Powersports dealers, lenders eye used market for growth as new-vehicle sales drop

Powersports lenders and dealers are tapping the used-vehicle market for growth as dealers grapple with falling new-vehicle sales across most segments. Used powersports sales in the first six months of 2025 dropped 2.2% year over year compared with the corresponding period in 2024, according to data from the National Powersport Auctions . The drop, however, was lower than that of new sales, which fell 7% YoY during the same period. “There's a big disconnect from what leaders are actually selling and what is occurring out there in the open market, including consumer sales,” Jim Woodruff , chief executive at National Powersport Auctions, said last month at Powersports Finance Summit 2025 in Columbus, Ohio. Some dealers have focused only on new-unit sales and have been hesitant to support the used side, he said. “But used leads to new [sales] for most brands. People start with a used version of that brand and they buy a new one.” [caption id="attachment_58355206" align="alignnone" width="800"] (Auto Finance News)[/caption] Dealers lean into CPO, trade-ins While powersports sales have slowed, industry experts say the used market offers untapped potential. Powersports dealers only handle about one-third of total sales of used powersports vehicles in the industry, Woodruff said. The other two-thirds of sales are made privately. “They're curb-to-curb,” he said, noting that used-unit powersports sales are often advertised on platforms such as Facebook Marketplace. Breaking into the used market can also increase service opportunities, Woodruff said. Dealers that have focused on preowned vehicles and servicing are faring better in the current climate, Bob Kee , CEO at Destination CycleSports and chair of the National Powersports Dealer Association , said during a discussion at the summit. Kee has more than 35 years of experience in the powersports industry and has focused his business model on preowned powersports vehicles, he said. Harley-Davidson turns toward CPO Harley-Davidson has also focused on its certified pre-owned (CPO) program in the wake of declining new-vehicle sales this year, Harley-Davidson Financial Services Senior Vice President Charles Do said at the summit. North American retail motorcycle sales fell 17% YoY to 28,900 units in the second quarter, according to Harley-Davidson’s July 30 earnings release. CPO units are attractive to consumers who won’t pay new-vehicle prices but are less price-sensitive than other used-vehicle buyers, Do said. “They care more about the warranty. They care more about mileage,” he said. Some Harley-Davidson dealerships have continued buy-back and trade-in programs, where consumers can sell their motorcycles to the dealership, Mark Fawcett , general manager at Harley-Davidson Mississauga in Ontario, told AFN in August. The programs allow dealerships to get used and CPO inventory without buying at auction, where demand has driven up prices , he said. “We really push [buy back programs] hard in the greater Toronto area,” he said. “People need to turn their toys into cash.” Harley-Davidson hosts a digital trade-in program that allows customers to see how much their bike is worth, according to the OEM. [caption id="attachment_58353685" align="alignnone" width="1920"] (Courtesy/Bloomberg)[/caption] Harley-Davidson new CEO starts, inventory right-sizes Harley-Davidson’s shifted focus on CPO and used sales comes amid closings or consolidations at several of its dealerships earlier this year. Some of the consolidations are the result of reduced consumer demand across the motorcycle market, rather than Harley-Davidson-specific failures, Do said. “That being said, dealers love the brand. Consumers love the brand,” he said. “There will always be a place for Harley dealers.” However, the manufacturer is also encouraging dealerships to adjust their sales tactics if necessary , Do said during the event. “If new bikes are not moving, they have to sell product that is on the floor to be able to drive that cash and operate their business,” he said, noting that Harley-Davidson helps dealers identify what products customers are leaning toward The shifts come as Harley-Davidson Chief Executive Artie Starrs begins in his new role, as of Oct. 1. In the months leading up to taking on his new position, Starrs called general managers of prominent Harley-Davidson dealerships and asked what they’re seeing in terms of sales and customer experience, George Gatto , president of Three Rivers Harley-Davidson in Glenshaw, Pa., told AFN in September. These likely were difficult calls, as “dealer health is the lowest I have ever experienced,” Gatto said. Global Harley-Davidson motorcycle shipments fell 28% YoY to 35,800 units in Q2, and global dealer inventory shrunk 28% YoY to 49,000 units, according to