Tag: EFG Companies

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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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Categories
Powersports Market

Opportunities in These Tumultuous Times

In three short weeks, 2021 has proven to be as unpredictable as 2020. However, opportunities still abound. While vaccine doses are making their way across the country, COVID-19 cases are hitting all-time highs. Congress passed a last-minute stimulus package that some believed fell far short of the need, while others welcomed the opportunity to apply for new loans. So what’s in store for the powersports industry? Likely much of the same, plus some new things to address.

Let’s start with the new stimulus package. In 2020, the powersports industry saw record sales of dual and off road units and notable revenue generation covering the past two years of declines.  While anecdotal, many dealers attribute the spring stimulus coupled with stay-at-home orders with the spike in sales. The same scenario could play out with the latest stimulus package, and any others that might follow in the first quarter.

However, there are some headwinds which could put a damper on sales. Data from the Bureau of Labor statistics saw 140,000 jobs lost in December, reflecting the first time job growth has shown a reversal since April. The lingering economic effects of the pandemic have also widened the wealth gap. Americans facing wage challenges and potential housing evictions have depleted any savings they may have accumulated earlier in the year, making a bike purchase out of the question, while families in more secure financial positions may be looking for that off road purchase to fill the time.

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