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5 Market Challenges For Powersports Sales

Economic Shifts • Consumer Trends • Industry Roadblocks

Posted January 11, 2025

As the powersports market faces new challenges in 2025, dealerships that adapt will thrive. From shifting consumer habits to rising economic pressures, now is the time to take meaningful action. Let’s break down five key challenges and explore how the right strategies can turn them into opportunities that keep your dealership ahead.

Get Answers To 6 Important Questions

How has online shopping changed how customers buy powersports vehicles?
What impact do rising interest rates have on financing and affordability?
Is there still growth potential in electric motorcycles?
How will new tariffs affect pricing and profitability?
Why are more consumers spending less, and how can dealerships adapt?
Is motorcycle ownership declining, and what does that mean for the industry?

Shoppers Leveraging Online Search & Embracing eCommerce

To stay ahead in today’s market, upgrading your website is essential. Ensure it’s fast, mobile-friendly, and easy to navigate, with clear, up-to-date pricing and inventory. Include online financing options to convert visitors into buyers. Dealerships with a polished online presence see increased foot traffic and leads.

Improve Search Rankings & Online Sales

30 Days: Expect more traffic and longer visits after website updates.
60-90 Days: An improved presence results in more qualified leads and customers ready to finalize purchases.
120 Days: Significant increases in conversion rates from online traffic, directly boosting sales.

Rising Interest Rates Are Squeezing Mostly Empty Wallets

With the average powersports loan rate rising to 7.5% in 2023, higher monthly payments may cause hesitation for buyers, especially with inflation and rising living costs reducing disposable income. Consumers are much less inclined to make impulsive purchases, so dealerships must offer value beyond the vehicle. Flexible terms, bundled incentives, or financing promotions can make payments more manageable and encourage buyers to move forward.

Close More Sales & Increase Backend Financing Profits

30 Days: Start marketing flexible payment options and communicate the value of the purchase through social media and your website.
60 Days: Expect more engagement with financing discussions and increased interest from consumers looking for the right deal and experience.
90-120 Days: Sales will stabilize as more buyers lock in purchases, and you'll see higher conversion rates and customer loyalty by positioning your dealership as understanding their budget concerns.

Trade Tensions Are Rising & More Tariffs Are Incoming

New tariffs could raise prices on imported vehicles and parts, putting pressure on your margins. Dealerships relying on international brands may face higher costs, so start sourcing from domestic suppliers or stock up on popular models before tariffs hit. Gradually raising prices can help adjust for increased costs (U.S. International Trade Commission).

Prepare For Increased Costs & Inventory Shortages From Tariffs

30 Days: Secure inventory from trusted suppliers to avoid sudden price hikes.
60 Days: Be ready for tariff changes with minimal disruption to your inventory.
120 Days: Prices stabilize, and customers will appreciate transparency in pricing.

Electric Fading Due To High Price Tags & Justified Range Anxiety

Electric motorcycles were expected to soar, but demand has been slow, with Harley-Davidson's LiveWire brand selling only 612 units in 2025, well below its goal (Common Tread). High prices and a lack of charging infrastructure have kept electric bikes in the niche market. Reevaluate your lineup by assessing which electric models are selling in your area and consider focusing more on traditional gas-powered bikes.

Cater To Electric Segments That Are Growing Like eBikes

30 Days: Analyze sales data to identify which models are moving.
60 Days: Shift focus to vehicles with steady demand and stock what customers want to buy.
120 Days: Minimize overstock of electric bikes and optimize space for higher-demand models.

Motorcycles Are Waning In Popularity

Motorcycle sales have declined steadily, dropping from over 1.1 million in 2006 to just 500,000 in 2023 (Motorcycle Industry Council). Younger generations are less interested in motorcycles, and alternatives like e-bikes are becoming more popular. To reignite interest, host events to attract new riders and build a local online community through influencers and user-generated content.

Become A Core Part Of Your Local Motorcycle Scene

30 days: Plan an event or social media campaign to raise awareness and engage new riders.
60 days: Build brand awareness and attract new customers through social engagement.
120 days: A strong community will attract younger buyers and keep your dealership relevant.

Stay Ahead Of Challenges To Win The Market

The market is shifting, and dealerships that stagnate will fall behind. Those who upgrade their online presence, refine financing strategies, and plan for pricing changes will win. The good news? Success doesn't require reinventing the wheel. It just takes smart, timely action. Start by improving your digital strategy, optimizing sales, and securing inventory.

Take 5 Actions To Grow Dealership Sales

Upgrade your website to convert more visitors into buyers.
Focus on flexible financing options to help counteract rising interest rates and keep buyers coming in.
Secure inventory and adjust pricing before costs rise due to tariffs.
Focus on traditional motorcycles unless the market for electric bikes shows significant growth.
Sell the lifestyle, not just the vehicle to boost customer engagement and sales.

4 More High-Value Questions Remain

How can dealerships use digital marketing to convert online traffic into sales?
Will electric motorcycles ever become mainstream, or will they remain a niche market?
How can dealerships attract younger buyers and reignite interest in motorcycles?
What alternative revenue streams can powersports dealers explore beyond vehicle sales?