Used Boat Prices Falling

[The Hulk]

Add inflation to the mix .. ppl are a LOT further down than they may think or believe. 

Markets and portfolio value are the #1 driving factor for NEW boat sales.. 

Used market is toast already 

 

 

[Ronnie]

Wondering if The Hulk EVER has a good day.... 

[Steve B.]

For me it works either way in the used market. My trade in might deflate, but so will the buying price and any interest. An inflated sale price is nice but so will the buy price and it's interest.

That's maybe one of the coolest aspects of these toy's and how they hold value. 

Steve B.

[jjackkrash]

2 hours ago, Steve B. said:

For me it works either way in the used market. My trade in might deflate, but so will the buying price and any interest. An inflated sale price is nice but so will the buy price and it's interest.

That's maybe one of the coolest aspects of these toy's and how they hold value. 

Steve B.

Exactly.  After the first one the only thing that really matters is the price delta between the trade and the new one.  

Edited November 18, 2022 by jjackkrash

[granddaddy55]

23 hours ago, Murphys said:

I've traveled to Florida and North Carolina recently. All of the RV dealer lots I passed were packed with inventory. Much different than what was seen the previous couple of years. 

exact same on I 10 through the coast down south, same trips in ‘20 and ‘21 those lots were empty

[Steve B.]

RV's being a new purchase that customers tend to hold onto longer than new boat buyers maybe?

Steve B. 

[oldjeep]

4 hours ago, Steve B. said:

RV's being a new purchase that customers tend to hold onto longer than new boat buyers maybe?

Steve B. 

Alternately - a lot of RVs sold during COVID that are now on the used market practically new and cheap.  So the new ones are not selling as fast.

[justgary]

On 11/18/2022 at 5:03 PM, oldjeep said:

Alternately - a lot of RVs sold during COVID that are now on the used market practically new and cheap.  So the new ones are not selling as fast.

Indeed.  The "lemon lot" near me is full of RVs now.  It used to be a decent mix of cars, trucks, boats, and campers.  Now it has no trucks, maybe three boats, and the rest is campers.

[oldjeep]

4 hours ago, justgary said:

Indeed.  The "lemon lot" near me is full of RVs now.  It used to be a decent mix of cars, trucks, boats, and campers.  Now it has no trucks, maybe three boats, and the rest is campers.

Same sort of thing is happening with motorcycles.  Lot of Covid bikes sold to a lot of people who were new and are starting to decide that they are not riders.

[mxmark4]

I see the number of boats popping up is continuing to grow, but the prices still seem to be pretty high. Anybody purchasing a used boat right now that has negotiated a sweet deal off asking price? The last boat I looked at last week guys was probably 5k under msrp when he purchased it and wasnt interested in haggling. I just left and will wait and see if he gets more motivated as we get closer to the holidays. 

[RCorsa]

I would suspect dealers are the best way to get a deal as they are less emotional about what their boats are worth.  No person wants to admit they overpaid and their boat is worth 20-30% less than they paid for it a year ago.

I purchased my new M240/trailer for 230K (MSRP was 335) in September of 2021 and the dealer held it for me until March of 2022.  

The issues with dealers is "flooring costs" are based on variable daily interest rates and I think we all know what rates have done, so sitting inventory can be a cash flow killer.  I'm in the market for a new exotic/sports SUV and I talked to a huge dealer in Florida who has over 10M in floor inventory.  The SM told me they had a meeting with the owner and that they "need to sell" 200 of the 350 cars they are flooring by Jan 1.  This means great deals if you want to haggle.  

I also found a SUV locally a guy want to trade his SUV after 3 months because his new Bentley just arrived. He wants to trade it in so he can get the tax credit (in WA) but the dealer doesn't want to floor another car for reasons above so the guy is refusing to take delivery until they can find a buyer on his 3 month old SUV.  This means I can likely get an MSRP deal (most of these low milage 2022 are 30-50 over MSRP now) on his car.  Seller is happy as he gets out whole, gets to buy his new car and the dealer, while they are making nothing on the used car, also have no $ into it, and can make money on the Bentley.

Bottom line is deals are everywhere if you know how to look and can be a little patient. 2023 will certainly be a buyers market for all these reasons.....

 

 

[CaptainMorgan]

17 minutes ago, RCorsa said:

I would suspect dealers are the best way to get a deal as they are less emotional about what their boats are worth.  No person wants to admit they overpaid and their boat is worth 20-30% less than they paid for it a year ago.

I purchased my new M240/trailer for 230K (MSRP was 335) in September of 2021 and the dealer held it for me until March of 2022.  

