Question About Boat Dealers

[WrenchHead]

I purchased a new Bass Tracker package in 2005 w/60 hp Merc 4-stroke. Went back to same dealer looking to trade for a new 2015 Bass Tracker with same package. They checked over my boat and offered me $4,500 for trade-in on the $17,045 new boat which was setting on their lot. My boat is garage kept, extra clean, runs perfect at any speed. Starts up quickly like a car. I wanted $4,700 for my boat but they refused to bump up $200 on the trade-in. Claimed they would only make $1,000 on the new boat and make only $1,000 on my boat when it sold. So they wanted $2,000 profit out of the deal but would not accept $1,800. I walked and that was two weeks ago. I have purchased over 12 new vehicles and could always negotiate deals after a little back and forth. Anyone have experience horse-trading with boat dealers? I was wondering if all boat dealers are so stubborn.

 

[MH Hawker]

You did the right thing. this time of year a dealer will horse trade . and it explains why a lot go out of business.

 

[tpenfield]

Maybe dealer thought you would cave in? Probably waiting for you to return :noidea:

 

[redneck joe]

go find another one and get your $200.

 

[GA_Boater]

If you are up north, wait 'til the snow flies. And one question - Are you paying cash or financing?

 

[thumpar]

Wait until the end of the month when the sales guy is trying to make his quota.

 

[robert graham]

If your boat is garage kept, clean and runs good, why trade for another very similar rig?....just run what you have ,enjoy it and keep your money over at the bank....At least wait until your boat gives some trouble or you want a different rig....Heck, you might trade for that new one and it might not run as good as what you have....then you'd be kicking yourself for trading...

 

[airdvr1227]

On the flip side you really walked over $200? I'll bet you spend more than that on beer and food on a good weekend.

 

[redneck joe]

got friends who get a new car every year.; both of them. Some people just like new. Plus we get to buy used.

 

[roffey]

I traded my old boat in on a brand new 2014 boat this year. They gave me a $1000 for the old boat. My old boat was a 1984 thundercraft with a 488 3.7 merc with a broken connecting rod and a top with a few rips. This new boat is the first new any thing I have purchased in the past 30 years and plan on handing it down to my kids when I can't drive it any longer, years and years away. I spent more money on this boast than I paid for my first house and every time I take it out on the water I know I made the right decision.

I think in the end it's what ever floats your boat, so to speak.

 

[Thalasso]

If you are up north, wait 'til the snow flies. And one question - Are you paying cash or financing?

True but remember the value of the trade in will go down because of the time of year.

 

[jbcurt00]

Your spending $14K (aft tax, reg, fees &etc, the $17K less $4500) for a new boat and walked for $200?

I expect you'll spend part ir most of a tank of gas looking at 3 or 4 more boats, plus some time online & boat shopping marinas or yards. Seems penny wise, pound foolish.



What WAS full retail on the $17K boat? I'd bet it was discounted some already....

And do you have any $4700 offers to buy your current boat?

Another perfect example of why boats & boat buying isnt like cars & car buying....

How long do you think it'd take the dealer to sell your used boat going into winter? There is also the risk that it'll take months to sell your boat & he'll end up selling it for less then the $5500 you said he planned to sell it for.

If i was the dealer, the $200 is what I'd consider part of the earned interest/return on his sitting on a used boat for a couple months.

 

[oldjeep]

I purchased a new Bass Tracker package in 2005 w/60 hp Merc 4-stroke. Went back to same dealer looking to trade for a new 2015 Bass Tracker with same package. They checked over my boat and offered me $4,500 for trade-in on the $17,045 new boat which was setting on their lot. My boat is garage kept, extra clean, runs perfect at any speed. Starts up quickly like a car. I wanted $4,700 for my boat but they refused to bump up $200 on the trade-in. Claimed they would only make $1,000 on the new boat and make only $1,000 on my boat when it sold. So they wanted $2,000 profit out of the deal but would not accept $1,800. I walked and that was two weeks ago. I have purchased over 12 new vehicles and could always negotiate deals after a little back and forth. Anyone have experience horse-trading with boat dealers? I was wondering if all boat dealers are so stubborn.

