For more on this subject, watch episode #306 of GarageCast
2025 marks a pivotal period for the powersports industry, marked by increased consumer caution, rising debt levels, and changing dealer strategies. Yet one segment remains outperforming: pre-owned powersports markets.
Mike Murray and Jim Woodruff from National Powersport Auctions (NPA) state that pre-owned units are becoming an ever-increasing driver of dealership profitability. "Dealers are learning that, with proper management of pre-owned inventory, used markets can help maintain revenue even as new unit sales decrease," asserts Murray.
NPA's nationwide auction network -- featuring more than a dozen live events each month -- gives dealers access to liquidity and access needed to meet customer demand. Through their leadership and dealer education efforts, NPA has become the voice of authority in the pre-owned auction industry, helping their sector respond swiftly and successfully to rapidly evolving economic conditions.
Market Stability Regained Through Strategic Expansion
After years of widespread volatility, auction volumes and pricing have stabilized following seasonal patterns. NPA's ongoing expansion efforts - such as opening new facilities in Kansas City and Dallas/Fort Worth Metroplex - demonstrate confidence in its market's long-term health.
NPA's new locations reflect more than geographical reach; they further their commitment to dealer support, lender collaboration, and operational efficiency. Together, these facilities and educational initiatives have established an unprecedented foundation for auction-driven growth within both powersports and marine sectors.
Inventory Management Is Dealers' Main Profit Lever
Inventory management has become the cornerstone of successful businesses today. According to Jim Woodruff, you either control or allow it to control you; dealers with aged units spanning more than 500 days could lose 8-10% in value through depreciation and carrying costs alone.
Top-performing dealers are leveraging data to accelerate their sales cycles, remaining liquid and agile. Their focus is on inventory that moves, accepting more minor losses when necessary, an approach that differentiates profitable dealerships from those struggling to keep pace.
Harley-Davidson Sales Decline Illuminates Consumer Price Sensitivity
Harley-Davidson dealers are feeling the strain. Both new and pre-owned sales have decreased compared with industry averages; high prices and limited incentives have driven customers toward less expensive brands and models.
Triumph's 400cc lineup provides an eye-opening contrast: an affordable yet high-quality entry that resonates with value-minded riders. As price sensitivity now outweighs legacy loyalty, dealers who offer realistic pricing and flexible financing will gain the trust of modern customers.
Consumer Debt, Lending Trends, and Cost Control are three critical topics.
Rising consumer debt and credit card default rates, nearing 2008 levels, have altered how consumers approach big-ticket purchases. Buyers are financing purchases for longer, spending less, and showing greater interest in pre-owned inventory.
Lenders remain active yet are now strictly focused on cost control and risk mitigation. From repo yard storage fees to transportation costs, every inefficiency is thoroughly scrutinized by lenders. Even with tightening conditions, capital availability remains strong for dealerships that demonstrate predictable performance.
Tariffs and Unknown Operating Expenses of Doing Business
The return of steep tariffs on aluminum, lead, and steel products—some as high as 200%—has caused significant uncertainty within supply chains. Murray points out that when components come from various countries without being traceable back to a country of origin, it can lead to additional import costs, further complicating the situation. This uncertainty affects everyone.
Manufacturers are currently reviewing their sourcing and pricing strategies while dealers anticipate potential supply shortages and cost pass-throughs. As these external pressures arise, agility and strong auction partners like NPA become even more critical to provide consistent access to inventory despite global disruptions.
The Road Ahead: Pre-Owned Growth and Dealer Agility
NPA remains hopeful despite these challenges and forecasts the pre-owned powersports segment to grow steadily until 2026, as financing conditions improve and affordability influences buyer behavior.
Dealers who take advantage of data, training, and disciplined inventory strategies, along with strong connections with auction partners and lenders, will continue to outperform the market. Woodruff notes: "This industry remains strong for those who proceed deliberately."
The powersports industry will be defined not by chance or product alone, but through leadership, agility, and operational intelligence. NPA provides invaluable leadership that enables this sector to navigate uncertainty while capitalizing on opportunities as they arise.