The issues with dealers is "flooring costs" are based on variable daily interest rates and I think we all know what rates have done, so sitting inventory can be a cash flow killer.  I'm in the market for a new exotic/sports SUV and I talked to a huge dealer in Florida who has over 10M in floor inventory.  The SM told me they had a meeting with the owner and that they "need to sell" 200 of the 350 cars they are flooring by Jan 1.  This means great deals if you want to haggle.  

I also found a SUV locally a guy want to trade his SUV after 3 months because his new Bentley just arrived. He wants to trade it in so he can get the tax credit (in WA) but the dealer doesn't want to floor another car for reasons above so the guy is refusing to take delivery until they can find a buyer on his 3 month old SUV.  This means I can likely get an MSRP deal (most of these low milage 2022 are 30-50 over MSRP now) on his car.  Seller is happy as he gets out whole, gets to buy his new car and the dealer, while they are making nothing on the used car, also have no $ into it, and can make money on the Bentley.

Bottom line is deals are everywhere if you know how to look and can be a little patient. 2023 will certainly be a buyers market for all these reasons.....

Besides being less emotional, dealerships also have a better sense of the market via numerous sales vs a private seller that may only buy/sell a boat every few years.  So that makes it hard for a private seller to accept/see data that the market may not be what they hoped for.  And if they bought outright or took a loan a year or two ago, their personal 'flooring cost' may be much smaller than a dealership and thus willing to wait/hope for better deal.

[rennis]

5 hours ago, RCorsa said:

I also found a SUV locally a guy want to trade his SUV after 3 months because his new Bentley just arrived. He wants to trade it in so he can get the tax credit (in WA) but the dealer doesn't want to floor another car for reasons above so the guy is refusing to take delivery until they can find a buyer on his 3 month old SUV.  

 

gotta love that 6k GVWR threshold 

[BlindSquirrel]

I got an email from our "local" dealer today saying if you order new the price will be "better than the boatshow" and they will lock in the price, so no increases. Also they will lock in the rate if you finance. Good to see some urgency out there to sell.

 

[oldjeep]

11 minutes ago, BlindSquirrel said:

I got an email from our "local" dealer today saying if you order new the price will be "better than the boatshow" and they will lock in the price, so no increases. Also they will lock in the rate if you finance. Good to see some urgency out there to sell.

 

I get one of those every year from the local dealer.  Nothing new there.

[Steve B.]

3 hours ago, oldjeep said:

I get one of those every year from the local dealer.  Nothing new there.

Same. Slight differences this year is a few more slightly used inventory, and in my mind not bad asking prices overall. Still inflated, but that helps my trade in. 

Steve B.

[IXFE]

22 hours ago, RCorsa said:

I would suspect dealers are the best way to get a deal as they are less emotional about what their boats are worth.  No person wants to admit they overpaid and their boat is worth 20-30% less than they paid for it a year ago.

I purchased my new M240/trailer for 230K (MSRP was 335) in September of 2021 and the dealer held it for me until March of 2022.  

The issues with dealers is "flooring costs" are based on variable daily interest rates and I think we all know what rates have done, so sitting inventory can be a cash flow killer.  I'm in the market for a new exotic/sports SUV and I talked to a huge dealer in Florida who has over 10M in floor inventory.  The SM told me they had a meeting with the owner and that they "need to sell" 200 of the 350 cars they are flooring by Jan 1.  This means great deals if you want to haggle.  

I also found a SUV locally a guy want to trade his SUV after 3 months because his new Bentley just arrived. He wants to trade it in so he can get the tax credit (in WA) but the dealer doesn't want to floor another car for reasons above so the guy is refusing to take delivery until they can find a buyer on his 3 month old SUV.  This means I can likely get an MSRP deal (most of these low milage 2022 are 30-50 over MSRP now) on his car.  Seller is happy as he gets out whole, gets to buy his new car and the dealer, while they are making nothing on the used car, also have no $ into it, and can make money on the Bentley.

Bottom line is deals are everywhere if you know how to look and can be a little patient. 2023 will certainly be a buyers market for all these reasons.....

 

 

One difference between cars and boats…

Malibu dealers don’t have to pay flooring until May. So you may be able to get a decent deal right now, but it won’t be because they can’t afford to floor the boat. 

That Urus deal sounds sweet. Do you like the spec on it? 

[RCorsa]

Interesting to know about the lack of Malibu Flooring cost through the winter.  
 

