Prices

[SKYCHENEY]

Hi Spundraft,

It’s hard for me to conceive a dealer taking a $500K hit (guesstimate) on that boat just to generate cash flow. Most dealers aren’t paying cash for their inventory, which makes it even more difficult to comprehend. It’s easy to see how an individual would take a hit on selling a used boat, and I know for fact that’s happening now.

I think he's saying that the manufacturer authorized the reduction and is the one taking the hit. They need the money right now to get through this. It may not be about starting or finishing the next boat. It might just be looking to get anything possible to pay the overhead and stay afloat.

 

[Freeebird]

I think he's saying that the manufacturer authorized the reduction and is the one taking the hit. They need the money right now to get through this. It may not be about starting or finishing the next boat. It might just be looking to get anything possible to pay the overhead and stay afloat.

That would make sense, but I didn’t gather that from Scott’s original post.

 

[Pascal]

First casualties

https://www.polaris.com/en-us/news/...production-of-rinker-striper-larson-fx-boats/

 

[rtrafford]

I think he's saying that the manufacturer authorized the reduction and is the one taking the hit. They need the money right now to get through this. It may not be about starting or finishing the next boat. It might just be looking to get anything possible to pay the overhead and stay afloat.

Often times in crisis small businesses need to operate at a loss as necessary to trade off cash flow in order to protect the long term viability of the enterprise. Cash flow is king in good times as well as bad.

 

[rsmith]

Hi Firebird:

The new boat building business is at times like a game of musical chairs. The builder has to sell the current boat (sometimes at a loss) to generate enough cash flow to pay his suppliers or labor in order to finish another vessel under construction.

This is a vicious circle.

Spin

How’d that work out for Slane?

 

[Eddieclemons]

Well I don't have proof, but it looks like the new and used boat business is doing quite well. I started looking for a 50ish Convertible in the Fall and I had several boats that I was
watching which were all at the top of price listings for that model, so my theory was based on their listing times that they had to go down in price. I became super busy around Memorial Day and I was taken out of the market for almost 4 months. All of those boats are gone and appear to have brought a strong price. Additionally every clean candidate that has been listed during that time sold within a couple of weeks, and who knows how many sold off of Yacht World in a person to person transaction. All of the Boat Dealers here are very thin on inventory which consists of mostly pleasure craft under 30 feet. I have read that the GLs area is seeing the same thing. The Coast Guard is busier than ever also.

As a side note I have a friend that is a distributor in the bicycle industry he claims a couple of months have already topped all of last year in sales. I guess the outside is the new hot ticket. The parks and the lakes are slammed here.

I predicted just the opposite and sat on the fence, I was wrong.

 

[Scarlett]

I am a Marine Surveyor and am turning down about 4 to 5 surveys a week because I am so busy. Boat sales in Calif. are up 70% from this time last year and brokers are running out of inventory. However I don’t see that prices have gone up much but most are selling very near asking price. John

 

[pizzazsdaddy]

I don't know what you guys are talking about. Here in South Florida, boating is about the only escape from Covid-19 remaining. We normally have an inventory of 20-30 late model used boats at our marina. (25-35ft). Right now? ZERO. We have been out trying to buy every decent boat we can find just for inventory, and they sell as quickly as we can detail them an put 'em on the lot. With bigger boats, our boat yard just had the busiest May, June and July we've ever had. Our service department is 3 weeks behind. Docks are full. I don't have an explanation.

 

[oscarvan]

Gonna be a lot of used boats for sale two years from now when people realize it takes ongoing maintenance, money, insurance etc and thus $$$.

Hope they won't be too neglected.

We're seeing the same thing in the RV end of things, and judging by the questions these people have never been in one.

 

[Oldlaxer1]

I had a broker walking down out gated dock knock on our boat and ask if we were interested in selling the '53. He has two buyers looking. I'm also a sailor and sold my 1973 classic plastic Tartan 30 at full asking price in 2 weeks. I put bids in on two larger sailboats and lost out on both. One sold at full price NO contingencies or survey. The other also sold at full price. It is a crazy market out there. I too wonder how prices are going to look 2-3 years from now when all the new buyers realize just what it takes to properly maintain a boat.

