How cheap would you have to buy it?

[SeaEric]

Over the years, I have bought and sold quite a few boats - on speculation, for a profit. In the current financial environment, how much below the "bargain sale" retail price would you pay for a boat to hold for resale? It seems to me that it's really hard to know what anything is really worth, or how long you may have to own it before it sells. We all know that the cost of holding - slip rent, insurance, repairs, and upkeep are higher than ever. And selling prices are lower than ever. So, other than "free" what speculative purchase price strategy might be valid?

 

[SKYCHENEY]

Since I can't say free, how about $1 . Seriously, I don't think speculation in the boat market is a wise choice in these times.

 

[jim rosenthal]

No more than fifty percent and maybe even less than that?

Why, what are you looking at?

 

[OBXTucker]

I would agree with Jim on 50%. Unfortunately, I don't know what to base 50% on!

 

[Jasper]

You are asking us?
Use your gut instinct, after all those years of your experience! I would be asking you this.
Okay so my 20cents...
The market, although bad, has stabilised, there is still that occasional "special" boat that someone will pay more for, especially if most the traps and "old boat" problems have been resolved, such as:
wiring
heads and holding tank
fuel tanks
engine room

etc etc.. you know them better than I. On the day I sea trialled my boat there was another moored within view that had ALL the bells and whistles with at least $60,000 more "candy" than mine, and cheaper than Someday too, but it was still too OLD. That broker would not believe I would go with my choice.

One thing I have learnt, having taken a few steps back with the GFC:
A person still has the same fundamental dreams, just on a different budget.
We live in such a rush and worry that ultimately we look for a reward.
And, if that was a million dollar boat in 2007, then it might just have to be a $250,000 boat today, but only if there is comfort in the purchase that there are not going to be the big issues.

The other day I was looking for the fuel fill or any other access to the Aft Tank. It was via the cockpit and I had to cut through almost 3 inches (call it 2 1/2") of healthy, 42 y.o deck material to get to it. That is a good reason we are all still enjoying these older boats.
The guy that will spend $1 mill will have no more or less enjoyment than my family, but ONLY if I find that SPECIAL boat that has the big headaches sorted. New or old, any real boater knows there will be issues, goes with boating.

Sorry to get philosophical!
POINTS are: 1. There will always be a buyer willing to pay more for the right boat, as long as the right price is equal to the value. Some here will know there is one example of a special boat that just missed that mark. Good example of total misunderstanding of the market.
2. Had to add this, even though it may pain a few...."investing" in shares, property or so called fund-management has turned so many people sour that you would be surprised how many people in the near future will invest in their lifestyle.

 

[magnawake]

This is a very slippery slope. For a person to actually make money on a boat, the stars have to align themselves and you must be very lucky to be in the right place at the right time. If you stay connected with the broker community to find out what these boats are actually selling for instead of listed for, that help be some great info to have. That way you know what that magical 50% would be. When I purchased mine 2 years ago, being mine is an 85 model, the bank hesitated over financing it, however they said since it was a Hatteras they were more flexible. They still didnt want to go over 25 years old. Then, it has to be well kept and able to sell quickly without putting a ton a time and money into. I'd say has to be diesel. People are giving gasers away, because people dont want them as much. You know as well as I do, when you see a deal that seems unbelievable, there's prolly a reason why it's that low. I think it is possible to flip boats in this economy, you just need to be real careful. Usually 50% is what most pawn shops and pickers use for flipping.

 

[saltshaker]

This is a very slippery slope. For a person to actually make money on a boat, the stars have to align themselves and you must be very lucky to be in the right place at the right time. If you stay connected with the broker community to find out what these boats are actually selling for instead of listed for, that help be some great info to have. That way you know what that magical 50% would be. When I purchased mine 2 years ago, being mine is an 85 model, the bank hesitated over financing it, however they said since it was a Hatteras they were more flexible. They still didnt want to go over 25 years old. Then, it has to be well kept and able to sell quickly without putting a ton a time and money into. I'd say has to be diesel. People are giving gasers away, because people dont want them as much. You know as well as I do, when you see a deal that seems unbelievable, there's prolly a reason why it's that low. I think it is possible to flip boats in this economy, you just need to be real careful. Usually 50% is what most pawn shops and pickers use for flipping.

