know what they’re getting.
"ERC eliminates the fear of ‘Buyer Beware’ from a preowned bike purchase, replacing it with confidence
and excitement.”
Within the first 30 days of launching the ERC initiative,
EagleRider saw a 19% increase in unit sales. Within
90 days, they increased their unit sales by 33%, with
a 44% penetration rate. EagleRider is now averaging
between 85 and 90 ERC unit sales per month plus 35
to 40 extended coverage plan upgrades per month,
resulting in significantly increased revenue.
Now any dealership can benefit from EagleRider's
groundbreaking efforts. EFG’s current Certified PreOwned (CPO) program provides consumers with
complimentary limited powertrain protection on
name-brand pre-owned motorcycles. As an added
benefit, pre-owned motorcycles purchased by
dealers at NPA with an overall NPA Condition Report
score of 75 or higher will automatically be eligible for
EFG's CPO program (certain brand, year, mileage,
engine, transmission and frame score limits apply).
“This CPO program supports dealers’ dedication
to providing their pre-owned motorcycle customers
a value-driven customer experience, which is key
to growth and profitability,” explains NPA COO Jim
Woodruff. “This new program reflects NPA’s mission
to help dealers grow by supporting an easy, costeffective way to build and manage pre-owned vehicle
inventory that sells.”
The Motorcycle Industry Council hosted its annual Capitol Hill Fly-In
late this May. The event is designed to connect MIC member company
representatives with their members of Congress to discuss issues affecting
the powersports industry. Over two days, MIC members took part in more
than 40 meetings with members of Congress from 15 states.
Fly-In participants included manufacturers, dealers, aftermarket
companies, credit processors and industry press. The group visited
Congressional offices representing districts and states where the
companies have key facilities. Also participating were members of MIC’s
presented with MIC Chairman’s Awards. MIC’s Chairman of the Board
of Directors, Dennis McNeal, presented Representatives Mike Pompeo
(R-KS) and Collin Peterson, (D- MN) and Senators Dean Heller (RNV) and Joe Manchin (D-WV) with the awards which recognized their
“Outstanding Efforts to Protect the Safety of Recreational Off-Highway
Vehicle Enthusiasts.”
MIC exists to preserve, protect and promote motorcycling through
government relations, communications and media relations,
statistics and research, aftermarket programs, development
of data communications standards, and activities surrounding
technical and regulatory issues. As a not-for-profit, national
industry association, the MIC seeks to support powersports
enthusiasts by representing manufacturers, distributors and
dealers of motorcycles, scooters, motorcycle/ATV/ROV parts and
accessories, as well as members of allied trades such as insurance,
finance and investment companies, media and consultants.
www.mic.org/#/
Although scooter sales are still in a slump, the rest of the
powersports market continues to rebound. The Motorcycle
Industry Council (MIC) new vehicle numbers are in through
March showing YTD sales up 3.2% after a solid surge in March.
Led by a 6.9% increase in street bike sales and 20% more dirt
bikes, the industry closed March up 9.2% over March 2015!
Although National Powersport Auctions specializes in pre-owned
inventory, we feel it is beneficial to share this new-unit data
with you (with MIC permission, of course). Much more detailed
figures, including make and model breakdowns, are available
to MIC members, as is their comprehensive Statistical Annual.
Dealers can now become MIC members and access much of
the same data as the OEMs, including market reports like this
one. For more details on the benefits of MIC membership, visit:
www.membership.mic.org/
MARCH 2016
Dealer Advisory Council, who articulated the perspective of retailers in the
powersports industry. Jim Woodruff from NPA participated as well and
said, “The MIC's voice on safety standards, emissions, financial regulations
and land access is a tremendous asset to our industry.”
“The heart of the MIC Capitol Hill Fly-In is the meetings that MIC arranges
between industry representatives and their Members of Congress," notes
MIC’s Senior VP of Government Relations, Kathy Van Kleeck. "Our goal
is for Members of Congress to be aware of their constituents who are in
the powersports industry and to recognize the important economic impact
these companies have in the retail marketplace, the creation of jobs and in
the recreation economy."
This year’s Fly-In also provided an opportunity for MIC to recognize key
Members of Congress who have been instrumental in protecting the safety
of recreational off-highway vehicle enthusiasts. The original House and
Senate sponsors of the ROV In Depth Examination Act (RIDE Act) were
RIDE FOR KIDS
2016
CURRENT
UNIT
CHANGE
PERCENTAGE
CHANGE
2.416
365
15.1 %
35,436
2,458
6.9 %
3,641
823
22.6 %
10,215
8,484
1,731
20.4 %
53,354
49,977
5,377
10.8 %
ATV
22,217
21,039
1,178
5.6 %
GRAND
TOTAL
77,571
71,016
6,555
9.2 %
VEHICLE TYPE
GENERAL TYPE
2016
CURRENT
2015
PRIOR
UNIT
CHANGE
PERCENTAGE
CHANGE
MOTORCYCLE
SCOOTER
4,841
4,881
-40
-0.8 %
MOTORCYCLE
ON-HWY
73,352
70,948
2,404
3.4%
MOTORCYCLE
DUAL
8,421
7,614
807
10.6 %
MOTORCYCLE
OFF-HWY
20,262
18,845
1,417
7.5 %
MOTORCYCLE
TOTAL
106,876
102,288
4,588
4.5 %
ATV
ATV
45,982
45,780
202
0.4 %
GRAND
TOTAL
152,858
148,068
4,790
3.2 %
VEHICLE TYPE
GENERAL TYPE
MOTORCYCLE
SCOOTER
2,781
MOTORCYCLE
ON-HWY
37,894
MOTORCYCLE
DUAL
4,464
MOTORCYCLE
OFF-HWY
MOTORCYCLE
TOTAL
ATV
2015
PRIOR
2016 YEAR TO DATE
PEDIATRIC BRAIN
TUMOR FOUNDATION
Coming this October is an event you don’t want to miss! American International Motorcycle Expo
(AIMExpo) and NPA will be teaming up for the third straight year to assist the Ride for Kids Happy Hour
Auction. The auction will be held on Thursday, October 13, 2016 at AIMExpo in Orlando, Florida and will
feature donations such as industry memorabilia, signed helmets and gear and one-of-a-kind vehicles.
Ride for Kids is a national series of motorcycle charity rides that has helped the Pediatric Brain Tumor
Foundation become the world’s leading nonprofit funder of childhood brain tumor research. Established
to honor Cycle World founder Joe Parkhurst, the fund benefits the PBTF's scholarship fund for kids
fighting the deadliest form of childhood cancer. Thanks to the generosity of the motorcycling community,
the Parkhurst Auction has helped the PBTF award more than 1,350 scholarships to date.
Charity auctions are driven by the generosity and goodwill of all who participate and it’s never too late
to give something special to change a child’s life! If you would like to contribute an item for the auction,
please contact Sara Spohr below.
Sara Spohr | [email protected] | 858.413.1138
Please have all Charity items sent to NPA by Friday, September 16, 2016.
VOLUME 10 • JULY 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P4