By Paulina Matel and Brad Stanek | Contributors
Powersports is an aspirational industry. Customers buy motorcycles, side-by-sides, ATVs, personal watercraft and snowmobiles because those products represent freedom, utility, recreation, and lifestyle. But for many buyers, the final purchase decision comes down to practical financial questions: Can I afford the payment? Do I feel secure in my job? Is my trade worth enough? Are financing terms attractive? Do I still have room in the household budget for a discretionary purchase?
That is why, as we look ahead, our team tends to focus on these five key economic indicators when evaluating the powersports industry: interest rates and consumer financing costs; consumer confidence and expectations; labor market and real wage growth; household debt, auto loan trends and delinquencies; and retail sales and broader discretionary spending.
Powersports is a payment-sensitive business. Even when customer demand is present, higher interest rates can increase monthly payments, reduce approval rates and make buyers more hesitant to move forward. The Federal Reserve kept the federal funds target range at 3.5% to 3.75% at its July 29, 2026 meeting, reinforcing that financing costs remain a central consideration for customers and dealers alike
Looking ahead, rate expectations remain an important watch item: recent market commentary indicates that investors are pricing in the possibility of at least one additional rate increase before year-end, which could further pressure affordability.
For dealer principals, the message is straightforward: affordability needs to be managed proactively, not reactively. Sales teams should be trained to discuss payments and financing options early in the customer conversation. Dealers should also understand how higher rates affect their own balance sheets, particularly through floorplan expense. A unit that sits too long is not just taking up space; it is consuming capital.
Powersports customers are more likely to buy when they feel optimistic about their income, employment and household finances. In July 2026, The Conference Board reported that its Consumer Confidence Index declined to 90.8, while the Expectations Index remained at 74.7. That expectations reading is important because it reflects consumers’ short-term outlook for income, business and labor-market conditions.
For dealers, weaker confidence does not mean customers disappear. It means they become more selective. They compare more carefully, negotiate harder and may take longer to commit. This is where dealership execution matters. A disciplined CRM process, fast lead response, strong trade appraisal capability can make the difference between a customer who walks and a customer who buys.
Job security is one of the most powerful drivers of discretionary spending. In July 2026, the Bureau of Labor Statistics reported that nonfarm payroll employment declined by 23,000 and the unemployment rate was 4.1%. BLS also reported that real average hourly earnings were down 0.2% year over year in July 2026.
That combination matters for powersports. A customer may still want the unit, but if real wages are not keeping pace with household expenses, the purchase can be delayed or resized. A buyer who might have stretched into a new premium model may instead consider a used unit, a lower monthly payment, or a repair to an existing vehicle. Dealer principals should think carefully about product mix, price points and the connection between sales and service. In a cautious labor market, service and parts can become an even more important stabilizer of dealership profitability.
The New York Fed’s Q2 2026 Household Debt and Credit Report showed total household debt at $18.8 trillion, with auto loan balances rising by $28 billion, or 1.7%, and credit card balances increasing by $21 billion, or 1.7%. The same report noted that transitions into early delinquency ticked up for auto loans and mortgages, while remaining largely steady for credit cards and other debts.
For powersports dealers, this is a critical signal. Auto loan performance is not the same as powersports credit, but it provides a useful read-through into lender appetite and consumer balance-sheet stress. If delinquencies rise, lenders may tighten underwriting, reduce advance rates or price risk more aggressively. That can affect approvals, payment structures and F&I profitability.
The Census Bureau reported that July 2026 U.S. retail and food services sales were $763.6 billion, down 0.6% from the prior month but up 5% from July 2025. Motor vehicle and parts dealers also saw a monthly decline, with outside reporting noting a 1.8% drop in July after a stronger June 8.
For powersports, the retail sales data suggests a consumer who is still spending, but unevenly. That distinction is important. The issue is not a collapse in demand; it is selectivity. Customers are weighing purchases more carefully and making trade-offs across travel, recreation, vehicles, home improvement and everyday expenses.
This is why we continue to advise dealers to focus on operational discipline. Protect cash. Understand which inventory is turning and which inventory is aging. Watch floorplan costs.