Harley-Davidson’s earnings release. “I am sure [Starr] is hearing a lot of the same things,” Gatto said. Used marine, RV face inventory, price challenges Meanwhile, marine sales continued to decline in August, while used RV prices have dropped. U.S. boat retail registrations declined 10% YoY in August , according to a BMO Capital Markets note citing preliminary Statistical Surveys data from 34 states, or approximately 71% of the market. Boat sales have been falling since the Federal Reserve ’s interest rate hike in April 2022, Matt Gruhn , president of the Marine Retailers Association of the Americas , told AFN . Used boats make up most boat sales, as their lower cost is attractive to first-time buyers, he said. But he added that dealers can profit more from used boats due to their scarcity. “The dealer can not only control the marketing and control the price … but the margins on [used boats] are higher,” he said. “Where else are you going to find that 2017 [model]?” However, it’s believed that many used boat sales are carried out by private sellers or brokerages , Gruhn said, noting that there is no firm data comparing boat sales through dealerships and those through private sellers. Getting CPO or more recent used vehicles can be difficult, as 2020 and 2021 prices were inflated due to supply shortages. Boats that customers financed during the pandemic have dropped in value, making customers hesitant to sell for far less than they paid, Gruhn said. Marine dealers also need to train staff on a used boat’s features so they can properly evaluate it, Jud Chamblee , director of indirect sales at TDECU , said during the summit. “When that boat comes back, you need to make sure that you’re getting top dollar,” he said. RV shipments, prices down in August RV shipments and used RV prices also dropped YoY in August , according to RV Industry Association (RVIA) and Black Book data, respectively. Average wholesale towable values dropped 9.2% YoY to $17,292, and average wholesale motorhome values dropped 2.8% YoY, according to a Sept. 29 Black Book report. RV shipments dropped 3.1% YoY to 29,105 units in August, according to an RVIA report published Sept. 24. “There are a ton of used RVs out there. There's not a market for them,” Chamblee said. “RV dealers are struggling.” “There are a ton of used RVs out there. There's not a market for them.” -- Jud Chamblee, director of indirect sales, TDECU Used-RV price declines may also be a result of seasonal headwinds and downwardly revised employment numbers, Eric Lawrence , principal analyst for specialty vehicles at Black Book, previously told A FN. Dealers in colder states “really don’t do much sales-wise whatsoever during the cold months,” which means fewer auction purchases and fewer shipments, he said. Other growth areas Adjusting inventory purchasing strategies based on consumer demand and identifying untapped demographics are other ways dealers could drive sales, panelists at the summit said. Women are an untapped demographic, Destination CycleSports’ Kee said. “We're seeing more women in our dealership, which is encouraging,” he said. “If you have never dealt with a 50-year-old smart female rancher across a sales desk who wants to buy a $30,000 UTV, you haven't lived,” he said jokingly. Meanwhile, other powersports experts have noticed a change in brand loyalty by consumers. HorsePower Financial Services has seen a shift away from domestic powersports vehicles as other OEMs are coming to market with lower price points, Laura Middendorf , chief financial officer, said at the summit. Consumers are “very sensitive to price right now,” she said. Social media also provides leads on the popular items dealers should stock, Michael Campbell , finance and insurance manager at Kerrville, Texas-based Destination Cycle, said, noting that he rides the wave of microtrends for as long as he can. Campbell has found some success with this approach to stocking inventory. After increasing inventory on a particular ATV model that was trending in recent months, he nearly sold out. Looking ahead, macroeconomic headwinds may ease by summer 2026, NPA’s Woodruff said at the summit. With more consumer demand than pre-pandemic levels, there are growth opportunities across new, used and pre-owned vehicles, he said. “We have more riders and more people wanting to be involved in powersports than we did pre-COVID,” he said. “We have a larger audience. We also have some longer-term demographic effects that are beneficial. The economy is going to get better.” Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 15-17 at the Bellagio Las Vegas. Learn more about the 2025 event and register here .

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Powersports dealers, lenders eye used market for growth as new-vehicle sales drop

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