August powersport sales dip 5.4% year over year

Powersport sales worsened for more dealers in August, marking the sixth consecutive month of sales declines amid ongoing affordability headwinds and growing new-vehicle inventory concerns. “Seasonally, this is the worst time of the year for all recreational products in terms of retail sales and wholesale values,” Tony Altieri , vice president of business development at National Powersport Auctions (NPA), told Auto Finance News . “Seasonally, this is the worst time of the year for all recreational products in terms of retail sales and wholesale values.” — Tony Altieri , National Powersport Auctions Elevated inventory levels will likely “put even more pressure on dealers” than normal in the third and fourth quarters, Altieri said, adding that “the next six months are going to be tough.” August sales decline On average, sales fell 5.4% year over year in August, compared with 4.6% YoY in July , according to BMO Capital Market ’s August Dealer Survey, which garnered 48 dealer respondents and was published Sept. 10. YoY dealer sales performance [caption id="attachment_58344773" align="aligncenter" width="1161"] Courtesy: BMO[/caption] Nearly 70% of dealers saw sales decline in August, up from 66% of dealers in July, 62% in June and 51% in May, according to the survey. Sales declines ranged from nearly flat to down more than 20%, according to BMO. The survey indicated 30% of dealers reported that sales increased in August, down from 34% in July. Inventory 'too high’ Inventory levels showed slight improvement in August but still continue to raise concerns for some dealers, according to BMO. Of the respondents, 45% of dealers found inventory levels to be “too high,” down from 57% in July, while 53% said that inventory levels were “about right,” up from 40% in July. Prevailing inventory challenges also fuel dealers’ cost concerns, NPA’s Altieri said. Dealers are “vocal about that [flooring] expenditure, especially because it's an expenditure they haven't had to contend with for the better part of a couple of years, so that is still a major concern.” Incentives necessary The powersports retail environment increasingly calls for OEM incentives and discounts to move inventory on dealer lots, Altieri said. Some OEM incentive changes in August, according to BMO, include: Polaris increased the rebate on its model year 2024 Rangers to $3,000 from $2,000; Polaris introduced 2.99% APR financing for 36 months on the 2025 RZRs and Rangers; Polaris’ 2025 Rangers carry a $1,000 rebate or 2-year warranty; BRP increased its rebate to $2,000 from $1,500 on select Commander products; Kawasaki introduced a $300 rebate on 2025 ATVs; Suzuki introduced an $800 rebate on select 2024 ATVs; and Harley - Davidson introduced a $2,000 customization credit, up from $1,000, on 2023 units, and continues to offer 3.99% APR with $0 down. OEMs’ willingness to offer incentives and discounts is crucial in helping dealers navigate the remainder of the year , as 2025 product lines continue to hit dealer lots, Altieri said. “This is typically when manufacturers, even in normal times, pump out hefty incentives to move current and prior model year inventory that's hanging around in anticipation of the next model year,” he said. Incentives in August were “roughly in line” on a YoY basis and compared with promotional offers available in 2019, according to a Sept. 17 BMO note. "The big [OEMs], like Harley and Polaris, are going to continue to try to be aggressive on the incentive front to move as much inventory as they can in the short-term,” Altieri said. “OEMs are going to have to get aggressive if they want to move products. They can ask dealers to stock less, but OEMs make their money selling new products, and they're going to have to find a way to get that stuff into the dealerships." PowerSports Finance Summit, a premier event for companies involved in recreational vehicle financing, returns Oct. 9-10 at the Wynn Las Vegas. To learn more about the 2024 event and register, visit www . PowersportsFinance.com .

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