If you have been planning to buy a new snowmobile for the past 3 years, it has probably been a difficult journey! Indeed, the very high demand combined with the supply difficulties encountered by manufacturers has greatly complicated things. Manufacturers have had to use their imagination to adjust their production methods in order to minimize the impact on deliveries as much as possible.
A Wind of Madness…
This has had an incredible impact on the sales of new snowmobiles and in turn on the used market. Indeed, the scarcity of new units pushed people to turn to the purchase of used snowmobiles. The price of used snowmobiles literally exploded and it was not uncommon to see snowmobiles that were 15 or even 20 years old sell for 2 or 3 times their real value. The buyers were there, so many people took full advantage of it.
2022 Impacts on the Sales of New Snowmobiles
However, in 2022, the tide began to turn… Indeed, the inflation rate rose to 8% in June. This prompted the Bank of Canada to raise the policy rate several times during the year. This had a major impact on household finances and people began to reconsider certain purchases. Of course, the first area where people are going to “cut back” is in the area of entertainment.
Delays in the delivery of certain models have caused many snowmobilers to reconsider their priorities.
For example, many snowmobilers who had placed an order during the Spring 2022 Snowchecks have decided to cancel it. The increase in the interest rate for financing their new acquisition was a determining factor for many.
A Hard Correction
Therefore, for the first time in 3 years, it is easy to get a new snowmobile of the year even at the very end of the season. After speaking with several dealers, most of them admitted to me that spring orders had dropped by more than 50% compared to the last 2 or 3 years.
Others have seen their spring orders return to a similar level to what they were seeing in 2018 or 2019.
Back to Normal
As a result, we can expect new snowmobile sales to quietly return to normal. By next fall, we will certainly see new 2023 and 2024 snowmobiles in dealer showrooms.
Therefore, it would also not be surprising to see manufacturers start offering interesting promotions again, especially for new models from previous years. It is important to understand that snowmobile prices have increased significantly over the last 3 years. It may be necessary to “gild the pill” in order to recreate a craze next Fall.
The good news is that I noticed that people did not stop snowmobiling during the season. On every outing I’ve been on, the number of snowmobilers I’ve come across on the trail is far greater than what I was seeing prior to 2019 or 2020. The passion is still there… This is great news for the future of our sport in the coming years.
Have a great summer everyone!