Trade shows and floor shows offer a front-row seat to the newest and hottest topics facing recreational retail and financing. After engaging with dealers, lenders, and industry experts, our team has gathered key insights that highlight where the market is heading and how businesses can adapt to meet shifting consumer expectations.
Here’s what we’ve learned:
Digital Retail and Financing Are Evolving, and Dealers Are In!
Retail and financing are becoming more streamlined than ever, with dealerships investing heavily in digital retailing tools to enhance customer experience. Interactive touchscreens simplify inventory browsing, end-to-end e-contracting solutions streamline the F&I process, and fraud prevention tactics secure transactions for buyers, lenders, and dealers.
What Dealers and Lenders Need to Know:
- Customers expect seamless transactions. Slow, outdated processes won’t cut it.
- Digital touchpoints matter. Whether online or in-store, integrated tech keeps customers engaged.
- Fraud prevention needs to be a higher priority. With more advanced technology, scammers get smarter, and everyone else suffers without a plan in place.
As technology becomes a bigger part of the buying experience, the dealerships that embrace digital-first financing solutions will have a competitive edge.
A Split Camp: High-Tech vs. No-Tech
One of the biggest trends we’re seeing is a near 50/50 split between two types of outdoor enthusiasts:
- The Tech-Savvy Explorer: These customers are eager for solar power, lithium batteries, and advanced connectivity to power their adventures. They want off-grid capability without sacrificing convenience, prioritizing features that allow them to stay connected while on the road or water.
- The True Off-Grid Adventurer: On the flip side, many buyers are actively seeking ways to disconnect completely. They don’t want a Wi-Fi booster or an app-controlled climate system — they want to escape from technology altogether.
What Dealers and Manufacturers Need to Know:
- No matter the generation, there’s no one-size-fits-all approach to funding adventure.
- Even within couples, there’s often a divide in preferences — one partner may want full connectivity, while the other seeks total isolation.
- Dealers should offer solutions for both types of buyers, ensuring they can cater to the full spectrum of outdoor enthusiasts.
Whether it’s advanced solar-powered setups or simple, self-sustaining options with zero tech dependency, having flexible options will be key in attracting both types of customers.
Emerging Financing Trends: Affordability, Flexibility and Accessibility
Discussions about financing at recent shows centered on affordability, loan-term flexibility, and accessibility, especially for younger buyers.
Payment-conscious buyers are focused primarily on interest rates, and buyers in all positions are considering extended loan terms to make the monthly dues more manageable.
However, younger buyers are hesitant to enter long-term loans as they weigh their options between owning property, a recreational-friendly tow vehicle, or a higher-value recreational vehicle. As a result, destination trailers and marinas are more appealing to these buyers to avoid an expensive tow vehicle upgrade.
What Dealers and Lenders Need to Know:
- Dealers and lenders should emphasize affordable financing structures that align with different buyer needs.
- Offering flexible financing — including creative loan solutions — could help attract new demographics.
- The powersports industry is seeing renewed lender and dealer interest, indicating that financing programs tailored for this market could drive significant growth.
Affordability remains a crucial factor in ownership decisions, making it more important than ever for dealers to partner with lenders who understand these shifting dynamics.
Sustainability and Alternative Energy: Some Hurdles Still Remain
The push for electric and hybrid models is growing, particularly in the marine and powersports industries. However, while consumer interest is rising, infrastructure, range, and cost remain significant challenges.
Challenges We Heard Repeatedly:
- Electric power for larger RVs and boats is still limited. Running A/C units and other high-draw appliances off-grid for sustained periods is still expensive and inefficient.
- Infrastructure hasn’t kept up with the advances in hybrid and electric technology. Concerns about reliable charging stations and power sources keep some customers from committing.
What Dealers and Manufacturers Need to Know:
- Customers are eager for solutions that bridge the gap between sustainability and usability.
- Hybrid models with dual power sources could be a stepping stone for energy-conscious buyers while charging networks expand.
- Educating buyers on capabilities will help set realistic expectations and earn you reliability points.
The industry is clearly moving toward sustainability, but many buyers juggle the trade-offs between cutting-edge tech and practicality.
A Shift in Dealership Branding: Is a Single-Brand Focus Spreading?
One of the more surprising trends we observed is the rise of single-brand RV and marine dealerships. More dealers are rebranding under a specific manufacturer name, following a trend that’s already taken hold in powersports and auto retail. While these dealers may still sell and service multiple brands, their marketing and storefront are fully aligned with a single manufacturer.
For example, instead of “Tim’s Family RV,” the dealership now carries branding from Grand Design, Barletta, Premier, or Bennington.
What Dealers Need to Know:
- The definition of “family business” is evolving in consumers’ eyes. While relationships still matter, buyers are putting more emphasis on brand reputation and product quality. “Where to buy?” is usually preceded by the question, “What to buy?”
- Manufacturers are taking a more direct role in shaping the retail experience, ensuring their brand identity is front and center.
- This shift may indicate that brand loyalty is becoming a stronger purchasing driver for adventurers than dealer relationships alone.
While this model won’t replace traditional multi-brand dealerships overnight, it’s clear that brand identity is becoming a more significant factor in dealership success.
Final Thoughts: The Future Is Digital, Flexible, and Customer-Driven
Across every category — from digital financing to adventure preferences, sustainability, and branding — one common theme stood out: customer preferences are becoming more diverse, and businesses must adapt accordingly.
Key Takeaways Moving Forward:
- Digital retailing and e-contracting will define the future of F&I. Dealerships who embrace tech will thrive.
- Adventure buyers are split. Dealers need solutions for both high-tech and unplugged adventurers.
- Flexible financing options are a must for the next generation. Younger buyers and payment-focused customers require innovative solutions.
- Sustainability is in demand, but practical infrastructure still needs to catch up.
- Brand identity is playing a bigger role in dealership success, following trends already seen in the auto and powersports industries.
With industry shifts in these key areas, dealers, lenders, and manufacturers who stay ahead of these trends will be best positioned for success.
Are you ready for these industry changes? Let’s talk about how AppOne can help you navigate this ever-evolving landscape!