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Compliance Powersports Market

Don’t Skip Steps

While the country is still in the grips of the pandemic, sales of powersports vehicles, led by ATVs and other recreational units, have been going gangbusters. In May, the average major unit sales were up 60.7 percent and overall revenue increased 51.2 percent.

Going into the third quarter, inventory constraints could put a significant damper on sales gains. Polaris and other companies were forced to close manufacturing facilities due to COVID-19 outbreaks. Analysts from BMO Capital Markets report that inventory shortages across all brands could impact sales for the remainder of the year. However, with more consumers entering the market, and more units being financed, the overall forecast for sales remains cautiously optimistic.

With many powersports dealers surpassing sales records throughout the summer, one could surmise it is Christmas in July, except for one small data point. Identity fraud has reared its ugly head. While fraud has always been an area of focus in the powersports world, a couple of unique pandemic situations have exacerbated the situation.

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Categories
Business Growth Dealership Training

Max Out Productivity

We have had some much-needed good news over the past few weeks. Parts of the United States are opening to nearly full capacity. The number of unemployed workers declined a bit as businesses brought back furloughed staff or hired new team members. Powersports has seen a burst of good news with ATV and dirt bike sales exceeding expectations. While no one is popping any celebratory champagne corks, the positive headlines are a balm to our bruised economy.

However, the COVID-19 pandemic remains a real threat. Hot spots continue to flare, sending record numbers of people to the hospital. A large percentage of Americans are still hesitant to visit businesses in person, instead relying on the online platforms that have sustained their lives since mid-March. As a retail powersports dealer, how do you maximize your opportunities to sell vehicles?

Digital options pay off in productivity

Since we have all been forced to rely on our online tools during the shutdown, more powersports sales are taking place on digital platforms. Proactive dealers who encourage customers to use online shopping tools, including online chat, virtual test drives, trade-in valuation, and financing calculators are capturing greater returns. However, simply providing online tools is not enough to differentiate your dealership from the competition for today’s consumers.

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Categories
Business Growth Powersports Market

Navigating the New Normal

Glenice Wilder Vice President EFG Companies
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.
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