New boat pricing

[superpop]

Hi folks, I am up in the Seattle area and I am wondering how much prices have eroded on boats up here if anyone knows. I am interested in buying a new boat. 2006-2008 Chaparral 20-21 footer open bow and the pricing seems pretty high compared to NADA values. Should I be pushing for NADA value only. I have a 1996 Wellcraft 195 eclipse now and will be selling that in the spring. All of the ads show them at 8-9K over NADA is that just a dream on their part or do they get that for these boats.

 

[tashasdaddy]

Re: New boat pricing

that is probably what they still owe on them. this is definitely a buyers market. people that are wanting to sell are going to take a loss, one way or the other. sell low, or the repo man. 99% of the time buying a boat, you have to wright off, 20% the first year, as recreational spending. then 10% for the next 3-4 years. the economy has made this even worse. most boat Mfgrs, have either closed plants, and made big cut backs. they have new inventory, that is not selling.

 

[kaferhaus]

Re: New boat pricing

T'daddy is correct. And it's only going to get worse. Don't expect to get "great deals" at a dealer. I've tried to make many on this board understand how a boat dealer "thinks" and that line of thinking will not change no matter how bad the economy gets as it's the "right way" of thinking for his own wallet.

Hypothetical "deal"

The dealer is "on the hook" for 20K for the boat you want. It matters not what NADA or anyone else says, he's on the hook for 20K. That DOES NOT mean he has 20K in the boat... it means he has to pay 20K for the boat when he sells it. Now on top of that he already has money invested in the boat, keeping it clean... however many trips he's made to allow a potential buyer to "water test" the boat etc. etc.

There is zero benefit to the dealer to sell this boat unless he makes a profit or at least breaks even. Zero. It's not like he can take a hit on this boat and use the "cash" to do something else.... as there is no "cash", in fact along with your money he has to dig into his own pocket to make up the loss.

And it's why dealerships are closing left and right. I don't blame the dealers for refusing to pull cash out of their pocket to make your deal work. It'd be stupid.

Many are selling off what true assets they have (used boats, equipment etc.) and then filing chap 7.

The big savings right now are on used boats. Dealers do have their own money tied up in those boats and whatever they can get puts cash back into their pockets.

Of course the best deals are still and will always be those with private sellers.

With more and more people losing their jobs and less people with money to "compete" for the used boat bargains out there very nice used boats can be had at great prices.

Also the number of "repos" are way up, but the banks haven't gotten into "fire sale" mode yet as they're all wanting NADA or slightly less.

Which brings another bane to the boat dealer is banks aren't loaning money on boats without huge caveats.... because? You guessed it. The first thing a borrower reneges on is the boat he doesn't need to feed his family.

A banking friend of mine told me that boat repos in this area are up something like 500% in the past 18 months.