Sheffield Financial is forecasting that a waning demand for ATVs is on the horizon, Jack Snow, founder, president, and chief executive, told Powersports Finance. The drop in ATV sales will likely be due to the introduction of new products in the side-by-side and sport-utility markets in 2016, he added.
Utility vehicles and side-by-sides make up about 40% of the product mix that is sold today, according to Snow. “With some manufacturers we see a little bit less, but typically it’s 40%,” he said. “We have seen a downturn, like everyone else, in the ATV business over the last several years, and that’s because the utility vehicles and the sport vehicles have basically taken that product away. I think you are going to continue to see ATV sales drop and the sport vehicles will increase.”
Lenders are likely to offer more aggressive promotions in 2016, such as 0% financing — an incentive that is not typically offered in the powersports industry, Snow said. However, Sheffield is among the lenders who will offer a special finance promotion, which the company will announce later this year. “We are working on some innovative finance promotions that I can’t talk about just yet, but hopefully we will come out with in the next few weeks,” Snow said.
Clemmons, N.C.-based Sheffield Financial has contracts with all major OEMs that do not have a finance company or captive. The company currently services 14,000 powersports dealers with 750,000 end users. Sheffield reported a 12% increase in year-over-year loan originations for 2015, and a 4% increase in the fourth quarter of 2015 versus last year.