The boat dealer is stubborn because they didn't give you the price you wanted? If you care about the $200 - sell your boat first and then buy their boat.

 

[shrew]

Are you paying cash or financing?

This question never made any sense to me. The dealer is going to get paid the same either way. The dealer isn't the one doing the financing, therefore he doesn't care who's account the check is drawn from. Check and cash are the same to him once it is deposited in the bank. There is no such thing as a 'cash discount'. That really only matters to the person spending the cash. In fact it would be to the dealers benefit if he were writing notes, then he'd be making profit on the sale AND the monthly interest on payments. Cash would detrimental as far as a bargaining chip would go in that case.

 

[aspeck]

One of the problems is you are, understandably looking at both deals as one. However each deal must stand on it's own. $4500 for a 10 year old boat that probably cost about 12k new isn't a bad offer. In reality, the deal looks more like this:

Dealer Cost of new boat: 14,500
Amount dealer giving you: 3,000
Break even difference: 11,500
Profit: 1,000
Difference to you: 12,500

And that is how the came up with the trade amount ... 17,045-12500=4,545.
Now, out of that $1000 comes the salesman's commission, interest to floor plan the boat on the lot for however many months it has been there, time in detailing, etc. In the end, the $1,000 becomes more like $600 and isn't a lot of money when you think of insurance payments, utility payments, taxes on land and buildings, employment taxes, repair and maintenance of dealership, etc.

Just to give you the other side of the story ...

 

[aspeck]

Now you say, Wait a minute! He is only putting $3,000 into my pristine rig? Possibly, but he has to take time to go over it well, expecting to put some money into it, even if minor. Winterizing, detailing, adding a "pack" to protect himself with the warranty he will have to give with the boat and motor when sold. He will have to pay interest on the floor plan of the used boat, or forgo the cash that could be making him money to have his money tied up in the used boat over the winter.

Then there is the commission to be paid the salesman when sold, the overhead, etc. In the end, he is banking on selling your boat for $4,500- $5,000. But that is a gone over, pristine 10 year old boat WITH a warranty. What do you think you can sell the boat for, without a warranty?

Understand, I am not telling you the dealer is giving you a great deal, or telling you to buy the boat. The numbers I am using are not gospel and accurate, but hypothetical to represent what the dealer is telling you. Just showing you how the back-side of the deal works ...

 

[oldjeep]

This question never made any sense to me. The dealer is going to get paid the same either way. The dealer isn't the one doing the financing, therefore he doesn't care who's account the check is drawn from. Check and cash are the same to him once it is deposited in the bank. There is no such thing as a 'cash discount'. That really only matters to the person spending the cash. In fact it would be to the dealers benefit if he were writing notes, then he'd be making profit on the sale AND the monthly interest on payments. Cash would detrimental as far as a bargaining chip would go in that case.

It does usually matter. Typically dealers get a kickback on the financing if they arrange it.

 

[GA_Boater]

It does usually matter. Typically dealers get a kickback on the financing if they arrange it.

Exactly why I asked the question. And they get kickbacks on every add-on sold, like extended warranty and finance insurance.

 

[ssobol]

If you think the dealer is not giving you the deal you want, sell the boat yourself and then take the cash and get the new boat. However, this is a big PITA. You'll have to clean it, place ads, deal with lookers, demo it, verify that the purchaser is actually not trying to rip you off, etc. For $200 you are saving yourself a lot of time and effort. Even if your time is only worth $10/hr, you will go through that $200 before you know it. Take what the dealer offers and save yourself the headaches.

Or you can stick to your guns and hope the dealer comes around. I did that with the last car I bought. Took the dealer about 2.5 months before he caved. Maybe you are willing to wait.

P.S. By that time I didn't care about the car, however, I originally told him I'd buy the car for X$. When he met the price I offered, I kinda felt I had to buy it.

 

[drrpm]

The last time I traded in a car was 1991 and I was about to move overseas so I didn't have time to spare. Since then I've sold vehicles myself since dealers generally come up with crap for offers on trade ins. Still, if I wanted to buy a vehicle I doubt I'd turn down a deal for $200.