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RideNow Group serves U.S. customers buying motorcycles, off-road recreational vehicles and personal watercraft. New and pre-owned vehicle sales generate most of its revenue, with new retail vehicles the largest contributor. Customers also pay for parts, accessories, repairs and maintenance, while vehicle purchases bring additional revenue from finance and insurance products. Its former vehicle transportation brokerage has closed, leaving the dealership business as its sole operation.
The business depends on obtaining vehicles customers want and financing that inventory until it sells. BRP (Can-Am/Sea-Doo), Polaris, Harley-Davidson, Yamaha and Kawasaki account for a significant share of new-vehicle revenue and control production and allocations. RideNow buys used vehicles through trade-ins, auctions and its online RideNow Cash Offer tool, which lets consumers sell directly to it. Credit lines secured by vehicles fund much of the inventory, and third-party financing providers support a substantial portion of customer purchases.
Dealer licensing requirements restrict where and how RideNow can sell vehicles and related finance products. Manufacturer agreements also govern access to new vehicles and servicing rights, and can require approval for dealership acquisitions, sales or relocations.
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RideNow’s results hinge on consumer demand for powersports vehicles and inventory supplied by major manufacturers—watch BRP, Polaris, Yamaha and Kawasaki, which are missing from this list.
RideNow depends on Harley-Davidson to supply motorcycles that retail customers want, so Harley’s production, model appeal and dealer allocations affect RideNow’s vehicle sales and the financing, insurance and service income earned alongside them. Watch Harley’s news on popular-model availability and dealer allocations for signs of what RideNow can sell.
Fed Interest Rate Decision
The Fed’s policy rate guides borrowing costs across the economy, affecting what RideNow pays to finance the powersports inventory it relies on floor plan credit to buy.
Expected4.0%Last release4.0%
If it comes in above expectations
If the policy rate is above the estimate, higher borrowing costs may raise RideNow’s expense on inventory financing, leaving less gross profit from selling powersports vehicles.
If it comes in below expectations
If the policy rate is below the estimate, lower borrowing costs may reduce RideNow’s expense on inventory financing, leaving more gross profit from selling powersports vehicles.
Harley-Davidson, Inc. earningsHOG
Harley-Davidson’s report will show how its model availability and dealer demand may affect RideNow’s opportunity to sell Harley motorcycles and earn related finance, insurance, parts and service revenue.
Read Harley-Davidson’s comments on popular-model availability alongside dealer sales. Ample supply and firm sales would suggest RideNow can offer more motorcycles customers want and earn related finance, insurance, parts and service revenue; constrained supply or weak sales would mean fewer opportunities for those vehicle and add-on sales.
