Hatteras Resale Prices

[Chasemmc]

What is the general feeling about the value of boats in this Trump environment? My business has seen an uptick in folks willing to part with money on larger projects. For those of you on the front line, what are you seeing in your businesses?

I know it can all vanish in a second as the improved economy is based upon expectations of a tax cut, reduced immigration, etc. etc. But I would think just as the values took a major hit in '08 when the financial melt down took root, their would be a positive effect as the economy finally recovers. For those of us who lived through Regan, 5% real growth is a wonderful thing.

Here's something else I don't get, whey do owners settle for only those prospects with cash. I understand that normal lenders will limit the age due to underwriting restrictions, but in other markets folks get creative. As most of us own the asset outright, why not take back paper in order to accommodate a higher ask? Most small businesses are sold with a blend of cash and owner financing, and the risk is just as high that the new owner will trash it.

For those that really need the cash right now, one could always market the paper on a secondary market. Yes you would have to discount the note, but anything above what you would have gotten for cash alone deal means your dollars ahead.

I am most interested in what Nightingale will close at, not that my boat is as nice, it isn't. But comps are comps and a rising tide lifts all boats. I'm not selling, regardless of what Freeebird says I should do , so the matter is merely curiosity.

What am I not understanding?

mark

 

[racclarkson@gmail.com]

What am I not understanding?

mark

DEPRECIATION.

If it flies, floats or f&#%@, lease it.

 

[Chasemmc]

Well I guess no one has sold a house and taken back a second. And no one has rented a property due to fear of the property being damaged. what do u think the value of homes would be if mortgages were not available? The asset can be protected by requiring the insurance proceeds to first go the lien holder.Surprised at the response

 

[Boatsb]

Boats are very easy to make disappear.

Houses and buildings a but harder to do that.

Yes you can insure it but is it worth the time and effort.

 

[SEVEN]

You can't sink a house in 50 ft of water. Although renters can cost you an arm and a leg if they ruin your investment. Insurance only covers so much. Think about the turmoil.

 

[rsmith]

Well I guess no one has sold a house and taken back a second. And no one has rented a property due to fear of the property being damaged. what do u think the value of homes would be if mortgages were not available? The asset can be protected by requiring the insurance proceeds to first go the lien holder.Surprised at the response

Would you take a second mortgage behind the bank?

 

[saltshaker]

i keep hearing how hot the boating market is. I've seen a fair amount of boats sell quickly and for pretty strong numbers in the past couple of months. Unfortunately this seems to be primarily for newer boats roughly 10 years old or newer. Detroit effective. Detroit power continues to be less in demand.

 

[krush]

boats are old. have 2stroke loud engine. not worth much.

try 300-400k for a 50c with cats these days.

Now, if you want to talk about center consoles, we can talk about APPRECIATION! People asking insane prices for used CC...and the new big ones (especially cats) are claimed to sell for more than than new because the wait list is so long. Do I believe this BS? Well, this joke won't last forever.

 

[saltshaker]

If I'm financing it I'm keeping it until it's paid in full

 

[saltshaker]

boats are old. have 2stroke loud engine. not worth much.

try 300-400k for a 50c with cats these days.

Now, if you want to talk about center consoles, we can talk about APPRECIATION! People asking insane prices for used CC...and the new big ones (especially cats) are claimed to sell for more than than new because the wait list is so long. Do I believe this BS? Well, this joke won't last forever.

a friend is looking for a 50C with either 3406 or C18s. The nice ones have been in the 500K to 600K range

 

[racclarkson@gmail.com]

Maybe it's not a lack of creative financing or a seller's unwillingness to take risks. Maybe it's screaming at you on this forum. Old motors, old wiring, old decor, old air, old everything. Maybe it's the amount of money it takes to maintain old, let alone update. Isn't that the real cost of a boat? So you fix it up nice; there are still dozens of other areas waiting to grab a new owner's attention and wallet. That's what I meant when I said depreciation. At least with a new or much newer boat the depreciation is more straight line. Depreciation can get exponential in a 30 year old boat.

 

[z28jimi]

"Depreciation can get exponential in a 30 year old boat."

