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American Automotive Trust purchases motorcycle dealership real
estate as well. We believe the business of selling motorcycle
sales will remain a growth business for the foreseeable future.
This is supported both by lifestyle decisions and by high gas
prices which motivate some consumers to seek lower cost personal
transportation vehicles such as motorcycles.
The Motorcycle Industry Council (MIC) indicates motorcycle sales
have been increasing for more than a decade, including through
both strong and weak economic times. The following chart summarizes
motorcycle and scooter sales during the past ten years:
|
U.S. New Unit Motorcycle Sales |
| 1992 |
278,000 |
| 1993 |
293,000 |
| 1994 |
306,000 |
| 1995 |
309,000 |
| 1996 |
330,000 |
| 1997 |
356,000 |
| 1998 |
432,000 |
| 1999 |
546,000 |
| 2000 |
710,000 |
| 2001 |
850,000 |
| 2002 |
936,000 |
| 2003 |
1,001,000 |
| 2004 |
1,063,000 |
The MIC anticipates that motorcycle and scooter sales in
2005 will increase again as compared to 2004. In 2005, among
12 of the leading brands, sales of on-highway models for the
third quarter of 2005 were up 16 percent compared to the same
period in 2004. From July through September, scooter sales
among these brands climbed 65 percent. The MIC indicates 2005
sales are likely to exceed one million units, the third straight
year of sales in excess of one million units.
While there is no definitive survey that directly correlates
increased fuel prices with the popularity of motorcycles,
the MIC indicates there is anecdotal evidence that that motorists
increasingly are asking dealerships about the fuel efficiency
of motorcycles available for purchase.
In addition to fuel efficiency, the MIC’s latest Motorcycle
Owner Survey also found that:
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1. |
Temporary
motorcycle use is increasing: An estimated 24
million people in the U.S. utilized a motorcycle at least
once in 2003.
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2. |
The motorcycle aftermarket
continues to grow even as a greater percentage of motorcycles
are purchased new in the U.S.: The 34% rise in
the number of motorcycles since 1998 translates to about
8.8 million motorcycles in use in the U.S. Simultaneously,
a greater percentage of motorcycles in use are purchased
new, rising to 43% in 2003 from 33% in 1998.
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3. |
Increasingly, motorcycles
are used by females: The proportion of motorcycles
owned by women reached 9.6% in 2003, up from 6.4% in 1990,
and,
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4. |
Motorcycle owners
are more conventional than the common perception:
More than half of motorcycle owners are married. The median
household income of motorcycle owners is higher than that
of the U.S. population as a whole. More motorcyclists
today have white-collar jobs. Also, the median age of
motorcycle riders is 42, up from 38 in 1998. And 29% of
motorcycle riders today have college degrees as compared
to 23% in 1998.
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