2018 to 2020 G23 - expected cost to switch?

[Team230]

I’m looking for feedback from the people on here that flip their new boats every 1 to 3 years.

Assume you are going from a 2018 G23 with low hours (less than 200) that is exceptionally well kept (no hull blemishes, interior is like new, no repairs, etc.) and you are looking to go to a 2020 with exactly the same equipment - what is your out of pocket cost to make this change? Forget about tax issues. Assume the dealer is taking the 2018 as a trade of course (ie you are not selling to a private buyer).

TIA.




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[nyryan2001]

Lets say you work a great deal in the 150s for your 2020. You sell or consign yours for 130s. You’re eating $25-$30k for the 200hrs you enjoyed the boat. Roughly ~$200/hr of use (not including storage/lift, maintenance, insurance and fuel ). Plus tax (if any). Plus consignment fees (if any). Plus registration and anything you do to modify the boat for your use.

as these usage rates continue to increase.. what will American families be willing to pay? At $1200-$2000/mo at 30yrs financed... the number of families with incomes that can support loaded G23s and P23s get smaller.

depreciation rates for used Gs have significantly increased compared to a few years ago with thousands of used Gs now out in the market.

[Mahnal]

First, if you have a 2018, there are not many changes to the 2020 that warrant the upgrade. However, typically you expect 5k to 10k depreciation the first year, and 2500 to 5000 the second. Your dealer is going to make some money for their operation and risk on the trade in, and the street price between those years went up about 10k, but I didn’t look it up, so maybe wrong.

I suggest you upgrade, because I would like plenty of 2018 models to choose from when I upgrade.


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[Adrenaline1]

I would think 20k depreciation would be more like it for the first year.

[Mahnal]

I would think 20k depreciation would be more like it for the first year.

On a boat with lots of options, maybe right. It really depends on how good a deal you get new. It seems the MSRP is often soft on a new boat, for example right now, if you find someone with a 2019 still in stock, your going to get a much better deal, and there might be very little depreciation in the first year. Anyway, lots of variables here.

[scottb7]

I haven't looked at in a while but I was thinking it was more like $15k, $10k, $8k per year first 3 years... Timing and a lot of factors, but the issue that many have flagged is that in this price range many people are financing they are usually more likely to go with new and finance a bit more then buying a used boat...

[Wayward]

New ones are going up 4% per year, so you’ll be looking at roughly $15k just in the increase of the price on the new boat. If you are trading, you are going to take a 25-40k hit on depreciation, depending on how your boat was optioned. If you have the XR7, thruster, studio elite, and other big dollar options on your 2018, the hit is going to be much worse.

I upgrade every year. There is no way I could ever do it without a year over year purchase agreement, and selling them myself.

Both the new and used markets have softened DRASTICALLY in the last year. The dealers know that, and will try to mitigate risk on your trade in....

sell it yourself, and buy an in-stock 2020, and you might get upgraded for 20-30k.
trade it in, and special order the 2020, and I bet you’ll be looking at 40-55k.

[ITSJAC]

Lots depends on options of your boat, options on new boat, where your located, if your dealer thinks they can sell your in a timey manner. ETC. I don't like to throw out actual numbers out on the web but I will say its as not as bad as the numbers listed above. 18 G23 to an 2020 G23

[Miljack]

New ones are going up 4% per year, so you’ll be looking at roughly $15k just in the increase of the price on the new boat. If you are trading, you are going to take a 25-40k hit on depreciation, depending on how your boat was optioned. If you have the XR7, thruster, studio elite, and other big dollar options on your 2018, the hit is going to be much worse.

I upgrade every year. There is no way I could ever do it without a year over year purchase agreement, and selling them myself.

Both the new and used markets have softened DRASTICALLY in the last year. The dealers know that, and will try to mitigate risk on your trade in....

sell it yourself, and buy an in-stock 2020, and you might get upgraded for 20-30k.
trade it in, and special order the 2020, and I bet you’ll be looking at 40-55k.

