Powersports Switchback

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

Now More Than Ever – Powersports Dealers Need WALKAWAY

Post author By efgmarketing
Post date April 23, 2020

Contributing Author:
Glenice Wilder
Vice President
EFG Companies

Clearly, we are in the midst of challenging times. Due to shelter-in-place orders, many in the U.S. are either working from home or furloughed, and thousands have lost their jobs. And for those who perform essential functions that we rely on, it is business as usual with a whopping dose of added stress. Whatever the situation, everyone is burdened in some way.

In the powersports industry, we’ve been through hard times before. Most recently, the Great Recession taught the industry a lot about running a financially sound business through both economic ups and downs. Since then, the industry has drastically changed with the progression of online retailing. As dealers ramp up online retailing efforts to stay engaged with consumers stuck at home, EFG has once again brought to market its traffic-driving, market differentiator – WALKAWAY Vehicle Return Protection.

WALKAWAY allows consumers the option to return their motorcycle in the event any of these unforeseen life events occur:

Involuntary unemployment
Physical disability
Loss of driver’s license due to medical impairment
Self-employment personal bankruptcy
Accidental death
International employment transfer

Tags EFG, EFG Companies, Nifty 50, Powersports Business, WALKAWAY

Compliance

DOD Decision Gives Powersports Dealers New Option for Military Buyers

Post author By efgmarketing
Post date March 25, 2020

Contributing Author:
Steve Roennau
Vice President
EFG Companies

Powersports products have long been popular among active military and their dependents who find owning a car to be problematic, given the cost and their transitory lifestyle while on duty. The affordability and easy financing of motorcycles have made dealers and lenders eager to support this demographic segment. However, some regulatory wrangling by the Department of Defense (DOD) regarding the Military Lending Act (MLA) had caused some confusion.

Let’s step back and start at the beginning. Congress passed the MLA in 2006 to protect active duty service members and their dependents from predatory lending. Since 2015, the DOD has amended portions of the final rule to expand the scope of the MLA to include the majority of closed and open-ended loans. These amendments impacted traditional lenders like banks, savings and loans, credit unions, and credit cards.

At the end of 2017, the DOD issued a new interpretation of the MLA. Based on the interpretation, creditors providing credit-related products and services, like GAP, credit life, credit disability or cash-out financing, were also required to comply with a full range of duties and restrictions imposed by the MLA.

Tags Department of Defense, DOD, Military Lending Act, MLA