Motorcycle dealers report mixed sales amid tighter lender standards

Motorcycle sales fluctuated in July as customers faced increased loan rejections and higher new-vehicle prices. Englewood, Colo.-based Elway Dealer Group ’s powersports sales in July were nearly flat year over year, with a downtick in new-vehicle sales but higher used sales, Executive Vice President Michael Maledon told Auto Finance News . As new units become “ more expensive ,” customers are looking to used vehicles and more affordable motorcycle lines, he said. Of 34 powersports dealers surveyed in July, 40% said sales grew YoY that month while 58% said sales declined YoY, according to a BMO Capital Markets note published Aug. 11. The average rate of sales growth fell 2.8% YoY. More rejections Dealerships saw more loan application rejections in July, though it's unclear what’s driving the change, Maledon said. “I don’t know if it’s customers, [where] their credit has become more derogatory, or if it’s lenders tightening up,” he said. One lender Elway works with is Harley-Davidson Financial Services (HDFS) subsidiary Eaglemark Savings Bank , which has tried to “help the dealers as much as they can,” despite rejections, Maledon said. Ontario-based dealership Harley-Davidson Mississauga has stopped sending some loans to banks because of how often it expects a rejection, General Manager Mark Fawcett told AFN . “If [HDFS] is approving them at mid-double digit rates … there’s no chance that the bank is going to take it,” he said. While HDFS is still providing the bulk of the dealerships’ deals, powersports lender Ryde Financial has helped Harley-Davidson Mississauga finance more subprime loans, Fawcett said. “Harley’s being a little stickier than they used to be,” he said. Harley-Davidson ticks above market Despite closing several dealerships in the first half of 2025 and reported tightening of credit, Harley sales outperformed much of the broader market in July, according to the BMO note. Harley-Davidson was the third-best performing brand, with sales down 1.2% YoY compared to the broader motorcycle market’s 3% YoY decline, according to the report. Other major manufacturers, according to BMO: Kawasaki sales rose 5% YoY; Bombardier Recreational Products ’ Can-Am Spyder and Ryker motorcycle sales rose 1.7% YoY; Polaris ’ Indian’s sales fell 5% YoY; and Yamaha ’s sales fell 5% YoY. Fawcett’s Harley-Davidson dealership saw an uptick in unit sales YoY in July and is on pace to meet targets set by the OEM for 2025, he said. However, that rise coincided with: Harley-Davidson recalibrating its target goals for a “more conservative outlook”; and Two Ontario Harley-Davidson stores closing June 30. While the Ontario store closures drove a “very small” amount of traffic, few of those consumers are making the trek to Harley-Davidson Mississauga, he said. “People don’t want to travel 60 or 80 miles to come and buy a bike,” he said. Inventory Meanwhile, dealers are scaling back inventory, with around 36% of surveyed dealers reporting that inventory was too high , according to BMO. Elway Dealer Group’s inventory is “down quite a bit” from 2024 as part of an intentional reduction, Maledon said. “OEMs have way too much supply,” he said. “There’s too much supply in the dealer channels, so we’re trying to keep ours as lean as possible.” The dealer group’s inventory is composed of 80% new and 20% used vehicles. An increase in used-vehicle demand is driving auction prices up , making it difficult to keep used inventory, Maledon said. “All the dealers are fighting over used inventory,” he said. “Go to these auctions and the prices are way beyond what I’d want to pay for it.” Elway Dealer Group will enter a seasonal sales decline as temperatures cool in Colorado, Maledon said, noting that the inactive period can drive hesitancy when making large-scale inventory decisions. “Some [OEMs] want us to bite off a 12-month order,” he said. “I don’t have a crystal ball that shows me what’s happening over the next 12 months.” Harley Davidson Financial Services’ Charles Do and Kawasaki’s Sandra Giron , will join a discussion on motorcycle financing trends at Powersports Finance Summit, a premier event for companies involved in recreational vehicle financing. The summit returns Sept. 23-24 at the Sonesta Columbus. To learn more about the 2025 event and register, visit www.PowersportsFinance.com .

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