Compliance Dealership Training

Compliance Training in 2021

We are nearing the first full month with the new Administration and there has been lots of activity from the White House. Vaccine distribution is rolling out, COVID-19 cases are trending down across much of the country, and Congress has a stimulus package to address. All of these actions bode well for the powersports industry eager to ramp up sales.

There have been some notable actions around compliance. Former Federal Trade Commission (FTC) member Rohit Chopra has been nominated to head the Consumer Financial Protection Bureau (CFPB). During his tenure with the FTC, Chopra was active in pursuing abusive and discriminatory lending practices. Specifically, Chopra has signaled interest in establishing more protections against auto lending abuses, specifically for members of the military, Black and Hispanic consumers. If confirmed, Chopra would replace current CFPB head Kathy Kraninger.

As we can expect a renewed and revitalized federal compliance program, there is no better than now for a solid compliance training refresher for your sales and F&I staff.

Powersports Market

Opportunities in These Tumultuous Times

In three short weeks, 2021 has proven to be as unpredictable as 2020. However, opportunities still abound. While vaccine doses are making their way across the country, COVID-19 cases are hitting all-time highs. Congress passed a last-minute stimulus package that some believed fell far short of the need, while others welcomed the opportunity to apply for new loans. So what’s in store for the powersports industry? Likely much of the same, plus some new things to address.

Let’s start with the new stimulus package. In 2020, the powersports industry saw record sales of dual and off road units and notable revenue generation covering the past two years of declines.  While anecdotal, many dealers attribute the spring stimulus coupled with stay-at-home orders with the spike in sales. The same scenario could play out with the latest stimulus package, and any others that might follow in the first quarter.

However, there are some headwinds which could put a damper on sales. Data from the Bureau of Labor statistics saw 140,000 jobs lost in December, reflecting the first time job growth has shown a reversal since April. The lingering economic effects of the pandemic have also widened the wealth gap. Americans facing wage challenges and potential housing evictions have depleted any savings they may have accumulated earlier in the year, making a bike purchase out of the question, while families in more secure financial positions may be looking for that off road purchase to fill the time.

Business Growth

Looking Forward to Success in 2021

I’ve never been one to dwell on the past but this year demands some reflection as we prepare for success in the upcoming year. While we as a country have endured some tremendous challenges, there also have been many notable events that have given me hope for the future.

As I write this, the first doses of the COVID-19 vaccine are making their way across the country to our well-deserving front line healthcare workers. The presidential election is now behind us and we can move forward – hopefully with a stimulus package to ease the burden shouldered by individuals and small business owners. The Federal Reserve has indicated that interest rates will remain at or near zero at least into 2023. And while we have all been forced to pivot in our ways of doing business, business has continued for the most part. These positive data points tell me that there is much to look forward to as we approach 2021.

Many aspects of the powersports industry experienced a tremendous year in terms of sales, revenue, and overall success metrics. Although fourth quarter data will not be available until the end of January, early indications reflect another strong quarter. According to CDK Lightspeed DMS, new and used unit revenue growth in October clocked in at 33.2 percent. Service has also seen an uptick as riders pull those older bikes out of the garage for a trip down the road. According to Jeremy Jansen, Head of Motorsports at Wells Fargo Commercial Distribution Finance, “North American powersports retail has seen unprecedented activity…resulting in the collective industry entering 2021 with a strong tailwind.”