Wayward thanks for the insight, I've seen some of your MC's that you upgrade. Any opinion on which brand works better on the yearly upgrade? I'm not on this plan, but, just curious!

[Wayward]

Wayward thanks for the insight, I've seen some of your MC's that you upgrade. Any opinion on which brand works better on the yearly upgrade? I'm not on this plan, but, just curious!

I had a 2014, 2016, and 2017 G23s. The ‘14 didn’t sell very easy, but I think that was because of the major changes for 2016 that had been announced. The ‘16 and ‘17 sold very easily and for very good money. Then I went to the ‘18 XStar. That sold just as easy and fast as the G’s. Then 2019 X24 which took about 6 weeks to sell, and I had to drop the price a little. I am now back to a 2020 XStar, and ran it all of this last summer.

I am not going to sell the 2020 this winter. I love it too much. That said, I have already had a couple past buyers ask me about selling it to them.

So..... I guess I would say that they both sell about the same.

[Team230]

Thanks for all the feedback. I was hoping that someone with direct experience doing this would offer examples, but I also get that sharing numbers on here might jeopardize future deals.

I custom ordered my boat and the interior came in wrong. The dealer listed the wrong colors on the order and I signed off. Of course, that was my first new boat order and I trusted they took my build file and converted it to paper correctly. That was my learning. I took delivery in May of 18 and I had already sold my boat... so... I was excited to get on the water in a new G . Hindsight being what is, I should have had them fix it then.

I’m working with them now to resolve my 150k disappointment. I’ve offered a reason amount of money to offset any risks and acknowledge my 200 hours of use, but I wanted to see what others have experienced.

If any of you have specific numbers you don’t want to share publicly, feel free to pm me.

I did not mention this part of the story in my original post because I was trying not to bias everyone’s analysis of the situation. Obviously, the dealer and Nautique might have some skin in this resolution.


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[greggmck]

Here are actual numbers from my 5 G23s. These were all highly optioned boats.

2014 G23
Purchase 8/13/2014
Sold 2/27/2016 Hours 90
Net depreciation = 6.54%
% Value when sold: 93.5%

2016 G23
Purchase 2/27/2016
Sold 10/30/2017 - Hours 165
Net depreciation = 10.66%
% Value when sold: 89.34%

2018 G23
Purchase 10/30/2017 (triple axle trailer)
Sold 9/11/2018 - Hours 260
Net depreciation = 12.77%
% Value when sold: 87.23%

2019 G23
Purchase 9/11/2018 (no trailer, thruster)
Sold 10/18/2019 - Hours 265
Net depreciation = 12.86%
Value when sold: 87.13%

[jjackkrash]

sell it yourself

There is approx. 10% sales tax here in WA unless you trade; sales tax is the main thing that keeps me from flipping boats annually or semi anually. It is about 10-14% hit on a trade versus private sale so almost a wash on that front.

[greggmck]

There is approx. 10% sales tax here in WA unless you trade; sales tax is the main thing that keeps me from flipping boats annually or semi anually. It is about 10-14% hit on a trade versus private sale so almost a wash on that front.

Agree. One can't sell a boat directly here in Washington state when upgrading because the 10% sales tax on the full amount is difficult to overcome vs the trade-in approach. I have been lucky enough to have a dealer that gives me a fair market price for my boat saving the 10% sales tax bite.

[Nautiquehunter]

The numbers you guy's are posting are crazy to me? 200.00 an hour , 20-30k hit in one year , 30 year financing? It looks to me like a G is a bad investment and trying to flip it every year or two is just throwing money away. It would be much cheaper to join the Care Free Boat Club and get new boats to use mo maintenance , Storage or cleaning 4-6 k a year. The way I see it is the surf craze is starting to fade buying a one trick pony surf specific boat is like buying a conversion van at the end of the 90's. 150k plus to surf did I wake up in bizarro world ? I bought a 08 210 new and have been surfing for 10 years now if I sold it today it would loose less than a G will in the first year. You don't want to buy the last conversion van made just before the market crashes.