OEMs Ramp Up Incentives to Prep for New Products

2006 Honda TRX250EX.

OEMs are rolling out rebates and financing incentives to “clean out the pipeline” to prepare for new models, because many manufacturers are “loaded to the gills in the warehouse right now” with 2016 model year and earlier products, said Lenny Sims, chief of business development at NADA.

Polaris Industries Inc., for example, is offering rebates up to $3,000 on select side-by-side models and financing as low as 2.99% APR for 36 months, according to its website. American Honda Motor Co. is also offering 2.99% APR for up to 36 months on select new and unregistered ATV models.

“Manufacturers may have overproduced, and the new 2017 models are starting to land on dealer lots,” Sims said. “Tracking days in inventory is really important, and most dealers want to keep vehicles in that 30-to-45 day range so that they know they are constantly rotating inventory.”

If franchise dealers start to get the new models before the older models are sold, in some cases they have to start stacking crates in the back of the dealership, he added. “They are trying to move that new inventory that’s starting to become aged, and the timing is probably about right for the 2017s to start being delivered to the dealer lots if they haven’t already.”

Sims will speak on a panel entitled “Where the Customers Are: An Inside Look at Vehicle Demand” at the upcoming PowerSports Finance 2016 conference, which will take place Wednesday, Oct. 5, at the Bellagio Las Vegas.

During the Oct. 5 session, Sims and his fellow panelists will discuss segment-by-segment valuations and trends, how to master seasonality, and today’s hot vehicles. For more information or to register, visit

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