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Big-Buyers Still Fence-Sitting

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Old 06-08-2010, 12:16 PM
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Default Big-Buyers Still Fence-Sitting

This is by no means "breaking news," but I caught up with Peter Hledin of Skater this morning, http://www.boats.com/boat-content/20...ut-still-wary/.

I am essentially optimistic—it's just who I am. But I'm also realistic.

I'll be interested in your take on what Mr. Hledin had to say.
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Old 06-08-2010, 12:24 PM
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clouds are not gone completly... europe and asia economy is not 100% solid. Many say another recession could be back due to overseas economy... that is what people around me speak about when talking about expensive toys...
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Old 06-08-2010, 01:04 PM
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If you read market watch their take on june un employment is down a net 200k. Need a positive 100k just to stay even with population growth. 1.5 million dissapeared in the latest government report according to the foot notes that's why unemployment keeps dropping with no increase in jobs. My take....jobless recovery...at best. At worst a double dip...not a good sign.
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Old 06-08-2010, 09:04 PM
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I think the 1/2 the issue is buying a new boat. The more important 1/2 is "who am I going to sell it to, in the event of a financial jam?"
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Old 06-08-2010, 09:33 PM
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“We have plenty of interest and inquiries,” he said. “It’s just really hard to get people to actually sign checks.”

People showing interest and window-shopping but not buying...well, it still = people not buying.

I don't think anything changes the equation here - in terms of this economy, people will remain cautious until things clearly show signs of picking up...and we're not there yet, by a long shot.

Watching this recovery is like watching hair grow...
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Old 06-09-2010, 01:03 AM
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Quote:
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“We have plenty of interest and inquiries,” he said. “It’s just really hard to get people to actually sign checks.”

People showing interest and window-shopping but not buying...well, it still = people not buying.

I don't think anything changes the equation here - in terms of this economy, people will remain cautious until things clearly show signs of picking up...and we're not there yet, by a long shot.

Watching this recovery is like watching hair grow...
Point taken and well made. I think John Cosker and Peter Hledin are talking about legitimate buyers who will, eventually, buy Mystics or Skaters. But getting them to sign on the line, if you will, is taking longer than it ever has.

Mystics and Skaters appeal to a clientele that generally doesn't need financing. But what about the guys buying in the $100,000 to $500,000 range. Here's what Dave Patanaude of Essex Credit had to say in a piece I did earlier this year, http://www.boats.com/boat-content/20...ot-impossible/.

Until the banks loosen up, things won't be easy.

I also think Jupiter, as usual, makes an excellent point. But at least from what I've been told, a lot of "distressed" inventory has been cleared. Not all of it, but a lot of it.
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Old 06-09-2010, 02:40 AM
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I thought I saw recent articles about Mystic trying to keep up with orders using 2 molds, cigarette sales pushes, and sunsation breaking sales records with the 36. Since loans are tight I thought it was only the heavy hitters buying boats.
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Old 06-09-2010, 08:01 AM
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Good article Matt, my .02 cents is that everyone is still waiting, according to gov reports on unemployment, those reports are skewed due to temporary hire-ring of census and gov workers for the current and next terms. I work in the automotive industry and my products are a luxury, although my sales are up from last years, last years sales were dismal. I don't think America has grasped the spend spend mentality of the government and more are pulling back and saving. I would be curious to see the same builders are I'm sure experiencing record figures in repairs and upgrades on the same vessels as banks loaning and funding have all but disappeared for these types of boats. (meaning as apposed to a person that is just able to write a check as to those that must finance say 50-70%). either way I wish all the builders mentioned continued success.
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Old 06-09-2010, 09:01 AM
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I would say the ability to sell a boat is the hardest point a buyer makes in buyin a new one. Even at 1/3 the cost of new it's going to be tough to sell.
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Old 06-09-2010, 09:48 AM
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Until the banks loosen up, things won't be easy.

I also think Jupiter, as usual, makes an excellent point. But at least from what I've been told, a lot of "distressed" inventory has been cleared. Not all of it, but a lot of it.
I think the banks are just re-evaluating the boat value process. Instead of doing whatever it takes to get it done they have switched to a loan on the base boat at wholesale value and make sure the buyer puts down a lot of money. Remember 5 years ago they were letting buyers put 10% down and out the door they go with a 20 year note on a boat that will be beat in 5 years!

The "distressed" new inventory from manufacturers with a big dealer network (Donzi, Fountain) has dried up somwhat but I think the next wave of used boats are around the corner. The guy with the 20 year note he signed in 2005 still has 15 YEARS worth of payments on a now 5 year old boat! Now the boat is worth about 1/4 of what he paid for it and is getting tired.......04-06 a lot of performance boats sold, more than any period of time in history I would guess.
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