Norwalk Boat Show--Depressing

[JLR]

I just returned from the Norwalk show. I have never seen so many anxious, depressed and otherwise dejected dealers in my life. It has been such a poor season up North that the dealers I spoke to each were complaining about the new inventory they have that is depreciating before their eyes while they continue to have to pay the floor planning interest on the declining assets. Hence, they need to get more and more for these boats just to be able to cover the initial purchase price and financing on them as the value of the boats (at least the '06 boats) drops like a rock as the '07s come out. Tough spot to be in. Also, becasue they seem to be "cash poor" at the moment, they are unable to take the inevitable trades that they need to take in order to sell their '06 models. Another tough spot to be in. If they do well at the show, they may be able to take trades. If they do poorly at the show, they may have to dump their inventory. Seems to me--it's a real good time to be sitting on the sidelines and watch while they swing in the breeze--especially if one is interested in buying in October up North. By the way, if they are this dejected on the first day of the show, I can't wait to see their faces at the end of the show. Just my two cents worth.

[Genesis]

The funny thing is how "peppy" people try to talk it up around here.

Of course the proof is on the water. This summer has been miraculous for us - we've never been crowded off a spot, we've never have to wait more than 10 minutes for a place we want to dive to free up, we rarely - even on dead-flat-"lake of mexico" days seen more than one or two other boats on the water....

I'll take it. And frankly, I don't care if the dealers twist in the wind...... perhaps around Christmastime I'll decide I want a 26 instead of a 23, buy the 26, and then sell the 23 in the spring..... it's nice to be able to do that sort of thing without having a payment book hanging over you.

Or, if the right deal comes along, I'll buy the 58 and anchor it out behind the house in the bay!

[67hat34c]

Here is a thought. What if the boating manufacturers such as Searay etc would go into the Marina Business, charge reasonable rates for services and fuel, do the break even thing on fuel in fact. That in my opinion would make boating more enjoyable and at least in those areas promote more sales.

I will tell you that were we are in FL. Harbour Town has reduce Gas to about the same price at gas stations have. typicaly marina's charge .50 to a dollar more. I wonder if they were experiencing lower business due to high fuel and or since SeaRay facory is right next door, Harbour Town is on Sea Ray Drive, that the factory is soliciting them to promote boating by reduced fuel, who knows, most likely just my mind wandering.

[Boatsb]

Since Brunswick owns both SeaRay and Hatteras we should get even better discounts right?

A man can dream can't he?

[chris]

I bet the boat manufacterers start building new models every two or three years instead of yearly. That is what the the aircraft manufacturers do. I can't see how they can keep putting out new models every year in this market.
Chris

[egaito]

I bet the boat manufacterers start building new models every two or three years instead of yearly. That is what the the aircraft manufacturers do. I can't see how they can keep putting out new models every year in this market.
Chris

Unless it's a redesigned product, I've noticed nothing really changes but the Hull ID from year to year. It seems most manufacturers stick with a design for several years a time. Once the molds wear out, why not do something different?

[JLR]

Funny thing - despite the glacial pace at which boat sales have moved up North here this year, the dealers are still trying to pass off on the buyer the following:
freight, make ready (dealer prep), dealer floor plan financing on leftover models (ie. the interest they have been paying) etc. Not only are they trying to pass these costs off the buyers (I guess that is their job), they tell you that is what they are doing. Also, since I have been looking at a few 2005 leftovers, I get a kick out of listening to delaers who claim that their 2005 leftover (now two years old) only depreciates 10K per year for these two years (boats asking about 300K or so) when I have always been told by brokers etc. that a conservative figure is a drop of about 10% a year for the first two years (albeit on a used boat). With all of that said, the dealers are still talking about what they have "in the boat" and I keep talking about a "two year old boat". It is, and will be , a very nice time not to be saddled with a boat (or inventory) that one needs to get rid of. I may even take a lower price than I would otherwise accept on my Luhrs just so I have an all cash deal to bring to a seller. I may take a few K less than I want but I assure you, with an all cash deal on a snowy day in November, I will save many times that amount buy cutting a really sharp deal when I choose to buy.

[MikeP]

Hatteras built the same boat (53MY) for nearly 20 years so there is absolutely no reason to build a new boat frequently just to build a new boat. Obviously it is done simply to entice dummys into buying a new boat for the "upgrades" which are usually "downgrades." Ok - it's got a newer GPS unit with even more useless features but they reduced the thickness of the hull to save money on FRP (or the junk material they use instead of real FRP). This allows them to also claim the lighter weight as another upgrade also but, of course it isn't. Reducing weight in a boat may reduce fuel consumption but it's at the expense of an uncomfortable and noisy ride. That's not a good tradeoff for an MY - maybe for a sportfisherman.

[Passages]

This thread makes you happy to be the owner of an older, quality boat. Wonder why so many other buyers just don't "get it"?

[Pascal]

i think the marine industry is in for a rude awakening.. the cost of new boat has been goign thru the roof to insane level. take a look at the boating mags, half a million for a 40/45 footer is becoming normal. It was only 6 or 7 years ago that I paid 159k for a very nice 37 express... try to find one for under 300 nowadays.

between depreciation, interest, fuel, insurance, dockage, maintenance, etc... that 500k boat is going to cost its buyers 60 to 75k that very first year. Factor in a 5 months season up north, that means somthing 10 week ends or short vacations on board... I love boating but is it worth it ? i mean... for $5000/week end, you can have other options since for the "average" wife, boating on a 40 footer is probably still upgraded camping... compare that to a romantic bed n breakfast somewhere...