50% Is a good number but that's 50% of what you think is a realistic value. I'd want a boat in top condition and be able to sell it at the bottom of what others are selling for. Based on several boats I looked at and seeing what they sold for and some even resold or relisted shortly afterwards, I'd say I was pretty much on the mark. Most of these were good deals on good boats. They may have needed a few upgrades or repairs but nothing major. One boat was exceptional but had a tired 16V92 and needed a bottom job. Seller couldn't get past what that did to the value of an otherwise near perfect boat. I looked at it 2 days after it was listed. It sold for 5K more than my initial offer almost 2 years later. This was a dealer trade in that ended up selling through another listing broker. The dealer spent a ton of money on slip fees, maintanance and even moving the boat from Jacksonville to Palm Beach to help sell the boat. All those cost are the same for anyone speculating on a boat so you better make sure there's enough room to take the risk. I wouldn't buy a boat on spec that I wouldn't want to keep. In the end you might have to keep it or take a loss. I had a number of Oceans come my way that were real bargains. Not the boat I wanted to own so I never pursued them seriously.

 

[jim rosenthal]

So what ARE you looking at?

 

[rsmith]

you like trying to catch a falling knife?

 

[SeaEric]

I've been offered a 1984 Silverton 34 Convertible. The good: Shed kept forever, 450 hours since new on FWC 350ci/270HP Crusaders, interior and engineroom CLEAN AS A PIN. I mean really clean, like new.
Air, no gen. 1984 was the last year of dark teak wood trimmed interior. The bad: Boat winterized and not run for many years. Maybe 5+. Exterior is dusty/filthy (she's under the shed roof). FB enclosure is shot, bimini may be useable. Finish looks like a wax will bring it back pretty easily. No generator. Likely that fuel tanks need pumped out, carbs cleaned or rebuilt, impellers replaced. May need risers.

Running well, she should bring $15K pretty quickly. More likely quick scenario is $12K by Spring thaw. The good news is its a price point with cash buyers, and a very popular model boat. Even at this low investment, its still a risk for not a huge payday - even if all goes perfectly, which we all know it won't.

So what would you pay for it on spec?

 

[holtcl]

Eric,

OK when did you start drinking? Sounds a potential investment of time with limited payoff. The nickel and dime stuff may add up to more of a headache than it's worth. ??

Then again this is coming from someone who has lost her REAR on every boat I have owned...

Cheryl
Cinderella
1971 53 MY

 

[SeaEric]

Hi Cheryl, I'm quite proficient with my drinking skills. May perhaps have to hone them however.

 

[saltshaker]

The risk far out weighs the potential return. I think you're right on with what she'll bring when turn key. I know someone who recently bought a nice one for 10K. If she needs any real work, the cost to get her up and running could easily exceed what she'll bring when you go to sell her. Yes it was a very popular boat but how many buyers are looking for a 30-year-old Silverton?

 

[captddis]

Personally, I would think 3 to 5K. Have seen a couple Trojan F32's that were nice sell for around 4K. I would much rather have the Trojan!

 

[rsmith]

With all the ethanol problems anyone would be crazy to mess with a gasser. No less a Silverfish. even back in the day they were a step below a Baysinker.

 

[captddis]

With all the ethanol problems anyone would be crazy to mess with a gasser. No less a Silverfish. even back in the day they were a step below a Baysinker.

I used to work for a dealer in the late 70's early 80's. I often got stuck installing the bridges and doing the make ready. The silvertons were the pits. Thru hulls and struts always leaked, the steel box mufflers, shafts that would bind, controls that were misrouted, porous fiberglass, the decks always had footprints in the non skid, engines installed backwards......

 

[Boatsb]

I used to work for a dealer in the late 70's early 80's. I often got stuck installing the bridges and doing the make ready. The silvertons were the pits. Thru hulls and struts always leaked, the steel box mufflers, shafts that would bind, controls that were misrouted, porous fiberglass, the decks always had footprints in the non skid, engines installed backwards......

Engines installed backwards?

No way. The were the predecessor to the forward facing pod drives. Dave they just never told you

 

[SeaEric]

My offer to the seller is $1,000. paid either to him or the charity of his (or my) choice.

 

[rsmith]

As I've said before. I have several friends that scrap out boats like this and end up with $5-7 k out of them by selling the parts on eBay Craig's and local fleas but it takes a lot of work and a place to do it. Most boats like this they get for free. For 1k you should be ok if you don't mind getting dirty. It is tax free$$ tho. Maybe these old crackers are not so dumb.