Our outlook for powersports dealers is cautiously constructive. Consumers still value the recreation, utility and community that powersports provide. But the strongest dealers will be those who read the economic signals early and translate them into action. Interest rates, confidence, labor conditions, household credit and retail spending are not abstract data points; they are leading indicators for showroom traffic, financing approvals, trade values, service demand and dealership profitability.
As dealer principals plan for the coming year, we encourage a disciplined approach: preserve liquidity, monitor inventory, and maintain flexibility in capital decisions.
Most of us have heard of the Six Degrees of Kevin Bacon Challenge, where players try to link a Hollywood actor to Kevin Bacon in six film steps or less. The powersports industry has its own version of that game. Except here, it’s not six degrees. It’s more like two.
According to the Yahoo Finance Research and Markets Outlook Report for 2025, the powersports industry was estimated at $13 billion, roughly 100 times smaller than the U.S. auto industry, which moves about 16 million passenger cars and light trucks a year.
Last Friday, a newly unemployed technician (not my guy) texted me minutes before his service manager messaged our confidential new client portal asking for help with a technician search. It happens regularly, but this one was a small-world record.
That’s powersports for you. It feels like a tight-knit neighborhood or an extended family of second cousins, all connected by a high-speed backdoor communications network.
I’ve been doing this long enough to know that whatever happens on a Tuesday in Tennessee is often common knowledge in Michigan by Thursday. OEM reps, dealer principals, GMs, parts managers, spouses of any of the above, and the former disgruntled employee all know somebody who knows somebody.
That’s not a bug. It’s the defining feature of our business and is exactly why integrity isn’t just a nice-to-have here. It’s survival gear.
Burn a bridge in most industries, and you might get away with it. Burn one in powersports, and you’ll find out just how short the walk back across that bridge really is, because everyone on the other side saw or heard you do it.
I’ve watched people torch relationships on their way out the door or on social media; bad-mouth a former employer in an interview; ghost a commitment; stiff a colleague on a deal; or pass along intel that wasn’t theirs to share, only to need that same person’s blessing on a referral call weeks later.
On the other side of the equation, company leadership, department heads, and hiring managers can also create unfavorable energy and invite negative feedback during the hiring process.
I wince every time I hear about a candidate who fell for the bait-and-switch or the “not as advertised” meatball sandwich, was strung along for far too long without feedback, was lowballed upon arrival despite an impressive verbal agreement, or worse. Word travels. Reputations calcify. And in an industry this size, it doesn’t take long for the brown goo to stick to your shoe.
That brings me to the flip side of the same coin: research. This matters whether you need a setup tech for a small department or a high-octane GM for your XL superstore. Deep candidate vetting shouldn’t start after you’ve locked in the terms of employment. Depending on the candidate’s employment status, it should be a top priority before the start date.
Start by including one sentence in your offer letter template.
“This offer of employment is conditional upon successfully passing a background check, reference checks, and a drug screen.”
Reference checks aren’t 100% bulletproof, but they can reduce costly and frustrating hiring misfires. That’s why we offer complimentary reference checks on every placement. Yes, they take time, but they cost less than misfires.
Ask pointed questions about how they handled conflict, how they left, and whether they’d be rehired. A bad hire isn’t just one bad day. It’s turnover costs, team disruption, lost customer trust, and sometimes a very public unraveling the whole industry ends up watching.
I’ve seen “this candidate is awesome” turn into a huge disappointment more times than I care to share. Slowing down at the front end is always cheaper than mopping up later.
But candidates, don’t think you’re off the hook here. If you’re considering a move across town or across the country, into a new department or up the ladder, you owe yourself the same diligence you’d want an employer to show you.
Do your homework on that dealership or group before you sign anything. Ask to speak with current employees and find former employees on LinkedIn. Talk to industry colleagues who’ve done business with that team. Talk to vendors and reps who’ve seen how that dealership treats people when no one’s watching. Territory reps see things HR never will.
And yes, do the online research, too: reviews, news coverage, social media footprints, the whole trail. A little digging can save you from walking into a culture that looks great in the interview and feels completely different three months in.
Here’s the thing both halves of this column have in common: they’re really just two versions of the same lesson. In an industry this small, you can’t outrun your reputation or a rushed decision. Powersports just doesn’t forget.
