Used boat market??

[mtb55]

Howdy,

This is my first post on this board but I have been lurking here for years, great place guys. So after many years of diligent saving and eliminating debt I now have a nice pile of cash for a used boat. I have spent well over 2 years studying the the used market in my area (PNW) and feel I have a good idea what the market will bear (fair market value), and yes I am looking for a "great deal". What I have noticed is that many private sellers and even dealers are not afraid to leave a boat on the market for 6+ months with little or no adjustment in their listed price. Also I have observed that when a seller is asked if the price is negotiable they are almost always firm. So all this really surprises me considering every time you hear news on the economy it is bad news with experts saying this is one of the worst recessions since WW2. All these bad economic factors would lead me to think that there should be many motivated sellers willing to sell their boats at bargain prices, but so far this has not been the case? Just wondering if anyone else has experienced this same thing?

 

[skargo]

Re: Used boat market??

I bought mine in April of 2008. It was listed at $6500 and I got it for $3900. There certainly are deals out there.
Instead of worrying about if the seller will budge, I'd recommend concentrating on finding the best boat for your budget.

 

[Pirate_40]

Re: Used boat market??

What would make you think that anyone else would have a different experience. It's not rocket science, simple supply and demand in a down economy. Supply is way up (for obvious reasons) and prices are way down. Simple.

 

[mtb55]

Re: Used boat market??

I bought mine in April of 2008. It was listed at $6500 and I got it for $3900. There certainly are deals out there.
Instead of worrying about if the seller will budge, I'd recommend concentrating on finding the best boat for your budget.

Great buy, congratulations!

I really am not in any rush to buy a boat so i am waiting to find a deal.. My reason for wanting a deal there is because there is a good chance I will only keep this boat for 4 years so I want to avoid a big depreciation hit when I sell it.

Kind of like the housing market I suspect boat markets are very different in the various regions of the country?

 

[mtb55]

Re: Used boat market??

What would make you think that anyone else would have a different experience. It's not rocket science, simple supply and demand in a down economy. Supply is way up (for obvious reasons) and prices are way down. Simple.

I guess what i am saying is that in many cases there seems to be a big gap between what many sellers are asking and what the market will bear, hence boats being on the market for a loooong time. Just a casual observation is all.

 

[LUCKYDUX]

Re: Used boat market??

Keep looking brother, I never planned on having a boat but once word got out that I was looking, I got a steal of a deal.

 

[skargo]

Re: Used boat market??

Great buy, congratulations!

I really am not in any rush to buy a boat so i am waiting to find a deal.. My reason for wanting a deal there is because there is a good chance I will only keep this boat for 4 years so I want to avoid a big depreciation hit when I sell it.

Kind of like the housing market I suspect boat markets are very different in the various regions of the country?

Thanks! Good luck on your search.

 

[superpop]

Re: Used boat market??

It is really a regional thing, I live in the Seattle area but have purchased my last two boats down in Portland as the economy has been so weak down there. You can really get a good deal on a boat if you have a wide search going on. I think in general though, boats do go for a premium in the NW. Not sure why but it is true.

 

[DJ]

Re: Used boat market??

This is the best time to buy a boat. Many would rather sell than store.

However, a guy that is not desperate is not likely to give his boat away. We all have somewhat inflated ideas as to what our rigs are worth.

 

[RobbyA]

Re: Used boat market??

If you start waving cash, I can guarantee that 99% of the time the price is negotiable. If its not, let them sit on it.

Mine was listed at 4500.00, I got it for 2200.00.

 

[metriccrescentwrench]

Re: Used boat market??

ALSO, some buyers seem to have the notion that they won't buy unless the seller is willing to be talked down. IF the seller is asking a fair price it's ridiculous to insist he reduce his price.

For instance, a year ago I saw a jon-boat, trolling motor, and two batteries on craigslist for $250. My wife tagged along while I looked at the boat, it was pretty much just as described, but he also said that if I bought it he'd throw in an outboard engine that needed a little work. SOLD. My wife wanted to know why I didn't try talking the guy down - heck, I already felt guilty for taking all that stuff for just $250, and I'm sure someone else would be along shortly who could recognize a great deal.

