Used boat market is sucking wind.

[Bubba1235]

As the regulars know, I buy a few reparable (project) boats and rebuild them for resale each year. This year, not so much. I tend to use NADA heavily in estabilishing "value" not so much because I think they are always right but rather because that is what all the lending institutions use and they will not lend $10K on a boat with a book value of $5K. You can argue until your blue in the face but NADA is their goto source and they won't budge from it.

The wall I've hit is most used boat owners don't know how badly the market has dropped out and they are asking way over the boats book/market value. When I try to explain (or show them) what has happened and what their boats current value is they end up getting angry at me as if I somehow did it. I see them run the same ad on Craigslist and eBay for months without a hint of a real offer and they still don't get it. A lot of folks say "I see them forsale at $xxx on the internet". My reply is, yes that is what they are asking and just like you they can't sell them.

I hear a LOT of people say they will relist it in the spring for a higher amount and I think they are in for a very rude awakening. I just don't see the market improving much at all this year. Going to be a very interesting summer and will tell me if its time to sell off the inventory I have and just wait it out or not. Anyone else have thoughts, guesses, insights on what we will see this coming season?

 

[tractoman]

Re: Used boat market is sucking wind.

Until the economy changes, the used (boat, rv, motorcycle) market will be messy. People don't have disposable income like they used to. Also, when I was in the market, I found idiots with POS boats that would never sell for what they were asking. They think it will sell for what they paid for it years ago or something. I think it's a good time to buy if you find someone who is strapped for cash and realizes the market they are in. Many don't though. There will always be those with their heads in the sand on the value of their used and poorly maintained POS boats, and they will be sitting on them while they continue to rot. IMO anything will sell if it's priced right.

 

[robert graham]

Re: Used boat market is sucking wind.

When our economy starts to return to some normalcy and prosperity in the coming months and the weather starts getting nice and warm, folks will start coming out of their financial "caves" and they'll "just gotta have a boat". It's been a cold winter in the good ole USA and coming off a pretty crummy year for a lot of people, but folks want to have a good time down at the lake, river,ocean, cold beer, gorgeous girls in bikinis. Things gonna be a lot different around April, May of this year, so we have to just hunker down for about 90 more days. That's just the way it is in the USA. Hang in there!

 

[jeeperman]

Re: Used boat market is sucking wind.

But the era of easy credit for all is over.
And that will stifle the "toy" market for years to come.

 

[tractoman]

Re: Used boat market is sucking wind.

Personally, when it comes to toys, if I can't pay cash, I can't afford it and I have plenty of toys. I could not sleep at night with motorcycle or boat payments. We don't even have car payments. I have heard of boat loans as long as 40-50 years or something. I wonder what those boats cost if they ever get payed off. No thanks, I'll pay cash.

 

[thefairlaneman]

Re: Used boat market is sucking wind.

I think you are correct. When the housing market bubble busted in 2006 everything changed. If people paid inflated prices for homes Im sure they also used the easy credit to get cars and boats. These people will learn the hard cruel truth and sell it for what the market today says it worth or not sell it at all. Buyers are like fish going by a pier. You can have a 200 doller rod and the most expensive bait and throw out your line like a pro but if the fish ant swimming by you ant catchin squat. Note that they are playing games with gas prices again. By summer we may have 4 doller gas again...no one knows and boats use alot of gas. They dont make hybrid boats do they?

 

[Triton II]

Re: Used boat market is sucking wind.

Hmm, interesting comment. Out here, the economy hasn't suffered as much as the US or Europe, but it's had a bit of a stutter and that's affected the top end of town. There are HEAPS of big cruisers for sale - but the trailer boat market is still going strong with a record amount of recreational boats registered last year. I guess when you have the weather and the waterways we are lucky enough to have, boating will always be a high priority!

 

[DonHof]

Re: Used boat market is sucking wind.

I was at a marina and looking at a couple of boats. I thought they were over priced. When I told him that the NADA said they were worth X amount he said NADA was way under priced.

 

[justchange]

Re: Used boat market is sucking wind.

Since you use e-bay, check out rawhide_sales. This is from Rawhide ranch in New London, WI. They use the money to help "at risk" boys get a better life.

I found a few older boats that aren't in that bad of shape. Reasonable prices too.

 

[Maxum21]

Re: Used boat market is sucking wind.

IMO there are tons of great deals out there right now on used boats. ecspecially over these winter months. Theyre all over the internet..however come spring it may be more difficult to sell them for profit. banks dont want to lend money right now. my bank(Chase) did away with boat loans altogether

 

[paulspaddle]

Re: Used boat market is sucking wind.

Poor economy hasn't really hit us either. If you happen to work for a company who is owned by or sells to the American market then you 'may' be hurting.