That's what's driving our new boat search.My original plan was to sell ours, (1990 56' Ocean CPMY) then go looking for a Hatteras. But once the Ocean sold, and I started reflecting a bit, I've changed my mind. I'm going for newer, faster, smaller. With the relatively short time the actuaries tell me I have left on this planet, I want to spend it on the water, not under a pile of wrenches in the bilge. Obviously, boating is a "to each his own" proposition, but for me, and in fact, just like me, "older" means "more problems". I'm going newer and hoping for the best.

 

[Pascal]

The sweet spot when it comes to maintenance is with boats that are 3 to 8 years old. But three years old, the bugs have been worked out and depreciation gets better. Over 10 years issues start creeping up at a far more rapid pace. At 10 to 15 years, hours start reaching levels where major rebuild become a possibility. Corrosion takes its tall as well as UV on paint or gelcoat. Problem is obviously that a 5 year old 60 footer is still a worth a lot of money.

When boats like ours reach the 20 year old mark, if properly maintained depreciation becomes much less of a factor. Sure they still depreciate but a lot less than a 10 year old boat. Other factors such as th economy and market conditions have a much bigger impact than a few extra years of age

 

[krush]

a friend is looking for a 50C with either 3406 or C18s. The nice ones have been in the 500K to 600K range

Ok, 400-600k for a 2000 or newer 50c Hatteras. And people are wondering why their 1980 motoryacht isn't worth 300k?

 

[Scarlett]

Big problem with boats in that 10 year old or less time frame was the economy. With the last recession not as many boats were being built so the inventory of those boats is small and people know it and are pricing them accordingly. John

 

[racclarkson@gmail.com]

"Depreciation can get exponential in a 30 year old boat." Obviously, boating is a "to each his own" proposition, but for me, and in fact, just like me, "older" means "more problems". I'm going newer and hoping for the best.

Exactly. I'm retired. I spend Mon-Wed working at the farm or helping a buddy in the grading business. By noon on Thursday through Sunday I'm OTB and starting on the project of the week. It's what I want to do. Finding someone like me for your old boat increases your asset value. Purchaser paying someone to do it for them decreases the value of asset at time of sale.

 

[jim rosenthal]

Exactly. Look how fast MikeP's boat sold. And he did exactly that- all owner maintained by a terrific technician who knew exactly what he was doing. On that boat, the offer was nearly simultaneous with the listing going up.

 

[saltshaker]

Ok, 400-600k for a 2000 or newer 50c Hatteras. And people are wondering why their 1980 motoryacht isn't worth 300k?

Exactly. You look at what you can buy for a given dollar amount. A friend of mine was looking at a 2005 51 Riviera. Very well kept and equipped. When I told him it was only worth 350-400 he thought I was nuts. Then I showed him some 50 Hatt listings and he understood why.

 

[pizzazsdaddy]

Can we please avoid political commentary here? What if the leadership has nothing to do with the economy? It was already growing and accelerated this summer because people HAVE jobs. The free market dictates the economy. Get a life.

I've just been lucky enough to help a friend hone in on the right boat for him, and z28jimi makes a valid point. My buddy started out seeking a truly pristine updated Hatteras. We couldn't find one. ANYWHERE. He ended up with a newer modern style boat. And it was a tough search to find a really clean one of those!

MOST of the boats We looked at were either awful, or teetering on awful because so few people properly care for them. Nor prepare them for sale. WHY IS THAT? Price is dictated by condition. Period. The price of the cleanest boats is way up. The dirty ones...WAY DOWN!

Example...maybe one or two 53 Hatteras's out there are worth $300,000. The remaining 347 are worth less. Some worth $0. It's not about the price. It's about the condition. A professional restoration will run about $750,000. We've reached a dangerous tipping point. It's more cost effective to buy the newest nicest boat you can find for under $500,000. Since there aren't any 2000 model 53 Hatteras's out there...where do you turn?

 

[Scarlett]

I can not agree with you more about the condition of used boats. I see a lot of them when I do surveys. I tell brokers all the time that if they could get there clients to spend a couple of thousand to spruce up there boats before listing them they would probably get at least $10,000 more for them. And tes the few really nice boats always get top dollar. There are plenty of buyers out there that will pay a lot for turn key boats. John