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Powersports Market

A Looming Cliff for Powersports Dealers?

It’s been a fantastic year for some powersports dealers. Thanks to government stimulus checks and a burning desire to leave the house, ATV and recreational powersports sales have gone through the roof from April to June. Many dealers have already exceeded their 2020 forecasts for the year!

But will the boom times continue? Or will sales fall from these unprecedented highs? There are several factors which could impact the second half of 2020.

Government stimulus

Second quarter sales were propelled in large part by the pandemic-driven CARES Act which provided stimulus money to those who had been furloughed or lost employment. Those stimulus funds have ended and further funds are stalled in Congress until early September. If another round of stimulus is offered, chances are that powersports sales will continue, albeit not at the levels seen in Q2.

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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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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.