Why new boats cost so much?

[john john]

Just wandering where the cost is in new boats? Know that steel and rubber went up last few years due to oil prices and such. But why are boats so high? Not yachts, but average size boats that most people are interested in. Have read a few articles about how the industry is trying to get boaters into new instead of used. Maybe a few dollars less?

 

[dingbat]

Re: Why new boats cost so much?

"Fiber glass" and gelcoat is made from oil as well. On top of that, boat construction is labor intensive. Someone has to pay for those raises and "improved" healthcare.

 

[Bondo]

Re: Why new boats cost so much?

Ayuh,.... Along with the fact that yer dollars in yer pocket have less value than they did a year ago,....

Much less the massive loss of value over the last few decades,...

 

[greenbush future]

Re: Why new boats cost so much?

Any petroleum based products are way expensive these days. Have you done a roof (shingles) of late? The cost of materials is beyond shocking!! Other elements do play a part in this too. but the "new" cost has always stopped me from doing that. I also think service on new equipment (not just boats) is really lacking in almost every situation. Every time I took my warranty issues in to the GM dealer, they would NEVER get it right the first time. Grease on carpet, bad paint and bump work, paint over spray, I could go on and on. Not worth the price to me.

 

[agallant80]

Re: Why new boats cost so much?

Its like anything else. Inflation goes up your salary stays the same. Lets look at inflation and the car world

I did some quick research
1995 Chevrolet Tahoe LT Base price: $28,585 is $43,694.72 in 2014 dollars
2014 Chevy tahoe base price $44,600

So if you take out inflation the price of the Tahoe has gone up $906 or about 2%

Yup its inflation with salary not adjusting.



Caculator used:
CPI Inflation Calculator

 

[john john]

Re: Why new boats cost so much?

Understand what is being said. I have several pieces of machinery, tractors and such. When I compare one of these $100,000 items to a $100,000 boat, I wander. Tractor will have cab, air, heat, lots of steel, diesel engine, 18 speed powershift transmissions, hydraulic pumps, can lift 15000 lbs, pto, large expensive tires, several computers,and so on. Take the seat cushions out of a 25' bow rider, doesn't look like much is there.

 

[agallant80]

Re: Why new boats cost so much?

Understand what is being said. I have several pieces of machinery, tractors and such. When I compare one of these $100,000 items to a $100,000 boat, I wander. Tractor will have cab, air, heat, lots of steel, diesel engine, 18 speed powershift transmissions, hydraulic pumps, can lift 15000 lbs, pto, large expensive tires, several computers,and so on. Take the seat cushions out of a 25' bow rider, doesn't look like much is there.

Im sure your tractor has lots of parts that are used in other things. Boats are very specific. The manufacturing process is a one off hands on type thing where tractors that are configured to be combines, back loaders etc can share an assembly line. I don't know of one boat maker that uses robots (well perhaps some john boat)

 

[oldjeep]

Re: Why new boats cost so much?

Most boats are hand made - to order. That kind of production doesn't really benefit from much automation and labor is expensive.

 

[britisher]

Re: Why new boats cost so much?

A boat is considered a luxury item, and as such the manufacturers charge a premium price because they can get away with it. I am sure the low volume of the product adds something to the equation, but by and large the base materials are not exotic and I would guess for the most part the factory hands are not highly skilled. Move up the ladder to the luxury custom yacht market and it'sd think of a number and double it, before you've even started. For Buyers at that end of the spectrum, money is no object, so prices for everything are off the charts. Check out the big luxury RV's. They are over $1 million dollars a pop and the manufacturers will give you anything you want for about 3 or 4 times the real value of that item.
I am sure that in recent years, the big mass manufacturers such as Bayliner have adopted automotive type assembly processes to boat construction, for example in fasteners and that brings economies of scale. But I think boats will always cost more than they are really worth.

 

[john john]

Re: Why new boats cost so much?

Sea ray uses robots. Everything is high these days. When something is bought, it's the "Cadillac" according to the salesman. When it's traded, well, IF it would have this or didn't have that it would be worth a lot more.

 

[matt167]

Re: Why new boats cost so much?

The quickest way to make a fiberglass boat hull is with a chopper gun.. There is still someone standing behind that chopper gun laying the hull into the mold. Then there are more guys that seperate the hull from the mold, and if they break it, it's garbage.. Anything fiberglass is $$$.. Take a check on fiberglass vs injection molded plastic bathtubs. Big price difference

 

[pckeen]

Re: Why new boats cost so much?

Boat tax
Anchor tax
Luxury tax
Rope tax
Gas tax
Payroll taxes...

 

[robert graham]

Re: Why new boats cost so much?

The manufacturer and the dealerships both have their profits built into the new boat prices....just like with new cars/trucks....that first year of depreciation can be very attractive for folks willing to consider buying a "slightly used" boat/vehicle

 

[oldjeep]

Re: Why new boats cost so much?

Just for grins have a look at some of the processes in making a boat. They are not exactly rolling by 100 an hour on an assembly line.

2014 Malibu Factory Tour on Vimeo

Although I will say that at about $800 a piece for those machined billet wakeboard racks (just a rack, not the tower) there is definitely some profit in there

 

[jigngrub]

Re: Why new boats cost so much?

New boats and divorces are expensive because they're worth it!!!

 

[thumpar]

Re: Why new boats cost so much?

Look at the price of an engine package alone. The boat manufacturer has to add that in too. At the boat show last week we saw go almost identical wakeboard boats from the same manufacturer. One was $118k and that other was $144. The difference was the options. Anything that is meant for a boat is expensive.

 

[agallant80]

Re: Why new boats cost so much?

New boats and divorces are expensive because they're worth it!!!

yup. Did both last year. So worth it.

 

[rallyart]

Re: Why new boats cost so much?

If you talk about Wakeboard boats the biggest manufacturer makes 3000 boats in a year and has about 10 models. A car manufacturer can make more than 1,000,000 of a single model in a year easily.

 

[coolbri70]

Re: Why new boats cost so much?

I think its because used boats are just as expensive if you are paying someone else to work on them

 

[airdvr1227]

Re: Why new boats cost so much?

10 years ago manufacturers were selling thousands of boats every year. Now they sell hundreds of boats every year but their costs haven't decreased.