PowerNewsTM

VOLUME 10 • JULY 2016www.npauctions.com

IN THIS ISSUE

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

see SNEAK PEEK INTO 2017 p2

WELLS FARGO CDF MIC ON CAPITOL HILLMIC NUMBERSRIDE FOR KIDS CHARITY AUCTION

SNEAK PEEK INTO 2017EDITOR - BIG ON TITLESNPA'S NEW DALLAS LOCATIONEFG - EAGLERIDER FLYING HIGH

SNEAK PEEKINTO 2017

VEHICLE TYPE GENERAL TYPE 2016CURRENT

2015PRIOR

UNITCHANGE

PERCENTAGECHANGE

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 %

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 Side-by-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

A BUMPER CROPOF NEW PRODUCTS

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.

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

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.

WHEN ITPAYS TO BE BIG ON TITLES

SENIOR EDITOR ..............Robin Hartfiel

PRODUCTION EDITOR ... Jim Woodruff

ART DIRECTOR. ...............Efraim Manuel

NPA San Diego, 12400 Stowe Drive • Poway, CA 92064 TOLL FREE 1.888.292.5339 • Fax 858.513.1599© 2016 National Powersport Auctions

VOLUME 10 • JULY 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P2

By Jim Woodruff

By Jeremy JansenMotorsports Group PresidentWells Fargo CDF

SNEAK PEEK INTO 2017

MANAGING EDITOR ....... Ryan Keefe

SECTION EDITOR ........... Sara Spohr

continuedfrom cover

NPA ON THE MOVE EVERYTHING IS BIGGER IN TEXAS!

CONTRIBUTORS

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 —

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

By Jeremy JansenMotorsports Group PresidentWells Fargo CDF

EAGLERIDER FLYING HIGH

It’s been an exciting year for Wells Fargo Commercial Distribution Finance (CDF). Wells Fargo acquired the North American business of CDF from GE Capital on March 1, 2016, as well as the Asia business of CDF on July 1, 2016, to bring additional capacity to dealers operating internationally. The acquisitions for the remaining international CDF businesses in Australia, New Zealand and Europe, Middle East, and Africa (EMEA) is expected to be completed by the end of 2016. Since then, we have been fully focused on providing the same level of service CDF has always provided to our OEMs and dealers, while leveraging the new capabilities and programs that Wells Fargo brings to the table for our network of dealers. All told, Wells Fargo CDF provides floorplan 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

economy are becoming focal points – oil and agriculture, for example, are tempering some OEM's plans for new products by the end of the year, and global economic headwinds have become cautious at best as we close 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 first half of 2016 versus last year’s numbers. The market is expected to maintain similar performance through the close of the year. CDF continues to maintain quality relationships with industry leading OEMs and as such has been growing with them in 2016, posting single digit first half growth. The depth of CDF’s business is also on display via the continued rollout of our Dealer Insights tool. Dealer Insights provides a portal through which powersports dealers can get real-time data to inform business decisions as they pertain to inventory, demographics and financing. As opportunities abound for the industry in the second half of the year, we’re excited to see what’s in store for CDF in the latter half of 2016.

VOLUME 10 • JULY 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P 3

SALES OF PRE-OWNEDUNITS A SUCCESS

WELLS FARGO CDF COMMERCIAL FINANCING'S NEXT CHAPTER

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 pre-owned 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 Pre-Owned (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, cost-effective way to build and manage pre-owned vehicle inventory that sells.”

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

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 trade-

in 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.

www.npauctions.com

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

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

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/

RIDE FOR KIDS PEDIATRIC BRAIN TUMOR FOUNDATION

2016 YEAR TO DATE

MARCH 2016VEHICLE TYPE GENERAL TYPE 2016

CURRENT2015PRIOR

UNITCHANGE

PERCENTAGECHANGE

MOTORCYCLE SCOOTER 2,781 2.416 365 15.1 %

MOTORCYCLE ON-HWY 37,894 35,436 2,458 6.9 %

MOTORCYCLE DUAL 4,464 3,641 823 22.6 %

MOTORCYCLE OFF-HWY 10,215 8,484 1,731 20.4 %

MOTORCYCLE TOTAL 53,354 49,977 5,377 10.8 %

ATV ATV 22,217 21,039 1,178 5.6 %

GRAND TOTAL 77,571 71,016 6,555 9.2 %

VEHICLE TYPE GENERAL TYPE 2016CURRENT

2015PRIOR

UNITCHANGE

PERCENTAGECHANGE

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 %

VOLUME 10 • JULY 2016 • NPA POWERNEWS • WWW.NPAUCTIONS.COM • P4

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 | sspohr@npauctions.com | 858.413.1138Please have all Charity items sent to NPA by Friday, September 16, 2016.

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 (R-NV) 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/#/