Powersports Business and RBC Capital Markets recently released their 2012 fourth quarter side-by-side dealer survey and it confirms a strong market and continued positive outlook for the side-by-side market. More than a third of the dealers surveyed reported new unit sales growth of 10% or more for the fourth quarter 2012 and over 40% of dealers expect sales to increase 10% or more in 2013. Thee figures are in line what Small Vehicle Resource (SVR) has found in interviews with dealers for our recent STOV market study.

Some other highlights from the study:

• Side-by-side buyers spend money on accessories – often $1,000 but up to $5,000 is not uncommon helped by inclusion in financing plans. SVR has heard similar amounts from dealers  – $1,000 to $1,500 spending on accessories is common.
• Popular accessories:  cabs, roofs, windshields, wheels, gun racks, plows, heaters, stereos and street kits. The last one is not too surprising. The trend for a few years had been for work UTVs to be made LSV compliant, but now more states and municipalities are passing ordinances to allow UTVs on streets with some modifications but not as stringent as LSV requirements.
• A sizable portion of buyers, around half, are new to the industry attracted by the utility and convenience of the vehicles for:  older buyers; seating capacity; a generally more comfortable riding experience;
• 89% of Polaris Ranger and 73% of Polaris RZR dealers were extremely or somewhat satisfied with sales of the vehicles in comparison to 65% of Can Am Commander and  50% of John Deere Gator dealers.  Honda Big Red and Yamaha Rhino dealers were clear laggards in this measurement with 13% and 11% respectively.

The latter point is more proof that the recreational riding segment of the side-by-side market is the fastest growing segment. Part of the reason is that buyers in the segment tend to have a shorter buying cycle. They are interested in features and performance and are willing to upgrade to a newer vehicle sooner than buyers in other segments. These are also higher price point vehicles with the typical buyer having a higher household income. In a choppy and uncertain recovery this segment’s buyers have more money to spend than other side-by-side segments. The aggressive marketing and pace of model introductions in this segment as companies vie for market share is a factor as well.

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