Category: Powersports Market

Navigating the New Normal

Post author By efgmarketing
Post date June 3, 2020

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Up or down? Good or bad? The compare and contrast analysis has become a daily past time as we navigate our COVID-19 pandemic world. The air might be cleaner, but there are fewer vehicles on the road supporting the economy. We are spending more quality time with family and loved ones while navigating online school and/or work and cabin fever. When it comes to the retail powersports market, we find pluses and minuses in this new normal as well.

Interest rates are at an all-time low, making financing a bike pretty attractive.
Plant shutdowns have helped push dealership inventory out the door while keeping prices in the black.
Shelter-in-place restrictions might mean more time to ride with family and friends.

But there are also some economic factors which reflect the ying and yang.

The unemployment rate has soared to 14.7 percent, but some industries are experiencing tremendous demand. Food and beverage companies, delivery services, pharmacy/healthcare businesses and cleaning services are eagerly hiring to keep up with consumer demand.
Nearly all states have eased some restrictions on businesses in an effort to jump-start the economy, with some seeing limited success.

Tags ATV, CDC, Centers for Disease Control and Prevention, motorcycle, Powersports, Side-by-Side, UTV

Business Growth Dealership Training Powersports Market

Navigating Subprime Paper

Post author By efgmarketing
Post date August 28, 2019

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

In the last five years, lenders have been competing for more powersports business. Some loosened credit requirements and extended loan terms, while others evaluated the use of alternative data to more accurately determine a person’s creditworthiness.

However, powersports dealers still struggle getting subprime paper bought. When my team is in the store and we see this struggle play out, we always ask how much effort is being put into maintaining lender relationships. The simple fact is, the stronger the relationship, the more willing a lender will be to negotiate and buy outside of their criteria.

So what does it take to develop strong lender relationships? When pondering this question, think beyond complete and accurate applications. It takes communication and the ability to manage expectations.

Do all your team members know lender criteria like the back of their hands?

It’s never a good idea to randomly submit an application hoping for an approval. This process increases each lender’s Look-to-Book ratio, and angers customers when they start receiving a bunch of denial letters in the mail. Each team member needs to clearly understand each lender’s criteria and only submit loans they know will be approved.

Tags EFG, Glenice Wilder, Motorcycles, Powersports, subprime loans

Business Growth Powersports Market

Prepping for Success in 2019

Post author By efgmarketing
Post date October 10, 2018

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

From where I sit, it’s hard to believe that fall is here. Luckily, financial forecasting is not weather dependent. Regardless of the temperatures in your area, the fact remains that new bikes will be arriving at your dealership and you need to manage your current inventory. A few other fourth quarter tasks include calculating your break-even and profitability numbers and preparing for 2019. As powersports dealers cast an eye toward 2019, a sharp pencil and ready calculator can mean the difference between a year in the black or a disappointing year in the red.

2018 is shaping up to be another flat year for on-road powersports products with off-road vehicle sales such as 4x4s up slightly. This is reflective of a demographic transition from Baby Boomers to Millennials. While Millennials still like motorcycles, they are flocking to those off-road vehicles that can hold a family or group of friends. Now that Millennials represent the largest working demographic in the U.S., this generation has the power to “make the market.”

Regardless of the numbers, there are some factors outside of a dealer’s control. Rising tariffs and higher OEM prices for certain bikes can put these products out of reach for some consumers. When planning your inventory for 2019, take a close look at what sold this year. Are you still trying to move those high-end luxury models? Have your Baby Boomer customers decided not to upgrade this year? Are off-road products moving faster than traditional motorcycles? This may be reflective of a growing Millennial buyer base. Rising interest rates and rising costs this year give you a glimpse into next year. Plan accordingly and consider resetting your inventory mix.