Powersports sales resilient in uncertain market

Motorcycle dealers and lenders are cautiously optimistic with sales rising in May before tariff-induced cost hikes have hit the industry.

Less expensive units have sold well in May and June, but customers are postponing purchases of “bigger ticket items” in the wake of market uncertainty, Elway Dealer Group Executive Vice President Michael Maledon told Auto Finance News.

“We’re selling a lot of $10,000, $11,000, $12,000 motorcycles, but seem to slow down in some of those $30,000 and $40,000 units,” he said.

The powersports industry appears split on whether the year will be defined by tariff-induced slowdowns or stability from resilient consumers, with 53% of powersports dealers reporting their sales grew year over year in May. Meanwhile, 47% said sales fell YoY, according to a BMO Powersports Business Dealer Survey published June 10. Thirty-two powersports dealers responded to the poll.

New Harley-Davidson sales have slowed, Maledon said. However, used Harley-Davidson products are doing better.

“We’ve been supplementing [new sales] with more and more sales of used,” he said, noting the change is likely due to “customers continuing to look for that lower price.”

June sales have so far been weaker compared with a year ago at the Englewood, Colo.-based dealership group, but could bounce back if federal tariff decisions are finalized, he said.

“The first half of June has not been great,” he said. “But … June, July and August tend to be good months in our climate.”

“The tariffs are really the wild card.” — Michael Maledon, Elway Dealer Group

Tariff fears mixed

The industry “dodged the bullet” on price hikes until Kawasaki released its 2026 price list, which reflects 6% to 7% surcharges, Mark Sheffield, a board adviser for the National Powersports Dealer Association, told AFN.

A backlog of pre-tariff inventory will keep the industry in a “honeymoon period” before tariff price increases are felt, he said.

“Dealers are going to be selling 2025 [models] for the next four or five months. It’s really going to be late this year before a lot of [the supply has] extra cost. … Then we’re going to see how much pushback there is,” Sheffield added.

Around 44% of dealers surveyed by BMO said inventory was “too high,” up from 41% in April. Around 50% said inventory was “about right” and 6% said inventory was “too low.”

For Reno, Nevada-based lender ThunderRoad Financial, 2025 has been similar to 2024, Chief Executive and President Donal Hummer told AFN.

“There’s been so much going on in the last six months that people are almost, in some ways, getting a little numb to it,” he said. “It just doesn’t seem to be affecting [demand] as much as I would have anticipated.”

If the tariffs significantly hit the industry, it will take some more time to see their effects, he said.