Boat sales Down? True or False

[nightstalker]

A buddy of mine is works at a local marina that sells new and used boats as well as brokers. He tells me that sales are way off because of the cost of gas. He said that rigs powered by smaller engines (100 HP) are selling OK, but the bigger ones are not moving. He said that for the first time, his company is refusing to broker boats with big engines if the seller is not willing to take a pretty big hit on the asking price. I have read forum threads that say boats are selling far below NADA values (25% to 33%) in some cases. If this is true, what does this mean for the dealers who will have a fist full of new 2006 models on the floor? If the used rig market is depressed, wouldn't that mean that the market for new boats would also be weak. I'm looking to buy a rig in the Fall, so i thought I'd get some advise on what type of market I'm going to be dealing with. <br />Stalker

 

[CATransplant]

Re: Boat sales Down? True or False

Sometimes the price drop doesn't extend to new boats, due to the fixed price the dealer has to pay for it. That's a sunk cost...without room to change. That means the only maneuvering room is in the dealer's profit margin, and they're pretty tight with their profits.<br /><br />Used boat prices are much more flexible, since there's no sunk costs involved.<br /><br />That said, if sales are truly down, you may have some maneuvering room, particularly if you look at the last year's models after the new ones arrive. Factories often rebate part of the sunk cost to the dealer, so you have some more room to deal. There's still a basement price, though, that is non-negotiable.

 

[bayman]

Re: Boat sales Down? True or False

One way to look at how sales are doing on the larger boats is to look at how publicly traded dealers of large boats are doing. Here is an example:<br /><br />MarineMax Reports Record Third Quarter 2005 Results<br /> http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=HZO&script=410&layout=6&item_id=733113

 

[rottenray6402]

Re: Boat sales Down? True or False

The bargins on new boats are the 2004 and 2005 hold overs some dealers still have and will have. Boat dealers are somewhat like car dealers with the inventory being financed with a product called floor planning. Usually they work a deal where it is interest free for 90 days or so, after that the interest charges kick in so they want the older stuff out ASAP.Those are where you can deal better.

 

[nightstalker]

Re: Boat sales Down? True or False

Thanks for the info.<br />Stalker

 

[ZmOz]

Re: Boat sales Down? True or False

Yeah, I'd bet gas prices are killing boat sales. Same thing seems to be happening to trucks with big blocks - I just bought a good one for $600, and I've seen several others under $1000.

 

[crazy charlie]

Re: Boat sales Down? True or False

I have never seen more new boats 32 ft. and up in my life!!!! Every third or fourth boat I see here on Long Island is new.Boat sales dont seem like they are down to me.Charlie

 

[imported_bjs]

Re: Boat sales Down? True or False

i live in kansas the big block boats are everywhere as well as the big boy outboards.boat sales are not down in this state.maybe your buddy shoukd move here.boat dealers give good money for used boats.

 

[Terry H]

Re: Boat sales Down? True or False

Originally posted by crazy charlie:<br /> I have never seen more new boats 32 ft. and up in my life!!!! Every third or fourth boat I see here on Long Island is new.Boat sales dont seem like they are down to me.Charlie

Folks buying 32 ft. boats don't normally worry about fuel prices...Chief

 

[Triton II]

Re: Boat sales Down? True or False

Boat registrations in NSW are up 11% year-to-date until the end of June. Motorcycle sales are up 8.1% and car sales are up 4.5%. Seems our fuel costs haven't slowed us down and this year's Sydney Boatshow was the biggest ever.