If you can show up to work everyday and communicate reasonably well, you can get a job that pays ok. (at least $15 an hour) If you have any business sense you can work as much as you can take on.

People still seem to be buying bigger, better, faster, although in general the Canadian market is always a bit more conservative than the American market.

What about iboats? Sales up or down?? Anyone in the know....know?

 

[dingbat]

Re: Used boat market is sucking wind.

I tend to use NADA heavily in estabilishing "value" not so much because I think they are always right but rather because that is what all the lending institutions use and they will not lend $10K on a boat with a book value of $5K. You can argue until your blue in the face but NADA is their goto source and they won't budge from it.

NADA is useless and the good banks know it. If I listed my boat at NADA value I would have a line around my house waiting to buy it. When I bought my boat 5 years ago, the bank didn't even blink an eye when I took out a loan for a purchase price that was considerably over NADA value. They didn't require a survey either. Walked in signed, the loan papers and walked out with a receipt for the wire transfer to the sellers bank account.

 

[smokeonthewater]

Re: Used boat market is sucking wind.

that's funny..... I have NEVER paid nada's price for anything..... About half is where I look to spend..... I usually buy much lower than that..... This is a buyer's market. Lucky for dealers most americans will buy something if a salesman tells them it's a good price and a bank is willing to loan them.... Many don't even shop around.

 

[pine island fred]

Re: Used boat market is sucking wind.

People have an idea on what they think their car or boat is worth and dont want to admit it is worth less. Think in a lot of cases they are upside down on the item and in deep trouble but cant get out. Boat is not worth what they think it will sell for and they cant come up with the extra money to provide a clear title, car or boat. So it sits waiting for the repo man. Run into people who financed their car for 72 months and cant figure out why they cant sell it for what is still owed.
On the other hand, there are more sellers than buyers here on the gulf coast. New boat dealers have switched to consignment boats and their lots are overflowing. Still nothing is moving. Best finds are estate boats. Usually in very good condition and not used for years. Old people did not want to let it go so who ever is in charge of clearing the estate is happy to just about give it away, literary. Gets rid of the headache and appeases all the heirs, who want their cut yesterday.
As for NADA, my thoughts are the average retail price comes from dealers who have to report selling price be it car or boat. As for cars, people will grossly overpay for a vehicle at a used car lot because they can finance it there. Private sales prices are always lower and the sale price is never reported. regards FRED

 

[tashasdaddy]

Re: Used boat market is sucking wind.

i agree in this markey nada is usless. i was doing rehab, turn overs, until Nov 08, i had my last boat for sale. ended up putting it in the back yard, and finally sold it is spring 09. at that time i started doing Johnson/Evinrude repairs. it has been far more profitable, December was my slow month. January looks like it will be OK.

the fisherman, will fix what he has, just so he can fish. he will not upgrade in this economy.

 

[bruceb58]

Re: Used boat market is sucking wind.

that's funny..... I have NEVER paid nada's price for anything..... About half is where I look to spend.

I agree. When I bought my boat for $20K, the NADA was at $28K.

With the improved economy however will be rising fuel costs which will have a psychological affect of people not buying boats. Even though a boat's fuel cost is really pretty irrelevant when you actually calculate how much fuel you use in a year.

 

[Home Cookin']

Re: Used boat market is sucking wind.

Hybrid boats? yes they've had them for years. Motor sailer, or any sailboat with a motor.
I suppose the oar locks in a jon boat make it a hybrid, too.

 

[Fordiesel69]

Re: Used boat market is sucking wind.

I have thought about this topic for a while. I want to sell my sea ray, I bought it dirt cheap but have about 1700 into it, and it is nice and reliable now, which is what matters to me. I highly doubt I will get that out of it, for the $40 every 2 years it is worth it to keep for others to share. Two boats out is safer than just mine.

Right now the market is good in "at home" related hobbies. Like pinball machines, pool tables, model train sets, computers, game systems, lawn furniture, grills, canopies, etc......... Because you can stay in the conforts of you own home and not have to pay to operate. A boat has a TON of expense in operating. I blow $65 in three hours at 32MPH in my bayliner. Try that 3 times a week, it will run ya dry. Play 3 hrs on a pinball machine and it will cost you 500 watts per hr which equals less than $1 dollar an hour.

Gas prices will go back up to $5+ and stay there its just a matter of when. That will be the end of RV & boat companies. Enjoy it while it lasts, then move onto a sail boat.

 

[dingbat]

Re: Used boat market is sucking wind.

I think that speaks more of your credit worthyness than the boats value.

There very well be some truth in this statement but what does that tell you about how a boat's value is perceived by the bank? We?re not talking pennies either.

 

[timmyjoebob]

Re: Used boat market is sucking wind.

I read here somewhere that NADA values are hull-only. There is a way to look up motors elsewhere. True/False?