 

[Finalee]

Ok sailboats were mentioned. I sold my Tiara full price in 2 weeks. Looked at many sailboats and surveyed 3 before finding the one we purchased.
There were 5 offers on the table. We offered over asking price to get her. We live on the Chesapeake and over the years have often commented on the fact we were the only ones on the water most times. Now in the age of covid, there are boats all over on the bay. There is certainly a revival going on. IMHO its a good time to sell a boat.

 

[RonNP]

I'm having brokers call me and asking me if I'd like to sell. Had one walk down the dock over the weekend and said he could sell my boat today. I said I'm good for now but thank you. I never imagined that would happen with a 33 year old MY.

 

[sgharford]

I'll chime in I had a buyer lined up for August delivery on a handshake about 2 months ago. Told him we may decide to keep it then, which we just decided to do having used the boat more this summer then any other season in past 12 years. Had 2 more people contact me during that time, even with yachtworld listing removed 2 months ago, to buy her. Was told by a local marina manager that boats under $100k flying off the shelves.

 

[SeaEric]

The boat market is booming. Nice boats are selling quickly to the first person to look, for "out of the book" prices. Even the overpriced nice boats that have been on the market for a while are now gone.

 

[jim rosenthal]

Well, good. Nice to see boats like ours getting their propers, even if it isn't strictly about them.

 

[oscarvan]

Based on the questions I see on social media many of the COVID avoiding horde of people currently getting into the "hobby" have very little, if any, experience. I see the same thing in the motorhome world. Expectations are frequently quite unrealistic. ("I can't run my A/C's all night on the batteries?") I wouldn't be surprised if there's gonna be a lot of boats, unfortunately in poor shape, for sale in a few years...... I know several motorhome owners that are already grumbling about "maybe this was a bad idea".

 

[Finalee]

Based on the questions I see on social media many of the COVID avoiding horde of people currently getting into the "hobby" have very little, if any, experience. I see the same thing in the motorhome world. Expectations are frequently quite unrealistic. ("I can't run my A/C's all night on the batteries?") I wouldn't be surprised if there's gonna be a lot of boats, unfortunately in poor shape, for sale in a few years...... I know several motorhome owners that are already grumbling about "maybe this was a bad idea".

You may have a point , however a lot of what is going on is driven by the clock. We are not getting any younger. I've bought and sold 3 boats in the last 10 years. The recent purchase is driven by a desire to cruise the Islands and beyond. A recent client asked "what are you, a sailboater or motor boater"? Then he said "I'll tell you, you are a Mariner". I'll take that label.

 

[Passages]

I'm in Fort Lauderdale and can tell you, inventory is low and prices are high, even for classics.
The key is to keep up with maintenance. Very little interest in project boats but 'ready to cruise' boats are selling quickly.

I'm always looking at comps for my boat on YW. Average ask price has gone up 20% since I bought 3 years ago.

Now this is for a Viking MY. Imagine if I was as smart as you guys and bought a Hatt

edit: According to my broker buddy, COVID has something to do with this. Families want to keep the clan together. Parents want to be in control of the kids environment. Now that sports are not in play and flying to vacation destination is less desirable, a week on the boat with family is a great option.

 

[krush]

I'm in Fort Lauderdale and can tell you, inventory is low and prices are high, even for classics.
The key is to keep up with maintenance. Very little interest in project boats but 'ready to cruise' boats are selling quickly.

I'm a contrarian. I don't doubt lots of boats of sold, both used and old. What I think this shows is that we are in for some sort of MASSIVE crash.

 

[rsmith]

It’s all irrational exuberance. None of it makes any sense. People are sitting home getting paid because the companies took the bailout money. It all ends October 1. Thank god my son ended up flying cargo. He keeps hitting 100 hours a month maxing out the allowed flight time. All his buddies in the airlines are sitting on their asses at home but still getting paid. Nothing to do their looking at boat car and airplanes for sale. He knows several that have bought boats and one guy who has 2 acrobatic aircraft already just bought an Extra 300. My son asked him “you know October 1 your going to get furloughed” yeah but I had to have it. Like Krush said once reality sets in this house of cards is going to collapse.