It’s Spring – or almost Spring depending on your location – and what better time to pull that ATV out of the shed and churn some dirt! While you’re at it, now is a good time to generate some revenue as well. According to Mordor Intelligence, the North American ATV and UTV market is valued at USD 5.96 billion in 2023, with a predicted growth to USD 7.90 billion, registering a CAGR of about 4.8 percent over the next five years. Rebounding from the shut-down pandemic years, ATV and UTV use has expanded from primarily agriculture, patrolling and hunting uses to sports and recreational activities, gardening, and a plethora of other uses.
Top ATV manufacturers including Yamaha, Polaris, Honda, Can-Am, Suzuki, and Kawasaki realized the opportunity for market growth during the pandemic and announced a slew of new products in 2022. Targeting a wide range of markets including sports, all-terrain, adult, youth, and commercial applications, these units are hitting the showroom floor as consumers shake off the winter doldrums. Specifically, the growth in off-road adventure activities and ‘overlanding’ reflects US consumer interest in affordable family-oriented fun.
While gas-powered models will remain the top seller for the next couple of years, advancements in electric ATVs will leverage growth in the automotive EV market. Outdoor charging options for hunting or back-country use may lag but commercial applications including military and civic use could follow the trend of these industries transitioning their fleets to EVs.
Whether you are selling for consumer or commercial use, the ATV/UTV market is ripe for revenue growth. And while ATVs are built to withstand rugged use, they are not immune from damage and wear-and-tear. Nothing takes the fun out of a day off-roading than a vehicle that doesn’t work – or breaks down far from camp! Including a protection plan at the point of sale is the best way to prevent an angry customer call.
Protect the ATV – and the trailer too
Unlike traditional motorcycle sales, ATVs/UTVs come with some unique considerations. Due to their size, the majority of these units require a trailer, often specialized to support the anticipated use of the vehicle. Pulling a trailer over rough, rocky terrain to reach that remote off-road location can impact everything including the frame. Realizing the trailer is broken at the end of a long weekend certainly puts a damper on a fun weekend.
Another consideration when selling ATVs/UTVs is the risk of a breakdown while in a remote location of the country. Getting away from civilization means….getting away from the resources that can pick up or repair a vehicle that is stranded miles away from the nearest town. A frantic call from a consumer stuck in the backcountry ends better if the sale included a nationwide transport or pick-up service.
Consumers who are eager to get out and enjoy the trail often fail to consider the ATV/UTV components that require maintenance, ensuring that planned outing goes off without a hitch. A protection plan designed to support the unique needs of the ATV/UTV is a must-have for any dealer. Not only will this protection keep your customer happy, but it will also differentiate your dealership from the competition while putting added revenue in the bank.
Make sure your sales and service team understand the importance of these protection plans. Train your staff to engage in a consultative sale, understanding the buyer’s anticipated use of the unit, experience with ATV/UTVs, and the buyer’s knowledge of the parts of the vehicle. From the engine, the primary drive, fuel system, electrical, steering, brakes and gauges, protecting the entire unit is key to successful ownership.
EFG Companies offers both the training and optimized protection plans to meet your dealership needs. Our xtreme® Protection Plan covers you and your customer. Our proven team of advisors can assist you and your team with the training, tools, and resources needed to implement the right approach for your dealership. At EFG Companies, we’re more than an F&I provider, we’re your business partner with years of expertise in the powersports industry.