Boat Prices, spring 2008

[spindrift]

We are all concerned about the drop in actual prices realized for wonderful Hatt such as 53MYs. The most recent example I know of is an 1985 that was purchased for $350K 2 1/2 years ago and just closed slightly above $200k. By the way, I say this boat and it was in very nice shape.

But it can always be worse; one of my fellow Yacht Club members purchase a 2006 Sea Ray 40' Motor Yacht (the current list on this boat as equiped before dealer discounting is $690K). My fellow member paid $550K for his in 2006 and just sold a boat with less than 150 hours on it for $300k! He had to bring a very big check to closing to pay off the bank loan......ouch!

Hopefully the market will stabilize soon.

Spin

[Funat50]

As a shopper (looking for a 61-68 cmy) I can attest to the drastic price reductions. I don't have much sympathy for the SeaRay and Silverton owners as you will always see big drops in high production lower quality products, check out a Chevy Lumina. Quality boats like Hatts & Viking will fair better but are subject to the same market influences, declining incomes, higher fuel, higher maintenance, and higher dockage. It will push some out of the market, just like the couple that have owned a beach front home for 30 yrs and can no longer afford the taxes and insurance. I beleive the market will continue to decline into 09 as fuel cost rise, the economy languishes, and buyers and sellers get scared and conservative. The good news for the buyers is that cash is king and the next year or so will offer some incredible bargains (boat-cars-realestate) for those with the means. IMHO.

[Red Hatt]

Looking on Yachtworld today I saw the prices of the older hatteras boats are droping more and more when is the bottom going to hit .

[ThirdHatt]

Looking on Yachtworld today I saw the prices of the older hatteras boats are droping more and more when is the bottom going to hit .

There won't be a bottom until fuel prices come back down. That won't happen in 2008, so maybe 2009?

[Genesis]

Fuel may come back down some, but if you think its coming back to $2/gal or less, you're smoking funny stuff.

$3+/gal is here to stay, and its entirely possible that the demand curve has shifted far enough to the right in the emerging markets that $4 may be the floor for the forseeable future.

[Funat50]

Over the long haul we will not see lower fuel. IMHO. Relative to other cost and wage factors fuel has been at artificial lows for many years. I believe there are several factors beyond fuel that will hammer larger boat prices. Larger boats are typpically owned by retired or older yachtsmen and via attrition and life style changes new buyers may not flow into the market. Many of these yachtsmen have investments they are probably returning lower amounts of income on depressed values as the market has shrunk. Lastly, other optional cost such as property taxes, insurance, docking, maintenance, and parts are rising which greatly effects the TCO (total cost of ownership). This is not a 1-2 punch but a 1-2-3 with a gut shot to the yachting industry. Finally, as most people with a nice yacht are considered wealthy, or at least well off, and that it is a leisure activity I don't think we'll get much help or sympathy from governing bodies that ever improve the situation. From my review of the current listings and sales (few as they are) in the past 6 months I think the current market is overpriced by 15% to 25%. By fall and into 2009 current prices will be 25% to 45% overvalued. Unless sellers get hungry and start slashing it's going to be a painful ride down. If I were selling a boat I would look at my carrying cost (cost of funds, insurance, taxes, dockage, maintenance) over the next 12 months and take that into consideration as it relates to my selling cost. At least it would make the loss a little less painful.

[SeaEric]

I closed on the sale of my 46' Matthews last Friday. I had a small mortgage on it, which I am happy to have satisfied and off my plate. That boat cost me + or - $22,000. per year to own. Not to use...., just to own. I didn't use it enough to justify that expense.

I am in Florida for the holiday weekend and had planned to look at 2 boats here as prospective replacements. I'm not going to do that. My money is in the bank and it's staying there for now.

I still own a 31' Chris Commander SF and a 19' Center Console OB. I have come to the conclusion that I already own enough boats for right now.

[captddis]

I did not know you are a Commander owner! I have owned 5 and still have a 68 31 HT EXP. Have you visited the Commander club? The rendezvous is in DElray Beach this Nov during the show.

[SeaEric]

Mine is not a real Commander. Its a 1985 model 315 FBSF. It says commander on the side but not the same as the nice older ones. I'm a member of the Commander Club. Only good thing about my boat is its all very original, and unmolested. I'm doing a few things to her but mainly just updates and safety/mechanical.

[whaler23]

Eric,

Heading to Piney this weekend, D-29, was hoping you would be there to help me tie up, kind of a long reach for you though. I'll meet you hopefully when you get back.