Fair discount to MSRP 2020 boats

[audipwr1]

With all this uncertainty (and only certainty the boom days are over) trying to work out what's fair for price off msrp. Folks thoughts? 50%?

[UWSkier]

wouldn't really call that "fair" if I'm honest...

[ahopkins22LSV]

31 minutes ago, audipwr1 said:

With all this uncertainty (and only certainty the boom days are over) trying to work out what's fair for price off msrp. Folks thoughts? 50%?

50% off request will get you tol... asked to leave. It will all depend on the dealer but I would expect the same 15-20% right now. Maybe more if they weren’t having a good year to begin with. It all depends on how long the current state of everything lasts. 
 

The biggest discounts I’ve seen advertised are on select leftover 2019 models for 40% off. This was at Tommy’s. 

[NWBU]

You’re not going to find any dealers moving their boats below cost right now. If experience around here is worth anything, the dealers around here are buried with prepping and delivering all their special order boats.

They’re watching the current events closely and made some proactive adjustments a few weeks ago, but at this point they might not even qualify for the new stimulus $ since their business hasn’t been effected yet. That could change in the coming months but we’ll have to see how that plays out.

[dlb]

I doubt you will see anything above normal discounts until the recovery kicks in and demand going forward can be judged.  At the earliest that would be after Labor Day.

[audipwr1]

Thanks for your responses 

[Five Cent Worth]

2 hours ago, audipwr1 said:

50%?

[NWBU]

14 minutes ago, audipwr1 said:

Thanks for your responses 

To be clear, it’s definitely a buyer's market so there will be better deals than you would’ve seen last year this time, or even a month ago. Negotiate aggressively and I bet you’ll be happy with the deals some dealers are willing to make.

[Murphy8166]

If I was a dealer I'd make good strong deals, but not great deals like you see in July / August.  You have to think that if dealer inventory does not start to come down, Malibu will  consider offering another rebate program in the very early summer. 

My local dealer sold 3 boats last week and they are ahead on their numbers from the winter sales event and the boat shows we have in Feb.

Now is not the time to see how far you can bend your dealer over.  You can help them and they can certainly help.  For those that want to completely take advantage, you will be remembered when warranty work comes around and a tech just can't seem to get to your boat this week.    

[shawndoggy]

42 minutes ago, Murphy8166 said:

For those that want to completely take advantage, you will be remembered when warranty work comes around and a tech just can't seem to get to your boat this week.    

This is precisely the kind of bs that encourages the vultures when dealers are on the ropes. If I were a dealer right now I would be trying to max out any sources of recurring monthly revenue and not get hung out on financing inventory boats.
 

I certainly wouldn’t be trying to drive away potential service or storage customers just because I got butthurt over a lowball offer. In a down economy dealers don’t have the same luxury to be jerks as when business is booming. 

[RedWakesetterVLX]

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[audipwr1]

To be clear I’m Not trying to take advantage - the bull market is over people me included can’t afford 150k toys for the time being just the reality of the world 

[gregtay]

1 hour ago, Cazan said:

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I wonder if Malibu is kicking in money on these 2019 deals.  40% as your starting point in the deal seems pretty extreme.  It seems like a good deal to move some boats quickly but sort of sets the bar on where everyone will think about the dealer margin in these boats.

[NWBU]

1 hour ago, gregtay said:

I wonder if Malibu is kicking in money on these 2019 deals.  40% as your starting point in the deal seems pretty extreme.  It seems like a good deal to move some boats quickly but sort of sets the bar on where everyone will think about the dealer margin in these boats.

They very well might be since the auto makers do this all the time to move old inventory.
Then again, the dealers have been sitting on these 2019s and carrying the full flooring costs since before the model year changeover last June. In the meantime, they’ve all had to take an increased allotment of 2020s, so clearing out year old inventory at close to cost isn’t a bad move in this market.

[Chrismoe]

1 hour ago, gregtay said:

I wonder if Malibu is kicking in money on these 2019 deals.  40% as your starting point in the deal seems pretty extreme.  It seems like a good deal to move some boats quickly but sort of sets the bar on where everyone will think about the dealer margin in these boats.

Agreed. And, it might be the case that other (non-Tommy's) Bu dealers are asked to match Tommy's. For some smaller dealers that could be tough. Also, with Tommy's and likley other Bu dealers offering 40% off on new 2019 boats, the private-seller market is going to get squeezed for a while. While these new 2019 special deals are around why would somone buy a used 2017 or 2018 if for nearly the same price you can buy a new boat? 

These are carzy times. 

Chris

[Pnwrider]

1 hour ago, Chrismoe said:

Agreed. And, it might be the case that other (non-Tommy's) Bu dealers are asked to match Tommy's. 

That will not happen. Malibu’s are not sold on amazon. 

[gregtay]

9 minutes ago, Pnwrider said:

That will not happen. Malibu’s are not sold on amazon. 