Ok look yes - the urus is really loaded with options many of which I wouldn’t not have paid for (all the added leather on the car including the headliner which you can’t really even see and is super expensive) upgraded body panels massaging seats and things like night vision.  Off topic but a couple photos picked it up last night.   It’s a complete beast.  Now I need to buy 22 inch wheels and winter tires as no one makes winter tires for the 23s. 

Edited November 23, 2022 by RCorsa

[rennis]

jealousy is a slight understatement 

[DAI]

21 minutes ago, RCorsa said:

Interesting to know about the lack of Malibu Flooring cost through the winter.  
 

Ok look yes - the urus is really loaded with options many of which I wouldn’t not have paid for (all the added leather on the car including the headliner which you can’t really even see and is super expensive) upgraded body panels massaging seats and things like night vision.  Off topic but a couple photos picked it up last night.   It’s a complete beast.  Now I need to buy 22 inch wheels and winter tires as no one makes winter tires for the 23s. 

That’s awesome!  Congratulations!!!  

[oldjeep]

34 minutes ago, rennis said:

jealousy is a slight understatement 

YUp - thats it, I'm selling the house and buying a SUV 

[bcoppess23]

Can @RCorsa take each of us on a drive??  Congrats on being in your position to enjoy!

[RCorsa]

Haha  thanks guys.  Cars and surfing are my two passions!  Got her home for thanksgiving

Edited November 24, 2022 by RCorsa

[TenTwentyOne]

22 hours ago, IXFE said:

One difference between cars and boats…

Malibu dealers don’t have to pay flooring until May. So you may be able to get a decent deal right now, but it won’t be because they can’t afford to floor the boat. 

That Urus deal sounds sweet. Do you like the spec on it? 

That kinda depends though. The "free floor plan" is not free for the dealer. It is usually a little cheaper than paying the regular interest rate, but they do have a cost for it. That cost is based on current interest rates.

For instance, I was just billed for Boat A. The invoice cost, with floor plan, was $153,430 (no interest till april). Instead of floor planning it, I opted to just pay for the boat. In doing so, the cost on the boat was dropped to $149,915.00

Wells Fargo (or any other floor plan bank) does not just give away 6 moths of interest. They charge the manufacturer for it. The manufacturer then dangles it in front of the dealer, and says "looky looky! This wont cost you anything for 6 months!!". But it is really just hiding the cost.......

 

21 hours ago, RCorsa said:

Interesting to know about the lack of Malibu Flooring cost through the winter.  
 

Ok look yes - the urus is really loaded with options many of which I wouldn’t not have paid for (all the added leather on the car including the headliner which you can’t really even see and is super expensive) upgraded body panels massaging seats and things like night vision.  Off topic but a couple photos picked it up last night.   It’s a complete beast.  Now I need to buy 22 inch wheels and winter tires as no one makes winter tires for the 23s. 

Nice ride!

Up until last week, I had a set of snow wheels and sneakers that would have worked perfect for you. They only had 1500 miles on them, and I had them on Ebay for almost a year with no luck. Then last week I had to meet a realtor in the middle of a snow storm, and she was complaining about how scary her Q8 was in the snow that day........

Funny how it turned out- I made the sale that day, and she did not! But she now has a better looking 22" winter setup than her 20" summers.

[IXFE]

17 hours ago, TenTwentyOne said:

That kinda depends though. The "free floor plan" is not free for the dealer. It is usually a little cheaper than paying the regular interest rate, but they do have a cost for it. That cost is based on current interest rates.

For instance, I was just billed for Boat A. The invoice cost, with floor plan, was $153,430 (no interest till april). Instead of floor planning it, I opted to just pay for the boat. In doing so, the cost on the boat was dropped to $149,915.00

Wells Fargo (or any other floor plan bank) does not just give away 6 moths of interest. They charge the manufacturer for it. The manufacturer then dangles it in front of the dealer, and says "looky looky! This wont cost you anything for 6 months!!". But it is really just hiding the cost.......

Never said the bank was giving free flooring. Just that the dealers aren’t paying it. That’s the only way Malibu can keep the factory humming all year long. Otherwise, what dealer would stock up on late summer and fall deliveries?

Now… how Malibu accounts for that is something neither of us are privy to. In your case it would seem you’re seeing two invoice prices. I’ve been around the block more than once with Bu and never heard of nothing like that. Who knows? Maybe they peanut butter it across all boat volume? Wouldn’t be the first time… 

All I know is… Malibu dealers see it as enough of an incentive to keep the orders flowing smoothly all year long. And they will sit on a boat I order for months so long as the juice isn’t running…