Anyway, my point is that potential buyers need to do their homework about what is a fair price and not be unrealistic about what they're willing to pay, just as sellers shouldn't be unrealistic about what their boat is worth.

 

[LAC_STS]

Re: Used boat market??

There are alot of boats that are deals right now. You said you are in no rush which is great and if you can spread your search as far as possible it will help also. Near me you have to be ready to go look at them asap. I missed out on some great buys because within 2 hours of it being posted it would be gone. That's how the really really god deals were.

Ok deals will be there a few but gotta be fast on the really good ones. I guess it's where your at too. Plus it's gonna be winter time. Winter is a good time to buy imo.

Maybe some of the boats you see sitting for 6 months you should go look at and wave what's a good deal to you around and see if they take it. I'd bet you'd snag one.

 

[convergent]

Re: Used boat market??

You mentioned that you wanted to get a great deal. Well to me, a great deal is one where the buyer and seller are BOTH happy, not one where one party took advantage of some outside circumstance to rip off the other party. I bought two boats off Craigslist this season, and sold one. I believe I got a great deal on the two I bought, and I believe the price was very fair to the seller... same goes for the one I sold. I did not get the boats for thousands less than they were worth... I got them for a fair price and the boats were both great... great deal as far as I'm concerned.

Every seller is going to have a different circumstance. Both the boats I bought the seller's didn't really negotiate much, but they had already priced them fairly. In the case of the boat I have now, I got him to come down a couple hundred bucks, but he said he'd just keep it if he couldn't get that for it, and I believe he was sincere on that point. I wanted the boat, and it was worth what he was asking, so I'm happy.

The reality is that the price of your boat is just the admission ticket price. You are going to spend a lot of money over the life of ownership that far surpasses a negotiating difference in the purchase price. If you are getting the right boat for a fair price, then you have to decide whether you want to keep waiting or just buy it. You said that many sellers were willing to let their boats sit for many months because they weren't willing to lower their price. I could say the same about you... you are willing to remain boat-less for many months because you don't want to raise your budget. Its all a matter of how motivated each side is. If the boat is paid for, then it isn't really costing them anything to let it sit, and if its already depreciated then they may not mind waiting for the economy to recover.

What is more surprising to me about the used boat market is how people seem to have no idea how to sell something... especially on Craigslist. I can't tell you how many times I've seen either REALLY poorly written listings with horrible pictures, or the seller just disappears and won't respond to email or phone after they post it... like an hour after they post it! Ironically, when I sold my boat, there was another listing in my area on Craiglist for the exact same boat/trailer... same year, same color, everything. I sold mine in 24 hours, and his went unsold for several months. His ad was really hard to read because it was in all CAPS. His pictures were not great. He was also priced too high. I priced mine where they were selling, took some carefully planned pictures, and wrote an ad that I think got the right information across clearly. I just saw that he had lowered his price to where I sold mine at.

Bottom line is that everyone is not desperate or motivated to sell quickly. A great deal is one where you pay a fair price for the boat you are looking for and then go and enjoy the boat. Just my opinion.

 

[Joshua Nichols]

Re: Used boat market??

This is a great time to pick up a good deal.. Lots of people rather sell than deal with the off season.. Christmas people gotta buy for their 8 rugrats. I bought mine from a guy who bought a new 21ft stingray.. He wanted 1200 and I got it for 1000.. It looked so good in the storage unit when I drove by I didn't think it was the one I was coming to see.. Now it did have a bad trim motor.. Ordered one on ebay.. Replaced it.. Did some tinkering, fluids and such.. Away we went to the lake and it was awesome.. I did a ton of shopping.. Lost a bunch of cool deals musta went and seen 8 different boats before I found our Four Winns..


Good luck in your hunt..

 

[DuckHunterJon]

Re: Used boat market??

