Sellers Market coming?

[bobk]

Several folks here in SFL have been speculating that the recent hurricane will make for a sellers market as owners of destroyed boats collect their insurance and replace boats. I wonder if any of our broker members have thoughts on this.

Bobk

 

[SEVEN]

While on that subject are you seeing a number of boats that are parting out due to so much damage?

 

[bobk]

While on that subject are you seeing a number of boats that are parting out due to so much damage?

Sorry, I'm not aware of any. Perhaps they are going to the used parts dealers directly from the insurance companies.

Bobk

 

[Walter P]

I suspect that most of those damaged boats are scraped out immediately or bought by dreamers that
think a little bit of buffing will give them a like new boat for cheap. The cost for a yard to have an employee
spend the necessary time to remove some of the hardware may exceed the resale price of the part. It
only makes sense for DIYer's who don't put a price on their time.

Walt

 

[oscarvan]

Well, a lot of those destroyed boats were financed and the owners were upside down.... so they're not buying anything.

There will be some buyers out there, but they will be buying in line with current trends, if anything accelerating them. I didn't see late 70's early 80's heavy, slow, fuel, and maintenance hog Hatties being the hot retro ticket before, and I don't see that now.

So....sellers market, schmellers market.

I still want one though...... Still trying to get my retirement ducks in a row and find the TIME.

 

[Tinman]

Well maintained boats seem to be selling. High service and repair cost are holding back many boats from being sold. I think the storm loses would have some impact boat sales.

 

[Boatsb]

Most of the boats lost around here were junk. No big loss except for the insurance company payouts.

Well cared for vessels seemed to be hauled and kept safe from the storms

I don't know about the sw Florida area but heard there was more damage there tgan here.

 

[Pascal]

Here in SoFl there were many destroyed boats that were in good shape, regularly used and cared for. Some of these people may go back in and buy used boats but I think many will not. I don't really see a sellers market coming.

There is also a serious dockage problem which is nothing new but here in coconut grove alone there are probably 300 slips that have been destroyed. It will take a couple of years to rebuild them, in the mean time folks can't buy boats without dockage

 

[rsmith]

Dockage has always been a problem and getting worse. I met with a marine contractor to look at some cracks in my bulkhead yesterday. He was telling me how the state is demanding a full permitting process for even dock and bulkhead repairs. And then the insurance is going to go up to cover the losses. You can see why the center console market has exploded. They can stick it on a trailer and park it next to their house or in a storage yard and their costs and worries are marginal. IMHO the buyers market continues to spiral older boat values down the rat hole

 

[Pascal]

Trailering isn't that easy down here. Too few ramps, not enough parking. And many towns or development restrict the ability to park a trailer in your back yard

 

[Chasemmc]

I never did understand why resale value was or is a focal point.

If values go up then replacement cost also rises.
I guess if your getting out of boating it matters. However, if you are getting out of boating than their is more crap hitting the fan in your life than 10% extra resale value can fix.

I didn't buy the boat to sell it.

If it's worth nothing when I'm done, I'm done, so who cares.

markc

 

[Boatsb]

Higher prices raise the entry threshold. Many can buy a boat but not afford to use and maintain it.

 

[bobk]

I never did understand why resale value was or is a focal point.

If values go up then replacement cost also rises.
I guess if your getting out of boating it matters. However, if you are getting out of boating than their is more crap hitting the fan in your life than 10% extra resale value can fix.

I didn't buy the boat to sell it.

If it's worth nothing when I'm done, I'm done, so who cares.

markc

Well, as I'm approaching the time of swallowing the anchor, it will matter... not only in terms of what goes in the bank but in how easy it will be to sell. Just planning ahead.


Bobk

 

[Chasemmc]

I don't mean to minimize the financial aspect, only to say that nothing related to boating is an "investment" except perhaps a business associated with the hobby. But as an owner of a business that caters to discretionary spending, that ain't an easy row to hoe either.

So if its to enjoy, then enjoy. What would it cost to own an airplane, or annual cruises/charters, or anything not related to making money. I have never heard of anyone when their time comes moaning about the financial investments they should have made. It's usually regrets of not making enough investment in their loved ones. I believe the memories made together on a boat are just that kind on family investment.

Here is a bit of wisdom my grandfather gave me on his death bed. It has worked well for me over the years: "Never, but never, look back...you can't get there from here"

 

[Walter P]

I don't mean to minimize the financial aspect, only to say that nothing related to boating is an "investment" except perhaps a business associated with the hobby. But as an owner of a business that caters to discretionary spending, that ain't an easy row to hoe either.

So if its to enjoy, then enjoy. What would it cost to own an airplane, or annual cruises/charters, or anything not related to making money. I have never heard of anyone when their time comes moaning about the financial investments they should have made. It's usually regrets of not making enough investment in their loved ones. I believe the memories made together on a boat are just that kind on family investment.

Here is a bit of wisdom my grandfather gave me on his death bed. It has worked well for me over the years: "Never, but never, look back...you can't get there from here"

Very well said, I totally agree with you.... Walt

 

[SEVEN]

Very well said, I totally agree with you.... Walt

So well stated, I’ve owned 7 large boats and have never made a profit $ wise on any of them. However I have more memories that 10 men when it comes to the fun and friendships I’ve had in the last 45 years. It’s gone way to fast.

 

[rsmith]

70’s Teen Star David Cassidy just died at 67 from as I understand from Alzheimer’s type dementia. His daught has reported his last words were “so much wasted time” it’s a sobering thought.
Not that this is thread related but something to think about if your procrastinating on buying or selling

 

[krush]

No such thing as a sellers market for our boats. Now, if you were selling a 20 year old center console, then sure...you could ask the price the damn thing was new in 1998! The prices are insane. 10yr old worn boats asking a fortune.

 

[oscarvan]

This time resale will not be a consideration.

In the past I've bought with that in mind. During my sailing era I've owned several Catalinas. They're like Chevys. You buy them right, you keep them up, update a few things and viola you'll get most if not all of your money back.

First one was in 1992 when I bought a 30' For $18K Had an engine that got loose..... beat it back into submission, cleaned up the boat, bought some doodads, had the wife decorate it. (She's REALLY good at that.) Sailed it for 5 years and sold it for 22K

My last one was a 42' Bought it for 60K out of foreclosure which at the time was about $.60 on the dollar. It was neglected but not abused. Put three months of HARD work and $35K in to it, sailed 6000 miles in 5 years and sold it for $95K. There were 10 for sale on the bay that summer, mine was the ONLY one that sold. (During the survey EVERYTHING worked, but that only happened once..... )

If I were to do the same thing now I'd find a steal on a Carver or Searay 500 with diesels that needed some help. Eh, no. Wouldn't want to be found dead in it.

Next year or two I'll get a proper "yacht". Still in love with the 53/58 range. Get it up to snuff, retire in 4-1/2 and divide my time between the house, the boat and the motorhome. Hope to have the health to enjoy the boat for 20 or so years.

And then I'll sell it for whatever it's worth. (Or let the estate worry about it ) And say for shids an giggles that would be next to nothing...... I'll get in a decent one around an hundred and a half, that's $7500 a year. I've spent that in a hotel in two weeks. And, I'll be spending more on docking/fuel/maintenance.

Nope, this one will not be an investment.

 

[oscarvan]

It’s gone way to fast.

You ain't flooping kidding. (Forum won't let me type my actual words)