I think what he means is that if I were in the market for a 2019 leftover right now and my local dealer had a 2019 in stock that I wanted I'd likely walk in an say "I want it for 40% off" and toss the ad from Tommy's on the desk (because that would seem "reasonable" since a reputable dealer is advertising that price on ALL 2019 (not just some ugly demo boat.)  Some smaller dealers may not have the financial structure to support that type of discount and it would be hard to convince a buyer they need to pay more.  

[Pnwrider]

1 hour ago, gregtay said:

"I want it for 40% off" and toss the ad from Tommy's on the desk (because that would seem "reasonable" since a reputable dealer is advertising that price on ALL 2019 (not just some ugly demo boat.) 

Where is the ad advertising 40% off? There is a reason territories exist, like it or not. 

[jhartt3]

dang it excludes the MLX or VLX.  picking that up for 40% off would be amazing. 50k all day!

[IXFE]

2 hours ago, jhartt3 said:

dang it excludes the MLX or VLX.  picking that up for 40% off would be amazing. 50k all day!

The nationally advertised selling price of the MLX and VLX is already heavily discounted. You can’t apply a discount on top of a discount. 

[Ronnie]

You can bet that these 40% deals are the bottom of the '19 inventory. The boats that were less optioned or unpopular colors. Some dealers inventory is deeper with '19's as well. The dealers that have only a few left will never go 40%. In the grand scheme of things, the volume dealers can balance out the profits from the high number of earlier '19 sales with the deeply discounted boats left over.

[gregtay]

1 hour ago, Ronnie said:

You can bet that these 40% deals are the bottom of the '19 inventory. The boats that were less optioned or unpopular colors. Some dealers inventory is deeper with '19's as well. The dealers that have only a few left will never go 40%. In the grand scheme of things, the volume dealers can balance out the profits from the high number of earlier '19 sales with the deeply discounted boats left over.

Exactly.. that's why the comment was made about smaller dealers not being able to balance things out. I just fear that people see one dealer offering 40% and that changes the mindset of buyers that could complicate an already complicated business for the smaller guys.  We want them all to make it through this.  But... if we go back in time to 2008/9 it was actually the smaller dealers who had managed their inventory that survived and the larger multi location dealers (ie: Cope & McPhetres) that closed their doors.  

[Chrismoe]

11 hours ago, gregtay said:

I think what he means is that if I were in the market for a 2019 leftover right now and my local dealer had a 2019 in stock that I wanted I'd likely walk in an say "I want it for 40% off" and toss the ad from Tommy's on the desk (because that would seem "reasonable" since a reputable dealer is advertising that price on ALL 2019 (not just some ugly demo boat.)  Some smaller dealers may not have the financial structure to support that type of discount and it would be hard to convince a buyer they need to pay more.  

Yup.

[BigRed]

I have only been looking at Axis A22-A24's. I haven't priced out a Malibu, but with the situation of COVID-19 the Malibu price point may now be in my line of sight.  Ballpark, what should I expect to pay for a 2020 22MXZ thats on the lot? I couldn't find any 2019 near me. $120k after all discounts in this market? Too low? I'm not looking to rake a dealer over coals as i want them to be around when it's time to repair the boat.  A fair deal for everyone in this market if you will.  Unfortunately, they don't list MSRP on the website for new boats. It's hard to gauge without going into the dealer, which are all closed right now!  I appreciate the responses!

[gregtay]

3 minutes ago, BigRed said:

I have only been looking at Axis A22-A24's. I haven't priced out a Malibu, but with the situation of COVID-19 the Malibu price point may now be in my line of sight.  Ballpark, what should I expect to pay for a 2020 22MXZ thats on the lot? I couldn't find any 2019 near me. $120k after all discounts in this market? Too low? I'm not looking to rake a dealer over coals as i want them to be around when it's time to repair the boat.  A fair deal for everyone in this market if you will.  Unfortunately, they don't list MSRP on the website for new boats. It's hard to gauge without going into the dealer, which are all closed right now!  I appreciate the responses!

Impossible to say what a fair price is on the boat you are looking at without a lot more details.  I would not expect any crazy deals on a new 2020 right now, maybe in September.. but not now.  The deals today are going to be on new old stock boats and the best deals are going to be on used boats where someone financed their 2018/19 Malibu and just lost their income source and they are looking to get rid of the $1000 payment ASAP.  It is still a little to early for a fire sale... the impact is just getting started and people have only had to make one payment so they can easily tell you no to your crazy offer.  As the roof starts to fall for some people in a few months they will be more willing to just take whatever money they can get and run with it.  If you want a 2020 boat expect to pay rather normal prices today (well documented on this site as to what a "normal price" is against the true Malibu MSRP (which the dealer should provide you if you ask.)  If you are dead set on the "the deal of the decade" then you need to hold off till the fall when boating season is wrapping up and there are people who have no choice but dumb their boats.