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buzzard

Dealer consignment fee or %

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buzzard

Looking at a used boat that is priced $99,000.  The dealer is selling it for an individual.  What is your experience with dealer mark up or fees etc... with consignment?  Their fee to sale a boat listed at almost $100k...would it be $100, $1000, $10,000...etc...???

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bbattiste247

The dealer will price the boat at or above the current value, but they usually take 10% of what the boat sells for. In some case, the owner will be able to negotiate a 5% share. 

Edited by bbattiste247

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DarkSide

Typically 10% is what I have seen...

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RTS

10% is pretty standard

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wakebrdr94

You have to remember, that 10% is paid by the seller, not the buyer.  

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Chatty21VLX
5 hours ago, wakebrdr94 said:

You have to remember, that 10% is paid by the seller, not the buyer.  

Exactly. A consigned boat shouldn't be any more expensive than another used boat of the same type. If you're thinking about negotiating, the seller might have given the dealer a reserve price.

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buzzard

Well that's just it.  I feel like I'm pretty in touch with where the used market is for this particular boat.  I feel like it's priced $10-12k higher than a comparably optioned model. The seller also stated that the dealer isn't charging him anything to sell, which I find hard to believe.

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oldjeep
10 hours ago, wakebrdr94 said:

You have to remember, that 10% is paid by the seller, not the buyer.  

Well, ultimately it is the buyer who is paying it;)  Take for example the typical Pop Yachts listing, buyer typically has boat listed privately for 10-15% less than the identical "broker" ad. 

1 minute ago, buzzard said:

Well that's just it.  I feel like I'm pretty in touch with where the used market is for this particular boat.  I feel like it's priced $10-12k higher than a comparably optioned model. The seller also stated that the dealer isn't charging him anything to sell, which I find hard to believe.

Not that hard to believe - guy is likely ordering a new boat from them.

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wakebrdr94

Maybe the dealer is waiving the fee as the seller might be trying to get into a new boat.  Even more impressive that you spoke to the seller as usually if someone is consigning, they don't want to deal with buyers

1 minute ago, oldjeep said:

Well, ultimately it is the buyer who is paying it;)  Take for example the typical Pop Yachts listing, buyer typically has boat listed privately for 10-15% less than the identical "broker" ad. 

.

But pop yachts is a joke.  Any other broker who is really helping the seller has the boat listed at market value to get the unit moved, not sit for months hoping for a high price.

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oldjeep
6 minutes ago, wakebrdr94 said:

Maybe the dealer is waiving the fee as the seller might be trying to get into a new boat.  Even more impressive that you spoke to the seller as usually if someone is consigning, they don't want to deal with buyers

But pop yachts is a joke.  Any other broker who is really helping the seller has the boat listed at market value to get the unit moved, not sit for months hoping for a high price.

A joke that seems to sell a lot of boats ;)

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buzzard

The seller volunteered that he's not buying a new boat, he's getting a divorce that is forcing the sale. Also, he's moved from the area where the boat is so that's why the dealership has it to show. Sorry I forgot to include that info.

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thtrog

Buzzard, If it's the boat for you, do your homework and make an offer based on what you think it's worth. I like the idea of the dealer handling the transaction and warranty transfer, my dealer also offered the buyer competitive financing.  Make sure which route would be best for you tax wise, in NC there's sales tax buying used from a dealer.

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Fffrank
19 minutes ago, oldjeep said:

A joke that seems to sell a lot of boats ;)

I worked with POP Yachts recently and although I didn't close a deal, their sales process made me realize how they sell so many boats.  They list them high -- but all of their ads say to make any reasonable offer -- then they qualify these offers with money down and a firm contract.  POP Yachts takes a solid, FIRM offer to a seller and then hopes they come down on their price and is willing to pay the commission for them arranging a buyer.  I don't see the boats they list move quickly but I suspect that eventually, the seller gets desperate and takes a market-realistic offer (minus the cut that POP takes.)

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buzzard
1 hour ago, thtrog said:

Buzzard, If it's the boat for you, do your homework and make an offer based on what you think it's worth. I like the idea of the dealer handling the transaction and warranty transfer, my dealer also offered the buyer competitive financing.  Make sure which route would be best for you tax wise, in NC there's sales tax buying used from a dealer.

Thanks Eddie. It is an out of state purchase. I've looked into NC sales tax.

 

I'm going to shoot you a PM.

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buzzard
2 hours ago, thtrog said:

Buzzard, If it's the boat for you, do your homework and make an offer based on what you think it's worth. I like the idea of the dealer handling the transaction and warranty transfer, my dealer also offered the buyer competitive financing.  Make sure which route would be best for you tax wise, in NC there's sales tax buying used from a dealer.

@thtrog...the forum software says you cannot receive messages.

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thtrog
3 minutes ago, buzzard said:

@thtrog...the forum software says you cannot receive messages.

Try again, I'll check back later...

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buzzard

Ok, it went through now.

Thanks!

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nyryan2001
15 hours ago, Chatty21VLX said:

Exactly. A consigned boat shouldn't be any more expensive than another used boat of the same type. If you're thinking about negotiating, the seller might have given the dealer a reserve price.

Wrong.  

 

A dealer sold used boat will sell for more than a private sold used boat.

The secret is out like 6-7 yrs ago.  Dealers will either outright refuse to service boats they didn't sell or will provide diminished or lesser service. Don't expect Malibu to enforce a nation-wide warranty even on a 1-2yr old boat.

 

You should get a steep discount on a private sale.... And expect top tier service from the dealer buying there and paying more.

 

 

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Chatty21VLX
9 hours ago, nyryan2001 said:

Wrong.  

 

A dealer sold used boat will sell for more than a private sold used boat.

The secret is out like 6-7 yrs ago.  Dealers will either outright refuse to service boats they didn't sell or will provide diminished or lesser service. Don't expect Malibu to enforce a nation-wide warranty even on a 1-2yr old boat.

 

You should get a steep discount on a private sale.... And expect top tier service from the dealer buying there and paying more.

 

 

Sorry, but i'm not wrong, at least in the case of my local non-malibu dealer. I should have been more clear in my statement by saying that they don't price consigned boats any higher than if the exact same boat was a trade in. The dealer will suggest an asking price to the owner, but the owner can tell the dealer a lower reserve price, and allow to negotiate on owner's behalf. Service or no service depends on the request of the owner. I have seen consigned boats that haven't even been washed. 

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Sixer
On 8/18/2016 at 9:28 PM, nyryan2001 said:

Wrong.  

 

A dealer sold used boat will sell for more than a private sold used boat.

The secret is out like 6-7 yrs ago.  Dealers will either outright refuse to service boats they didn't sell or will provide diminished or lesser service. Don't expect Malibu to enforce a nation-wide warranty even on a 1-2yr old boat.

 

You should get a steep discount on a private sale.... And expect top tier service from the dealer buying there and paying more.

 

 

I completely disagree with your statement regarding dealers refusing service or giving diminished services on boats not sold by them.  You must have a shady dealer.  Oh, and I COMPLETELY expect Malibu to do warranty work on a 1-2 year old boat.  And they have.

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