Rebates lead powersports incentives in August

Rebates on 2025 and 2024 model year vehicles were the most popular powersports incentives in August, as manufacturers began introducing new models. While incentives stayed largely consistent year over year, manufacturers Bombardier Recreational Products , CFMOTO and Polaris increased or introduced rebates on some products, according to a BMO Capital Markets note published Aug. 25. Dealers anticipate persistent promotions “in the near term to drive sales,” according to the note. Potential HOG closures amid loan sale While dealerships have been resilient in the wake of macroeconomic headwinds, closures may be inevitable in the off-season, National Powersports Dealer Association Board Advisor Mark Sheffield told Auto Finance News . “The Harley world is really tough right now." — Mark Sheffield, National Powersports Dealer Association “The Harley world is really tough right now,” he said, noting that he’s aware of three Harley-Davidson dealers expected to close in the coming months. If that happens, the closures will continue a series of Harley closures going back to June 2024. The potential closures come as parent company HOG announced its progress on its sale of Harley-Davidson Financial Services loan receivables today. Harley announced on July 30 that asset management firms KKR and Pacific Investment Management Co . agreed to purchase more than $5 billion in existing loan receivables and establish a stake in HDFS. As of today, HOG has sold 95% of its residual interests tied to HDFS securitized loans to KKR and PIMCO, with proceeds totaling more than $230 million, according to a Harley-Davidson release published today. The residual interests sold represented $2 billion in loan receivables and $1.8 billion in related debt that existed on June 30. “Completing this step eliminates approximately $2 billion in variable interest entities and $1.8 billion of debt from our balance sheet, while generating more than $230 million of proceeds,” Chief Executive Jochen Zeitz said in the release. HDFS will complete the rest of the transaction, which includes selling a 4.9% common equity interest stake to each asset management firm for $1.8 billion each, by the end of October, according to the release. Targeted incentives Manufacturers will likely target models with an excess of inventory for incentives, Sheffield said. OEMs may start moving away from rebates and toward less costly incentives, he said. “The manufacturers would like to get to focus on finance buy-downs as that is something that is harder for dealers to do,” he said. Some rebates offered by manufacturers in August, according to BMO, include: BRP increased its 2025 Defender side-by-side rebate to $3,500, though it reduced its Commander rebate to $2,000 from $2,500. 2026 ATVs carry a 6.99% APR financing offer for 36 months; CFMOTO has a $1,500 rebate on select 2025 ATVs, side-by-sides and motorcycles; and Polaris increased its 2025 General rebate to $4,000, up from $3,000. It also offered a $1,500 rebate on 2025 XPEDITION side-by-sides. While Harley-Davidson did not offer rebates, it did offer 0.99% APR financing and $0 down payments on select 2024 models and 5.99% APR financing and $0 down payments on select 2025 Touring models, according to BMO. Kerrville, Texas-based dealership Destination Cycle saw more cash purchases after the July 4-5 floods led charity organizations to purchase machines, Michael Campbell , sales and finance manager, told AFN . While the bulk of the dealership’s cash purchases were flood-related, those that weren’t accelerated in part from cash rebates. “I can tell you that the cash rebates BRP offered in July and going into this month were tremendous assets, and were definitely moving the needle,” he said. 2026 models appearing on lots New 2026 models carried “little to no promotional activity” in August, according to BMO. As new 2026 model vehicles are introduced, “manufacturers will start weening them off of rebates,” Sheffield said. The new 2026 models — currently making up 20% to 25% of all inventories — could come with “a little bit of extra costs” because of tariff-induced price hikes , he said. “When dealers are line-iteming and disclosing tariff costs, consumers have not been very happy,” Sheffield said. There is enough 2025 non-tariffed inventory that it may take two to three months before most new inventory available to consumers are 2026 models, he said. For Destination Cycle, consumer confidence has slowly returned after April’s tariff announcements, Campbell said, noting that dealerships have weathered other macroeconomic headwinds. “I don’t foresee the bottom of the market falling out,” he said. “As long as a dealership is implementing a culture of training and following a process, there’s no reason why a dealership can’t be successful in today’s market.” Michael Campbell , sales and finance manager at Destination Cycle , will speak on a lender-dealer dynamics panel at Powersports Finance Summit 2025, the premier event for companies involved in recreational vehicle financing. The summit returns Sept. 23-24 at the Sonesta Columbus. To learn more about the event and register, visit www.PowersportsFinance.com .

Rebates lead powersports incentives in August

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