Football season is the most reliable weekly gathering in America. Powersports dealers should stop competing with it and start suiting up.
Every fall, something strange happens across America. From August through January, millions of otherwise reasonable adults organize their entire weekends around a ball that isn’t even round. They paint their faces. They haul grills, coolers, generators and folding chairs into parking lots at 7 a.m. They sit outside in the cold, on purpose, for fun.
Meanwhile, back at the dealership, the showroom is quiet, and somebody in sales is muttering that nobody buys anything during football season.
They’re half right. Your customers aren’t at the dealership on Saturday. They’re at the game. So go where they are. Football isn’t your competition this fall. It’s your best marketing opportunity. Let’s build a playbook.
The numbers aren’t pretty. The University of Michigan’s Index of Consumer Sentiment fell 6.3% in August and is down more than 11% from a year ago, and the MIC is watching to see whether that caution shows up at the register. Add tariff-driven price increases and tighter lending, and you’ve got a customer who’s hesitating on big purchases.
That’s exactly why fall marketing matters. When people pull back, the dealers who stay visible, relevant and fun are the ones they come back to when they’re ready. You don’t have to win every down. You have to stay in the game.
Nobody falls in love with payload capacity. They fall in love with a picture of their life. So build one. Turn a side-by-side into the ultimate tailgate rig: cooler rack, Bluetooth speaker, canopy, flag mounts, maybe a game-day decal package in local team colors. Put it front and center in the showroom. Better yet, park it outside the high school stadium on Friday night. Suddenly that UTV isn’t a line item on a quote. It’s the best seat in the parking lot.
Then give people a reason to follow you all season. Try a “Win Monday” promotion: when the hometown team wins, a 24-hour deal on accessories or apparel goes live. Your social team gets fresh content every week, and customers start checking your feed after the final whistle.
As the season winds down, host a “trade deadline” event. Call it what it is: time to make roster moves before winter.
Every coach knows championships are won on defense. In a soft market, your service department is your defense.
Rebrand winterization and off-season maintenance as “training camp.” Machines need conditioning before the snow flies and before spring riding season. Package it, name it and market it. Service revenue doesn’t care what consumer sentiment did last month, and every service visit is a chance to show off what’s new on the floor.
Special teams don’t get much glory, but they often decide the game. For dealers, that’s community.
Friday night lights still matter in most towns. Sponsor your local high school team. Loan them a UTV to haul equipment, serve as the trainer’s cart or deliver the game ball at homecoming. That’s your brand in front of the whole town every week, in the most positive setting imaginable. Parents notice. Grandparents notice. And the teenagers in the stands are your next generation of riders.
Run a weekly pick’em contest on your website or social channels, with service credits or gear as prizes. It builds your lead list and brings the same people back to your brand for 15 straight weeks. Try getting that from a billboard.
On weekends, open the doors for a watch party. A big screen, a chili cook-off and halftime test rides turn your showroom into a destination instead of a place people visit only when they’re ready to buy.
If this sounds like a stretch, look at the OEMs. CFMOTO was recently named the official side-by-side and ATV partner of the Minnesota Vikings. Manufacturers know the overlap between football fans and powersports buyers is real. And football season runs right alongside hunting season. The guy in the stands on Friday is scouting deer stands on Saturday. He needs a UTV either way.
A quick word from the rulebook: NFL and college team names, logos and certain championship game names are trademarked. Stick with local colors, “the big game” and high school partnerships you’ve gotten permission for, unless you have a licensing deal in place.
Fall doesn’t have to be a slow season. It can be the season you reconnect with your community before the spring rush hits.
So grab a foam finger, fire up the grill and get your dealership in the game. Your customers are already at the tailgate. The only question is whether you’ll be there too.
Till next time, shiny side up and checkered flags!
Melissa Coffey is a 2x PSB “Women With Spark” award winner and a longtime powersports and motorsports industry leader with deep expertise in brand building, demand generation, and growth strategy. She now leads CATCH Strategy—her boutique consultancy providing fractional CMO-level marketing leadership, strategic planning, revenue generation and execution support for companies across the powersports, motorsports, marine, bicycle, and EV markets.