Every business understands the significant impact of economic conditions on consumer purchasing behavior, and this holds true for the powersports industry as well. But how exactly does it influence the decision-making process for future motorcycle purchases? To find out, we engaged directly with visitors to Cycle Trader’s marketplace to gauge their willingness to make a purchase in today’s economy. For deeper insights, we surveyed both consumers intending to purchase in the near future, and those who are hesitant. Here’s what we found.
How Consumers View Today’s Economy
When it comes to the state of the economy, nearly 70% of respondents believe that the economic environment will either improve or stay the same within the next 6 months. This is great insight for dealers, as it can give you some indication of how consumers may be feeling about their financial situations. This positive outlook could potentially lead to increased spending and confidence in making big purchases, as over 65% of survey participants intend to purchase in that 6 month time frame.
Regardless of their perspective, half of shoppers remain undeterred by the current economic climate. Our survey concluded that 57% of optimists say that the state of the economy would not sway their decision to purchase a motorcycle, while 46.7% of those with a negative outlook echoed the same sentiment, indicating that their view on the economy does not impact their choices. Ultimately, there is still opportunity for dealers to move units during economic uncertainty.
How Does Buyer Sentiment Impact Future Purchases?
While consumers may not be heavily swayed by economic conditions when making purchasing decisions, their buying habits can still evolve. For example, 20% of those with a negative view of the economy are considering reducing their purchase budget, with 17% exploring more affordable alternatives. With this in mind, view this as a chance to offer downgrades and trade-ins instead of losing a sale altogether.
Interestingly, many optimistic individuals are willing to exceed their initial spending plans. About 20.8% are open to boosting their overall budget, and 26.3% are considering making their purchase earlier than originally planned. What does this mean for dealers like you? It presents an opportunity for upselling, especially if you provide them with additional financing or budget-friendly options to consider.
Potential Opportunities For Dealers On The Horizon
Out of all the surveyed shoppers, 83% expressed their intention to purchase a motorcycle. Let’s explore the opportunities to connect with this audience and how you can bring them into the sales funnel. With their perspective on the current economy, it’s no surprise that 61.35% of these consumers are looking to purchase a used motorcycle. Additionally, 24.6% remain undecided, providing an opportunity to sell either new or used units with a well-crafted strategy.
Financial considerations play a crucial role in potentially postponing a purchase decision. The survey revealed that interest rates (29.5%) and the escalating prices of vehicles (29%) are neck and neck in terms of concerns among shoppers. To ease their fears, dealers can capitalize on sharing finance options to facilitate the buying process, especially since nearly 40% of respondents are already contemplating dealerships vs. bank loans.
Promoting any discounts or promotions currently available at your dealership is crucial. Nearly half, around 45%, of potential buyers have expressed that a reduction in vehicle prices would prompt them to make a purchase sooner. Take, for instance, how Cycle Trader sends automated emails notifying buyers of price drops on dealer units. Consistently communicating such enticing offers is paramount for attracting and retaining customers.
After analyzing the consumer survey results, it is evident that the economic climate does not pose a barrier to making sales; rather, it presents an opportunity to adapt strategies to align with consumer buying habits. By closely monitoring economic trends and consumer sentiment, you can customize your marketing strategies and offerings to better cater to the needs and preferences of your target audience.
For more valuable insights similar to those uncovered in our survey, be sure to visit the Cycle Trader blog. Here, you can access sales and marketing tips, insights, and other data-driven resources to enhance your understanding and strategy.
