Consumer demand for the purchase and financing of powersports vehicles is expected to tick up over the next two years, thanks to a majority of millennial buyers reaching their thirties — an age when they are more likely to have disposable income, said Chris Clovis, owner and operator of Freedom EuroCycle Las Vegas.
The industry is currently in a “flat” period, partially because baby boomers — which includes people between 52 and 70 years old as of 2016, according to the U.S. Census Bureau — have been driving the growth of the business for 25 years, and now they are aging out of market, Clovis told Powersports Finance.
There are not enough generation X people — typically between the ages of 34 and 54 years old — to drive the market forward, Clovis added. As of 2015, there were 92 million millennials, 61 million generation Xers, and 77 million baby boomers, according to the U.S. Census Bureau.
“We are kind of in this holding pattern from an industry perspective,” he said, because they baby boomers are becoming too old to ride a motorcycle, so the industry is waiting for millennials to have enough disposable income to make recreational purchases. The market will likely remain flat for at least two more years until the median age range for millennials reaches 30, he added.
Freedom EuroCycle’s Clovis will speak on the “Voice of the Dealer — Dealers on F&I Dos and Don’ts” panel at the upcoming PowerSports Finance 2016 conference. During the session, Clovis and his fellow panelists will discuss how dealers and lenders can build a solid network in a fragmented market.