Snowmobile manufacturers have halted financing incentives for new snowmobiles as dealers maintain the manufacturer suggested retail price (MSRP) on sales amid ongoing inventory shortages.
Overwhelming demand continues to drive the market with little need for OEMs to offer incentives, Dave Jones, owner of Jackman Powersports, a powersports dealer that sells Arctic Cat, Polaris, Ski-Doo and Yamaha snowmobiles in Jackman, Maine, told Auto Finance News.
“Because of the lack of sleds, manufacturers really don’t have to do anything extra special,” Jones said, noting “there’s no 0% or 1.5% [financing] or anything like that floating around, that I know of.”
Meanwhile, snowmobile dealers, who historically cut prices on new snowmobiles toward the end of the season, are maintaining the MSRP sticker price.
“Dealers would typically sell their new units at a discount, slashing MSRP by 5 to 10%,” Octane Chief Revenue Officer Mark Davidson told AFN. “However, dealers are now selling their units at MSRP and not slashing prices anymore.”
Consumers who are not willing to purchase units at sticker price are followed by consumers who are eager to make the purchase, Davidson said.
The lack of available inventory and strong demand will likely continue to keep incentives low and unit values high.
As far as combatting inventory shortages, “there’s nothing you can do,” Jackman Powersports’ Jones said. “I turn people down every day. I just don’t have any [sleds] left and neither do most of the other dealers.”