Categories
Business Growth

The Outcome Is In Your Hands

The third quarter of this year ended with a bang for both new and used powersports dealers, with unit sales growth up 27.3 percent. The 3Q Powersports Business/BMO Capital Markets dealer survey showed 69 percent of dealers were above plan for the year. Of the survey respondents, 83 percent are single-store operators and the majority carry a wide variety of powersports products. Both new and pre-owned unit sales were strong, with 1 in 5 dealers reporting that F&I sales were very strong.

What happens when those strong sales aren’t so strong? According to the survey results, 84 percent of respondents were concerned about the US political climate and another 63 percent were most concerned about the pandemic. When asked specifically about the presidential election, write-in comments reflected that dealers believe a Democratic win would negatively affect business.

So let’s take a quick check on our current situation. The US continues to suffer from the coronavirus. In fact, the number of new cases recorded each day has ballooned from fewer than 40,000 in September to over 100,000 in early November. And scientists are cautioning against a larger winter surge, as people are forced inside due to cold weather. Clearly, COVID-19 is not going away anytime soon.

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.