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Powersports Business • May 2025 • 9

Polaris reached an agreement to extend its retail financing partnership with Sheffield Financial, a division of Truist Bank, in a deal that was first announced April 8 in a press release.

Sheffield and Polaris’ financial partnership started in 2009. The companies say this multiyear renewal will help maintain customer-friendly installment financing options that enhance the retail experience for Polaris dealers and customers.

“ Sheffield has been a reliable partner, offering a range of financing tools tailored to the specific needs of our dealer network,” says Bob Mack, chief financial officer and executive vice president of finance and corporate development at Polaris.

The extension means Polaris dealers will continue to have access to Sheffield Financial’ s nationwide installment financing, digital tools and service. This includes access to its powersports-specialist underwriters and its pre-qualification technology, allowing customers to check their buying power online without affecting their credit.

Last year, Sheffield extended also extended its financing partnership with BRP and, in 2021, Sheffield reached terms on a multiyear financing services program agreement with Kawasaki.

The Bureau of Labor Statistics reported that data on inflation came in lower than expected in March, as President Donald Trump planned tariffs against U. S. trading partners.

The consumer price index, which measures costs of goods and services across the U. S. economy, fell by a seasonally adjusted 0.1 % in March, putting the 12−month inflation rate at 2.4 %, a slight decline from the 2.8 % recorded in February.

Core inflation ran at a 2.8 % annual rate, with a slight uptick of 0.1 % for the month. Core inflation excludes energy and food costs. According to CNBC, this was the lowest rate for core inflation since March 2021.

Energy prices helped to ease the inflation rate, as gas dropped 6.3 %, leading to a more considerable decline in the energy index. Food prices climbed 0.4 % on the month. Egg prices rose another 5.9 % and were up 60.4 % from a year ago.

New vehicle prices rose just 0.1 %, while used vehicles dropped 0.7 %, ahead of the tariffs expected to hit the auto( and motorcycle) industry hard. Airfares also fell 5.3 % in March, with fewer travelers and lower demand.

The report came a day after the administration reversed parts of its tariff plan and delayed some duties against dozens of nations. However, the president held onto the announced 10 % tariff on all imports, only pausing for 90 days to negotiate the higher tariffs.

The White House has called for the Federal Reserve to lower interest rates, but officials are reluctant to move with all the policy uncertainty. Reports point to the Fed waiting until June to lower rates any further.

While many economists believe that tariffs will cause inflation to jump, others are not so sure if the window for negotiations is open and the messaging is clearer.

Northcoast Research, an equity research firm, recently released its report on the promo environment in Q1, specifically focusing on BRP and Polaris. The analysts note that there’ s been an increase in promotional activities for Polaris models, likely to clear out previous MY vehicles and make way for 2025 editions. BRP is increasing its promo spending with special financing incentives. Both companies are leaning into finance incentives this spring to get ahead of the selling season.

PROMO ACTIVITY With the spring ORV selling season right ahead, Northcoast spent time assessing the industry’ s promotional environment and inventory dynamics. The analysts highlight the following takeaways from their dealer checks:

There is a significant increase in Polaris models receiving promotions MoM, with large growth coming from 2025 models; an increase in promotional spending at BRP with a focus on special rate financing incentives; and both companies are leaning into special rate financing, offering 0 % APR for 60 months on MY24 inventory, down 199 bps MoM.

All in all, the analysts view the promotional environment as remaining highly

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Sheffield and Polaris’ financial partnership started in 2009. The companies say this multiyear renewal will help maintain customer-friendly installment financing options that enhance the retail experience for Polaris dealers and customers.( Photo: Polaris)

The Bureau of Labor Statistics reported that data on inflation came in lower than expected in March as President Donald Trump planned tariffs against U. S. trading partners.

competitive, as private OEM competitors continue to aggressively promote aged inventory to a less-receptive retail buyer than they would have hoped to start the year.

POLARIS Analysts note that in the April promotional period, there are 78 different 2025 models

See Northcoast, Page 10

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