Used Boat Market

[xlair]

What are people's opinions of the used boat market today. I am not in the market as either a buyer or seller but just casually browsing it seems like things have really turned in the seller's favor versus the last few years. There doesn't seem to be nearly as much supply as there has been. It actually seems like some used boats are increasing in value versus what they were at in 2008ish?

What are you guys seeing?

[swc5150]

The pricing of the new models is definitely providing a boost to the used market. There's also some loyalty to previous models, like the 196 and 210. '08/'09 196's have been selling really fast as well, from what I've been seeing. Supply and demand I guess - I know I won't be selling my '08 anytime soon.

[Chexi]

I would suspect that most of the people who had to sell, had to sell between 2008-2010, and now most of the sellers are people who want to sell. There will always be some people who have to sell... but nothing like the number during a massive economic downturn. The large percentage of people who were going to lose their jobs in the downturn have lost their jobs. Hiring is now picking back up. Basic economics.

[swc5150]

Good point Chexi. The only thing I would question is that in the time period you mention, I got top dollar for my '06 & '07 196's. What I also found surprising, was I never recieved a single low-ball offer on either. Both were sold to the first looker, with very little negotiation. In fact, I sold my '06 for asking price. My boats very well could've been the acception though? I like to think the 196 is so awesome, people just have to have one;-)

[NautiDave07]

I just sold my 07 236 for right under my asking price. I had low baller after low baller call me and offer me 10k under asking price. If the conversation started with "What's Your bottom dollar?" I would tell poeple that is not how you negotiate a deal. Both my prospective serious buyers looked at the boat the same weekend and did not ask about the price at all. I had an accepted offer from the first looker by the following Tuesday. I also feel like I got a little more for the boat than it would have sold for two years ago. If your add is good and the boat is clean and priced fair it will move. Mine was up for two months with no price reduction and it sold as soon as the weather started to warm up. Most people that are buying are trying to steal a boat that is actually out of their budget. I even had a guy or two that I told them my bottom dollar and then they offered me less than that. The one in particular called a few days later to try and strike a deal and the boat was gone. If you are a buyer and you see a boat with a fair price, that is what you want, BUY IT. The deal will be gone if you wait.

[CradGen2]

I think the market is stabilizing some. Not quite the buyer’s market is was in 2008-first part 2010. You are starting to see boats move, but the “have to sell” seem to have dried up. People are holding their boat longer because banks still really aren’t lending for boats. You need a 760+ credit score and 20% down. You can do the math on a 85K boat. $4+ a gallon gas prices aren’t going to help. (side bar – but I’m slightly ok with $4+ a gallon this summer. The last time that happen I had my own personal lake all summer. Kept lots of people off the water. I actually think I skied more and used less gas because I didn’t have to run to find water up and down the river)

Two stories

First – when I was selling my 2007 216 I had it on the market starting in March 2010. I might have had it a little high, but I didn’t care if it sold. If I got a call and the first comments was what is your bottom line I said asking price. Same with emails. I lowered the price in Aug 2010 and made it more in line with market. I quickly had several interested calls. The first person who came and looked at it bought it. I dropped the price about 800.00 lower then I would have liked, but with the cost of storage, ins. Due and just worrying about it all winter I figured sell it. Also I got a free nice vacation out of the deal. The family who bought it has a lake house a couple hours away and invited Jen and I over for a weekend. The WHOLE family has kept in touch all winter, so great people.

On the buying side. I just picked up a 2006 196. I called on several but found DHL unit in KS. I think I paid $500.00 more then I should have and I more then likely could have gotten him down 500 more, but I liked the boat, color and felt like I could buy it site –unseen, which I did. To lose a boat for $500.00 that I like would have been worse.

In the end if you are looking for a boat and find one you like I would hold out for 500-1K in price, especially if you find a good seller that you feel comfortable with. NOTE to buyers, there are always going to be people that need to sell a boat for financial reasons, but starting out with asking their bottom line first, you could be missing a great buy because you didn’t ask the right questions first.

[swc5150]

...and if the pics do your new 196 justice, that was $500 well spent! Mint looking boat!

[xlair]

All good points. It does seem like the boats that are 6-12 years old have definitely held there value as of late. New boats have gotten to the level that people can just not afford and a used '99-'05 Nautique does the trick almost as well as a new one does.

[DJH]

I think I paid $500.00 more then I should have and I more then likely could have gotten him down 500 more, but I liked the boat, color and felt like I could buy it site –unseen, which I did. To lose a boat for $500.00 that I like would have been worse.

Well I guess we're even... I thought you paid $500 too little! ;-)

I agree with Crad - $500 one way or another is a small price to pay for the boat you want or a trouble-free deal.

[2gofaster]

Actually, financing isn't as bad as it was. Conventional lenders want 720 fico and 15% minimum, but the credit unions are still doing deals for down to 680 fico and a smaller downpayment. Now if you want a $200k go fast boat, you're gonna need 760 and 20% down. The go fast boat market got pummeled by defaults. Both end buyer and floorplan defaults. GE Capital will not even floorplan most cigarette style boats now. They seem to be releasing the funding to higher end pleasure and watersports boat dealers, though. Also, a lot of boat lenders are increasing the back end $ that they give to dealers for financing a boat, so that tells you there is some competition in that market again.

[swc5150]

I bought my latest 196 in Feb with $0 down, and a low interest rate through M&I. Last year, I needed 10% down on my '07.