10 • July 2024 • Powersports Business

FROM THE EDITOR INSTA TIPS

Is your dealership capitalizing on the top-of-mind marketing ease that Instagram offers ? Did you come up with an ideal way to showcase your customers in an effort to help spread the word about your shop and its employees ? If so , let us know . Powersports Business will highlight Instagram posts from a variety of dealerships in upcoming editions of the magazine .

Dealerships featured all follow the Powersports Business Instagram at @ powersportsbusiness . All posts featured will be photo or video in nature , with content from Instagram Stories not considered for this piece .

Car dealers are in a world of hurt right now . The recent CDK cyberattack has unleashed some of our biggest fears about technology and relying on everything being “ in the cloud .” Back in my day behind the parts counter , we had an old Radio

BRENDAN BAKER

Shack computer with multiple floppy disc drives , a dot matrix printer , and for back up , we had an invoice pad that we wrote out by hand . It ’ s crazy how far we ’ ve come since then , and we may have forgotten how to do things by hand .

Dealer management systems do it all today . And that ’ s what we need from these robust systems , after all . We wanted it back in the 1980s , too , but we didn ’ t have the technology to do so . My dad tried to make his own system for our store out of a $ 50k main-frame computer with multiple workstations connected to it . It was the future ! But then it broke , and we went back to pen and paper .

There ’ s much we don ’ t know about the CDK situation . For one , they are now calling it a “ ransomware ” event . We read that the hackers responsible for the attack have asked for tens of millions of dollars to release the data . In response , some car dealers have banded together to sue the DMS company . You may remember CDK when it was part of the powersports industry . But the car side and recreation segment of CDK spit up last year into separate entities . Lightspeed DMS is owned by the same parent company as CDK . However , Lightspeed is operating as it should without any problems whatsoever . And other DMS companies have not been affected either .

Lightspeed DMS LLC was formed as a standalone business in 2023 . Before that , ADP Lightspeed changed its name to “ CDK Global Recreation ” for the dealer services side of the business and ADP launched it as CDK Global Inc ., which then split off the recreational side to Lightspeed .

CDK Global has over 15,000 automotive dealer locations across North America and is in the process of working through the issues it has with the hackers , who have been identified as a group called BlackSuit . Rumors are that CDK was going to pay the ransom , but cybersecurity experts say that is not a good idea .

In total , 2,207 U . S . hospitals , schools and governments were directly impacted by ransomware over the course of 2023 , with many more being indirectly impacted via attacks on their supply chains . Additionally , thousands of private sector companies were either directly or indirectly impacted .

Emisoft believes that the only solution to the ransomware crisis is to completely ban the payment of ransoms . This cybersecurity company says that an outright ban is the only way to kick the problem and save lives and livelihoods .

Photo credit : Pxhere . com / Creative Commons

REBATES REMAIN According to BMO Capital , promotions remain elevated y / y as financing rate buy-downs remain aggressive to combat affordability concerns , while offers , on average , remain mostly in line with 2019 levels . Polaris reduced the interest rate and increased its cash rebate on select MY23 / MY24 SxSs and ATVs .

BRP continues to offer cash rebates and financing offers across its MY24 ATV and SxS units ( 2nd month ). Kawasaki and Yamaha generally continue to be aggressive from a rebate perspective on MY24s , while Honda and Suzuki tend to focus more on interest-rate buydowns . The Harley-Davidson 2023 Model Year-End Event continued in June .

While rebates have been a way for OEMs to move inventory through the dealer network , it can be a double-edged sword for profitability . Most of the profit hit is absorbed by the OEM , but not all of it . And consumers know that rebates are out there and tend to wait for what they want . However , consumer confidence is driving the bus right now with inflation and high interest rates being the primary concern . Some economists are saying that inflation may take years to come back down to the 2 % level .

HARLEY ’ S BIG WIN A judge has dismissed a proposed class action lawsuit against Harley-Davidson . The lawsuit claims it imposed unlawful restrictions on customers that boosted the cost of repairs .

U . S . District Judge William Griesbach in Green Bay , Wisconsin , ruled against 15 individual consumers who bought Harley-Davidson motorcycles between 2016 and 2022 .

The plaintiffs said Harley-Davidson acted “ impermissibly ,” putting Harley owners in the position of guessing whether they would lose warranty coverage by using the “ wrong ” parts .

The consumers claimed Harley-Davidson illegally tied the sale of its motorcycles and factory warranties to the requirement that buyers use only the company ’ s branded parts through authorized dealers . The lawsuit alleged violations of antitrust and warranty laws .

In their lawsuit , the Harley owners challenged the company ’ s limited warranty provision , which stated that using unauthorized parts “ may void ” the warranty .

Harley-Davidson claims the provision does not say the company will void a warranty for using aftermarket parts but says it may enforce it if necessary . The only problem is that the language remains blurry for consumers on the guidelines for using aftermarket parts .

I think the overarching belief is that bolt on parts such as handlebars , seats , backrests , footpegs , mirrors , etc , are fair game for aftermarket upgrades ( as long as they are as good or better than OE ). But the question remains about internal engine parts . Can a customer tear apart the engine and add a hot cam or ported heads , or lightweight valves and still be within the warranty ? This is a grey area for some , but these types of add-ons shouldn ’ t be covered by a factory warranty in my opinion .

Got an Instagram tip that works at your dealership or one with which you do business ? Feel like raising the collective industry tide ? Let us know at mhubbard @ epgacceleration . com .

GABLES MOTORSPORTS TAMPA

@ gablesmotorsportswesleychapel Followers : 571

Does your dealership incentivize via social media ? Gables Motorsports recently shared an appreciation post that also offered customers a discount . The dealership made it easy to get in touch with someone from their team by including its phone number in the caption that reads , “ We are extremely grateful for our happy customers ! It is wheelin ’ season ! Come get yourself a new ATV so you don ’ t miss out on your fun in the sun this summer ! Call : 813-973-1888 . Text : 813-491- 9085 . Mention that you saw us online and get $ 100 off your new ride !” Consider requiring that they follow your account as well .

TEAM WINNEBAGOLAND POWERSPORTS @ team _ winnebagoland Followers : 897 When your dealership is recognized , whether by an OEM , customer , or your riding community , share this with your customers . Recognition creates credibility and builds trust . Team Winnebagoland Powersports was recognized by a Wisconsin snowmobile club for its help and commitment to the association . The dealership posted a picture of the awarded certificate with the caption , “ This past weekend we were presented with a Certificate Of Appreciation from the Iron Snowshoe ATV / UTV / Snowmobile Association . We are always grateful and proud to help out keeping the trails open .”

WAGNER MOTORSPORTS @ wagnermotorsports Followers : 573 Appreciation posts can be more interesting if they include a quote from the customer featured in the photo . Wagner Motorsports shared a recent post captioned , “ Bringing home my new ride and feeling like a boss ! Thanks to Wagner Motorsports for making it happen ! # NewCarFeels # BMWCE02 # HappyCustomer .” The quote is short , but more likely to make an impact on potential customers since it comes from a recent buyer instead of the dealership . Ask your customers what excites them about their new unit , how they will use it , or why they bought it from your dealership to get a worthwhile quote .