Top powersports finance uncertainties of 2020 | Auto Finance News Top powersports finance uncertainties of 2020 | Auto Finance News
Auto Finance News
Subscribe
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Tuesday, January 26, 2021
Log In
No Result
View All Result
Auto Finance News
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • EXCELLENCE
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings at Banks
    • Securitizations
    • Market Share Monitor
AFN PLUS
Log In
No Result
View All Result
Auto Finance News
No Result
View All Result

Top powersports finance uncertainties of 2020 

Matthew Wood by Matthew Wood
December 31, 2019
in Powersports
Reading Time: 4min read

With a presidential election and economic slowdown on the horizon, there is no clear indication of how the pendulum will swing in 2020. Here’s a look at the issues with the greatest potential to impact powersports sales and financing in the new decade. 

Weather 

It may go without saying that weather is difficult to predict, but in the powersports industry, weather can make or break a buying season. It was a huge challenge in 2019, as rain and low temperatures put a damper on springtime buying, Gerrick Johnson, analyst at BMO Captial Markets, told Powersports Finance. Bad weather has been a trend for the past few years, with milder winters that have lasted longer than normal. The last good spring was in 2012 and dealers are taking notice, he added. 

Tariffs 

Tariffs on steel and aluminum were a big question mark on the operations of OEMs such as Harley-Davidson and Polaris. Earlier this year, Polaris Chief Executive Scott Wine said that the 25% tariff hike would be “downright catastrophic” for the company. As U.S.-China trade deal tensions de-escalate following the announcement of a phase one trade deal this month, it’s unclear if 2020 will be more of the same as the presidential election could impact ongoing trade negations and deals.  

Election 

With any presidential election, changes trickle down into the finance industry, said Ben Donnarumma, president of American Cycle Finance. For example, consumers might tighten their purse strings, reducing the amount they spend on discretionary products such as a motorcycles or ATVs. 

Electrification 

Electric vehicles have been a buzzword in the powersports industry, and they are becoming more prominent as OEMs increasingly invest in the technology. BRP has revealed concept designs for multiple electric vehicles, while Polaris appointed Chris Musso to lead its electrification strategy. Harley-Davidson has launched the LiveWire, though the bike’s performance through a full sales year is uncertain. While 2020 might have few electrification developments, lenders should pay attention to what happens over the next few years, BMO’s Johnson said. 

Economic Slowdown  

Though the odds of avoiding a downturn are improving, consumer confidence declined for the fourth straight month. Economists predict a 33.1% chance of a downturn in 2020, down from 38.4% in June, according to a poll from Wolters Kluwer Blue Chip Economic Indicators. Meanwhile, consumer confidence dropped to 125.5 in November, according to the Consumer Confidence Index. 

Tags: American Cycle FinanceBest Practicesbmo capital marketsBRPelectric bikefinanceHarley-DavidsonPolarispowersports
Previous Post

Polaris positions Slingshot to broaden customer base

Next Post

Aston needs new passengers in 2020

Related Posts

EagleRider, Harley-Davidson Expand Rental Program to More Than 100 Dealers
Earnings

RumbleOn adds watercraft listings, eyes RVs

November 10, 2020
Earnings

Harley-Davidson decreases loan loss provisions in Q3

October 28, 2020
Polaris taps Zero Motorcycles to electrify its off-road vehicles
Powersports

Polaris taps Zero Motorcycles to electrify its off-road vehicles

September 29, 2020
Next Post
Aston Martin Taps Chase for Leasing, Replacing Ally

Aston needs new passengers in 2020

Latest Magazine Issue

INNOVATION & TECHNOLOGY

Upstart partners with Oriental Bank, enlarges lending footprint

Upstart partners with Oriental Bank, enlarges lending footprint

January 20, 2021
GM jumps as Microsoft joins $2B self-driving venture

GM jumps as Microsoft joins $2B self-driving venture

January 19, 2021

Sign Up Email List

CORONAVIRUS

Used-vehicle prices increase, inventory outpaces norm

Used-vehicle prices increase, inventory outpaces norm

January 22, 2021
Dueling dynamics will shape consumer credit in 2021

Dueling dynamics will shape consumer credit in 2021

January 20, 2021

SPONSORED

Collateral Protection Insurance (CPI): What is CPI and what does it do?

Collateral Protection Insurance (CPI): What is CPI and what does it do?

January 8, 2021
US auto sales poised for crash after slowest pace in a decade

Driving Customer Loyalty, Retention After Total Loss

December 9, 2020
When tough times hit, proactive strategies pay

When tough times hit, proactive strategies pay

November 2, 2020

About

ABOUT US

PRIVACY TERMS

ADA COMPLIANCE

CODE OF JOURNALISM ETHICS

Contact Us

ADVERTISE

HELP CENTER

EMAIL SIGN UP 

Follow Us

twitter twitter linkedin podcast

©2021 Royal Media & Auto Finance News

No Result
View All Result
  • Home
  • News
    • All News
    • Exec of the Year
    • Innovation & Technology
    • Management
    • Compliance & Regs
    • Risk Management
    • Capital & Funding
    • Powersports
  • Events
    • DEMOvation Challenge
    • Auto Finance Summit
    • Auto Finance Innovation Summit
  • Excellence
    • Best Practices
    • Topics
      • Compliance
      • Customer Experience
      • Technology
    • White Papers
    • Glossary
  • Magazine
    • Latest
    • Magazine Issues
  • Data
    • Lender Ranking
    • Fixed Rate Outstandings
    • Securitizations
    • Market Share Monitor
  • +PLUS
  • SUBSCRIBE
  • Log In / Account

© 2020 Royal Media

Go to mobile version