Free 60-Minute Risk List Session

5 Market Challenges Every Dealer Must Overcome

Economic Shifts ▪ Consumer Trends ▪ Industry Roadblocks

The Times They Are A-Changin'

The powersports market is evolving fast. Rising interest rates, online-first buyers, and slower demand in certain categories are putting real pressure on dealerships. Yet these same headwinds create opportunities for businesses that move early. With U.S. motorcycle sales cut in half since 2006 (Motorcycle Industry Council), the question is not whether change is coming, but whether your dealership is prepared to adapt.

Answers 6 Important Questions

How has online shopping changed powersports buying behavior?
What impact do rising interest rates have on 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?

"Hope is not a strategy."

— Vince Lombardi

Shoppers Are Turning To Online Search & eCommerce

Most buyers start online, long before stepping into a showroom. If your website is slow, outdated, or unclear, you are losing leads before they reach you. With eCommerce now making up 16% of U.S. retail sales (U.S. Census Bureau), shoppers expect a seamless, mobile-friendly experience from every dealership.

How To Improve Search Rankings & Online Sales

30 Days: Update business listings, hours, and contact details. Expect an immediate lift in search impressions and inquiries.
60–90 Days: Improve website layout, load times, and financing options to increase lead quality.
120 Days: Higher conversions as online visitors turn into verified buyers.

"Dealerships with mobile-friendly, fast-loading websites convert 30–40% more traffic."

— Google Analytics

Rising Interest Rates Are Limiting Buyer Budgets

With loan rates averaging 7.5% in 2023 and living costs up across the board, buyers hesitate to commit. The traditional "sell first, finance later" approach no longer works. Dealerships need to lead with transparency, payment flexibility, and financing education.

How To Close More Sales & Protect Profit Margins

30 Days: Highlight affordable monthly payments and bundle incentives across marketing channels.
60 Days: Expect more financing conversations early in the buyer journey. This builds trust and speeds up decisions.
90–120 Days: Sales stabilize as more buyers finalize deals and backend profits rise from warranties and add-ons.

"Consumers offered clear payment flexibility are 20–30% more likely to close a deal."

— Experian Automotive

Trade Tensions Are Increasing Tariff Pressures

New tariffs are raising costs on imported powersports vehicles and parts. These price hikes are already impacting margins for many dealers. The best way to stay ahead is to secure high-demand inventory now, explore domestic suppliers, and educate customers about why prices are changing.

How To Prepare For Tariffs And Inventory Shortages

30 Days: Lock in key models and parts before price increases.
60 Days: Communicate openly about tariffs and explain why gradual price adjustments are necessary.
120 Days: Margins stabilize as inventory planning catches up and customers appreciate upfront honesty.

"Tariffs often cause a 10–25% price increase across consumer products."

— U.S. International Trade Commission

eMotorcycle Sales Are Stalling But eBikes Are Surging

Electric motorcycles were expected to take over, but high prices, limited range, and charging issues have slowed growth. Harley-Davidson's LiveWire sold only 612 units in 2025 (Common Tread). The real momentum lies in smaller electric segments such as eBikes and eScooters, where practicality outweighs novelty.

How To Pivot Toward Growing Electric Segments

30 Days: Review local sales data to see which electric products move fastest.
60 Days: Shift marketing and floor space toward eBikes and compact electrics.
120 Days: Reduce inventory of full-size eMotorcycles and reinvest in proven categories.

"eBike sales in the U.S. exceeded 1 million units in 2022, far outpacing electric motorcycle adoption."

— NPD Group

Motorcycle Sales Are Declining & Buyer Habits Are Changing

Motorcycle sales have dropped from 1.1 million in 2006 to roughly 500,000 in 2023 (Motorcycle Industry Council). The next wave of growth will come from community engagement, inclusivity, and entry-level programs that help new riders join the lifestyle.

How To Build Community & Long-Term Loyalty

30 Days: Host local ride days or open houses to attract new riders.
60 Days: Partner with influencers, clubs, or instructors to boost visibility.
120 Days: Position your dealership as a hub for learning and community.

"Dealerships that run rider events and training see up to a 30% lift in new customer acquisition."

— Powersports Business

Apply New Insights Now

Market headwinds aren't roadblocks, they're signals. Rising rates, shifting buyer behavior, and changing demand are challenges that reveal where innovation is needed most. Gather your leadership and department leads for a focused 60-minute strategy session.

Evaluate Your Entire Funnel

This activity helps your dealership adapt fast, protect profitability, and find opportunity in disruption.

Activity Instructions

Audit your website's load time, mobile layout, and lead form usability. Identify 3 improvements that increase speed or clarity.
Review your financing offers and design 2 new promotions (e.g., "Ride Now, Pay Later" or "0% for 90 Days") that address affordability concerns.
Evaluate inventory risk to flag units or parts most vulnerable to tariff or supply chain pressures.
Shift showroom focus to expand space and promotion for proven performers like eBikes, beginner models, or off-road units.
Plan community engagement by scheduling at least 1 ride event or educational session to attract new riders.

Act On The Findings Now

The powersports market rewards those who act, not react. By addressing affordability, improving digital experiences, and fostering community engagement, dealerships can turn market uncertainty into long-term strength. Every cycle brings change, but the most adaptable teams always keep the throttle steady.

Reflection Questions

Where does your dealership lose buyers first: online, in-store, or during financing?
Which inventory categories are growing despite economic pressures?
How transparent is your communication about financing or pricing changes?
Are you prioritizing marketing spend on the most resilient customer segments?
What early signs could help you predict and adapt to the next shift?

"Smart adaptation turns challenges into opportunities. The dealerships that act first usually win first."

— Nathan Rafter

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