As we close out the first quarter of 2022, powersports dealers are seeing some positive signals, mixed with some areas of concern. According to CDK Lightspeed DMS, revenue from new and used units grew 3.4 percent in January 2022, versus January 2021. Service saw a 1.4 percent decline as compared to a 13.2 percent increase in December. Overall, average dealer revenue was up 3.0 percent for the month. While this is down notably from the high-flying days at the beginning of the pandemic, it’s still a positive.
Areas of concern continue to be available inventory for both new and used units as well as the rate of inflation. Speaking of inflation, a new wrinkle popped up this month as the Federal Reserve raised their interest rate a quarter of a point and signaled six more increases planned for 2022. While these moves are made to tame the rise of inflation, the impact the average consumer can expect to see includes increases in the interest charged on credit card revolving debt, higher mortgage rates, as well as auto and powersports loans.
This monetary tightening may not affect powersports customers immediately. But there is one area that dealers can boost right away….and it might even be free. Dealers can ensure that the entire ownership experience for their customers is one filled with excellence. This intangible, anecdotal attribute will lock in the sale today and for every repeat interaction. It can even bring new customers to the store in the form of referrals and stellar reviews. All it takes is the commitment from every team member and business partner to ensure that each customer engagement is performed with excellence!