Keep looking. I spent about 6 months looking for a very specific type of boat. I passed on a few that were too much, or not the right shape. About to give up and go with an 18' bowrider as there were so many for sale locally, I found the boat I was looking for. I thought I got a great deal, on the exact boat I was looking for, and about 2 year newer than I was looking at previously. I had to drive about 400 miles to pick it up, but it was well worth it. Open you search as wide as you are comfortable driving, and try not to get caught up in looking outside your price range and hoping to talk them down. I guarantee, once you are out on the water, you won't be thinking about the deal you got, but rather the sound of the waves, fish nibbling, etc. Good luck with the search.

 

[dbkerley]

Re: Used boat market??

One of the reasons they sit on the market for so long is that almost no market exists outside the normal summer season. The other is that many owners are either upside down and can't come down without selling short or the boat is paid for and it doesn't cost anything to let it sit for awhile.

Around here, most slip fees are actually paid annually (discount) rather than monthly. Many boats are for sale including slip fully paid until (?).

If you have been lurking for so long; then you should have your mind made up on what you want and why. Find the best one you can in the best condition for the money you have.

 

[dingbat]

Re: Used boat market??

The trick is to be patient and have the ability to act quickly once you find something.

It took me almost 2 years of looking before I stumbled onto my last boat. The guy had a bad case of ?four foot fever? and was 4 weeks away from taking delivery on the new boat. He had to get rid of this one in a hurry.
I saw the ad in a local message board Monday afternoon. I called that night and arranged to meet him the following morning. I spent almost 2 hours going over the boat. Told him I would call one way or the other that evening.

I called the bank on the way home to see what they needed from me as far as paperwork concerned. Thursday afternoon I drove back to Richmond to meet with the surveyor. Friday morning, I went to the bank to drop off the survey and transfer funds from the Line of Credit. The two banks closed the deal on Wednesday and I drove down to pick it up Thursday morning.

In hindsight, I probably could have got him to lower the price another $2K. Then again, it was a fair deal as far as I'm concerned.

 

[Home Cookin']

Re: Used boat market??

The sellers who sit on a boat for 6 months often don't have carrying costs--the boat is paid for, and parked in the yard for free. Those who do, compare the carrying cost to the discount, especially in deciding to ride through the off season. For example, if it costs you $100/month to carry for the next 6 months, you'd only knock off $600 for a sale now, not $2000.
As for this; "will only keep this boat for 4 years so I want to avoid a big depreciation hit when I sell it" you cannot look at a pleasure boat purchase as an investment or positive economic event. It is pure cost. Other than the 1/3 drop from new to used, you can't bet against depreciation. Your care and maintenance over the 4 years or whatever is your hedge.

 

[RWilson2526]

Re: Used boat market??

Well to me, a great deal is one where the buyer and seller are BOTH happy, not one where one party took advantage of some outside circumstance to rip off the other party. .

I forget where I read it but in the business world supposedly the very best deals are when both parties leave the table NOT totally happy.

 

[mtb55]

Re: Used boat market??

It is really a regional thing, I live in the Seattle area but have purchased my last two boats down in Portland as the economy has been so weak down there. You can really get a good deal on a boat if you have a wide search going on. I think in general though, boats do go for a premium in the NW. Not sure why but it is true.

You are right on the regional point, I live in Oregon but I watch the adds as far north as Seattle and as far south as Stockton and I have noticed the Seattle area tends to command the highest prices on used boats. As a side note the other thing I noticed is that if a person was interested in a heavy gauge aluminum jet boat (sled) which I am not California is the place to watch. I have seen some AMAZING deals down in California on these types of boats because I guess the boating market has little use or interest in that type of boat. As I am sure you already know sleds are extremely popular in the PNW and command high resale value..... I have been tempted to buy some of these sleds I have seen for sale in California and bring them back to Oregon and resell them at a nice profit, but work keeps me to busy for those types of things.

My target boat is a deep Vee heavy gauge welded Aluminum boat with a outboard, something along the lines of a N.River Seahawk. These are niche PNW boats so the market is relatively small compared to your typical mass produced glass and thin gauge aluminum boats. I know the small number of these types of boats will make finding a great deal more challenging, but that's ok.