EQUITY IS IMPORTANT!

Equity is important in the world of Powersports sales. After all, it’s the key element that helps you value your trades and give customers the best deals on their new purchases. Understanding how Powersports equity works, is going to make a big difference in how successful you are with trades. This applies to what your sales team does in bringing in the best units while also giving customers the deals that they deserve. In Powersports, equity is the same as it is for anything else: a percentage of ownership. Keep reading to learn more.

THE BASICS

If Powersports equity is a percentage of the ownership that a customer has in their current unit, let’s say for example that the unit is worth $10,000 and they only owe $2,000. That means they would have 80% equity, which is money that they can essentially use towards the purchase of their next unit. It’s not really that complicated, and it’s a helpful way to show people that they have more money than they think when they are trying to invest in a new Powersports toy.

The great thing about taking trades is that you can get whatever you want from them, and you will get to pick and choose which units you keep. Of course, that means that you need to understand how to value trades and determine equity. Fortunately, there are a lot of tools and technology out there today that makes it easy for you to get the right value and still give customers a good deal.