Tag: COVID-19

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Business Growth

Prepare for Profit in 2021

While the country is slowly emerging from the effects of the pandemic, the powersports industry started 2021 with a bang! So, what should powersports dealers do now to prepare for the coming months?

According to composite data from more than 1,650 dealerships in the U.S. that use the CDK Lightspeed DMS, revenue from new and pre-owned Major Unit Sales continued to rise 46% in the January 2021 period vs. January 2020.

There are several factors contributing to continued strength in powersports sales. Temperatures are warming, vaccine distribution is rolling out, and COVID-19 cases are trending down across much of the country. A third round of stimulus checks plus income tax returns will hit consumer bank accounts in coming months. Potentially flush with cash and improved consumer confidence, there is a good chance for steady traffic – both online and in the showroom. But will you have what these customers are looking for?

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Compliance Dealership Training

Compliance Training in 2021

We are nearing the first full month with the new Administration and there has been lots of activity from the White House. Vaccine distribution is rolling out, COVID-19 cases are trending down across much of the country, and Congress has a stimulus package to address. All of these actions bode well for the powersports industry eager to ramp up sales.

There have been some notable actions around compliance. Former Federal Trade Commission (FTC) member Rohit Chopra has been nominated to head the Consumer Financial Protection Bureau (CFPB). During his tenure with the FTC, Chopra was active in pursuing abusive and discriminatory lending practices. Specifically, Chopra has signaled interest in establishing more protections against auto lending abuses, specifically for members of the military, Black and Hispanic consumers. If confirmed, Chopra would replace current CFPB head Kathy Kraninger.

As we can expect a renewed and revitalized federal compliance program, there is no better than now for a solid compliance training refresher for your sales and F&I staff.

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Business Growth

Looking Forward to Success in 2021

I’ve never been one to dwell on the past but this year demands some reflection as we prepare for success in the upcoming year. While we as a country have endured some tremendous challenges, there also have been many notable events that have given me hope for the future.

As I write this, the first doses of the COVID-19 vaccine are making their way across the country to our well-deserving front line healthcare workers. The presidential election is now behind us and we can move forward – hopefully with a stimulus package to ease the burden shouldered by individuals and small business owners. The Federal Reserve has indicated that interest rates will remain at or near zero at least into 2023. And while we have all been forced to pivot in our ways of doing business, business has continued for the most part. These positive data points tell me that there is much to look forward to as we approach 2021.

Many aspects of the powersports industry experienced a tremendous year in terms of sales, revenue, and overall success metrics. Although fourth quarter data will not be available until the end of January, early indications reflect another strong quarter. According to CDK Lightspeed DMS, new and used unit revenue growth in October clocked in at 33.2 percent. Service has also seen an uptick as riders pull those older bikes out of the garage for a trip down the road. According to Jeremy Jansen, Head of Motorsports at Wells Fargo Commercial Distribution Finance, “North American powersports retail has seen unprecedented activity…resulting in the collective industry entering 2021 with a strong tailwind.”

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