This year has certainly brought a lot of positive gains to the powersports industry. The government stimulus coupled with “stay at home” orders early in the year propelled buyers to snatch up ATVs and other recreational units in record numbers. According to CDK, Lightspeed DMS same-store sales for June were up 48.6 percent in the U.S., down slightly from May’s phenomenal 60.7 percent increase in sales.
Anecdotally, the third quarter has continued to be strong regardless of the fact that OEMs simply cannot move fast enough for dealers to capture all the opportunity available. While many dealers are reporting inventory shortages on both new and used bikes, they are also reporting significant gains in pre-order sales, especially within the off-road sector. However, PWC pre-orders are starting to back off because of the season change into fall. Overall, revenue has grown 51.2 percent.
This sales cycle has certainly been a windfall for powersports dealers. However, there are still challenges ahead as we wait to see if and when a second stimulus bill will be passed, as well as the progression of the COVID-19 pandemic in the fall. In light of these factors, how can you protect those gains you received in the second and third quarter?