2022 price increase for Q4 build slots just hit

[HAWKS2842]

Update. Sounds like my dealer is going to stick me with the full 10% increase. Not sure if they are just trying to increase their margins since they have sold through most of their build slots for the rest of this year or if it is coming from Nautique. Haven't decided what to do yet but definitely frustrating to get this slapped on you when you already agreed to a price and made a deposit. Leaves a bitter taste for sure and will definitely look at other brands on my next boat.

I would read your sales agreement carefully for a surcharge clause, unfortunately the dealers know that they will sell that boat/slot with or without you. I would try and negotiate the increase with them, they have the margin to negotiate, whether or not they want to absorb it is another story. All manufacturers are passing along price increases to the dealer level. I have seen people with other brands voicing the same frustration with increases. I saw one guy that traded his boat in around October last year, dropped a deposit and got hit with 15% increase the week of delivery or the option to get his deposit back plus the trade value of his boat because his old boat was gone!

[Kporsch]

Does anyone know if this price applies to boats that have already been ordered but haven't been built yet? We put down a deposit on a 2022 in September for delivery in April. Is the price Nautique gave me then protected?

I ordered a 22 G23 in early September for an April delivery on a handshake deal (this is my 4th G from same dealer). Boat ended up arriving early and I just picked it up yesterday. Dealer honored the agreed price and did not add the 10% markup. Hope you get this worked out especially if you have a signed contract and paid a deposit.

[jjackkrash]

The specific terms of a "signed contract" matter. Most of them don't say what it appears lots of people think they should say.

[B_loc1]

I signed what I thought was a contract for a 2022 GS22 in October and got a call today regarding the 10% increase. Dealer is willing to split the percentage which is great, but still hurts. I traded my current boat in so I wouldn't have to pay for storage this winter. They haven't tried to sell it yet, but it will sell quickly when they do. Its a Q4 boat, so I'm also concerned about the delivery date eating into the summer. I either roll the dice on the price increase and delivery date, or try to get my trade in back.... My trade in has to be worth more due to this price increase, but the original price they gave me was more than fair. (At the time) Any thoughts?

[tmb]

Are the really splitting the increase with you? They got a 10% increase on their cost. Let’s just say that boat costs them $100k. That means their cost is $10,000 more. Instead of passing on their price increase, aren’t they passing on a 10% increase to MSRP? A 10% increase on msrp is something like $14k. That’s another big problem I have with the price increase on boats that have already been ordered. The dealers are trying to make more money off the deal as well.

in terms of trade in, your boat is definitely worth more now and you should ask for that to be addressed.

[mgs917]

I think at this time the dealers have all the leverage. If you aren’t happy try to get your old boat back and walk away. You could also check out other brands. I was extremely unhappy with Nautique on pricing. The dealer and rep were friendly and set up two demos. I just couldn’t come to a price I was happy with. They have customers lining up so it is not any skin off their back, but I wasn’t happy so I went with Supra. They gave me a quote on October and are sticking with it as of right now. I didn’t even sign anything, just sent a deposit based off quote. Hopefully it all works out. Good luck.

[mooneywa]

Good grief. I just can't imagine having a Paragon on order and then SURPRISE you owe an ADDITIONAL $34,000. The increase alone is just shy of 1/3 of the entire sales price of my 2 year old 230 - a boat which, while clearly not a Paragon, is not a Bayliner.

And here I was lamenting the "inflation" of upgrading my 230 to an S23.

[B_loc1]

Thanks for your thoughts. I will have to talk with them about MSRP vs their costs because you are correct, it makes a big difference. The whole thing just isn't sitting right with me for some reason.

[RiggerJon]

I'd advise others to look at their sales agreement. My agreement doesn't contain an at-will termination provision, so a breach of contract would be subject to a Specific Performance claim. Simply put, the terms of the agreement can't be changed, and the contract can't be terminated.

This likely puts the dealerships in a bad spot. I suspect their agreements with Nautique are fully lawyered up, and they're stuck in the middle unable to claim Specific Performance against Nautique. Shame on Nautique. The dealerships REALLY need to get together and raise **** about this.

[RiggerJon]

Good grief. I just can't imagine having a Paragon on order and then SURPRISE you owe an ADDITIONAL $34,000. The increase alone is just shy of 1/3 of the entire sales price of my 2 year old 230 - a boat which, while clearly not a Paragon, is not a Bayliner.

And here I was lamenting the "inflation" of upgrading my 230 to an S23.

Yeah, my delta is over $26k. Wife is not happy...and if momma ain't happy...

[mgs917]

Seems like a very short sighted business move by Nautique. I don’t think they are having issues selling boats now, but the next couple years could really change financially for a lot of people.

[MN Ryan]

...my 2 year old 230 - a boat which, while clearly not a Paragon, is not a Bayliner.

Thanks for the laugh!

That reminded me of a time a few years back when my BIL was pulling into a boat landing with his MC ProStar, and a teenaged kid at the landing asked him if it was a Bayliner.

[jjackkrash]

IMy agreement doesn't contain an at-will termination provision, so a breach of contract would be subject to a Specific Performance claim. Simply put, the terms of the agreement can't be changed, and the contract can't be terminated.

I'd be curious to see all the material contract terms if you don't mind posting a copy of it.

[RiggerJon]

The contract is a purchase order that lists the specifications & prices.

[RiggerJon]

Update: Our dealer's initial response was they were passing the total 10% retail price hike on to us - this included a few thousand extra bucks they were to make on the transaction. Once it was brought to their attention that, 1) I was pissed, and 2) made aware the change was illegal, things turned around. They said to forget about the previous emails about the increase.

Seriously folks, look at your agreements. Legally binding agreements don't require a signature - just a mutual agreement. It can even be verbal. Furthermore, if you paid a deposit, this clearly demonstrates the offer was accepted by both parties. If you don't specifically have an escalation or at-will termination clause in the agreement, the dealer CAN NOT change the agreement.

Now for the next boat, guess I'll need to buy a property in a different market.